1. EX.01.04. ALGO (Algorithmic) Accounting Equation The total assets and total liabilities (in millions) of ABC Corporation and XYZ Corporation follow : ABC XYZ Assets $28,474 $27,620 Liabilities 12,529 13,258 Determine the stockholders' equity of each company ABC Corporation stockholders' equity milion $ $ XYZ Corporation stockholders' equity million 2. PR.02.02A.BLANKSHEET.ALGO (Algorithunic) Journal entries and trial balance Instructions On October 1, 2016, Jay Crowley established Affordable Realty, which completed the folowing transactions during the month: Oct 4 1 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock. $32,500. 2 Paid rent on office and equipment for the month, 2,350 3 3 Purchased supplies on account $2.250. Paid creditor on account, $900. 5 Eamed sales commissions, receiving cash, 316,300 Paid automobile expenses (including rental charge) for month, $1,650, and miscellaneous expenses S620 7 Paid office salaries. $3.000 Determined that the cost of supplies used was $1.100 9 Paid dividends, $3.000. 1. Sourate entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account tales. 2 Post the journal entries to the Tessur selecting the appropriate date to the left of each amount to identify the transactions Delermine the account balancas, atar all posting is complete Accounts containing only a single artry do not need a balance 3. Prepare an wasted trial balance as of October 31, 2076. 4. Determine the following 4. Amount of total terve recorded in the sides Amout of total expenses recorded in the ledger c Amour af not income for October 5. Dotermine the increase or decrease in plained anonicas for October Chart of Accounts CHART OF ACCOUNTS Affordable Realty General Ledger ASSETS REVENUE 1 11 Cash 41 Sales Comissions 12 Supplies LIABILITIES EXPENSES 51 Rent Expense 52 Once Salaries Expense 53 Automobile Expense 21 Accounts Payable EQUITY 54 Supplies Expense 55 Miscelaneous Expense 31 Common Stock 33 Dividends Journal 1. Jumala antrias tar transactions Oct. I though 9. Refer to the Chart of Accounts for exact wording of account es PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDE ASSETS LABETES EQUITY 1 2 1 4 5 1 1 9 10 :: 14 37 . - T Accounts 2. Post the journal entries to the accounts selecting the appropriate date to the left of each amount to identify the transactions, Determine the account balances, ater al posting is complete. Accounts containing only a single entry do not need a balance Cash Bal. Supplies Bal. Accounts Payable Bal Common Stock Dividends Sales Commissions Rant Expense Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense Unadjusted Trial Balance 3. Prepare an wadusled trial balance as of October 31, 2016 Affordable Realty UNADJUSTED TRIAL BALANCE October 31, 2016 ACCOUNT TITLE DEBIT CRENT Cash Supplies 1 Accounts Payable + Common Stock $ Olidends & Sales Commissions Rent Expense Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense 2 Totals Final Questions 4. Determine the following. 2. Amount of total revenue recorded in the least. $ t.Amount of total expenses recorded in the ledger. S c. Amount of net income for Odober. $ 5. Determine the increase or decrease in seined camisas for October . IS 3. PR.03.05A.BLANKSHEET ALGO (Algorithmic) Adjusting entries and adjusted trial balanses Instructions Sears Editing Company is a small editorial services company owned and operated by Delor's Sears. On January 31, 2001, the end of the current year. Sears Editing Company's accounting clerk prepared the following unagusled trial balance. Sears Editing Company UNADJUSTED TRIAL BALANCE January 31, 2011 ACCOUNT TITLE CREDIT DEBIT 713500 1 Cash 2 Accounts Receivable 37,950.00 7.045.00 3 Prepaid Insurance 1,895.00 Supplies 5 Land 116,150.00 14875000 58.280.00 Building ? Accumulated Depreciation Building Equipment Accumulated Depreciation Equipment e Accounts Payable 