The Adjusted Trial Balance columns of a 10-column work sheet for Propel Company follow (A+)

The Adjusted Trial Balance columns of a 10-column work sheet for Propel Company follow. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by entering the amount of net income for the reporting period.

Adjusted Income Balance of

Trial Balance Statement Sheetand Statement

Owner\’s Equity

No. Account Title Dr. Cr. Dr. Cr. Dr. Cr.

101 Cash $6,000

106 Accounts receivable 26,200

153 Trucks 41,000

154 Accumulated depreciation—Trucks $16,500

183 Land 30,000

201 Accounts payable 14,000

209 Salaries payable 3,200

233 Unearned fees 2,600

301 J. Propel, Capital 64,500

302 J. Propel, Withdrawals 14,400

401 Plumbing fees earned 79,000

611 Depreciation expense—Trucks 5,500

622 Salaries expense 37,000

640 Rent expense 12,000

677 Miscellaneous expenses7,700

Totals $179,800 $179,800

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Argosy Company began the current period with a $14,000 credit balance in the D. Argosy, Capital account (A+)

Argosy Company began the current period with a $14,000 credit balance in the D. Argosy, Capital account. At the end of the period, the company’s adjusted account balances include the following temporary accounts with normal balances.

Service fees earned $35,000 Interest revenue $3,500

Salaries expense 19,000 D. Argosy, Withdrawals 6,000

Depreciation expense 4,000 Utilities expense 2,300

Required:

After closing the revenue and expense accounts, what will be the balance of the Income Summary account?

After all closing entries are journalized and posted, what will be the balance of the D. Argosy, Capital account?

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Hinson Company records prepaid assets and unearned revenues in balance sheet accounts (A+)

Hinson Company records prepaid assets and unearned revenues in balance sheet accounts. The following information was used to prepare adjusting entries for the company as of August 31, the end of the company\’s fiscal year.

a. The company has earned $5,000 in service fees that were not yet recorded at period-end.

b. The expired portion of prepaid insurance is $2,700.

c. The company has earned $1,900 of its Unearned Service Fees account balance.

d. Depreciation expense for office equipment is $2,300.

e. Employees have earned but have not been paid salaries of $2,400.

Required:

Prepare any necessary reversing entries for the accounting adjustments a through e assuming that the company uses reversing entries in its accounting system.

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Use the following information from the Adjustments columns of a 10-column work sheet (A+)

Use the following information from the Adjustments columns of a 10-column work sheet.

Adjusted

Trial Balance

No. Account Title Dr. Cr.

109 Interest receivable (d) $580

124 Office supplies (b) $1,650

128 Prepaid insurance (a) 900

164 Accumulated depreciation—Office equipment (c) 3,300

209 Salaries payable (e) 660

409 Interest revenue (d) 580

612 Depreciation expense—Office equipment (c) 3,300

620 Office salaries expense (e) 660

636 Insurance expense—Office equipment (a) 432

637 Insurance expense—Store equipment (a) 468

650 Office supplies expense (b) 1,650

Totals $7,090 $7,090

Required:

Prepare the necessary adjusting journal entries (a) through (e).

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These 16 accounts are from the Adjusted Trial Balance columns of a company’s 10-column work sheet (A+)

These 16 accounts are from the Adjusted Trial Balance columns of a company\’s 10-column work sheet. Select the letter of the appropriate financial statement column (A, B, C, or D) to which a normal account balance is extended.

A. Debit column for the Income Statement columns.

B. Credit column for the Income Statement columns.

C. Debit column for the Balance Sheet and Statement of Owner’s Equity columns.

D. Credit column for the Balance Sheet and Statement of Owner’s Equity columns.

Account

1. Office Supplies

2. Accounts Payable

3. Owner, Capital

4. Wages Payable

5. Machinery

6. Interest Receivable

7. Interest Expense

8. Owner, Withdrawals

9. Service Fees Revenue

10. Insurance Expense

11. Accumulated Depreciation

12. Interest Revenue

13. Accounts Receivable

14. Rent Expense

15. Depreciation Expense

16. Cash

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2. Use the information in the following adjusted trial balance for the Webb Trucking Company (A+)

Use the information in the following adjusted trial balance for the Webb Trucking Company.

