Supplemental Instruction Handouts
Financial Accounting
Final Review Answer Key
Chapters 2, 3, 4, 5 & 8
1.
General Journal
Date Account Titles and Explanations
Nov 1 Cash
Computer Equipment
Angela Ireland, Capital
PR
Debit
30,000
1,500
31,500
1 Prepaid Rent
Cash
2,400
2
1,800
2
3
8
12
Prepaid Insurance
Cash
2,400
1,800
Office Supplies
Accounts Payable
400
Advertising Expense
Cash
120
Cash
Accounting Fees Earned
250
Cash
500
400
120
250
Unearned Accounting Fees
15
Wages Expense
Cash
500
750
750
19 Accounts Receivable
Accounting Fees Earned
450
24
250
Telephone Expense
Accounts Payable
Page ____
Credit
450
250
Academic Success Centre
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This answer key has been created by Michael Reimer for the Academic Success Centre
General Journal
Date
Account Titles and Explanations
Nov 30 Wages Expense
Cash
PR
Page _2__
Credit
Debit
750
750
30 Cash
Accounts Receivable
450
30 Accounts Payable
Cash
400
450
400
2.
General Journal
Date
Account Titles and Explanations
(A) Dec 31 Insurance Expense
Prepaid Insurance
(B) 31 Office Supplies Expense
Office Supplies
(435 – 120 = 315)
(C) 31 Depreciation Expense – Office Equipment
Accumulated Depreciation – Office Equipment
(D) 31 Telephone Expense
Accounts Payable
(E) 31 Unearned Management Fees
Management Fees Earned
PR
Debit
1,085
Page _1__
Credit
1,085
315
315
1,225
1,225
60
60
750
750
(F) 31 Accounts Receivable
Management Fees Earned
(800 x 1.5 months = 1200)
1,200
(G) 31 Wages Expense
Wages Payable
(125 x 4 = 500 x 3 = 1,500)
1,500
1,200
Academic Success Centre
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This answer key has been created by Michael Reimer for the Academic Success Centre
1,500
3.
General Journal
Date
Account Titles and Explanations
Dec 31 Interest Earned
Wrecking Fees Earned
Income Summary
PR
Debit
8,000
210,000
Page _1__
Credit
218,000
31 Income Summary
Depreciation Expense - Equipment
Depreciation Expense - Trucks
Advertising Expense
Interest Expense
Office Supplies Expense
Repairs Expense - Trucks
Wages Expense
178,400
5,000
9,000
25,000
12,000
13,000
8,400
106,000
31 Income Summary
W. Krumbell, Capital
39,600
31 W. Krumbell, Capital
W. Krumbell, Withdrawals
29,400
39,600
29,400
4.
Date
July 2
General Journal
Account Titles and Explanations
Merchandise Inventory
Accounts Payable – Jay Company
PR
Debit
3,000
3,000
2 Accounts Receivable – Terris Company
Sales
800
2 Cost of Goods Sold
Merchandise Inventory
400
3
100
8
Merchandise Inventory
Cash
Cash
Page ____
Credit
800
400
100
1,600
Sales
1,600
Academic Success Centre
www.rrc.mb.ca/asc
This answer key has been created by Michael Reimer for the Academic Success Centre
Date
July 8
9
12
General Journal
Account Titles and Explanations
Cost of Goods Sold
Merchandise Inventory
Merchandise Inventory
Accounts Payable – Klepis Company
Accounts Payable – Klepis Company
Merchandise Inventory
12 Cash ($800 - $16 = $784)
Sales Discount ($800 x 0.02 = $16)
Accounts Receivable – Terris Company
PR
Debit
800
800
2,300
2,300
200
200
784
16
800
17 Accounts Payable – Jay Company
Merchandise Inventory ($3,000 x 0.02 = $60)
Cash ($3,000 - $60 = $2,940)
3,000
19 Accounts Receivable – Ultra Co.
Sales
1,250
19
21
24
60
2,940
1,250
Cost of Goods Sold
Merchandise Inventory
625
Sales Returns and Allowances
Accounts Receivable – Ultra Co
200
Accounts Payable – Klepis Company ($2,300 - $200)
Merchandise Inventory ($2,100 x 0.04 = $84)
Cash ($2,100 - $84 = 2,016)
29 Cash ($1,150 - $23 = $1,127)
Sales Discount ($1,150 x 0.02 = $23)
Accounts Receivable – Ultra Co ($1,250 - $200)
Page ____
Credit
625
200
2,100
84
2,016
1,127
23
1,150
Academic Success Centre
www.rrc.mb.ca/asc
This answer key has been created by Michael Reimer for the Academic Success Centre
5) A)
__________________EasterCompany________________________________________
_____________BankReconciliation__________________________________________
September 30, 2015
Bank Balance
Add:
Deposit in transit
Total
Less:
Outstanding Cheques:
#891
#916
#919
Adjusted Bank Balance
$7,845
Book Balance
Add:
1,626 Note Receivable $3,000
$9,471 Less: Collection Fee
30
Bookkeeping error (691619)
Total
$5,983
2,970
72
$$9,025
306 Less:
375 NSF Cheque
150 Bank Services
$8,640 Adjusted Book Balance
370
15
$8,640
B)
Date
Sept 30
30
General Journal
Account Titles and Explanations
Cash
Collection Fee
Notes Receivable
Cash
PR
Debit
2,970
30
Page ____
Credit
3,000
72
Office Equipment
30
30
Accounts Receivable – Joan Duke
Cash
Bank Service Fee
Cash
72
370
370
15
Academic Success Centre
www.rrc.mb.ca/asc
This answer key has been created by Michael Reimer for the Academic Success Centre
15