I need help with this! I have attached the document.

Name:________________________________ Acct 2301.04 Sp17 Solid Footing Exam Page 1 Questions A, B, and C Adjusting Entries Utilize the Chart of Accounts listed below to answer questions A, B, and C. Green has the following accounts in its General Ledger: Cash Accounts Payable Supplies Wages Payable Inventory Unearned Service Revenue Prepaid Maintenance Unearned Maintenance Revenue Equipment Notes Payable Accumulated Depreciation Common Stock A. (worth 4 points each) Retained Earnings Service Revenue Supplies Expense Maintenance Expense Wages Expense Depreciation Expense On March 1, 2017 Green Company purchased $12,500 of office supplies. On that date Green recorded the supplies purchase transaction as follows: Dr. Cr. Supplies 12,500 Cash 12,500 The entry above is the only entry Green has made related to this item. The balance was zero in the Supplies account prior to the above entry. On March 31, 2017 Green counted the office supplies and determined there were $9,300 remaining. In the General Journal below record the required March 31, 2017 adjusting journal entry. Account Name Debit Credit B. Green's employees are paid in cash each Friday for that week's work and the payment of the payroll is recorded in the accounting system. The last payday of March was on Friday March 26. The employees worked on Monday March 29th, Tuesday March 30th, and Wednesday March 31st. The employees earned a total of $1,200 for these last three days of March. In the General Journal below record the required March 31 adjusting journal entry. Account Name Debit Credit Page 2 C. On March 1, 2017 Green Company purchased a new piece of equipment for $210,000 cash. On March 1 Green recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Green estimates that the equipment will last 7 years. Green also estimates that at the end of 7 years the equipment will have no future value and will be scrapped. Green uses the straight-line depreciation method. In the General Journal below record the required March 31, 2017 adjusting journal entry for March's depreciation of the equipment. Account Name Debit Credit Page 3 Questions D through H - Closing Entries - Financial Statement Amounts The following is Baker Co.'s Pre-Closing Trial Balance as of December 31, 2017. Baker's accounting period is a month, thus the balances in the temporary accounts are for the month of December 2017. Account Debit Cash 10,000 Accounts Receivable 25,000 Inventory 40,000 Supplies 5,000 Equipment Credit 100,000 Accumulated Depreciation 30,000 Accounts Payable 12,000 Note Payable 13,000 Interest Payable 3,000 Unearned Revenue 8,000 Dividends Payable 7,000 Common Stock 10,000 Retained Earnings 46,000 Sales Revenue 193,000 Cost of Goods Sold 78,000 Depreciation Expense 18,000 Wages Expense 42,000 Supplies Expense 3,000 Interest Expense 1,000 Total 322,000 322,000 Use the information in Baker's Trial balance to answer questions D through H. D. In the General Journal below record the journal entry that should be made to close the Revenue account(s). (worth 3 points) Account Name Debit Credit Page 4 E. In the General Journal below record the journal entry that should be made to close the Expense accounts. (worth 3 points) Account Name F. Debit Credit Based on Baker's account balances, the amount of Net Income that would be shown on Baker's Income Statement for December 2017 would be: (worth 2 points) $ ________________ Show Calculations: G. Based on Baker's account balances, the amount of Total Assets that would be shown on Baker's Balance Sheet as of December 31, 2017 would be: (worth 2 points) $ ________________ Show Calculations: H. Based on Baker's account balances, the amount of Total Equity that would be shown on Baker's Balance Sheet as of December 31, 2017 would be: (worth 2 points) $ ________________ Show Calculations: Page 5 Multiple Choice Questions For each question select the best answer. (1-- 26 worth 2 points) Questions 1 to 11 NoDirt, Inc. was incorporated on June 1, 2017 as a cleaning company. Questions 1 to 11 are based on NoDirt's transactions during their 1 st month of operation. 1. June 1, 2017 - Issued stock to new owners and received $10,000 cash from the new owners. A. B. C. D. Account Name Debit Common Stock Cash 10,000 Common Stock Owners' Investment 10,000 Cash Common Stock 10,000 Due from Owners Cash 10,000 Credit 10,000 10,000 10,000 10,000 E. None of the above 2. June 1, 2017 - Borrowed $12,000 from the bank. NoDirt will pay the loan back to the bank in 6 months. A. B. C. D. Account Name Debit Note Receivable Cash 12,000 Cash Working Capital 12,000 Cash Accounts Payable 12,000 Cash Note Payable 12,000 Credit 12,000 12,000 12,000 12,000 E. None of the above 3. June 1, 2017 - Paid $1,500 cash to the landlord for June's rent. NoDirt does not record the monthly rent as an asset because the rent will be totally consumed by the end of the month. A. B. C. D. Account Name Debit Cash Rent Expense 1,500 Prepaid Rent Cash 1,500 Rent Expense Cash 1,500 