Account Title Debit Credit

Cash $7,000

Accounts receivable 16,500

Office supplies 2,000

Trucks 170,000

Accumulated depreciation—Trucks $35,000

Land 75,000

Accounts payable 11,000

Interest payable 3,000

Long-term notes payable 52,000

K. Webb, Capital 161,000

K. Webb, Withdrawals 19,000

Trucking fees earned 128,000

Depreciation expense—Trucks 22,500

Salaries expense 60,000

Office supplies expense 7,000

Repairs expense—Trucks 11,000

Totals $390,000 $390,000

(1) Calculate the current ratio (Assume that the industry average for the current ratio is 1.5.)

(2) Compare Webb\’s current ratio with the industry average.

a. Webb\’s current ratio is below the industry average.

b. Webb\’s current ratio is above the industry average.

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The following adjusted trial balance of Webb Trucking Company (A+)

The following adjusted trial balance of Webb Trucking Company.

Account Title Debit Credit

Cash $7,000

Accounts receivable 16,500

Office supplies 2,000

Trucks 170,000

Accumulated depreciation—Trucks $35,000

Land 75,000

Accounts payable 11,000

Interest payable 3,000

Long-term notes payable 52,000

K. Webb, Capital 161,000

K. Webb, Withdrawals 19,000

Trucking fees earned 128,000

Depreciation expense—Trucks 22,500

Salaries expense 60,000

Office supplies expense 7,000

Repairs expense—Trucks 11,000

Totals $390,000 $390,000

The K. Webb, Capital, account balance is $161,000 at December 31, 2010.

Required:

(1) Prepare the income statement for the year ended December 31, 2011.

(2) Prepare the statement of owner’s equity, for the year ended December 31, 2011.

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Use the March 31 fiscal year-end information from the following ledger accounts (A+)

Use the March 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances).

General Ledger

M. Mallon, Capital Acct. No. 301 Salaries Expense Acct.No. 622

Date PR Debit Credit Balance Date PR Debit Credit Balance

Mar. 31 G2 42,000 Mar. 31 G2 21,000

M. Mallon, Withdrawals Acct. No. 302 Insurance Expense Acct.No. 637

Date PR Debit Credit Balance Date PR Debit Credit Balance

Mar. 31 G2 25,000 Mar. 31 G2 4,500

Services Revenue Acct. No. 401 Rent Expense Acct. No. 640

Date PR Debit Credit Balance Date PR Debit Credit Balance

Mar. 31 G2 74,000 Mar. 31 G2 9,600

Depreciation Expense Acct. No. 603 Income Summary Acct. No. 901

Date PR Debit Credit Balance Date PR Debit Credit Balance

Mar. 31 G2 17,000

Required:

1.Prepare closing journal entries from above ledger accounts.

2. Post the above entries to their respective ledger accounts.

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Below is a Trial Balance for MSI as of December 31, 2011 (A+)

Below is a Trial Balance for MSI as of December 31, 2011. Their bookkeeper forgot to record some transactions (Listed in tab .2 \”Unrecorded Transactions\”).

