ACCOUNTING I Chapters 1-4 Exam Problems PART I: The trial balance of Kelita Karmel Co. shown below is out of balance. KELITA KARMEL CO Trial Balance August 31, 19XX Cash $ 2,500 Accounts Receivable 3,000 Office Supplies 3,500 Office Equipment 2,800 Accounts Payable $ 2,903 Kelita, Capital 10,000 Service fees earned 2,420 Wages Expense 5,222 Totals $17,022 $15,323 An examination of the companys records revealed the following additional information: 1. A $360 collection of an account receivable was recorded as $630. 2. A computer purchased on credit for use in the office was recorded with a debit to Office Supplies and a credit to Accounts Payable for $2,500. 3. Services sold on credit for $900 were recorded with a debit to Accounts Receivable for $900 and a credit to Service Fees Earned for $90. 4. A payment of wages was recorded with a debit to Wage Expense for $200 and a debit to Cash for $200. 5. Recalculating the Service Fees Earned account balance before any corrections had been made revealed that the balance should be $2,520. 6. An additional investment of $1,000 made by Kelita during the month was not entered in the capital account (the entry to Cash was made). 7. A $310 payment of an account payable was recorded with a credit to Cash for $310 and a credit to Accounts Payable for $301. Prepare a corrected trial balance on the Trial Balance form in document sharing. PART II: As the bookkeeper of Eds Repair Service, use the information that follows to prepare a work sheet for the month of November. You will need to utilize the worksheet in document sharing. EDS REPAIR SERVICE TRIAL BALANCE NOVEMBER 30, 2007 Account Title Debit Credit Cash $ 3,204 Prepaid Insurance 4,000 Repair Supplies 770 Repair Equipment 3,106 Accumulated Depreciation, Repair Equipment $ 650 Accounts Payable 1,904 Ed Clean, Capital 6,258 Revenue from Repairs 5,634 Wages Expense 1,600 Rent Expense 1,560 Advertising Expense 206 Totals $14,446 $14,446 Adjustment Data: A. Insurance expired, $300 B. Repair supplies on hand $170. C. Depreciation on repair equipment, $250. D. Wages earned but unpaid, $106 PART III: The schedule below presents the trial balance for the Sigma Consultants Company on December 31, 2007. Sigma Consultants Company Trial Balance December 31, 2007 Account Title Debit Credit Cash $ 12,786 Accounts Receivable 24,840 Office Supplies 991 Prepaid Rent 1,400 Office Equipment 6,700 Accumulated Depreciation, Office Equipment $ 1,600 Accounts Payable 1,820 Notes Payable 10,000 Unearned Fees 2,860 Kevin Moriarty, Capital 29,387 Kevin Moriarty, Withdrawals 15,000 Fees Revenue 58,500 Salaries Expense 33,000 Utilities Expense 1,750 Rent Expense 7,700 Totals $104,167 $104,167 The following information is also available: a. Ending inventory of office supplies, $86. b. Prepaid rent expired, $700. c. Depreciation of office equipment, for the period, $600. d. Interest accrued on the note payable, $600. e. Salaries accrued at the end of the period, $200. f. Fees still unearned at the end of the period, $1,410. g. Fees earned but not billed $600. Prepare the adjusting entries on the general journal form in document sharing