133,80000 97280.00 12 145.00 6970.00 1 Unearned Rent 74735.00 12 Common Stock 13 Retained Earnings 147950.00 + Dividends 15,50000 15 Fees Eamed 320650.00 14 Salaries and Wages Expense 17 Uities Expense 190,770.00 42,73000 22,595.00 Advertising Expense 19 Repairs Expense 20 Miscellaneous Expense 17.42000 6,470.00 23 Totals 748,010,00 748 010.00 The data needed to determine year-end adjustments are as follows a Unexpired insurance January 31, S6,080 b. Supples on hand January 31, 9470 . c. Decreciation of building for the year, 57.245. d. Depreciation of equipment for the year, S4,140 e Ront uneared at January 31, 81,200 . Accrued salaries and wages at January 31, 53,560. 9. Fees earned but unbiled on January 31, $11.125. Required: 1. Journaize the adusting artries using the following adalonal accounts Salaries and Wages Payable: Rent Revenue Insurance Expense; Depreciation Excene-Building Depreciation Expense-Equiment and Supplies Expense. Refer to the Chart of Accouts for exact wording of accounties 2 Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance , Chart of Accounts CHART OF ACCOUNTS Sears Editing Company General Ledger ASSETS 11 Cash REVENUE 41 Fees Earned 42 Rent Revenue 12 Accounts Recevable 13 Prepaid insurance 14 Suppies 15 Land EXPENSES 51 Salaries and Wages Expense 52 Ulirties Expense 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation Equipment 53 Advertising Expense 54 Repairs Expense 55 Depreciation Expense-Building 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense LIABILITIES 21 Accounts Payable 22 Uneamed Rent 23 Salaries and Wages Payable EQUITY 31 Common Stook 32 Retained Earnings 33 Dividends Journal 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable: Rent Revenue Insurance Expense, Depression Expense-Buiting Depreciation Expense Equipment and Supplies Expense. Refer to the Chart Accounts for exact wording of accountles. PAGE 10 JOURNAL ACCOUNTING EQUATION DAT! DESCRIPTON POST RAF DET CREDIT ASSETS LIARIMES EQUITY 1 Adjusting Entries 3 3 1 4 5 7 7 1 + 10 Adjusted Trial Balance 2 Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance Sears Editing Company ADJUSTED TRIAL BALANCE January 31, 2011 ACCOUNT TITLE DEBIT CREDIT Cash Accounts Receivable 1 Prepaid Insurance + Supplies Land * Building Accumulated DepreciationBuilding 1 Equipment Accumulated Depreciation Equipment Accounts Payable 11 Unearned Rent - Salaries and Wages Payable : Common Stock + Retained Earnings 15 Dividends Fees Eamed Rent Revenue Salaries and Wages Expense 9 Usaties Expense a Advertising Expense 2: Repairs Expense 22 Depreciation Expense-Bulding 21 Depreciation Expense-Equipment 24 Insurance Expense 25 Supplies Expense 24 Miscellaneous Expense 27 Totals 4. EX.04.14 Identifying Accounts to be closed From the following list, identify the accounts that should closed to retained Earnings at the end of the fiscal year. a. Accounts Payable b. Accumulated Depreciation-Equipment c. Depreciation Expense-Equipment d. Equipment e. Common Stock 1. Dividends 9. Fees Earned h. Land i. Supplies 1. Supplies Expense k. Wages Expense 1. Wages Payable 5. EX.04.23.ALGO (Algorithnic) Appendix 1: Financial Statements From an End-of-Period Spreadsheet Alert Security Services Co. offers security services to business clients. Alert Security Services Co. End-of-Period Spreadsheet For the Year Ended October 31, 2043 Adjusted Trial Balance Income Statement Balance Sheet Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 414 Accounts Receivable 3,036 Supplies 138 Prepaid Insurance 104 Land 3,450 Equipment 1,380 Accum. Depr.-Equipment 276 Accounts Payable 1,242 Wages Payable 138 Common Stock 40 Retained Earnings 5,964 Dividends 276 Fees Earned 3,381 Wages Expense B2B Rent Expense 414 Insurance Expense 345 Utilities Expense 242 Supplies Expense 207 Depreciation Expense-Equip. 