1. XYX Company was organized December 18. Transactions from December 18 thru December 31:

1.  XYX Company was organized December 18.   Transactions from December 18 thru December 31: 

 

Dec 18  Issued capital stock in exchange for $30,000 cash

Dec 22  Borrowed $20,000 from bank by issuing a note payable

Dec 23  Paid $100 for a radio advertisement aired on Dec 24

Dec 25  Provided $1,000 of services to clients for cash

Dec 26  Provided  $2,000 of services to clients on account

Dec 31  Collected $800 cash from clients for the services provided on Dec 26

 

a.  Record each of these transactions

b.  Determine the balance in the Cash account on December 31.  Indicate whether the balance is debit or credit

 

 

2.  ABC Corporation’s Retained Earnings account balance was $75,000 on October 1.  In October the company recorded:

 

Revenue     $100,000

Expenses             60,000

Dividends                 5,000

Land purchase        20,000 cash

 

Determine the company’s Retained Earnings account balance on October 31.

 

3.   ABC Corporation April 1:

 

April 1:

Office supplies on hand:$900

Supplies purchased:$600.

Supplies remaining end of month:$400 

 

Prepare the necessary adjusting entry on April 30 to account for office supplies.

 

 

4.  On January 2, 2006, XXX Corporation purchased equipment costing $72,000. XXX performs adjusting entries monthly.

 

a.  Record this equipment’s depreciation expense on December 31, 2011, assuming its estimated life was eight years on January 2, 2006.

b.  Determine the amount of the equipment’s accumulated depreciation reported in the balance sheet dated December 31, 2011.

 

 

5.  ABC Tax Service had earned—but not yet recorded—the following client service revenue at the end of the current accounting period.

 

       Billable            Hourly

Account NumberHours Billing Rate

 

Account #2055         10                 $85

Account #1910         14          $75

Account #1241         16          $90

 

Prepare the necessary adjusting entry to record ABC’s unbilled client service revenue

 

6.  ABC Corporation’s current year: 

 

Total assets decreased by:    $60,000

Total liabilities decreased by:    $300,000  

Stock issued:      $100,000

Net income for the year:     $250,000 

No other changes to stockholders’ equity  

 

Determine the dollar amount of dividends declared by the company during the year.

 

 

7.  XYZ Company:

 

Current year revenue:         $800 million

Cost of goods sold         $640 million.  

 

Compute XYZ’s gross profit and its gross profit percentage.

 

 

8.  ABC’s transactions during November of the current year:

 

Nov. 1  Purchases 100 widgets at $50 each

Nov. 5  Sells 50 widgets at $80 each

 

Compute ABC’s gross profit for November

 

 

9.   XXX Company: 

 

Inventory balance January 1 $300,000

Goods purchased   600,000

Inventory balance Dec 31   250,000

 

What is total cost of goods sold for year?

 

 

 

 

 

 

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