ACC111 Exam #2

Show your work for each problem and use Microsoft Word or Microsoft Excel, only, to complete
and submit your Exam Problems. Submit your Exam #2 Problems to CANVAS by the Monday, Sep
26, 2016, 12 noon deadline.
Student Name: __________________________ Student Date: __________________

Problem #1 35 points
Instructions:
1) Prepare Income Statement
2) Prepare Statement of Owners Equity / Ending capital $30,800 / No additional investments during
the year.
3) Prepare Balance Sheet - Total current assets $22,400
4) Prepare Closing Entries in the Journal
5) Prepare Closing Entries in the Ledger / Use T-accounts. Income Summary is account No. 350.
The completed financial statement columns of the worksheet for GEORGIA Company follows.
GEORGIA COMPANY
Worksheet
For the Year Ended December 31, 2017
Income Statement

Balance Sheet

Dr.

Dr.

Account No.

Account Titles

101

Cash

8,800

112

Accounts Receivable

10,800

130

Prepaid Insurance

2,800

157

Equipment

24,000

158

Accumulated DepreciationEquip.

4,200

201

Accounts Payable

9,000

212

Salaries and Wages Payable

2,400

301

Owner's Capital

19,500

306

Owner's Drawings

400

Service Revenue

622

Maintenance and Repairs Expense

1,700

711

Depreciation Expense

2,800

722

Insurance Expense

1,800

726

Salaries and Wages Expense

30,000

732

Utilities Expense

1,400

Totals
Net Income

2 C4 C5 C7

Cr.

11,000
60,000

37,700

60,000

57,400

22,300
60,000

1 / EXAM

Cr.

35,100
22,300

60,000

57,400

57,400

ACC111 Exam #2
Show your work for each problem and use Microsoft Word or Microsoft Excel, only, to complete
and submit your Exam Problems. Submit your Exam #2 Problems to CANVAS by the Monday, Sep
26, 2016, 12 noon deadline.
Student Name: __________________________ Student Date: __________________

Problem #2 35 points
Instructions:
1) Prepare a journal (use full journal format, label all parts of journal) with all of the April transactions
using a perpetual inventory system
2) Prepare a ledger (use full ledger format, label all parts of ledger) and post April transactions from the
journal (Include beginning balances in the ledger and Use J1 for the journal reference.)
3) Prepare a trial balance on April 30, 2017 / Total debits $5,810
Gina Gonzales, a former disc golf star, operates Ginas Discorama. At the beginning of the current season
on April 1, the ledger of Ginas Discorama showed Cash $1,800, Inventory $2,500, and Owner's Capital
$4,300. The following transactions were completed during April.
Apr.
5

Purchased golf discs, bags, and other inventory on account from Florida Co. $1,200,
FOB shipping point, terms 2/10, n/60.

Paid freight on the Florida purchase $50.

Received credit from Florida Co. for merchandise returned $100.

10

Sold merchandise on account for $900, terms n/30. The merchandise sold had a cost of
$540.

12

Purchased disc golf shirts and other accessories on account from South Sportswear
$670, terms 1/10, n/30.

14

Paid Florida Co. in full, less discount.

17

Received credit from South Sportswear for merchandise returned $70.

20

Made sales on account for $610, terms n/30. The cost of the merchandise sold was
$370.

21

Paid South Sportswear in full, less discount.

27

Granted an allowance to customers for clothing that was flawed $20.

30

Received payments on account from customers $900.

The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable,
No. 120 Inventory, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412
Sales Returns and Allowances, and No. 505 Cost of Goods Sold.

2 / EXAM

2 C4 C5 C7

ACC111 Exam #2
Show your work for each problem and use Microsoft Word or Microsoft Excel, only, to complete
and submit your Exam Problems. Submit your Exam #2 Problems to CANVAS by the Monday, Sep
26, 2016, 12 noon deadline.
Student Name: __________________________ Student Date: __________________
PROBLEM #3

30 POINTS

Instructions
Using the selected accounts provided, Record the January transactions in the appropriate journal noted
1) Prepare a Sales Journal / Sales Journal total = $21,180
2) Prepare a Purchases Journal / Purchases Journal total = $30,100
3) Prepare a Cash Receipts Journal / Cash Receipts Journal total = $38,794
4) Prepare a Cash Payments Journal / Cash Payments Journal total = $40,780
5) Prepare a General Journal
No Ledger required for this Problem
Selected accounts from the chart of accounts of Alabama Company are shown below.
101 Cash

401 Sales Revenue

112 Accounts Receivable

412 Sales Returns and Allowances

120 Inventory

414 Sales Discounts

126 Supplies

505 Cost of Goods Sold

157 Equipment

726 Salaries and Wages Expense

201 Accounts Payable

The cost of all merchandise sold was 60% of the sales price. During January, Alabama completed the
following transactions.
Jan.3

Purchased merchandise on account from Alice Co. $9,000.

Purchased supplies for cash $80.

Sold merchandise on account to Donna $5,250, invoice no. 371, terms 1/10, n/30.

Returned $300 worth of damaged goods purchased on account from Alice Co. on
January 3.

Made cash sales for the week totaling $3,150.

Purchased merchandise on account from Ben Co. $4,500.

Sold merchandise on account to Carol Corp. $5,400, invoice no. 372, terms 1/10, n/30.

11

Purchased merchandise on account from Cora Co. $3,700.

13

Paid in full Alice Co. on account less a 2% discount.

13

Made cash sales for the week totaling $6,260.

15

Received payment from Carol Corp. for invoice no. 372.

15

Paid semi-monthly salaries of $14,300 to employees.

17

Received payment from Donna for invoice no. 371.

17

Sold merchandise on account to Doug Co. $1,200, invoice no. 373, terms 1/10, n/30.

3 / EXAM

2 C4 C5 C7

ACC111 Exam #2
Show your work for each problem and use Microsoft Word or Microsoft Excel, only, to complete
and submit your Exam Problems. Submit your Exam #2 Problems to CANVAS by the Monday, Sep
26, 2016, 12 noon deadline.
Student Name: __________________________ Student Date: __________________
19

Purchased equipment on account from Dozier Corp. $5,500.

20

Cash sales for the week totaled $3,200.

20

Paid in full Ben Co. on account less a 2% discount.

23

Purchased merchandise on account from Alice Co. $7,800.

24

Purchased merchandise on account from Atchison Corp. $5,100.

27

Made cash sales for the week totaling $4,230.

30

Received payment from Doug Co. for invoice no. 373.

31

Paid semi-monthly salaries of $13,200 to employees.

31

Sold merchandise on account to Donna $9,330, invoice no. 374, terms 1/10, n/30.

***Note: Alabama Company uses the following journals.

1. Sales journal.
2. Purchases Journal - Single-column
3. Cash Receipts Journal - with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr.,
Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr.
4. Cash Payments Journal - with columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr.,
and Cash Cr.
5. General Journal.

4 / EXAM

2 C4 C5 C7