I need help with the following questions. Can you please do them in the word document and show the work.

1 ACC121 Fundamentals of Accounting I MIDTERM EXAM TEMPLATE - Problems (W2016) Student Name ______________________________ Date____________ Each problem is worth 10 points. 1. Using the following transactions, calculate (A) the ending balance of Cash, (B) the ending balance of Accounts Receivable, (C) total liabilities, and (D) Stockholders' Equity at the end of the period. For parts a, b, and d, indicate whether each balance is debit or credit. (Hint: Use TAccounts) a. b. c. d. e. f. g. h. Began doing business by selling shared of common stock to investors for $50,000 in cash. Billed customers for services rendered, $10,000. Paid for six months' subscription in advance, $2,500. Received advertising bill, to be paid next week, $500 Dividends of $4,000 were paid to common stock holders. Received $7,500 from customers billed in b. Paid half of advertising bill. Received $1,000 in advance of performing a service. ANSWER ~ You must show your work for your calculations. 2. Using the alphabetical list of account balances presented below, all of which are normal, prepare a trial balance for Cookies and Cream Company at June 30, 20x5, in proper order. Compute the balance of the Cash account. 2 Accounts Payable Accounts Receivable Cash Equipment Office Expense Common Stock Service Revenue $280 560 ? 800 360 880 600 ANS: Cookies and Cream Company Trial Balance June 30, 20x5 Cash Accounts Receivable Equipment Accounts Payable Common Stock Service Revenue Office Expense $ $ 3. In the journal provided, prepare adjusting entries for the following items. Omit explanations. a. Depreciation on machinery is $940 for the accounting period. b. Interest incurred on a loan but not paid or recorded is $635. 3 c. Office supplies of $600 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $200. At the end of the period, $80 in office supplies remained. d. Commissions amounting to $540 were earned but not recorded or collected by year end. e. Prepaid Rent had an $8,000 normal balance prior to adjustment. By year end, 40 percent had expired. ANS: General Journal Description Date a. Office Supplies Expense Office Supplies d. Page 1 Credit Interest Expense Interest Payable c. Debit Depreciation Expense-Machinery Accumulated Depreciation-Machinery b. Post. Ref. Accounts Receivable Commissions Earned e. Rent Expense Prepaid Rent 4. Using the following data, prepare a classified balance sheet for Blanchard Company as of December 31, 20x5. Cash Investments in Short-Term Government Securities Accounts Receivable Inventory Prepaid Rent Investment in Land Held for future use Land Building $ 200 400 800 3,000 100 2,700 Accumulated Depreciation- Building Franchise Accounts Payable Revenues Received in Advance Notes Payable (in two years) Common Stock 2,000 8,000 ANS: Blanchard Company $ 1,000 1,800 1,600 400 4,000 12,000 4 Balance Sheet December 31, 20x5 Assets Current assets Cash Investments in short-term government securities Accounts receivable Inventory Prepaid rent Total current assets Investments Land held for future use Property, plant, and equipment Land Building Less accumulated depreciation Total property, plant, and equipment Intangible assets Franchise Total assets $ $ $ $ $ Liabilities Current liabilities Accounts payable Revenues received in advance Total current liabilities Long-term liabilities Notes payable (in two years) Total liabilities $ $ $ Stockholders' Equity Common stock Total liabilities and stockholders' equity 5. $ Use the information from the following single-step income statement to prepare a multistep income statement in proper form. 5 Midway Industries Income Statement For the Year Ended December 31, 20x5 Revenues Net sales Interest income Total revenues $10,000 300 $10,300 Costs and expenses Costs of goods sold Selling expenses General and administrative expenses Interest expense Total costs and expense Net income (loss) $ 5,000 3,000 1,800 800 10,600 300) ($ ANS: Midway Industries Income Statement For the Year Ended December 31, 20x5 Net sales Costs of goods sold Gross margin Operating expenses Selling expenses General and administrative expenses Total operating expenses Income from operations Other revenues and expenses Interest income Less interest expense Excess of other expenses over other revenues Net income (loss) $ $ $ $ $ $