ANSWERS TO SAMPLE TEST #2
ANSWERS:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
F
T
T
T
F
T
T
F
F
T
C
A
D
B
C
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
A
D
C
A
C
C
B
D
A
D
D
C
A
C
A
31
32
33
34
35
36
37
38
39
40
D
B
B
C
D
A
B
C
A
D
PART B:
PROBLEMS (45 pts total):
1.
Use the following page (page 4) to journalize these transactions for May of 2008.
Then post these transactions to the General Ledger that follows (the account
names and numbers are preprinted): 2 pts per journal entry (total of 14 pts) + 11
pts for the general ledger.
a.
May 2 - Collected $325 from credit customers.
b.
May 4 - Purchased supplies for $180 on credit, invoice #DS01
c.
May 5 - Performed services for $4,500 cash.
d.
May 9 - Purchased new equipment for $1,700. Issued check # 1135 for
$1,000 as downpayment. The balance is due in 30 days, invoice #885.
e.
May 13 - Issued check #1136 for $700 to pay a creditor on account.
f.
May 26 - Purchased office furniture for $200 cash, check #1137.
g.
May 30 - Returned damaged supplies and received $50 cash back.
GENERAL JOURNAL
Page 4_
DATE
1
2
2008
May
DESCRIPTION
DEBIT
POST. REF.
CREDIT
1
2
3
4
Cash
AR
Collected cash from charge
customers
101
111
Office Supplies
AP
Bought supplies, inv #DS01
121
202
Cash
Fees Income
Performed services for cash
101
401
3
2
5
00
2
3
2
5
00
4
5
6
5
4
7
8
1
8
0
00
6
1
8
0
00
9
5
11
12
4
5
0
0
00
10
4
5
0
0
00
13
9
15
16
17
18
19
Equipment
Cash
AP
Bought equipment, issued
ch. #1135 for downpayment,
& received inv #885
151
101
202
1
7
0
0
00
14
1
0
7
0
0
0
0
00
00
13
23
18
19
AP
Cash
Issued ch #1136 to pay on acct
202
101
Office Furniture
Cash
Bought furniture with ch. #1137
138
101
Cash
Office Supplies
Returned damaged supplies
for a cash refund
101
121
7
0
0
00
21
7
0
0
00
24
26
26
27
2
0
0
00
25
2
0
0
00
31
32
26
27
28
30
22
23
24
29
16
20
22
25
15
17
20
21
11
12
13
14
7
8
9
10
3
28
30
5
0
00
29
5
0
00
30
31
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
41
41
GENERAL LEDGER
Cash
ACCOUNT
ACCOUNT NO. 101
POST
DATE
2008
May
DESCRIPTION
2
5
9
13
26
30
BALANCE
REF.
DEBIT
J4
J4
J4
J4
J4
J4
325.00
4500.00
CREDIT
1000.00
700.00
200.00
50.00
AR
ACCOUNT
Debit
325.00
4825.00
3825.00
3125.00
2925.00
2975.00
ACCOUNT NO. 111
POST
DATE
2008
April
May
DESCRIPTION
30
2
Balance
REF.
BALANCE
DEBIT
J1
J4
CREDIT
Debit
325.00
ACCOUNT NO. 121
POST
DATE
2008
May
DESCRIPTION
4
30
REF.
J4
J4
BALANCE
DEBIT
CREDIT
180.00
50.00
Office Furniture
ACCOUNT
Debit
2008
May
DESCRIPTION
26
ACCOUNT NO. 138
REF.
J4
BALANCE
DEBIT
CREDIT
Debit
ACCOUNT NO. 151
POST
DATE
2008
May
DESCRIPTION
9
Credit
200.00
200.00
Equipment
ACCOUNT
Credit
180.00
130.00
POST
DATE
Credit
1,000.00
675.00
Office Supplies
ACCOUNT
Credit
BALANCE
REF.
DEBIT
J4
1700.00
CREDIT
Debit
1700.00
Credit
ACCOUNT NO. 202
AP
ACCOUNT
POST
DATE
2008
May
DESCRIPTION
4
9
13
REF.
J4
J4
J4
BALANCE
DEBIT
CREDIT
180.00
880.00
180.00
700.00
ACCOUNT NO. 401
POST
DATE
2008
May
DESCRIPTION
5
Credit
180.00
700.00
Fees Income
ACCOUNT
Debit
REF.
J4
BALANCE
DEBIT
CREDIT
4500.00
Debit
Credit
4500.00
2. Use the journal form below (page 5) to journalize the following adjustments (2.5
pts for each transaction).
a.
Purchased supplies for $1,000 on May 1, 2008. Inventory of supplies as of
May 31, 2008, $300.
b.
Signed a 4-month contract for $1,200 prepaid advertising on May 1, 2008.
Record the adjustment for the amount of the contract that expired during the
month of May.
c.
Rent expired during the month of May 2008, $700.
d.
Depreciation is computed using the straight-line method. Equipment
purchased on May 1, 2008, for $16,800 has an estimated useful life of 5 years
with no salvage value. Record the adjustment on May 31, 2008.
Page
GENERAL JOURNAL
DATE
1
2
3
4
DESCRIPTION
Adjusting Entries
2008
May 31 Supplies Expense
Supplies
POST. DEBI
REF.
T
5
CREDIT
1
2
3
7 0 0 00
7 0 0 00 4
5
6
7
5
31 Advertising Expense
Prepaid Advertising
6
3 0 0 00
3 0 0 00 7
8
9
10
8
31 Rent Expense
Prepaid Rent
7 0 0 00
11
12
13
9
7 0 0 00
10
11
31 Depreciation Expense - Equipment
Accumulated Depreciation - Equipment
2 8 0 00
12
2 8 0 00 13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
3. On December 31, 2008, the ledger accounts of Barsky Repair have the following
balances after all adjusting entries have been posted (10 pts):
Cash
Supplies
Equipment
Accumulated Depreciation,
Equipment
Accounts Payable
R. Barsky, Capital
R. Barsky, Drawing
$ 1,700
1,800
5,300
1,200
400
6,700
16,300
Income Summary
Income from Services
Wages Expense
Rent Expense
Utilities Expense
Depreciation Expense,
Equipment
Supplies Expense
Miscellaneous Expense
$
0
24,900
1,600
3,600
1,100
600
800
400
Journalize the four closing entries (using page 6 of the general journal below) in
the proper order:
Page
6
GENERAL JOURNAL
DATE
1
2
3
4
DESCRIPTION
POST. DEBI
REF.
T
CREDIT
1
Closing Entries
2008
Dec 31 Income from Services
Income Summary
2
3
24 9 0 0 00
24 9 0 0 00 4
5
6
7
8
9
10
11
12
5
31 Income Summary
Wages Expense
Rent Expense
Utilities Expense
Depreciation Expense – Equipment
Supplies Expense
Miscellaneous Expense
1 6 0 0
3 6 0 0
1 1 0 0
6 0 0
8 0 0
4 0 0
13
14
15
18
00
00
00
00
00
00
7
8
9
10
11
12
13
31 Income Summary
R. Barsky, Capital
16 8 0 0 00
14
16 8 0 0 00 15
16
17
6
8 1 0 0 00
16
31 R. Barsky, Capital
R. Barsky, Drawing
16 3 0
0 00
17
16 3 0 0 00 18
19
19
20
20
21
21
22
22