Acct 117
Mid-term Mock Exam
Q. 1) Choose and circle the correct answers in the following questions:
1. Collection of a SR 500 Accounts Receivable
a. increases an asset SR 500; decreases an asset SR 500.
b. increases an asset SR 500; decreases a liability SR 500.
c. decreases a liability SR 500; increases owner's equity SR 500.
d. None of the above
2. Which one of the following is not a part of an account?
a. Credit side
b. Title
c. Debit side
d. None of the above
3. Which of the following is the correct sequence of steps in the recording process?
a. Analyzing, journalizing, posting
b. Journalizing, analyzing, posting
c. Analyzing, posting, journalizing
d. None of the above
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Q. 2)
Eyad opened his own Travel Agency on January 1. The following transactions were occurred
during the month.
1. Invested SR20,000 cash to start his own Travel Agency.
2. Paid SR1,000 cash for January office rent.
3. Purchased office equipment for SR6,000; paid SR2,000 in cash and the balance on account.
4. Paid SR800 cash for office supplies.
5. Performed services to clients for SR8,000; SR3,000 cash was received from clients and
the balance agreed to be on account.
6. Paid SR1,200 cash on accounts payable.
7. Received SR4,000 in cash from customers who had previously been billed.
8. Paid both salaries SR2,500, and utilities SR500 in cash.
Required:
Show the effects of the previous transactions on the accounting equation using the following
tabular summary of the transactions.
Assets
Transaction
= Liabilities + Owner's Equity
=
(1)
(2
(3)
(4
(5
(6)
(7)
(8)
Total
Total
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Q. 3) The following events occurred during January.
1) Jan.1 Moiyyad Invested SR50,000 cash in his business.
3 Purchased office equipment costing SR10,000, paid SR2,000 in cash and
the balance on account.
7 Hired a secretary at a salary of SR2.500 per month.
15 Paid SR4,000 in cash to pay for accounts payable.
27 Paid SR2,500 cash for salaries.
Required:
1. Journalize the January transactions.
Date
Account Titles
Debit
Credit
3
Q. 4 Post the related transaction to the Cash account only in the general
ledger.
Cash
Date
Explanation
Debit
Credit
Balance
Cash
Dr.
Cr.
Q. 5) The following is the trial balance of "Jeddah" Enterprise at
January 31, 2015:
Account Titles
Supplies
Land
Capital 1/1/2015
Drawings
Service Revenue
Rent Expense
Salaries Expense
Insurance Expense
Debit
SR 500
40,000
Credit
SR 39,000
2,500
10,000
2,000
3,000
1,000
Required:
Prepare, in good form, the income statement, owner's equity statement
for the month ended January 31, 2015.
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"Jeddah" Enterprise
Income Statement
For the month ended January 31, 2015
"Jeddah" Enterprise
Owner's Equity Statement
For the month ended January 31, 2015
Khalid Bashnini
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