1-Given the following list of accounts and their amounts for Hayden's Co. in alphabetical order, Prepare a trial balance for December 31, 2009 as it should be presented. Accounts Payable 5,000 Accounts Receivable 3,000 Advertising expense 400 Building 18,000 Capital stock 14,100 Cash 6,500 Dividends 1,600 Land 26,000 Notes Payable 15,000 Revenue 31,000 Retained Earnings ? Supplies 700 Utilities expense 900 Wage expense 13,250 Wages Payable 3,050 2- The following trial balance of Brian's Pickle Co for June 30, 2010 does not balance. Cash $21,860 Accounts Receivable 35,000 Supplies 3,640 Building 51,000 Note Payable S15,500 Owners' Equity 30,000 Retained Earnings 10,000 Revenue 39,500 Expenses 25,000 Total S136,500 $95,000 The following errors were discovered: A purchase of supplies for cash was posted as $40 when it should have been $400. The first two numbers of the amount for notes payable were transposed while being copied from the account balance to the trial balance. The correct amount of Notes Payable should be $51,500. A collection of cash was debited to the cash account in the amount of $5,500 but was not credited to the Revenue account. A purchase of supplies for $725 on account was not recorded. Instructions: Prepare a corrected trial balance! 3- Recording transactions directly General Journal and posting each transactions to the T accounts; On July 20, Mollie Rose began a new business called MR Printing, which provides typing, duplicating, and printing services. The following six transactions were completed by the business during July. (A.) Issued to Rose 1,000 shares of capital stock in exchange for her investment of $200,000 cash. (B.) Purchased land and a small building for $450,000, paying $165,000 cash and signing a note payable for the balance. The land was considered to be worth $240,000 and the building $210,000. (C.) Purchased office equipment for $30,000 from Quality Interiors, Inc. Paid $17,000 cash and agreed to pay the balance within 60 days. (D.) Purchased a motorcycle on credit for $3,400 to be used for making deliveries to customers and agreed to make payment to Spokes, Inc. within 10 days. (E.) Paid in full the account payable to Spokes, Inc. (F.) Borrowed $30,000 from a bank and signed a note payable due in six months. Instructions (B.) Prepare a trial balance at July 31. Cash Office Equipment Notes Payable Land Delivery Equipment Accounts Payable Buildings Capital Stock a 4- Recording transactions in general journal Enter the following transactions in the two-column journal of Baumann Bathrooms. Include a brief explanation of the transaction as part of each journal entry. Mar 1 Borrowed $90,000 cash from the bank by signing a 90-day note payable 3 Issued an additional 5,000 shares of capital stock in exchange for $40,000 cash 4 Purchased an adjacent vacant lot for use as parking space. The price was $70,000, of which $30,000 was paid in cash; a note payable was issued for the balance. 8 Acquired shop equipment from Elite Baths for $5,400 cash. 8 Collected an account receivable of $2,900 from a customer, Beekman Art Shoppe 9 Issued a check for $1,060 in full payment of an account payable to Austin Industries, Inc. General Journal Date 20 Mar 1 3 4 8 8 9 5- Indicate the best answer for each question in the space provided. The account balances for Creative Band, Inc. as of May 31, 2009, are listed below in alphabetical order: Accounts Payable.. $12,000 Equipment $18,000 Accounts Receivable $14,000 Land... $52,000 Building. $42,000 Notes Payable $30,000 Cash $8,000 Capital Stock $92,000 On June 3, Creative Band, Inc collected $4,000 of its accounts receivable and paid $7,000 of its accounts payable. In addition, $2,000 of additional shares of capital stock are issued for $5,600 5.1 Refer to the above data. In a trial balance prepared on May 31, 2009, the sum of the debit column is: $120,000 c $134,000. b $156,000. d Some other amount. a 5.2 Refer to the above data. On June 4, the balance in the Cash account is: $17,600. $10,600. b $ 5,000. d Some other amount. a 5.3 Refer to the above data. On June 4, the balance in the Capital Stock account is: $86,400. $94,000. b $97,600. d Some other amount. a 5.4 Refer to the above data. In a trial balance prepared on June 4, the sum of the credit column is: $130,000 $127,000 b $132,600. d Some other amount. a 5.5 Refer to the above data. On June 6, the bookkeeper for Creative Band, Inc makes this entry: Equipment... 7,400 Cash 4,200 Accounts Payable 3,200 This transaction: Decreases total assets. Involves the sale of equipment for $7,400. Increases total assets $7,400. d Increases liabilities a b 6) Some of the transactions carried out by Tsang Company during the first month of the company's existence are listed below. You are to determine the dollar effect of each transaction on the total assets, the total liabilities, and the owners' equity of Tsang Company. Use the symbols (+) for increase, (?) (-) for decrease, and (NC) for no change. An answer is provided for the first transaction to serve as an example. Total Total Owners Transaction Assets Liabilities Equity A. Issued capital stock to Don Tsang in +$200,000 NC +200,000 exchange for his investment of $200,000 in the business B. Purchased a computer for the business for $5,500 cash. C. Borrowed $20,000 from the bank. D. Purchased office furnishings at a total price of $4,200, terms $600 cash and balance payable in two installments. E. Paid $1,800 of the balance due on the office furnishings F. Sold an extra monitor that had cost $250 for $300 on credit G. Collected $150 of amount receivable from purchaser of the monitor. H. Bought a small truck to be used in the business for $29,000; paid cash in full. 7) Which of the following is correct if at the end of Crystal Imports' first year of operations, assets are $800,000 and owners' equity is $720,000? A The owner must have invested $720,000 to start the business. B. The business must be operating profitably. C. Liabilities are $80,000. D. Liabilities are $1,520,000. 8) Prepare the Statement of Financial Position as of December 31, 2009, for Gamma Company, from the following list of items which are arranged in random order. You must compute the amount for accounts payable to complete the Statement of Financial Position. Accounts payable.. Office equipment Buildings... Capital stock $41,600 S533,000 S494,000 Land Notes payable. Accounts receivable. Cash $260,000 $377,000 $97,500 $19,760