1. Journalize the following accrued Expense transactions:

a. XYZ Company purchased a one-year insurance policy on August 1, 2012 and paid $280,000 cash to MetLife insurance company. Journalize the insurance transactions on the following dates:

August 1, 2012

December 31, 2012

July 31, 2013

ABC Co. borrowed $420,000 at 6% rate on June 1, 2012 payable in 12 months, and signing a note payable (N/P). Journalize on: Jun 1, 2012, December 31, 2012 and may 31, 2013.

Office Supplies inventory account of VCX Co. had a beginning balance of $72,000 on January 1, 2013. During 2013 the VCX Company purchased $450,000 of supplies. The ending supplies inventory of 2013 is $88,000 on December 31, 2013.

Determine the cost of supplies in 2013 and journalize purchase and use of supplies transactions on December 31, 2013.

2. Journalize the following accrued revenue transactions:

A. PRV Bank extended $400,000 credit at 5% interest to a customer on April 1, 2012 for one year (N/R). The principal and interest rates will be collected on March 31, 2013. Journalize the transactions on the following dates:

April 1, 2012

Dec. 31,2012

March 31,2013

ETN Insurance Company sold an insurance policy and collected $210,000 cash on October 1, 2012 from the customer for one-year coverage. Please journalize on the following dates:

October 1, 2012

December 31, 2012

September 31, 2013

XYZ Co. collected $1,800,000 cash (advances) from a customer on November 22, 2012 with promise to deliver merchandise on March 1, 2013. Cost or the merchandise to xyz company: $1,100,000.

Journalize on:

November 22, 2012

December 31, 2012

Delivery March 1, 2013

5. Prepare a Multi-step Income Statement for DFG company using the following data related to the operations of Jan. 1 Dec, 31, 2013 period.

Tax rate 35%.

Sales revenue $3,450,000

Sales Commission expense 245,000

Utilities Expense 90,000

Cost of the Goods sold 1,320,000

Depreciation expense 240,000

Salaries and wages expanses 515,000

Supplies expense 180,000

Loss from extra-ordinary items $260,000

Loss from Discontinued operation 300,000

Report: Gross Margin, Income from operations, Income tax, Net Income from operations (after tax), Loss from extraordinary items-net of tax. Loss from discounted operations-net of tax. Net income.

6. Prepare Retained Earning statement of BNM Company for Dec. 31, 2013 from the following information:

Retained earnings, Jan 1, 2013 $2,340,000

Dividends paid during 2013 550,000

Net Income of 2013 1,234,000