Cash Prepaid Rent 1,500 E. None of the above Credit 1,500 1,500 1,500 1,500 Page 6 4. June 1, 2017 - NoDirt paid $6,000 to Ace Machine Company for a commercial floor buffing machine. The buffing machine will be depreciated over a 5 year life. A. B. C. D. Account Name Debit Equipment Expense Cash 6,000 Accounts Receivable Cash 6,000 Cash Equipment 6,000 Cash Accumulated Depreciation 6,000 Credit 6,000 6,000 6,000 6,000 E. None of the above 5. June 2, 2017 - NoDirt purchased $5,000 of cleaning supplies on credit (invoice payable in 15 days). NoDirt's accounting policy is to record the purchase of cleaning supplies to an asset account. A. B. C. D. Account Name Debit Supplies Expense Cash 5,000 Retained Earnings Accounts Payable 5,000 Supplies Accounts Payable 5,000 Supplies Expense Accounts Payable 5,000 Credit 5,000 5,000 5,000 5,000 E. None of the above 6. June 8, 2017 - NoDirt entered into a one year contract to provide cleaning services to a customer. NoDirt will start providing the services on July 1, 2017. The customer paid NoDirt $4,500 cash when the contract was signed on June 8, 2017. The $4,500 is payment for the first three months of cleaning service. A. B. C. D. Account Name Debit Cash Service Revenue Prepaid Cleaning Service Receivable 4,500 Service Revenue Cash 4,500 Unearned Service Revenue Cash 4,500 Retained Earnings Services Payable 4,500 E. None of the above Credit 1,500 3,000 4,500 4,500 4,500 Page 7 7. June 15, 2017 - NoDirt performed $3,000 of cleaning services for a customer. The customer paid $500 cash on June 15 and will pay the remaining amount in the future. Account Name A. B. C. D. Debit Cash Service Revenue 500 Cash Accounts Receivable Service Revenue 500 2,500 Service Revenue Cash Service Revenue Cash Accounts Receivable Credit 500 3,000 500 500 3,000 500 2,500 E. None of the above 8. June 17, 2017 - NoDirt paid for the supplies purchased on June 2, 2017. A. B. C. D. Account Name Debit Supplies Expense Cash 5,000 Cash Accounts Payable 5,000 Accounts Payable Cash 5,000 Cash Supplies Expense 5,000 Credit 5,000 5,000 5,000 5,000 E. None of the above 9. June 25, 2017 - NoDirt received $2,000 from the customer billed on June 15, 2017. A. B. C. D. Account Name Debit Cash Accounts Receivable 2,000 Service Revenue Cash 2,000 Accounts Receivable Cash 2,000 Cash Service Revenue 2,000 E. None of the above Credit 2,000 2,000 2,000 2,000 Page 8 10. June 30, 2017 - NoDirt paid $2,400 cash for a one-year maintenance coverage on their computer system. The maintenance coverage will start on July 1, 2017. A. B. C. Account Name Debit Cash Prepaid Maintenance 2,400 Prepaid Maintenance Cash 2,400 Accounts Receivable Cash 2,400 Credit 2,400 2,400 2,400 D. No entry is required E. None of the above 11. June 30, 2017 - NoDirt paid $1,500 in cash to the employees for work performed during the month of June. A. B. C. D. Account Name Debit Wages Expense Wages Payable 1,500 Worker Wages Receivable Wages Payable 1,500 Wages Expense Cash 1,500 Cash Wages Expense 1,500 Credit 1,500 1,500 1,500 1,500 E. None of the above This ends the 11 questions based on NoDirt's June, 2017 transactions. The multiple choice questions continue on the next page. Page 9 12. On April 1, 2017 Green Company received an advance payment of $60,000 from a customer. The payment was for five months of services Green would perform for the customer at the rate of $12,000 per month. Green started providing the service on April 1, 2017. On April 1, 2017 Green made an entry in its accounting system debiting Cash for $60,000 and crediting Unearned Service Revenue for $60,000. This is the only entry that has been made related to this transaction. Select the adjusting entry Green should make prior to preparing financial statements on April 30, 2017. A. B. C. D. Account Name Debit Unearned Service Revenue Service Revenue 48,000 Service Revenue Unearned Service Revenue Credit 48,000 48,000 48,000 Service Revenue Unearned Service Revenue 12,000 Unearned Service Revenue Service Revenue 12,000 12,000 12,000 E. None of the above 13. Using the information given in 12. above - select the adjusting entry Green should make prior to preparing financial statements on May 31, 2017. Prior to this May 31, 2017 adjusting entry, Green has made only two entries in their accounting system related to this advance payment - the April 1, 2017 entry to record the receipt of the $60,000 cash and the April 30, 2017 adjusting entry. A. B. C. D. Account Name Debit Unearned Service Revenue Service Revenue 36,000 Service Revenue Unearned Service Revenue 36,000 Service Revenue Unearned Service Revenue 12,000 Unearned Service Revenue Service Revenue 12,000 Credit 36,000 36,000 12,000 12,000 E. None of the above 14. Using the information given in 12. above, and assuming that all the required adjusting entries have been correctly made - what should be the amount shown on Green's June 30, 2017 Balance Sheet for Unearned Service Revenue? A. B. C. D. E. $60,000 $48,000 $36,000 $0 None of the above Page 10 15. Which of the following