ACCOUNTING I Chapters 1-4 Exam Problems

Question # 00004192 Posted By: neil2103 Updated on: 11/26/2013 11:16 PM Due on: 11/30/2013
Subject Accounting Topic Accounting Tutorials:
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PART I: The trial balance of Kelita Karmel Co. shown below is out of balance.

Trial Balance
August 31, 19XX

Cash $ 2,500
Accounts Receivable 3,000
Office Supplies 3,500
Office Equipment 2,800
Accounts Payable $ 2,903
Kelita, Capital 10,000
Service fees earned 2,420
Wages Expense 5,222
Totals $17,022 $15,323

An examination of the company’s records revealed the following additional information:

1. A $360 collection of an account receivable was recorded as $630.
2. A computer purchased on credit for use in the office was recorded with a debit to Office Supplies and a credit to Accounts Payable for $2,500.
3. Services sold on credit for $900 were recorded with a debit to Accounts Receivable for $900 and a credit to Service Fees Earned for $90.
4. A payment of wages was recorded with a debit to Wage Expense for $200 and a debit to Cash for $200.
5. Recalculating the Service Fees Earned account balance before any corrections had been made revealed that the balance should be $2,520.
6. An additional investment of $1,000 made by Kelita during the month was not entered in the capital account (the entry to Cash was made).
7. A $310 payment of an account payable was recorded with a credit to Cash for $310 and a credit to Accounts Payable for $301.

Prepare a corrected trial balance on the Trial Balance form in document sharing.

PART II: As the bookkeeper of Ed’s Repair Service, use the information that follows to prepare a work sheet for the month of November. You will need to utilize the worksheet in document sharing.

NOVEMBER 30, 2007

Account Title Debit Credit
Cash $ 3,204
Prepaid Insurance 4,000
Repair Supplies 770
Repair Equipment 3,106
Accumulated Depreciation, Repair Equipment $ 650
Accounts Payable 1,904
Ed Clean, Capital 6,258
Revenue from Repairs 5,634
Wages Expense 1,600
Rent Expense 1,560
Advertising Expense 206
Totals $14,446 $14,446

Adjustment Data:

A. Insurance expired, $300
B. Repair supplies on hand $170.
C. Depreciation on repair equipment, $250.
D. Wages earned but unpaid, $106

PART III: The schedule below presents the trial balance for the Sigma Consultants Company on December 31, 2007.

Sigma Consultants Company
Trial Balance
December 31, 2007

Account Title Debit Credit
Cash $ 12,786
Accounts Receivable 24,840
Office Supplies 991
Prepaid Rent 1,400
Office Equipment 6,700
Accumulated Depreciation, Office Equipment $ 1,600
Accounts Payable 1,820
Notes Payable 10,000
Unearned Fees 2,860
Kevin Moriarty, Capital 29,387
Kevin Moriarty, Withdrawals 15,000
Fees Revenue 58,500
Salaries Expense 33,000
Utilities Expense 1,750
Rent Expense 7,700
Totals $104,167 $104,167

The following information is also available:

a. Ending inventory of office supplies, $86.
b. Prepaid rent expired, $700.
c. Depreciation of office equipment, for the period, $600.
d. Interest accrued on the note payable, $600.
e. Salaries accrued at the end of the period, $200.
f. Fees still unearned at the end of the period, $1,410.
g. Fees earned but not billed $600.

Prepare the adjusting entries on the general journal form in document sharing.
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Tutorials for this Question
  1. Tutorial # 00003982 Posted By: neil2103 Posted on: 11/26/2013 11:17 PM
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    The solution of Kelita Karmel Co....
    Kelita_Karmel_Co._.xlsx (12.17 KB)

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