King Abdul-Aziz University
Faculty of Economics and Administration
Accounting Department
SET "A"
ACCT 117
First Exam
First Term, 1431/1432
Time: 90 Minutes
Name: ____________________________
ID: _______________________________
Section No.: _______________________
Question
I
II
III
IV
V
Total
Maximum
5
6
4
5
5
25
Score
(Good Luck)
1
I .( 5 Points)
(1) The total Assets of a company is $50000 and liabilities is
$10000.What is the amount of owners equity?
(2) What are the accounts involved in these transactions:
(a) Purchased supplies on credit $1000.
(b) Services performed on credit to customers $15000.
2
II. (6 Points)
Moiyyad decides to open a cleaning and laundry service near the local
college campus that will operate as a sole proprietorship. Analyze the
following transactions for the month of December in terms of their effect
on the basic accounting equation. Record each transaction by increasing
(+) or decreasing (–) the dollar amount of each item affected. It is
necessary to identify the cause of changes in owner's equity.
Transactions
(1) Moiyyad invests $20,000 in cash to start a cleaning and laundry
business on December 1.
(2) Purchased laundry equipment for $5,000 paying $3,000 in cash and
the remainder due in 30 days.
(3) Received a bill from Campus News for $300 for advertising in the
campus newspaper.
(4) Cash received from customers for cleaning and laundry amounted
to $1,500.
(5) Paid $300 in cash to Campus News for advertising that was
previously billed in Transaction 3.
(6) Moiyyad withdrew $900 in cash from the business for personal
expenses.
Cash
Equipment
Accounts
Payable
Capital
3
III. (4 Points)
Journalize the following business transactions in general journal form.
Identify each transaction by number. You may omit explanations of the
transactions.
1. Purchased office equipment for $8,000, paying $2,000 in cash and
signed a 30-day, $6,000, note payable.
2. Paid $700 in cash for the current month's rent.
3. Billed customers $2,200 for service performed.
4. Eyad (owner) withdrew $1,200 in cash from the business for
personal expenses.
4
IV. (5 Points)
Selected transactions from the journal of Mohammad Zaid, consultant
engineer, are presented below:
Date
Accounts and Explanation
Ref.
debit
credit
Nov. Cash
6,000
1
Mohammad Zaid, Capital
6,000
(owner’s investment of cash in business)
Cash
10
4,800
Service revenue
(received cash for services provided)
Office Equipment
12
Cash
Notes Payable
(purchased office equipment for cash and notes
payable)
4,800
10,000
2,000
8,000
25 Accounts Receivable
Service Revenue
(billed for services provided)
3,200
30 Cash
1,800
3,200
Accounts Receivable
(receipt of cash on account)
1,800
Required:
Post the related transactions to the "Cash" account only and
determine its balance:
5
V. (5 Points)
The following is the trial balance of "X" Enterprise on October 31,
2010:
Account Titles
Debit
Credit
Cash
$13,000
Accounts Receivable
1,700
Supplies
300
Land
19,000
Buildings
26,000
Accounts Payable
$ 2,400
Notes Payable
3,000
X, Capital 10/1/2010
53,100
X, Drawings
1,500
Service Revenue
9,500
Rent Expense
1,800
Salaries Expense
4,200
Insurance Expense
500
Total
68,000
68,000
Required:
Prepare, in good form, an income statement, owner's equity
statement, and balance sheet for "X" Enterprises for the month ended
October 31, 2010.
Income Statement
For October 2010
Revenues:
Expenses:
6
Owner's Equity Statement
For October 2010
Balance Sheet
October 31, 2010
Assets
Liabilities
Owner's Equity
(Good Luck)
7