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(ACCT2020)[2012](s)quiz~=ogq28^_27746.pdf
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Quiz 1 Solution Key (Version A)
Part I: Multiple-Choice Questions (Questions 1 C 5 @ 2 point each, 10 points)
CCADE Part II: Problems Problem 1 (18 points)
1) Prepare a journal entry for each transaction (11 points).


a. Cash $30,000 Land 100,000 Owners Capital $130,000 b. Cash $4,000 Accounts Receivable $4,000 c. Cash $50,000 Note Payable 50,000 d. Wages Expense 15,000 Cash $15,000 e. Consulting expense $20,000 Cash $ 8,000 Accounts Payable 12,000 f. Cash $35,000 Accounts Receivable 10,000 Revenue $45,000 g. Cash $10,000 Unearned Revenue $10,000 h. Prepaid Expense $600 Cash $600
i. Utility Expense $1,800 Cash $1,800 Interest Expense $100 Cash $100 j Withdrawals, Owner $6,000 Cash $6,000 2). Prepare an income statement for the current month (assuming no income tax) (7 points).
Norton Corporation
Income Statement
For the Month Ended September 30, 2011
Revenue: Sales Revenue $45,000 Expenses: Consulting expenses 20,000 Salaries (or Wages) expense 15,000 Utility expense 1,800 Interest expense 100 Total Expense $36,900 Net Income $ 8,100
Problem 2 (12 points) 1) Present the six adjusting entries that explain the changes in the account balances from the unadjusted to the adjusted trial balance. (6 points) 2) The owner did not provide contribution during the year. Prepare a statement of owners equity for the current year ended December 31. (6 points)

High Land, Inc.


Statement of Owner's Equity


For Year Ended December 31

D. Ruiz, Capital, January 1

27,905

Plus: Net income

25,220




53,125

Less: Withdrawals by owner

(1,500)

Ruiz, Capital, December 31

51,625