1.Phipps Company borrowed $25,000 cash on October 1, 2010, and signed a six-month, 8% interest-bearing note payable with interest payable at maturity. Assuming that no adjusting entries have been made during the year, what is the amount of accrued interest payable to be reported on the December 31, 2010 balance sheet?

2.. On January 1, 2011, the general ledger of Global Corporation included supplies inventory of $2,000. During 2011, supplies purchases amounted to $6,000. A physical count of inventory on hand at December 31, 2011 determined that the supplies inventory was $1,300. How much is the 2011 supplies expense?

3. A company reported the following information for its most recent year of operation: purchases, $300,000; beginning inventory, $20,000; and cost of goods sold, $10,000. How much was the company's ending inventory?

4.The following data were taken from the records of Lilo Corporation for the year ended December 31, 2010:

Sales 900,000 Sales returns and allowances 10,000 Selling and administrative expenses 170,000 Cost of goods sold 510,000 The income tax rate is 35%. Based on the above data, prepare a multiple-step income statement using good form. Include gross profit and pretax income. Use the form below.

5. For each of the accounts listed below, indicate whether they would be classified as an

ASSET (A) , LIABILITY (L), STOCKHOLDERS EQUITY (SE), REVENUE (R), EXPENSE (E)

______ Inventory ______ Prepaid insurance

______ Notes payable ______Accounts payable

______ Retained earnings ______Cost of Goods Sold

______ Equipment ______Cash

______ Accounts receivable ______ Wage Expense

______Revenue ______Contributed capital