Recent Question/Assignment

NAME/SURNAME: STUDENT ID:
******************************************************************************************************** Q.1.(20 POINTS) On January 1, 2012 Holly Company purchased a machinery for $140,000. Estimated the salvage value of the machinery $20.000 and economic life 10 yrs. If company uses “straight line method of depreciation method”, what is the net book value of the machinery as of December 31, 2016?
Q.2. (28 POINTS) Partial unadjusted trial balance of Alpha Advertising Company is given below:
BETHA ADVERTISING COMPANY
PARTIAL UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2016
Notes Receivable $ 90.000
Prepaid Rent 162.000
Office Supplies Inventory 34.000
Office Equipment 120.000
Accumulated Depreciation- Office Equipment 96.000
Notes Payable 56.000
Unearned Revenue 240.000
Advertising Fees Revenue 992.000
Salaries Expense 200.000
Rent Expense 192.000
Office Supplies Expense 24.000
Heat Expense 11.200
Additional Information:
a. Prepaid rent account balance shows the rent paid by the company for 9 months on November 1, 2016.
b. Office supplies used as of December 31, 2016 was $ 25.000.
c. $200.000 of unearned revenue earned as of December 31, 2016.
d. Salaries earned by employees but not paid and not recorded $ 90.000.
e. The balance of notes payable account shows the amount of the note given to one of suppliers on December 1, 2016. Accrued interest for this note is $ 750.
f. Heat expense accrued but not recorded for the month of December was $ 1.200.
g. The estimated useful life of the office equipment is 10 years. Company journalizes depreciation expense at the end of each year.
Required: Journalize the adjusting entries of Betha Advertising Company.
Q. 3.(20 POINTS) Journalize the following transactions of Lyon Service Company for the month of January, 2017.
August 1, 2017 Mr.Öz invested $ 100.000 cash and $ 45.000 worth of equipment for the establishment of the business.
August 3, 2017 Purchased office supplies for $ 1.750.Paid $750 in cash, and the balance will be paid in 10 days.
August 5, 2017 Purchased equipment for $ 1.200 paying $ 200 in cash and signing a 3month note for the balance.
August 9, 2017 Provided service to Fortress company for $12.000; collecting $2.500 in cash and received a 1-month note for the balance.
August 13, 2017 Provided service to Sun company for $ 6.000 on account.

Q.4 (32 POINTS) Below is the adjusted trial balance of Papillion Consulting Company.
Papillion Consulting
Adjusted Trial Balance
December 31, 2016
Account Balance Account Balance
Cash $ 20.000 Prepaid Rent $ 24.000
Advertising Expense 52.000 Accumulated Depreciation, Buildings 84.000
Notes Payable 80.000 Accounts Receivable 16.000
Service Revenue 460.000 Salaries Expense 168.000
Depreciation Expense 28.000 Supplies 8.000
Buildings 408.000 Salaries Payable 16.000
Rent Expense 72.000 Interest Expense 8.000
Accounts Payable 12.000 Utilities Payable 4.000
Capital 200.000 Retained Earnings 60.000
Supplies Expense 32.000 Utilities Expense 48.000
Withdrawals 32.000
Required: Prepare Income Statement and Statement of Financial Position (Balance Sheet) of Papillion Consulting in good form.
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