ACCT 2101 Augusta University Accounting Worksheet

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ACCT 2101 Principles of Accounting Augusta University Spring 2020 Dr. Lizzie Turner Test 1 Name:_____________________________ Total Assets Total Liabilities Retained Earnings Common. Stock Dividends Revenues Expenses January 1, 2017 $427,000 57,000 ? 115,000 January 1, 2018 $452,000 67,500 ? 115,000 (35,000) 311,000 ? What is the amount in Retained Earnings on January 1, 2017? (5 points) What is the amount in Retained Earnings on January 1, 2018? (5 points) What is the amount of Expenses during the year? (5 points) Did the company report Net Income or Net Loss? Amount? (5 points) Use the accounting equation to solve for unknown amounts. Show all your work. Make the journal entries for the following: (20 points) a. Richard started a business and contributed $10,000 and a building valued at $50,000 in exchange for common stock. b. Earned $12,000 for service revenue. $6000 was received and the rest has not been paid. c. Purchased equipment for $6,000, $1000 down payment and the rest on account. d. Paid $600 for office supplies. e. Employees earned $1600 in wages each week. They are usually paid on Monday. But the week is from Friday to Thursday (the business is only open 5 days a week (M-F) and wages are the same each day). The year ends on Thursday. Be careful: when was the last time they were paid and how much in wages have they earned since then? You are making the journal entry to accrue all the wages since the last time they were paid. f. Cash dividends of $700 were paid to stockholders. g. Received a bill for $250 for the monthly utilities. The bill has not yet been paid. DR a. b. c. d. e. f. g CR Isaiah’s Automotive Services: Adjustment data at 12/31: a. On December 9, Isaiah’s Automotive Services was contracted to preform services for a client, receiving $10,000 in advance. The services are maintenance contract on a fleet. Record this. By 12/31, Isaiah had performed $2,000 on the maintenance contract. Record this Adjustment. b. Isaiah prepaid six months of rent on November 1 (Assume the Prepaid Rent balance as shown on the unadjusted trial balance represents the 6 months of rent prepaid on November 1). Make the adjusting entry. c. Isaiah purchased $600 in supplies on Dec. 10. d. Depreciation for the equipment was recorded. Assume the equipment has a residual value of $1,000 and Isaiah plans on using it 5 years. They have owned it 6 months of this year. Use straight-line. e. Isaiah received a bill for online advertising, $550. The Company will not pay for it until January. f. On 12/31, Isaiah had $800 in supplies. Don’t forget the purchases in part c. 1. Journalize the transactions and adjusting entries. 2. Prepare the Adjusted Trial Balance. Isaiah’s Automotive Services Unadjusted Trail Balance December 31, 2018 Account DR. Cash 6,100 Accounts receivable 17,100 Prepaid Rent 12,400 Office Supplies Inventory 1,600 Equipment 20,000 CR. Accumulated Depreciation-Equipment Accounts Payable 4,700 Salaries Payable 1,600 Unearned Revenue Common Stock 38,000 Retained Earnings 25,600 Dividends 8,000 Service Revenue 25,000 Salaries Expense 20,000 Rent Expense 8000 Depreciation Expense Advertising Expense 1,700 Supplies Expense Total 94,900 DR. a. b. c. d. e. f. CR Isaiah’s Automotive Service Adjusted Trail Balance December 31, 2018 Account Cash Accounts receivable Prepaid Rent Office Supplies Inventory Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense Advertising Expense Supplies Expense Total DR. CR. Multiple Choice (20 points)_______________________________________________________ Accounting Equation (20 points)___________________________________________________ Journal Entries (20 points)________________________________________________________ Adjusting Journal Entries (20 points)________________________________________________ Adjusted Trial Balance (20 points)_______________________________________________ Total_________________________________________________________________________
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ACCT 2101
Principles of Accounting
Augusta University
Spring 2020
Dr. Lizzie Turner
Test 1
Name:_____________________________

Total Assets
Total Liabilities
Retained Earnings
Common. Stock
Dividends
Revenues
Expenses

January 1, 2017
$427,000
57,000
?
115,000

January 1, 2018
$452,000
67,500
?
115,000
(35,000)
311,000
?

What is the amount in Retained Earnings on January 1, 2017? (5 points)
Retained earnings = Total Assets –Total Liability
$427,000- $57,000
= $370,000
What is the amount in Retained Earnings on January 1, 2018? (5 points)
Retained earnings = Beginning Period Retained Earning+ Net Income/ Loss- dividends-Stock
dividends
370,000+202000 -35000
=$537,000
What is the amount of Expenses during the year? (5 points)
Assets=liabilities + ( Revenues-(expenses + Dividends))
452,000= 67,000+ (311,000-(E+35000)
452,000-67,000={311,000-(E+35,000)}
385,000={311,000-(E+35000)}
385,000-311000=-(E+35000)
74000=E-35000
E=74000+35000
=109,000
Did the company report Net Income or Net Loss? Amount? (5 points)
The company reported a Net income of $202,000
Net Income = 311000- 109,000
=$202,000
Use the accounting equation to solve for unknown amounts. Show all your wor...