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    Mock Exam 2452019

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    Minh Tâm Trần
    The document provides information and transactions for three exercises. Exercise 1 provides an adjusted trial balance and asks to prepare owner's equity and balance sheet statements. Exercise 2 provides inventory transactions and asks to prepare general journal entries. Exercise 3 provides inventory information and asks to calculate the ending inventory cost under LIFO.

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    Mock Exam 2452019

    Uploaded by

    Minh Tâm Trần
    11 views8 pages
    The document provides information and transactions for three exercises. Exercise 1 provides an adjusted trial balance and asks to prepare owner's equity and balance sheet statements. Exercise 2 provides inventory transactions and asks to prepare general journal entries. Exercise 3 provides inventory information and asks to calculate the ending inventory cost under LIFO.

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    Mock exam 2452019

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    The document provides information and transactions for three exercises. Exercise 1 provides an adjusted trial balance and asks to prepare owner's equity and balance sheet statements. Exercise 2 provides inventory transactions and asks to prepare general journal entries. Exercise 3 provides inventory information and asks to calculate the ending inventory cost under LIFO.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    11 views8 pages

    Mock Exam 2452019

    Uploaded by

    Minh Tâm Trần
    The document provides information and transactions for three exercises. Exercise 1 provides an adjusted trial balance and asks to prepare owner's equity and balance sheet statements. Exercise 2 provides inventory transactions and asks to prepare general journal entries. Exercise 3 provides inventory information and asks to calculate the ending inventory cost under LIFO.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    MOCK EXAM

    Time: 70 minutes

    Exercise 1:
    Using the information presented below, prepare a statement of owner's equity and balance sheet from the
    adjusted trial balance of Dodson Containers. Mr. Dodson's capital account balance of $40,340 consists of a
    $30,340 beginning-year balance plus a $10,000 investment during the current year.

    DODSON CONTAINERS
    Adjusted Trial Balance
    December 31
    Cash…………………………………………………. $ 3,050
    Accounts receivable………………………………… 400
    Prepaid insurance …………………………………... 830
    Office supplies ............................................................. 80
    Office equipment ……………………………………. 4,200
    Accumulated depreciation–office equipment ……… $ 1,100
    Buildings……………………………………………... 98,000
    Accumulated depreciation–buildings……………….. 28,000
    Land………………. 115,000
    Wages Payable…………………………………….… 880
    Property taxes payable…………………………….… 1,400
    Interest payable……………………………………... 2,200
    Unearned rent……………………………………….. 460
    Long-term notes payable……………………………. 150,000
    Frank Dodson, Capital ………………………………. 40,340
    Frank Dodson, Withdrawals 21,000
    Rent earned …………………………………………. 67,500
    Wages expense ……………………………………... 29,000
    Utilities expense ……………………………………. 2,900
    Property taxes expense …………………………….. 2,400
    Insurance expense…………………………………... 5,800
    Office supplies expense……………………………… 250
    Depreciation expense–office equipment…………….. 400
    Depreciation expense–buildings…………………….. 5,570
    3,000 ________
    Interest expense ………………………………….
    Totals ……………………………………… $291,880 $291,880

    Exercise 2:
    Serene Spa Sales uses the perpetual inventory system and the gross method of accounting for purchases and
    sales, and had the following transactions during August.

    Aug 1 Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sold had
    a cost of $3,500.
    3 Purchased merchandise for cash, $2,720.
    4 Purchased merchandise on credit for $2,600, terms 1/20, n/30.
    ch5 Customer returns $3,000 of merchandise purchased July 20. The returned
    items had a cost of $2,010. The returned items are restored to inventory and
    the customer's Accounts Receivable is credited.
    10 Received payment for merchandise sold August 1.
    15 Granted an allowance from the seller for the return of defective merchandise
    purchased on August 4 for $600.
    18 Paid freight charges of $200 for merchandise ordered last month. (FOB
    shipping point)
    23 Paid for the merchandise purchased August 4 less the portion that was
    returned.
    24 Sold merchandise on credit for $7,000, terms 2/10, n/30. The items had a
    cost of $4,900.
    31 Received payment for merchandise sold on August 24.

    Required:
    Prepare the general journal entries to record these transactions.

    Exercise 3:
    A company's inventory records indicate the following data for the month of January:

    Jan. 1 Beginning 180 units at $9 each


    Jan. 5 Purchase 170 units at $10 each
    Jan. 9 Sale 300 units at $35 each
    Jan. 14 Purchase 200 units at $11 each
    Jan. 20 Sale 150 units at $35 each
    Jan. 30 Purchase 230 units at $12 each

    If the company uses the LIFO perpetual inventory system, what would be the cost of the ending inventory?

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