ACCOUNTING 2001
CLASS 4 REVIEW EXERCISE
(Answer these questions and check answers as soon as possible after each class)
OVERALL REVIEW
Class 4 Key Concepts: Preparation of Basic Financial Statements
(net loss for year)
Marg 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
$ 5,000
12,000
14,000 Advertising expense
Cash 12,000
Common stock (issued on January 1, 2011)
Fees revenue
Land
Rent expense
Supplies expense
Supplies on hand
Trucks
Wages expense
Wages payable
Compute each of the following:
90,000
75,000
50,000
22,000
9,000
4,000
5,000
46,000
4,000
(Hint: before answering the individual questions, prepare an income statement, statement of owners’ equity, and a balance sheet from the information above.)
1. The total amount of debit balances at December 31, 2011.
2. The total amount of credit balances at December 31, 2011.
3. Total revenues for year ended December 31, 2011.
4. Total expenses for year ended December 31, 2011.
5. Net income (loss) for year ended December 31, 2011.
6. Retained earnings on January 1, 2011.
7. Retained earnings on December 31, 2011.
8. Total owners’ equity on December 31, 2011.
9. Total current assets on December 31, 2011.
10. Total current liabilities on December 31, 2011.
11. Total assets on December 31, 2011.
12. Total liabilities and owners’ equity on December 31, 2011.

Answers to Class 4 Review Quiz:
1. $174,000
2. $174,000
3. $75,000
4. $91,000
5. $(16,000) net loss
6. $0
7. $(16,000)
8. $74,000
9. $28,000
10. $9,000
11. $83,000
12. $83,000