ACCT 20100 Review Problem

Review for Exam #1Fall 2010Jordan AuditoriumMendoza College of BusinessSeptember 19, 2010ACCT 20100 Review ProblemJuly 1 Minh invested $12,000 cash in the business.

AccountDebitCreditJuly 1 Purchased used truck for $6,000, paying $3,000 cash and the balance on a three year note payable.

AccountDebitCreditJuly 3 Purchased cleaning supplies for $1,300 on account.

AccountDebitCreditJuly 5 Paid $2,400 cash on one-year insurance policy effective July 1.

AccountDebitCreditJuly 12 Billed customers $2,500 for cleaning services earned.

AccountDebitCreditJuly 18 Paid $1,000 cash on amount owed on note payable and $800 on amount owed on cleaning supplies.AccountDebitCreditJuly 20 Paid $1,200 cash for employee salaries.AccountDebitCreditJuly 21 Collected $1,400 cash from customers billed on July 12.AccountDebitCreditJuly 25 Billed customers $5,000 for cleaning services earned.

AccountDebitCreditJuly 31 Paid gas and oil for month on truck $200.

AccountDebitCreditJuly 31 Declared and paid $900 dividend.AccountDebitCreditOnce Journal Entries are complete, Post these to t-accounts.

Prepare UNADJUSTED TRIAL BALANCE from t-account balancesPrepare Adjusting Journal Entries(1) Services provided but unbilled and uncollected at July 31 were $1,500.

AccountDebitCredit(2) Depreciation on equipment for the month was $300.AccountDebitCredit(3) One-twelfth of the insurance expired.AccountDebitCredit(4) An inventory count shows $400 of cleaning supplies on hand at July 31.AccountDebitCredit(5) Accrued but unpaid employee salaries were $600.AccountDebitCreditPrepare ADJUSTED TRIAL BALANCE (Post Adjusting Journal Entries to a separate column in the Trial Balance Worksheet)Prepare Financial Statements:Income StatementStatement of Retained EarningsBalance SheetPrepare Closing EntryClosing EntryAccountDebitCredit