UMUC ACC220 ACCOUNTING EXAM COMPLETE SOLUTION
Flip Corporation
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Trial Balance
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December 31, 2014
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Account
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Debit
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Credit
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$43,500
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Accounts Receivable
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54,500
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Allowance for Doubtful Accounts
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500
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Notes Receivable
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30,000
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Merchandise Inventory
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55,000
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Land
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20,000
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Building
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150,000
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Accumulated Depreciation, Building
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$15,000
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Equipment
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50,000
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Accumulated Depreciation, Equipment
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21,000
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Goodwill
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26,000
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Accounts Payable
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25,000
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Long Term Notes Payable
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75,000
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Common Stock, $10 par, 2,000 shares authorized & outstanding
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20,000
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Retained Earnings
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147,000
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Sales Revenue
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700,000
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Salaries Expense
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150,000
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Utilities Expense
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3,500
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Cost of Goods Sold
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350,000
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Administrative Expenses
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55,000
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Sales Expenses
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15,000
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_______
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Totals
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$1,003,000
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$1,003,000
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Date
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Units Purchased
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Unit Cost
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Date
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Units Sold
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Unit Sales Price
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150
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$7.00
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Jan. 2
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100
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$10.00
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Jan. 5
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225
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7.25
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Jan. 7
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125
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10.00
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Jan. 10
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100
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7.50
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Jan. 12
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75
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12.00
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Jan. 15
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150
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7.50
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Jan. 17
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200
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12.00
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Jan. 20
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200
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7.75
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Jan. 24
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150
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15.00
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Jan. 25
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150
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8.00
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Jan. 30
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75
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8.25
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Jan. 1
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Accepted Flop's 120 days, 10% note, as settlement of an outstanding $15,000 account receivable for goods sold last year
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Jan. 15
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Purchased $10,000 Equipment from Floozy, signing a 9 month, 12% note
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Jan. 25
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Loaned Flam Co. $30,000 cash, accepting a 90 days, 10% note
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Jan. 31
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Prepared accrual adjusting entry for any interest revenue
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Apr. 25
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Received payment in full from Flam Co. for outstanding note & interest
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May 1
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Received payment in full from Flop Co. for outstanding note & interest
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Oct. 15
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Paid Floozy in full
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Balance per bank statement
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$1,951.20
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Balance per ledger
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1,869.60
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Deposits in transit
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271.20
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Outstanding checks
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427.80
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NSF check
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61.20
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Service charges
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13.80
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ACC220 ACCOUNTING EXAM Complete Solution
Question 7: When the stockholders invest cash in the business, what is the effect?
a Liabilities increase and stockholders’ equity increases
b&nb...
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