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Accounting Cycle Exam: Financial Statements and Closing Entries - Prof. Ruderman, Study Guides, Projects, Research of Business Accounting

This comprehensive exam covers the accounting cycle, focusing on financial statements and closing entries. It includes a series of transactions for pops inc., a service company using accrual accounting. Students are required to prepare journal entries, post to t-accounts, create adjusting entries, and generate financial statements, including an income statement, statement of changes in equity, and balance sheet. The exam also includes an optional extra credit opportunity to prepare a statement of cash flows.

Typology: Study Guides, Projects, Research

2023/2024

Uploaded on 10/31/2024

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BA 211 Name: ________________________________
Exam #1 - Albany
This exam of two parts is worth 120 points. Show all work on worksheet for Part #1
and on the exam for the rest of the problems.
You have our regular class time to finish the exam.
Part #1 - Financial Statements (Accounting Cycle)
(Value = 60 points)
Pops Inc. performs service work for clients and uses accrual accounting.
Transactions by #:
4. The company purchased $890 worth of supplies for cash.
5. The company paid $6,000 in cash for other operating expenses.
7. Only $175 worth of supplies was left at the end of the year.
8. Depreciation on the office equipment is estimated at $1,000 per year. (Land is not depreciated.)
9, 10, & 11 Prepare the 3 applicable closing entries. No dividends were paid.
Chart of Accounts Required
Show your legible work on the supplied 11" x 17" worksheet, and
Cash write your name at the top.
Accounts Receivable (A/R)
Supplies a. Prepare the journal entries to record the transactions that occurred
Equipment in 201x. Omit transaction descriptions.
Accumulated Depreciation - Equipment (A/D-EQ) Hint: Use the accounts names given in the "Chart of Accounts."
Land Hint: Use the transaction # in lieu of the date in the journal.
Salaries Payable Hint: Leave a blank row between journal entry.
Common Stock
Retained Earnings b. Post the journal entries (#'s 1 - 6) to the T-accounts.
Revenues
Salaries Expense c. Prepare adjusting entries (#'s7 & 8) for the journal
Supplies Expense and then post to the T-accounts.
Depreciation Expense
Other Operating Expenses d. Prepare the requested financial statements for
Income Summary the year ended December 31, 201x.
Make sure the balance sheet is in classified format.
Income Summary
e. Prepare the closing entries (#'s 9 & 10) for the journal and post to
the T-accounts. No dividends were paid by Pops Inc. during the year.
f. 15% Extra Credit Opportunity (18 points): Prepare a Statement of
Cash Flows for Pops Inc. and return it with your exam.
Here are the transactions for Pops I nc. for 201x.
1. The owners started the business as a corporation by contributing
$33,889 cash in exchange for common stock.
2. The company purchased office equipment for $8,000 cash and land for
$15,000 cash.
3. The company earned total revenue of $22,000 of which $16,000 was
collected in cash.
6. At the end of the year, the company owed employees $2,480 for work
that the employees had performed in 201x. The next payday, however, is
not until January 3 of the new year.
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Download Accounting Cycle Exam: Financial Statements and Closing Entries - Prof. Ruderman and more Study Guides, Projects, Research Business Accounting in PDF only on Docsity!

BA 211 Name: ________________________________

Exam #1 - Albany

This exam of two parts is worth 120 points. Show all work on worksheet for Part # and on the exam for the rest of the problems. You have our regular class time to finish the exam.

Part #1 - Financial Statements (Accounting Cycle)

(Value = 60 points)

Pops Inc. performs service work for clients and uses accrual accounting. Transactions by #:

  1. The company purchased $890 worth of supplies for cash.
  2. The company paid $6,000 in cash for other operating expenses.
  3. Only $175 worth of supplies was left at the end of the year.
  4. Depreciation on the office equipment is estimated at $1,000 per year. (Land is not depreciated.) 9, 10, & 11 Prepare the 3 applicable closing entries. No dividends were paid.

Chart of Accounts Required

Show your legible work on the supplied 11" x 17" worksheet, and Cash write your name at the top. Accounts Receivable (A/R) Supplies a. Prepare the journal entries to record the transactions that occurred Equipment in 201x. Omit transaction descriptions. Accumulated Depreciation - Equipment (A/D-EQ) Hint: Use the accounts names given in the "Chart of Accounts." Land Hint: Use the transaction # in lieu of the date in the journal. Salaries Payable Hint: Leave a blank row between journal entry. Common Stock Retained Earnings b. Post the journal entries (#'s 1 - 6) to the T-accounts. Revenues Salaries Expense c. Prepare adjusting entries (#'s7 & 8) for the journal Supplies Expense and then post to the T-accounts. Depreciation Expense Other Operating Expenses d. Prepare the requested financial statements for Income Summary the year ended December 31, 201x. Make sure the balance sheet is in classified format. Income Summary e. Prepare the closing entries (#'s 9 & 10) for the journal and post to the T-accounts. No dividends were paid by Pops Inc. during the year. f. 15% Extra Credit Opportunity (18 points): Prepare a Statement of Cash Flows for Pops Inc. and return it with your exam. Here are the transactions for Pops Inc. for 201x.

  1. The owners started the business as a corporation by contributing $33,889 cash in exchange for common stock.
  2. The company purchased office equipment for $8,000 cash and land for $15,000 cash.
  3. The company earned total revenue of $22,000 of which $16,000 was collected in cash.
  4. At the end of the year, the company owed employees $2,480 for work that the employees had performed in 201x. The next payday, however, is not until January 3 of the new year.

