Accounting Exam

Spring 2017

The following are transactions for the account period of 1/1/2017 through 1/31/2017 for the Sandys East Coast Kitesand Novelties, a sole proprietorship owned by Windy Uberflier. Create the following documents for the end of day on 1/31/17: T Account ledger, Trial Balance, Income Statement, Statement of Owners Equity, Balance Sheet. Remember, you must make adjusting entries on some accounts on the 31st.

a) 1/1/17 - Deposited $53,000 into a business bank account for the company.

b) 1/1/17 - Signed a lease for retail and manufacturing space and paid cash for the first six months rent of $4,200.

c) 1/1/17 - Bought office supplies to be used immediately from Deweys Office and Hunting Supply on account for $600 cash.

d) 1/1/17 - Bought a one-year liability insurance policy from Louies Ducky Insurance Company and Nail Salon for $12,000 cash.

e) 1/1/17 - Bought novelty inventory with a wholesale value of $5,000, paying $2,500 in cash and promising to pay the balance on 2/1/17.

f) 1/2/17 - Bought a Chevy truck from Donalds Truck and Egg Supply with an extended bed and saddle tanks for $23,000 cash.

g) 1/3/17 - Bought a truck shell from Hueys Truck Accessories and Novelties for $2,500 on account.

h) 1/4/17 - Invested personal computer equipment to the company having a fair market value of $3,400.

i) 1/10/17 - Signs a contracted to perform a Kite Demo in Philadelphia on 1/31/17 and is paid $2,500 cash.

j) 1/11/17 - Paid Hueys Truck Accessories and Novelties$1,500 cash.

k) 1/11/17 - Purchased an ad in the local newspaper The Righteous Dempublicrat for $200 on account.

l) 1/17/17 - Performed a Kite Demo to the Boys and Girls Club of Greater Hoboken with a promise to receive $2,500 cash from Scrooge McDuck by 2/1/17.

m) 1/18/17 - Paid $1,000 cash to Hueys Truck Accessories and Novelties.

n) 1/1 /17 - Purchased 45 gallons of gas for truck for $160cash.

o) 1/22/17 - Paid $200 cash to the local newspaper for ad purchased on 1/11.

p) 1/23/17 - Hired a new employee who will start on 1/25 and will be paid $15 per hour (working 8 hours a day), and instantly paid her a bonus of $1,000 cash. Paydays are the first day of the month.

q) 1/24/17 - Bought a trailer from Hueys Truck Accessories and Novelties for $2,120 paying $620 cash down and putting the remaining balance on account.

r) 1/25/17 - Received a check from Scrooge McDuck for $850 for partial payment for Kite demo on 1/17.

s) 1/28/17 - Customer purchases an ACME Super Duper Flier and various novelty accessories for $4,220 cash. The wholesale value of the merchandise was $2,110.

t) 1/28/17 - Withdraws $2,500 in cash from the business to purchase costumes, candy, and novelty items for the Pagan festival of Lupercalia on 2/14/17.