Exam 2 Essay

785 WordsMar 29, 20134 Pages
Acct 328 ® Exam 2 Part 1 – 60% Name of Company – Each student can make up a company name Type of business – service company •sole proprietorship Chart of Accounts – see below. The numbers correspond to dates in the month of February (Use journal entries only) 1. Initial capital of $100,000 2. Prepaid rent - $19,200 for 2 years 3. Prepaid insurance - $24,000 for 2 years 4. Purchased a desk on account for $500 5. Purchased office supplies for $950 6. Sold 20 bicycles @ $350 each 7. Sold 3 bicycle parts for a total of $450 on account 8. Used $250 worth of office supplies 9. Purchased repair supplies for $600 on account 10. Received $250 in cash from transaction on 2/7/2011 11. Paid cash…show more content…
1. A post-closing trial balance will show a. zero balances for all accounts. b. zero balances for balance sheet accounts. c. only balance sheet accounts. d. only income statement accounts 2. The income statement for the year 2010 of Poole Co. contains the following information: Revenues $70,000 Expenses: Wages Expense $45,000 Rent Expense 12,000 Advertising Expense 6,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 73,500 Net income (loss) $(3,500) After all closing entries have been posted, the revenue account will have a balance of a. $0. b. $70,000 credit. c. $70,000 debit. d. $3,500 credit. 3. Which of the following would not result in unearned revenue? a. Rent collected in advance from tenants b. Services performed on account c. Sale of season tickets to football games d. Sale of two-year magazine subscriptions 4. The following is selected information from Alpha-Beta-Gamma Corporation for the fiscal year ending October 31, 2010. Cash received from customers $300,000 Revenue earned 350,000 Cash paid for expenses 170,000 Cash paid for computers on November 1, 2009 that will be used for 3 years (annual depreciation is $16,000) 48,000 Expenses incurred, not including any depreciation 200,000 Proceeds from a bank loan, part

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