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.