BA 211

Exam #1 - Albany

This exam of two parts is worth 120 points. Show all work on worksheet for Part

and on the exam for the rest of the problems.

You have our regular class time to finish the exam.

Part #1 - Financial Statements (Accounting Cycle)

(Value = 60 points)

Pops Inc. performs service work for clients and uses accrual accounting.
Transactions by #:

4. The company purchased $890 worth of supplies for cash.

5. The company paid $6,000 in cash for other operating expenses.

7. Only $175 worth of supplies was left at the end of the year.

8. Depreciation on the office equipment is estimated at $1,000 per year. (Land is not depreciated.)

9, 10, & 11 Prepare the 3 applicable closing entries. No dividends were paid.

Chart of Accounts Required

Show your legible work on the supplied 11" x 17" worksh
Cash write your name at the top.

Accounts Receivable (A/R)

Supplies a. Prepare the journal entries to record the transactions
Equipment in 201x. Omit transaction descriptions.
Accumulated Depreciation - Equipment (A/D-EQ) Hint: Use the accounts names given in the "Chart of A
Land Hint: Use the transaction # in lieu of the date in the jo
Salaries Payable Hint: Leave a blank row between journal entry.

Common Stock

Retained Earnings b. Post the journal entries (#'s 1 - 6) to the T-accounts.

Revenues

Salaries Expense c. Prepare adjusting entries (#'s7 & 8) for the journal
Supplies Expense and then post to the T-accounts.

Depreciation Expense

Other Operating Expenses d. Prepare the requested financial statements for
Here are the transactions for Pops Inc. for 201x.

1. The owners started the business as a corporation by contributing

$33,889 cash in exchange for common stock.

2. The company purchased office equipment for $8,000 cash and land for

$15,000 cash.

3. The company earned total revenue of $22,000 of which $16,000 was

collected in cash.

6. At the end of the year, the company owed employees $2,480 for work

that the employees had performed in 201x. The next payday, however, is

not until January 3 of the new year.

Name: ________________________________

w all work on worksheet for Part

g Cycle)

er year. (Land is not depreciated.)

work on the supplied 11" x 17" worksheet, and
urnal entries to record the transactions that occurred
transaction descriptions.
accounts names given in the "Chart of Accounts."
transaction # in lieu of the date in the journal.
blank row between journal entry.
al entries (#'s 1 - 6) to the T-accounts.
ng entries (#'s7 & 8) for the journal
to the T-accounts.
quested financial statements for
d December 31, 201x.
balance sheet is in classified format.
osing entries (#'s 9 & 10) for the journal and post to

No dividends were paid by Pops Inc. during the year.

it Opportunity (18 points): Prepare a Statement of
Pops Inc. and return it with your exam.

Solution to Problem 4-8A

b.

 - 1 33,889 23,000 Assets Cash 
  • a. Record Transactions: 3 16,000 - Debit Credit 6,000 - 1 Cash 33, - Common Stock 33,889 1 19, - 2 Equipment 8, - Cash 23,000 2 2,480 2 Land 15,000 L & EQ Salaries Payable - 3 Cash 16,000 2, - 3 Accounts Receivable 6, - Revenue 22,000 - 4 Supplies - 22,000 Cash 890 4 Operational Revenue - 5 Other Operating Expen 6,000 9 22, - Cash 6,000 - 6 Salaries Expense 2, - Salaries Payable 2,480 - 7 Supply Expense - Supplies - 8 Depreciation Expense 1, - Accumulated Deprec. 1,000 - 9 Revenue 22, e. Closing Entries: - Income Summary 22,000
    • 10 Income Summary 10, - Other operating expenses 6,000 - Salaries expense 2,480 - Supplies expense - Depreciation expense 1,000
    • 11 Income Summary 11, - Retained Earnings 11,805

Calculations: Supplies Expense $890 - $175 = $ d. Pops Company Income Statement For the year ended December 31, 2015 Revenue $ 22, Expenses: Salaries expense $ 2, Other operating expenses 6, Depreciation expense 1, Supplies expense 715 10, Net Income $ 11, Pops Company Statement of Changes in Equity For the year ended December 31, 2015 Common Stock: Beginning balance $ - Contributions during the year 33, Ending balance $ 33, Retained Earnings: Beginning balance $ -

  • Net income 11, Ending balance 11, Total Shareholders' Equity $ 45, Pops Company Balance Sheet At December 31, 2015 Assets Cash $ 19, Accounts receivable 6, Supplies 175 Total current assets 26, Land 15, $ 8, Less accumulated deprecation (1,000) 7, Total assets $ 48, Liabilities & Shareholders' Equity Liabilities: Salaries payable $ 2, Equipment

Accounts Receivable Supplies Equipment 6,000 4 890 715 7 2 8, 6,000 175 8, Common Stock Retained Earnings 33,889 1 11,805 11 33,889 11,

Other Operating Expenses Salaries Expense^ Supplies Expense
6,000 6 2,480^ 7 715

Land 1,000 8 2 15, 1,000 15, Income Summary 8 1,000 10 10,195 22,000 9 10 1,000 10 0 11, 11 $11, 0 Accumulated Depreciation - Equipment Depreciation Expense - Equipment