WebMail 
100% wellexplained: acct 221 midterm
21 Midterm : Ch. 1-6
Problem
1. Journalize the following selected transactions for April 2013 in a two-column journal. Journal entry explanations may be omitted.
April 1
Received cash from stockholder, Kevin Marks, in return for stock, $14,000.
2
Received cash for providing accounting services, $9,500.
3
Billed customers on account for providing services, $4,200.
4
Paid advertising expense, $700.
5
Received cash from customers on account, $2,500.
6
Dividends paid, $1,010.
7
Received telephone bill, $900.
8
Paid telephone bill, $900.
Date
Description
Post Ref
Debit
Credit
2. Journalize in a two column journal the adjusting entries required at August 31, 2013. Omit explanations.
1. Fees accrued but unbilled are $4,500.
2. The supplies account balance on December 31 is $5,250. The supplies on hand are $1,015.
3. Wages accrued but not paid are $3,500.
4. Depreciation of office equipment is $2,200.
5. Rent expired during year, $7,800.
Date
Description
Post Ref
Debit
Credit
3. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.
Cash
$ 30,000
Accounts Receivable
45,200
Supplies
5,000
Equipment
169,900
Accumulated Depreciation
$ 32,000
Accounts Payable
12,500
Capital Stock
71,600
Dividends
47,000
Fees Earned
510,000
Salary Expense
244,500
Rent Expense
48,000
Depreciation Expense
25,000
Supplies Expense
9,500
Miscellaneous Expense
2,000
$626,100
$626,100
Date
Description
Post Ref
Debit
Credit
4.Merchandise with a list price of $7,500 is purchased on account, terms FOB shipping point, 1/10, n/30. The
seller prepaid transportation costs of $300. Prior to payment, $2,000 of the merchandise is returned. The
correct amount is paid within the discount period.
Record the foregoing transactions of the buyer in the sequence indicated below.
(a)
Purchased the merchandise.
(b)
Recorded receipt of the credit memorandum for merchandise returned.
(c)
Paid the amount owed.
Date
Description
Post Ref
Debit
Credit
5. Merchandise with a list price of $3,800 and costing $2,000 is sold on account, subject to the following terms:
FOB shipping point, 2/10, n/30. The seller prepays the $50 shipping charges and bills the customer, (seller
pays Cash). Prior to payment for the goods, the seller issues a credit memorandum for $800 to the customer for
merchandise costing $500 that is returned. The correct amount is received within the discount period.
Record the foregoing transactions of the seller in the sequence indicated below.
(a)
Sold the merchandise, recognizing the sale and cost of merchandise sold.
(b)
Paid the transportation charges.
(c)
Issued the credit memorandum.
(d)
Received payment from the customer.
Date
Description
Post Ref
Debit
Credit
6. The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:
June 1 Balance 25 units at $60
6 Sale 20 units
8 Purchase 20 units at $61
16 Sale 10 units
20 Purchase 20 units at $62
23 Sale 25 units
30 Purchase 15 units at $63
Determine the cost of the inventory balance at June 30, using (1) the first-in, first-out method and (2) the last-in, first-out method. Identify the quantity, unit price, and total cost of each lot in the inventory.
Is this the question you were looking for? If so, place your order here to get started!
