5,000 4,000 27,000 94,000 13,000 8.000 Below is your Trial Balance for the START of the Current Year (this is given to you): Cash Accounts receivable Supplies Land Equipment Accumulated depreciation (on equipment) Other noncurrent assets (not detailed to simplify Accounts payable Wages payable Interest payable Dividends payable Income taxes payable Long-term notes payable Common stock (40,000 shares. $.10 par value) Additional paid-in capital Retained earnings Sales revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 4.000 96,000 25,000 138,000 138,000 Below are the TRANSACTIONS for the current year: e. a. Sold 5,000 additional shares of capital stock for cash at $10 market value per share on Jan. 1, Current Year. b. Bought farmland on April 2011, Current year, paid cash, $19,000 c. Your most jolly customer, Papa Noel, paid you the remaining $40,000 they owed you on December 25th. d. You signed a three-year $45,000 service contract on December 17, 2020 to start February 1, 2021. Incurred $101,000 in wages expense and $42,000 in other (non-salary) expenses for Current Year, $38,000 of which was on credit and the rest paid in cash. f. Borrowed $24,000 cash on July 1, signing a one-year, 10% note payable 8. Purchased a used truck for use in your business on November 4 for $9,750 cash. h. Declared cash dividends on December 15, for $20,000, and you paid it on December 31. i. Purchased supplies in cash on December 1, $33,000 j Paid accounts payable on December 15, $36,000 k Earned $308,000 in Sales Revenue. Transactions dated August 30, Current Year, including $69,000 on credit and the rest in cash. Other Considerations (read: adjusting entries): 1 HELLO YOU HAD A LOAN SO YOU OWE INTEREST IF YOU FORGET THIS ADJUSTING ENTRY ON THE EXAM I WILL CRY BECAUSE USUALLY YOU WON'T BE REMINDED ABOUT THIS..the rest you're GIVEN numbers for. m. Supplies Inventory Count on 12/31 revealed an ending balance of $24,000. n. Depreciation for the year on the equipment, $15,000. You use Moussa CPA for your taxes, so you only owed $404 in Income tax expense. p. Wages earned by Joshua & other employees since the December 15 payroll but not yet paid $15,000. 0 Note: Parts 1& 4 are the "core" of the exam (if you get JEs wrong, your data is wrong for T-Accounts, TB, IS, BS, RE, etc.) So I would focus A LOT on JEs and on I would also make sure you know the format for the financial statements and how Net Income flows into Retained Earnings which flows into the Balance sheet (which has to balance). These parts of the exam also have more points tied to them than any other part of the exam (still study ratios though!) 5,000 4,000 27,000 94,000 13,000 8.000 Below is your Trial Balance for the START of the Current Year (this is given to you): Cash Accounts receivable Supplies Land Equipment Accumulated depreciation (on equipment) Other noncurrent assets (not detailed to simplify Accounts payable Wages payable Interest payable Dividends payable Income taxes payable Long-term notes payable Common stock (40,000 shares. $.10 par value) Additional paid-in capital Retained earnings Sales revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 4.000 96,000 25,000 138,000 138,000 Below are the TRANSACTIONS for the current year: e. a. Sold 5,000 additional shares of capital stock for cash at $10 market value per share on Jan. 1, Current Year. b. Bought farmland on April 2011, Current year, paid cash, $19,000 c. Your most jolly customer, Papa Noel, paid you the remaining $40,000 they owed you on December 25th. d. You signed a three-year $45,000 service contract on December 17, 2020 to start February 1, 2021. Incurred $101,000 in wages expense and $42,000 in other (non-salary) expenses for Current Year, $38,000 of which was on credit and the rest paid in cash. f. Borrowed $24,000 cash on July 1, signing a one-year, 10% note payable 8. Purchased a used truck for use in your business on November 4 for $9,750 cash. h. Declared cash dividends on December 15, for $20,000, and you paid it on December 31. i. Purchased supplies in cash on December 1, $33,000 j Paid accounts payable on December 15, $36,000 k Earned $308,000 in Sales Revenue. Transactions dated August 30, Current Year, including $69,000 on credit and the rest in cash. Other Considerations (read: adjusting entries): 1 HELLO YOU HAD A LOAN SO YOU OWE INTEREST IF YOU FORGET THIS ADJUSTING ENTRY ON THE EXAM I WILL CRY BECAUSE USUALLY YOU WON'T BE REMINDED ABOUT THIS..the rest you're GIVEN numbers for. m. Supplies Inventory Count on 12/31 revealed an ending balance of $24,000. n. Depreciation for the year on the equipment, $15,000. You use Moussa CPA for your taxes, so you only owed $404 in Income tax expense. p. Wages earned by Joshua & other employees since the December 15 payroll but not yet paid $15,000. 0 Note: Parts 1& 4 are the "core" of the exam (if you get JEs wrong, your data is wrong for T-Accounts, TB, IS, BS, RE, etc.) So I would focus A LOT on JEs and on I would also make sure you know the format for the financial statements and how Net Income flows into Retained Earnings which flows into the Balance sheet (which has to balance). These parts of the exam also have more points tied to them than any other part of the exam (still study ratios though!)