138 Miscellaneous Expense 69 11,041 11,041 Prepare an income statement for Alert Security Services Co. Alert Security Services Co. Income Statement For the Year Ended October 31, 20Y3 Expenses $ Total expenses Prepare a statement of stockholders' equity for Alert Security Services Co. During the year anded October 31, 20Y3, common stock of $5 was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Alert Security Services Co. Statement of Stockholders' Equity For the Year Ended October 31, 2013 Common Stock Retained Earnings Total Prepare a balance sheet for Alert Security Services Co. a Alert Security Services Co. Balance Sheet October 31, 2013 Current assets Total current assets Property, plant, and equipment: $ $ Total property, plant, and equipment , , Total assets Labilities Current liabilities $ Total liabilities Stockholders Eoulty ' $ Total stockholders' equity Total liabilities and stockholders' equity 6. EX.05.15. ALGO (Algorithmic) Determining Amounts to be paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period Merchandise Freight Customer Returns Invoice Amount Paid by Seller and Allowances a. $19,300 FOB destination, n/30 $1,000 b. 11,600 $500 FOB shipping point, 2/10, n/30 1,400 c 5,600 FOB shipping point, 1/10, n/30 SOO d. 2,900 100 FOB shipping point, 2/10, 1/30 400 2,400 FOB destination, 1/10, 1/30 a. S b. $ C. $ e. 7. EX.06.13. ALGO (Algorithnic) Periodic inventory by three methods, cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units at $112 Mar. 10 Purchase 70 units at $124 Aug. 30 Purchase 30 units at $132 Dec. 12 Purchase 50 units at $138 There are 60 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending Inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Ending Inventory and cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First-in, first-out (FIFO) $ Last-in, first-out (LIFO) Weighted average cost 8. EX.07.18. ALGO (Algorithunic) Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 206 1. Cash balance according to the company's records at August 31, $17,920. 2. Cash balance according to the bank statement at August 31, $19,030 3. Checks outstanding, $3,640. 4. Deposit in transit, not recorded bank, $2,920 5. A check for $270 in payment of an account was erroneously recorded in the check register as $720 6. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 13 Creative Design Co. Bank Reconciliation August 31, 2016 Cash balance according to bank statement 5 Adjusted balance $ Cash balance according to company's records Adjusted balance b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)? 9. EX.08.04. ALGO (Algoritlunic) Entries for Uncollectible Receivables, using Allowance Method Joumalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables May 24 Sold merchandise on account to Old Town Cafe, $14,500. The cost of goods sold was $10,400 Sept. 30 Recened $3,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $11,500 cash in full payment If an amount box does not require an entry, leave it blank. . May 24-sale May 24-cost Sept. 30 Dec. 7-reinstate Dec. 7-collection 10. EX.08.10.ALGO (Algorithmic) Adjustment for Uncollectible Accounts Below is the aging of receivables schedule for Evers Industries Aging-of-Receivables Schedule November 30 1-30 31-60 61-90 Over 90 Not Days Days Days Days Customer Balance Past Due Past Due Past Due Past Due Past Due Subtotals 616,100 363,500 135,500 55,400 30,800 30,900 12,400 19,800 9,100 Boyd Industries 12,400 Hodges Company 19,800 Kent Creek Inc 9,100 Lockwood Company 8,000 8,000 Van Epps Company 28,800 28.800 Totals 694,200 392,300 143,500 Percentage uncollectible 29% 6% Allowance for Doubtful Accounts 71,941 7,846 8,610 64,500 25% 16,125 50,600 35% 17,710 43,300 50% 21,650 Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $ 15,110 before adjustment on July 31. Joumalize the adjusting entry for uncollectible accounts as of July 31 . July 31