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(ACCT2020)[2012](s)quiz~=ogq28^_65848.pdf
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Quiz 1 Solution Key (Version B)
Part I: Multiple-Choice Questions (Questions 1 C 5 @ 2 point each, 10 points)
AECCD Part II: Problems Problem 1 (18 points)
1) Prepare a journal entry for each transaction (11 points).


a. Cash $60,000 Land 200,000 Owners Capital $260,000 b. Cash $8,000 Accounts Receivable $8,000 c. Cash $100,000 Note Payable 100,000 d. Wages Expense 30,000 Cash $30,000 e. Consulting expense $40,000 Cash $ 16,000 Accounts Payable 24,000 f. Cash $70,000 Accounts Receivable 20,000 Revenue $90,000 g. Cash $20,000 Unearned Revenue $20,000 h. Prepaid Expense $1,200 Cash $1,200
i. Utility Expense $3,600 Cash $3,600 Interest Expense $200 Cash $200 j Withdrawals, Owner $12,000 Cash $12,000 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 $90,000 Expenses: Consulting expenses 40,000 Salaries (or Wages) expense 30,000 Utility expense 3,600 Interest expense 200 Total Expense $ 73,800 Net Income $16,200
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

24,755




52,600

Less: Withdrawals by owner

(1,500)

Ruiz, Capital, December 31

51,160