Marqui Studios, Inc. (MSI) As of December 31, 2011

Account Number Account Name Debit Credit

100 Bank of America Account Ending 123 10,000

150 Studio Equipment 3,500

151 Camera Equipment 1,700

170 Inventory 500

175 Security Deposit 1,000

200 Accounts Payable 100

210 Dividends Payable

215 Bonds

216 Discount/Premium on Bonds

250 Notes Payable

300 Common Stock, 100 shares issued, 1,000 authorized, $1 par 100

310 Additional Paid in Capital 900

320 Cash Dividends

350 Retained Earnings 12,000

399 Treasury Stock

400 Service Revenue 31,651

500 Cost of Goods Sold 800

501 Automobile Expense 190

502 Books & Music 132

503 Business Meals/ Meeting 293

504 Commercial Property Tax 210

505 Dues and Subscriptions 318

506 Insurance 775

507 Licenses and Permits 25

508 Merchant Fees 1,100

509 Non Employee Compensation 1,007

510 Office Furniture 420

511 Office Supplies 725

512 Other Expenses 22

513 Postage and Delivery 22

514 Printing and Reproduction 7

515 Professional Development 150

516 Professional Fees:Accounting 92

517 Professional Viewings 606

518 Rent 16,300

519 Travel 314

520 Utilities 4,500

521 Interest Expense 43

522 Lease Expense

599 Gain/Loss on Sale

44,751 44,751

Record each event in tab .3 \”Journal Entries.\” Hint: Not every transaction will require a journal entry.

1 On January 2, 2011 MSI decided to accept Mike as a shareholder. They issued an additional 100 shares of common stock in exchange for $1,500

2 On January 10, 2011, Bob decided to sell back to the company his 10 shares of stock for $200 (Hint: Treasury Stock)

3 On January 15, 2011, Sue and Mike (the board members), decided to declare a 10 cent per share dividend for the shareholders of record on January 1, 2011

4 On December 15, 2011, checks were sent out from MSI\’s Bank of America account to the shareholders for their dividends

5 On January 1, 2011, MSI issued 1 bond, $1,000 face value, at 98. This bond pays interest annually on December 30 at an annual rate of 12%. The bond is a 5 year bond. (Hint: Interest is calculated on the face value of a bond)

6 On August 1, 2011, Mike purchases the 10 treasury shares from MSI for $150. (Hint: Is there a Gain or Loss on Sale? This does not affect the Common Stock Account)

7 On July 1, 2011 Mike lends MSI $10,000. The company will repay Mike his principal and interest on July 1, 2012 (the following year). The interest rate is 6% per year.

8 On December 30, 2011, MSI issues a check to the sole bond holder in the amount of $120. (Hint: Don\’t forget to amortize the bond on a straight line basis over 5 years)

9 On December 31, 2011; MSI decides to pay off the loan to Mike in its entirety (including interest).

10 On December 1, 2011, MSI decides to lease a copier for $100 per month. The copier is delivered and setup by the vendor. The lease is a 12 month operating lease. The first payment is due on January 1, 2012.

11 On December 31, 2011; Accrue the operating lease.

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Allyn, Inc., has the following owners’ equity section in its November 30, 2010, balance sheet (A+)

Allyn, Inc., has the following owners\’ equity section in its November 30, 2010, balance sheet:

Paid-in capital:

14% preferred stock, $68 par value, 1,500 shares

authorized, issued,and outstanding $?

Common stock, $8 par value, 150,000 shares

authorized, ? shares issued, ? shares outstanding 240,000

Additional paid-in capital on common stock 510,000

Additional paid-in capital from treasury stock 13,000

Retained earnings 81,000

Less: Treasury stock, at cost (1,900 shares of common) (18,000)

Total stockholders\’ equity $?

Required:

(a) Calculate the amount of the total annual dividend requirement on preferred stock. (

(b) Calculate the amount that should be shown on the balance sheet for preferred stock.

(c) Calculate the number of shares of common stock that are issued and the number of shares of common stock that are outstanding.

(d) On January 1, 2010, the firm\’s balance sheet showed common stock of $200,000 and additional paid-in capital on common stock of $470,000. The only transaction affecting these accounts during 2010 was the sale of some common stock. Calculate the number of shares that were sold and the selling price per share. (Round your answers to the nearest whole number.

(e) Describe the transaction that resulted in the additional paid-in capital from treasury stock.

(f) The retained earnings balance on January 1, 2010, was $99,000. Net income for the past 11 months has been $38,000. Preferred stock dividends for all of 2010 have been declared and paid. Calculate the amount of dividends on common stock during the first 11 months of 2010.

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