Question 1:
Robert McPhill formed a proprietorship to provide engineering and construction work.
His jobs typically involve building and designing barking lots and Drives. Robert provided
the following information about the company's operation. Evaluate the transactions and
prepare journal entries.
Jan. 2nd. Robert McPhill invested $ 200,000 cash in his company.
Jan. 4th. Purchased equipment’s on account for $ 40,000.
Jan. 12th. Received $ 30,000 from customers for services rendered.
Jan. 14th. Purchased computers and relative supplies for $ 11,000.
Jan. 15th. Received a bill for construction supplies used in the amount of $ 9,000.
Jan. 18th. Provided $ 64,000 for services on account.
Jan. 20th. Paid employees $ 24,000 for wages earned.
Jan. 21st. McPhill hired a financial analyst and agreed to pay her a monthly salary of $
32,000.
Jan. 22nd. Collected %60 of the amount due for the work provided on Jan 18th.
Jan. 23rd. Paid %30 of the amount due on the equipment purchase on Jan 4th.
Jan. 25th. Purchased construction supplies for cash in the amount of $ 12,000.
Jan. 31st. Robert McPhill took one of the company's computers for his personal use. The
device worth $ 3,000.
Question 2:
The following are the manual journal entries maintained by Leeann Moore for her new
established information technology services and consulting firm. She was very busy.
Thus, she could not install the firm's computerized accounting system and kept these
manual entries. She requires you, as her newly employed accountant, to prepare a
ledger for the company's accounts as a primary step to begin the process of transitioning
the balances of these accounts into the computerized system.
General Journal
Date
Description
2 Jan 12
Cash
Leeann Moore's Capital
4 Jan 12
Equipments
Loan Payable
6 Jan 12
Accounts Receivable
Fees Earned
7 Jan 12
Supplies Expense
Accounts Payable
11 Jan 12 Accounts Payable
Cash
15 Jan 12 Wages Expense
Cash
17 Jan 12 Cash
Accounts Receivable
18 Jan 12 Cash
Fees Earned
20 Jan 12 Supplies Expense
Accounts Payable
31 Jan 12 Wages Expense
Cash
31 Jan 12 Loan Payable
Interest Expense
Cash
Debit
3,000,000
Credit
3,000,000
600,000
600,000
900,000
900,000
30,000
30,000
30,000
30,000
300,000
300,000
450,000
450,000
540,000
540,000
60,000
60,000
300,000
300,000
600,000
6,000
606,000
Question 3:
The following transactions affect cash, accounts payable, accounts receivable,
expenses and revenues accounts. Use T accounts to determine the ending balances
for accounts payable, accounts receivable and to analyze the effects of each
transaction on these accounts. Notice that at the beginning of the period the balance
for the accounts receivable was $ 108,600, Accounts payable $ 62,550, and cash
was $ 170,000.
1- $ 30,460 of cash, received for services provided to customers.
2- Purchased supplies on account supplies in the amount of $ 4,800 (directly used).
3- Collecting $ 38,820 for previous receivables that were not collected in the past.
4- Paid $ 1,526 for utilities costs.
5- Accounts payable of $ 47,800 was paid.
6- Services on account were provided to customers in the amount of $ 97,308.
Question 4:
M.T consulting
Trail Balance
June 30, 2009
Accounts
Debit
Cash
43100
Accounts receivable
20,000
Equipment
8000
Credit
Accounts payable
6000
Capital stock
50,000
Revenue
29000
Rent expense
2000
Travel expense
2400
Salary expense
6000
Supply expense
1500
Owner's Drawings
2000
Total
85000
Prepare the Income Statement and Balance Sheet.
85000
Question 5:
Evaluate the next transactions and prepare journal entries and the adjusting entries
by the end of the period in December 31.
1- The firm has purchased 18-month insurance policy on June 1, 2012 for
9000 S.R.
2- The firm started the year with a 10,000 S.R of supplies (this was already
recorded at the beginning balance), and purchased during the year
15,000 S.R in supplies and discovered that only 6500 S.R on hand
supplies by the end of 2012.
3- The firm paid the amount of 1200 S.R to rent a lorry. The rental period
began on 16th of December, 2012 and ends on 14th of February, 2013.
Question 6:
The M.D Company needs your help with preparing the end of the year adjusting
entries at December 31 for the following transactions.
1- 1 December, 20,000,000 S.R was the amount of the loan borrowed with an
8% per annum interest rate. The loan with interest is due in 3 months.
2- 31 December, 90,000 S.R is the amount due for the services provided to
Quick Company.
3- 31 December, 10,640 unpaid labor hours the average hour rate is 34 S.R.
4- 40,000 S.R was the estimated amount for utilities used during December,
(bills to be received in January).
Question 7:
Kiki Motors is a center that offers repair services for cars. Use the following
information to prepare the adjusting entries in December 31, 2012.
1- The records show that depreciation for equipments is $ 61,700.
2- As of December 31, 2012, accrued interest on a loan that owed by Kiki is $ 10,839.
3- As of December 31, 2012, $ 27,400 of services on account have been provided by
Kiki.
4- On July 1, 2012, Kiki has purchased a one year insurance policy for $ 12,000.
5- Kiki started the year with $ 18,952 of supplies (this was already recorded at the
beginning balance), and purchased during the year $ 62,500 of supplies. By the end
of 2012, the supplies account revealed an ending balance of $ 6,800.
6- An amount of $ 32,461 of the unearned revenues was actually earned in
December 31, 2012, as the services have been provided by Kiki.
7- Kiki agreed with an advertising company on a plan for multiple sign locations
around the city. On April 1, 2012, Kiki agreed to prepay the full price of $ 13,000 to
leave the signs up for 13 months.
