EXAM 2 BUS 211 PRINCIPLES OF ACCOUNTING IFALL 2017 1. Prior to preparing adjusting entries by a Hardware Store, the folowing balances were found Supplies Account $900 $4000 $3,600 Reve s& Unexpired insurance All the accounts have normal balances ) Use the information above, if relevant, as well as the following information below to (a) 300 make necessary adjusting journal entries; and (b) determine the balances in the unearned revenue, (bjunexpired insurance, and (c) accrued salaries after the adjusting entries have been made Supplies on hand at the end of the period was $300. Only $1,000 remain unearned at the end of this period. Expired insurance, that is, insurance already used, is $700 Accrued salaries totaled $2,000. a) c) d) 2. XYZ company had the following information during the month of January, 2009: Beginning Inventory $440,000 Purchases $500,000 Purchases returns and allowances $50,000. Purchases Discount $60,000 Transportation Out $20,000 Transportation in $40,000 Sales $600,000; Sales returns and allowances $10,000 and Sales discount was $15,000, while sales commission was 10% of gross sales. Over the past 5 years, the company had experienced an average gross profit percentage of 40%. Unfortunately, one of the employees engaged in some activities that caused fire that destroyed all the merchandise inventory on hand at the end of the period. The company wanted to make insurance clain but was required to provide an estimate of the inventory lost in the fire. As the accountant of the company, please provide the estimate with supporting calculations, using the gross profit method of estimating the inventory lost in the fire. 3. Present entries to record the following transactions: Established a petty cash fund of $650. The petty cash fund now has a balance of $150. Replenished the fund, based on the following disbursements as indicated by a summary of the petty cash receipts: offi supplies expense, $184, miscellaneous administrative expense, S103; and miscellar selling expense, $140 After performing the replenishment of the Petty Cash fund, the company increase petty cash fund to $700. a. b. c