Financial Accounting Review. Please answer all questions.
BD O-12, 13EO-23,29 6 Prepare an adjusted trial balance BE015-18 7 Prepare financial statements 8 | Journalize and post closing entries | -1E-41 9 Prepare a post-closing trial balance E 0-38 E 0-42 LO 1 -Analyze Business Transactions BE0-1 Presented below are three economic events. In each column, indicate whether the event increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and stockholders' equity. (a) | Purchased supplies on account. (b) Received cash for performing a service. (c) Expenses paid in cash. 1 IPag e E0-4 An analysis of the transactions made during August by Wolfe Company during its first month of operations is shown bel STOCKHOLDERS' EQUITY Retained Earnings LIAB CHh + | A/R + | Supp. | Equip AP + | Revenue Expenses Dividends Details Comm. Stk. 1 +20,000 21,000 +20,000 +5,000 +4,000 - 750 4 +4,100 5,400 - 1,500 2,000 - 800 8450-450 3,000 +750 9,500 2,000 800 Rent - 3,000 300 Salaries Utilities 0 +300 (a) Describe each transaction: (b) How much did stockholders' equity increase? (c) How much was net income for the month? 10. 2 Page E0-5 The following accounts, in alphabetical order, were selected from recent financial statements of rispy Kreme Doughnuts, Inc. Indicate the normal balance and financial statement where the account is presented. Normal Balance Financial Statement (Dr. or Cr.) (BS or IS) Accounts Payable Accounts Receivable Common Stock Depreciation Expense Interest Expense Interest Income Inventories Prepaid Expenses Property and Equipment Revenues LO 2-Journalize Transactions BE0-4 credit on the account and For each of the following accounts, indicate the effect of a debit or a the normal balance. Normal Balance Effect of Debit Effect of Credit (a) Accounts Payable (b) Advertising Expense (c) Service Revenue (d) Accounts Receivable (e) Retained Earnings (D Dividends BE0-6 ransactions for Jayne Company for the month of June are presented below. Journalize each transaction June 1 Istue comon sto $ ci 2 Buys equipment on account for $1,100. 3 Pays $740 to landlord for June rent. 12 Sends Wil Wheaton a bill for $700 after completing welding work. 4/Page E0-7 o McCall Real Estate Agency. Journalize the transactions. Do not This information relates t provide explanations. Oct. 1 Stockholders invest $30,000 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $36,000. 3 Buys office furniture for $3,800, on account. 6 Sells a house and lot for E.C. Roads; commissions due from Roads, $10,800 (not paid by Roads at this time). 10 Receives cash of $140 as commission for acting as rental agent renting an apartment. 27 Pays $700 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,000 in salary for October. The May transactions of Chulak Corporation were as follows. Journalize the transactions. Do not provide explanations. May 4 Paid $700 due for supplies previously purchased on account. 7 Performed advisory services on account for $6,800. 8 Purchased supplies for $850 on account. 9 Purchased equipment for $1,000 in cash. 17 Paid employees $530 in cash. 22 Received bill for equipment repairs of $900. 29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1. 6 Page