Question 8:
The following information about Maze Company:
The incurred and recorded amount of salary expense was 2,625,000 $ and rental
revenue was 14,400,000$.
As of December 31, 2008 the company owes additional salaries in the amount of
45,000$ the accrued rent due from customers was 300,000$.
Required:
1- Prepare the adjusting entries for salaries and rent.
2- Determine the total salaries expense and total rent revenue.
Question 9:
The following trial balance for Albert Art Gallery does not show the necessary
adjustments as described below:
Albert Art Gallery
Trail balance
As of Dec 31 2008
Debit
Cash
64,400
Supplies
23,765
Display equipment
52,500
Credit
Loan payable
26,250
Capital stock
87,500
Revenues
170,065
Rent expense
38,500
Salaries expense
84,000
Interest expense
1,750
Utilities expense
18,900
Total
283,815
283,815
The equipment was purchased around the beginning of the year, with a 5-year life
and no salvage value. Its costs should be depreciated equally over its life.
Albert is to receive commissions for the art sold in the amount of 62,650. This
revenue has not been recorded, but the artists will be making the payment soon.
Supplies on hand at the end of the year were 11,900.
The rent of December has not been paid yet 3,500.
Required:
1- Prepare the necessary adjusting entries.
2- Determine the adjusted balances of the accounts by using T accounts.
3- Prepare the adjusted trial balance.
Question 01:
Provided the following information:
Capital Stock
102,500
Wage expense
92,500
Revenue
225,000
Cash
22,500
Utilities expense
15,000
Beginning retained earning
27,500
Rent expense
25,000
Accounts payable
10,000
Equipment
200,000
Dividends
12,500
Accounts receivable
47,500
Notes payable
50,000
Prepare the following statements: income, retained earnings, and balance sheet for
the year ending in Dec 31, 2007.
Question 11:
Ahmad Company provided the following information for the ending year of Dec 31,
2012.
Capital stock
375,000
Wage expense
60,000
Revenue
120,000
Rent expense
33,000
Beginning retained earning
133,500
Utilities expense
16,500
Accounts payable
18,750
Dividends
Notes payable
3750
75,000
Determine:
1- Net income for the period ending in 2012.
2- Total assets.
If the assets included accounts receivable of 7500 S.R for services provided in 2012,
which has been excluded in the revenue amount. How would this affect your answer
in 1?
Question 21:
Al-Dar Company provided the following information:
Dec 31, 2011
Dec 31, 2012
Total Assets
2,500,000 S.R
3,800,000 S.R
Total liabilities
900,000 S.R
1,300,000 S.R
Required: compute the net income for the ending year of Dec 31, 2012 in the following
cases:
a- No dividends paid, no additional capital was raised.
b- Paid 300,000 S.R dividends, no additional capital was raised.
c- No dividends paid, additional capital was raised through shares in the amount of
1,500,000 S.R.
d- Paid 300,000 S.R dividends, additional capital was raised through shares in the
amount of 1,150,000 S.R.
Question 21:
The Madar Company was established in 2009, with capital stock of 350,000 S.R.
provided the following information:
Revenues, 2010
315,000
Dividends, 2011
52,500
Total equity 31 Dec, 2011
735,000
Total liabilities 31 Dec, 2011
770,000
Retained earning Dec 31, 2009
143500
Expenses, 2010
154000
Retained earning Dec 31, 2010
280,000
Dividends, 2009
35,000
Compute the net income for the years ending Dec 31, 2009, 2010, 2011.
Question 14:
This is the adjusted trail balance on December 30, 2117 for Adam’s company:
Adam Company
Adjusted trail balance
As of December 31, 2007
Debit
Cash
80,100
Accounts receivable
53,325
Supplies
16,875
Equipment
732,825
Credit
Accumulated depreciation
90,900
Accounts payable
87,300
Loan payable
225,500
Capital stock
180,000
Retained earnings
157,500
Dividends
455,000
Revenues
1,076,400
Rent expense
270,000
Salaries expense
530,100
Supplies expense
40,500
Interest expense
16,650
Depreciation expense
22,725
Total
1,808,100
1,808,100
Required:
1- Prepare the necessary closing entries.
2- Use T-accounts to determine the balances for the accounts.
Question 15:
Al-Bader Company was established in 2002, and has requested your help in
completing the missing amounts for each year.
Note: begin by solving the missing amounts in 2002, and then continue to following
years. Also, 2002 was the first year for the business, so retained earning beginning
balance is zero.
Al-Bader Company
Income statement
For the years ending in Dec, 31 xxxx
2004
2003
2002
100,000
80,000
50,000
Revenues:
Services to customers
Expenses:
Wages
68,500
58,500
35,000
Interest
1,500
1,500
2,500
70,000
Net income
30,000
60,000
20,000
37,500
12,500
Al-Bader Company
Statement of Retained Earnings
For the year ending Dec, 31, xxxx
2004
2003
2002
Beginning retained earning
15,000
5,000
0
Plus: Net Income
30,000
20,000
12,500
45,000
25,000
12,500
Less: Dividends
15,000
10,000
7,500
Ending retained earning
30,000
15,000
5,000
Al-Bader Company
Balance Sheet
December 31, xxxx
2004
2003
2002
Assets:
Cash
27,000
29,500
25,000
Accounts receivable
32,500
25,000
35,000
Land
90,000
90,000
90,000
Total assets
149,500
144,500
150,000
Interest payable
500
500
1000
Loan payable
5,000
15,000
30,000
Total liabilities
5,500
15,500
31,000
Capital stock
14,000
114,000
114,000
Retained earnings
30,000
15,000
5,000
144,000
129,000
119,000
149,500
144,500
150,000
Liabilities:
Stockholder’s equity:
Total
stockholders’
equity
Total
equity
liabilities
and