Choice B

Please complete all of the following problems using the templates provided to you on the LMS site.Ensure that you have provided your name on each of the templates, zip the files and upload to the LMS once you have completed them.

Manual Accounting Final Exam - Part 3: Problems Choice B Please complete all of the following problems using the templates provided to you on the LMS site. Ensure that you have provided your name on each of the templates, zip the files and upload to the LMS once you have completed them. 1. Sharp Massage Co. unadjusted trial balance is as follows (16 points): Use the following information to prepare any adjusting entries required: General Journal entries only. a) b) c) d) e) Examination of an insurance policy showed $240 of expired insurance. An inventory showed $210 of unused massage supplies on hand. Estimated depreciation expense on massage equipment, $350. Estimated depreciation expense on the building, $2,220. A massage therapist owes $200 for space rental payments, and this was unrecorded at the time the trial balance was prepared. f) $200 of the Unearned Rent account balance was earned by year-end. g) The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked three days this week for which she has not been paid. h) Three months' property taxes, totaling $450, have accrued. This has not been recorded. 2. The adjusted trial balance of Sara's Photography follows (10 points): a) Prepare the necessary closing entries at December 31st. b) What is the balance of Sara's capital account after the bookkeeper posts the closing entries? 3. Z-Mart established a petty cash fund recently and the following transactions affecting the fund occurred during February (8 points): Prepare the journal entry to reimburse the fund and to reduce its size. 4. Stiller Company uses the allowance method to account for bad debts. In the first year of operations (2014), Stiller sold $540,000 of merchandise on credit, including a $2,500 sale to Bubba Long. On December 31, 2014, it provided an addition to its allowance for doubtful accounts equal to 1.8% of its credit sales. On June 1, 2015, Stiller wrote off as uncollectible the $2,500 account of Bubba Long; and on December 25, 2015 Bubba Long unexpectedly paid his account in full. (6 points) Prepare the journal entries that Stiller Company should make: a) On December 31, 2014, to increase the allowance for doubtful accounts. b) On Jun 1, 2015, to write off the bad debt. c) On December 25, 2015, to record the unexpected collection from Bubba Long. 5. The payroll records for KenCor Industries provided the following information for the weekly pay period ended August 15th, 2014. (25 points) Employees C. Meyers V. Lombardi S. Hunter P. Wood K. Niles Totals Required: Employee Number 1 2 3 4 5 Daily Time M 8 8 8 6 8 T 8 7 8 6 8 W 8 8 6 8 T 8 8 8 6 8 F 8 8 8 8 8 S 5 4 Pay Rate Hospital Insurance Union Dues Earnings to End of Previous Week 21.00 18.00 17.00 14.00 16.00 35.00 35.00 35.00 35.00 35.00 $ 175.00 18.00 16.00 14.00 17.00 15.00 $ 80.00 $43,000 $35,500 44,500 25,500 27,000 S 4 8 a) Complete the Payroll Register with the relevant information in the proper columns; calculate the CPP and EI deductions. Calculate the income deductions at 20% of their gross pay. Employees are paid an overtime wage of 50% for all hours worked in excess of 40 hours per week. b) Prepare the General Journal entries (2 entries) to record the Payroll Register information including the employer's expenses. 6. The adjusted Trial Balance for Sara's Laundry is as follows (15 points): SARA'S LAUNDRY Adjusted Trial Balance April 30, 2015 Cash $ 1,170 Laundry supplies 1,930 Prepaid insurance 600 Laundry equipment 20,600 Accumulated amortization, laundry equipment Accounts payable Sara Vergara, capital Sara Vergara, withdrawals 4,800 Laundry services revenue Salaries expense 6,920 Rent expense 1,200 Utilities expense 950 Insurance expense 400 Totals $38,570 $ 5,400 325 11,125 21,720 $38,570 Required: Use the above Adjusted Trial Balance to create Sara's Laundry's Income Statement, Statement of Changes in Owner's Equity and Balance Sheet