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 T Accounts)

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.

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.

Accounts Payable $280 Accounts Receivable 560 Cash ? Equipment 800 Office Expense 360 Common Stock 880 Service Revenue 600

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. 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.

General Journal Page 1 Date Description Post. Ref. Debit Credit

4. Using the following data, prepare a classified balance sheet for Blanchard Company as of December 31, 20x5.

Cash $ 200 Accumulated Depreciation Building $ 1,000 Investments in Short-Term Government Securities 400 Franchise 1,800 Accounts Receivable 800 Accounts Payable 1,600 Inventory 3,000 Revenues Received in Advance 400 Prepaid Rent 100 Notes Payable (in two years) 4,000 Investment in Land Held for future use 2,700 Common Stock 12,000 Land 2,000 Building 8,000

5. Use the information from the following single-step income statement to prepare a multi-step income statement in proper form.

Midway Industries Income Statement For the Year Ended December 31, 20x5 Revenues Net sales $10,000 Interest income 300 Total revenues $10,300 Costs and expenses Costs of goods sold $ 5,000 Selling expenses 3,000 General and administrative expenses 1,800 Interest expense 800 Total costs and expense 10,600 Net income (loss) ($ 300)