ACCOUNTING 2001
CLASS 3 REVIEW EXERCISE
(Answer these questions and check answers as soon as possible after each class)
OVERALL REVIEW
Class 3 Key Concepts: Preparation of Basic Financial Statements
Liam Company was formed on January 1, 2011. The following alphabetical list of
information is taken from the accounting records on December 31, 2011:
Accounts payable
Accounts receivable
Advertising expense
Cash
Common stock (issued on January 1, 2011)
Fees revenue
Land
Rent expense
Supplies expense
Supplies on hand
Trucks
Wages expense
Wages payable
$10,000
12,000
14,000
17,000
80,000
90,000
50,000
22,000
9,000
4,000
20,000
36,000
4,000
Compute each of the following:
(Hint: before answering the individual questions, prepare an income statement,
statement of owners’ equity, and a balance sheet from the information above.)
1. Total revenues for year ended December 31, 2011.
2. Total expenses for year ended December 31, 2011.
3. Net income (loss) for year ended December 31, 2011.
4. Retained earnings on January 1, 2011.
5. Retained earnings on December 31, 2011.
6. Total owners’ equity on December 31, 2011.
7. Total current assets on December 31, 2011.
8. Total current liabilities on December 31, 2011.
9. Total assets on December 31, 2011.
10. Total liabilities and owners’ equity on December 31, 2011.
Answers to Class 3 Review Quiz:
1. $90,000
2. $81,000
3. $9,000
4. $0
5. $9,000
6. $89,000
7. $33,000
8. $14,000
9. $103,000
10. $103,000