ACC 101 Midterm [PDF]

Zitiervorschau

HOA LAC

BUSINESS ADMINISTRATION DEPARTMENT

MIDTERM SUBJECT: PRINCIPLES OF ACCOUNTING (ACC101) Duration: …….. minutes STUDENT INFORMATION Name:

Roll number:

Room No:

Class:

Question 1 (9 marks) Fast Forward Ltd opened for business on 1 May 2018. Here is its trial balance before adjustment on 30 June 2018. Fast Forward Ltd Unadjusted trial balance As at 30 June 2018 Debit Credit Cash $3920 Prepaid insurance 1600 Supplies 256 Machineries 25500 Building 50000 Accounts payable $3900 Rent revenue received in 5300 advance Salaries payable 15000 Share capital 45000 Rent revenue 13676 Salaries expense 1600 Water expense 1000 Advertising expense 400 $83876 $83876 Other data: 1. Insurance expired at the rate of $135 per month, and is an annual premium commencing on 1 May 2018 2. An inventory of supplies shows $60 of unused supplies on 30 June 3. Annual depreciation is $1100 on the building and $1562.5 on machineries (hint: company uses straight line method to calculate depreciation expense) 4. $1760 of the rent revenue received in advance pertains to June. The remainder pertains to July. Require:

a. b. c. d.

Journalise the adjusting entries on 30 June (3 marks) Do closing process (2 marks) Prepare the income statement as at 30 June 2018 (2 marks) Prepare the balance sheet as at 30 June 2018 (2 marks)

Question 2 (1 mark) On May 1st, JB HiFi Company completed a credit sale for $2900, the merchandise cost $1100. Term of 2/10, n/90 and the account was paid in full at the end of discount period. Journalise the transaction with description