would not be shown on the Balance Sheet? A. Buildings B. Depreciation Expense C. Land D. Office Equipment E. All would be shown on the Balance Sheet 16. A transaction entered in the general journal must consist of A. only a single debit amount and a single credit amount. B. only two debits or two credits of equal dollar amount. C. only debit entries if liabilities and owners' equity are not affected. D. only credit entries if assets and expenses are not affected. E. none of the above 17. Which of the following statement(s) is/are true? A. Cost of Goods Sold is an Asset. B. Cost of Goods Sold is an Expense. C. Cost of Goods Sold starts each accounting period with a zero balance. D. Cost of Goods Sold increases Owners' Equity. E. Two of the above are true. 18. A Trial Balance: A. Shows all of the account balances from the General Journal. B. Shows only the account balances which will appear on the Balance Sheet. C. Shows that all the account balances in a company's accounting system are correct. D. Shows if the total dollar amount of the Debits equals the total dollar amount of the Credits for all of the account balances in the General Ledger. E. None of the above 19. After completing all 9 steps in the accounting cycle for the month of May, ABC Company's May 31 Ending Balance in the Retained Earnings account was $50,000 credit. ABC's Net Income for June was $20,000. ABC declared and paid a $5,000 dividend in June. The June beginning balance in ABC's Cash Account was $35,000 and the June ending balance in the Cash Account was $25,000. The Retained Earnings amount shown on ABC's June 30th Balance Sheet should be: A. $70,000 B. $75,000 C. $65,000 D. $55,000 E. None of the above 20. Which of the following statements about adjusting entries is true? A. Adjusting entries are only made to Income Statement accounts. B. An adjusting entry will always change the balance in the Cash account. C. An adjusting entry always changes the balance in an expense account. D. If an adjusting entry changes the balance in an asset account it will always change the balance in a revenue account. E. None of the above Page 11 21. The best place to look in a company's accounting system, if you wanted to see all of the accounts affected by a transaction, would be? A. The General Journal B. The General Ledger C. A Trial Balance D. The Chart of Accounts E. None of the above 22. If a journal entry that affects only two accounts increases an asset as one part of the entry, what might the other part of the entry do? A. Increase another asset account B. Increase an expense account C. Increase a liability account D. Decrease a revenue account E. None of the above 23. Which of the following is True? A. The Balance Sheet covers a period of time - the Income Statement reports on a point in time B. The Income Statement covers a period of time - the Balance Sheet reports on a point in time C. The Income Statement and the Balance Sheet cover a period of time D. The Income Statement and the Balance Sheet report on a point in time E. None of the above 24. Which of the following statements is True? A. The normal balance for the Cost of Goods Sold account is a Credit. B. The Retained Earnings account will always start the accounting period with a zero balance. C. When you Debit an expense account you can say that you increased the expense account and decreased owners' equity. D. The normal balance for the Retained Earnings account is a Debit. E. Retained Earnings is the amount of Cash available to pay a dividend. 25. If an adjusting entry to record interest, which is owed to a bank on a Note Payable, is not recorded at month-end, which of the following effects on the financial statements for the month will NOT occur? A. Total expenses will be understated on the income statement. B. Net income will be overstated. C. Liabilities on the balance sheet will be understated. D. Cash will be overstated. E. Retained Earnings will be overstated. 26. The Retained Earnings account of a company had a Credit balance before closing the Revenue and Expense accounts. After closing the Revenue and Expense accounts the Retained Earnings account had a Debit balance. The company did not declare or pay any dividends during this accounting period. Based on this information it can be determined that the company incurred a loss for the period. A. True B. False C. Not adequate facts to determine True or False Page 12 (Worth 20 points) 27. Accounts --- Complete the Table Type of account: Asset Contra-Asset Liability Equity Revenue Expense Accounts Payable Accounts Receivable Accum. Depreciation Cash Common Stock Cost of Goods Sold Depreciation Exp Dividends Payable Equipment Interest Exp Interest Payable Inventory Prepaid Insurance Prepaid Rent Rent Exp Rent Payable Retained Earnings Sales Revenue Service Revenue Supplies Supplies Exp Truck Rental Ep Unearned Revenue Wages Payable Wages Exp Notes Payable Appears in Which Financial -Statement: Balance Income Statement Normal Balance: Debit Credit Is the Account Closed? Yes NO