Response to the following questions:
Q1.Prepare the balance sheet for ALOMARI Delivery Service from the following alphabetical list of the accounts at December 31 amounts in dollars.
|
Accounts receivable
|
$10,000
|
|
Accounts payable
|
18,000
|
|
Building
|
28,000
|
|
Common stock
|
30,000
|
|
Cash
|
8,000
|
|
Notes payable
|
45,000
|
|
Office equipment
|
12,000
|
|
Retained earnings
|
?
|
|
Trucks
|
55,000
|
Q2. The balances for the accounts of Lance's Consulting Firm, Inc. for the year ended December 31 are shown below. Each account shown had a normal balance.
Accounts payable $ 6,400 Wages expense $35,000
Accounts receivable 7,000 Rent expense 5,000
Cash 10,000 Retained Earnings 68,700
Office Supplies 1,000 Land 53,000
Building 99,000 Unearned Revenue 7,000
Supplies expense 15,000 Dividends 20,000
Consulting Revenue 150,000 Common Stock 12,900
Instructions: Calculate Net Income.
Q3. Dolly Barton began Barton Office Services in October and during the month completed the following transactions:
a. Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock
b. Paid $500 cash for an insurance premium covering the next 12 months
c. Completed a word processing assignment for a customer and collected $1,000 cash
d. Paid $200 cash for office supplies
e. Paid $2,000 for October's rent.
Instructions:Prepare journal entries to record the above transactions. Explanations are unnecessary.
Q 4. ABC Company wishes to enter receipts and payments in such a manner that adjustments at the end of the period will not require reversing entries at the beginning of the next period.
Instructions:
Record the following transactions in the desired manner and give the adjusting entry on December 31, 2017. (Two entries for each part.)
1. An insurance policy for two years was acquired on April 1, 2017 for $8,000.
2. Rent of $12,000 for six months for a portion of the building was received on November 1, 2017.