1.At the beginning of the year, Peters Corporation’s assets were $150,000 and its stockholders’ equity was $100,000. During the year, assets decreased $30,000 and liabilities increased $15,000. What was the stockholders’ equity at the end of the year
2. The following lettered items represent a classification scheme for a balance sheet, and the numbered items represent accounts. Type the number and the letter indicating to which category the account belongs in the textbox below.
a. Current assets
e. Current liabilities
b. Investments
f. Long term liabilities
c. Property, plant, and equipment
g. Stockholders’ equity
d. Intangible assets
h. Not on balance sheet
_____ 1. Accumulated Depreciation
_____ 6. Trademark
_____ 2. Revenues Received in Advance
_____ 7. Notes Payable (in five years)
_____ 3. Interest Expense
_____ 8. Depreciation Expense
_____ 4. Wages Payable
_____ 9. Prepaid Interest
_____ 5. Retained Earnings
_____ 10. Inventory
3 Prepare journal entries for the following transactions:
March 1, 2010: Opened business by issuing common stock for $20,000.
March 4, 2010: Purchased $7,000 equipment for cash.
March 7, 2010: Billed customers for services rendered, $4,000.
March 12, 2010: Received and paid advertising bill for $200.
March 20, 2010: Received $4,000 from customer billed on March 7, 2010
Important Information: Often the formatting will be lost when problem are submitted. Therefore, do not worry if you have indenting problems with the journal entries. List the date, account name, and amount for each line of the journal entry. Then add the word debit or credit after the amount.
4 .Prepare the required ADJUSTING entries using the information below.
Rex Construction uses December 31, 2010 as its year end. Below is information needed to prepare the adjusting entries for Rex Construction. The company prepares adjusting entries only at year end. This is the first year of operation for Rex Construction.
1. Rex Construction purchased $1,000 of supplies during the year. At the end of the year, $200 of supplies remained.
2. A crane was purchased to use in the contruction activies. The depreciation expense for the year is $10,000.
3. A client prepaid $900,000 for several projects. At the end of the year, one $300,000 project was completed.
Important Information: Often the formatting will be lost when problem are submitted. Therefore, do not worry if you have indenting problems with the journal entries. List the date, account name, and amount for each line of the journal entry. Then add the word debit or credit after the amount.
5 Save
Using the following data, prepare a multistep income statement for Matthew’s Dry Goods for the month ended February 28, 2010.
Cost of Goods Sold
$15,000
General and Administrative Expenses
4,000
Net Sales
25,000
Selling Expenses
3,500
Income Taxes
475
Important Information: Indentation and column formating is often lost when the problems are submitted. Please do not spend time correcting indents or column problems.