Yönetim Temelleri Worksheet for II. Midterm fatihbook.com 1 PROBLEM 2.4A The items making up the balance sheet of Rankin Truck Rental at December 31 are listed below in tabular form. During a short period after December 31, Rankin Truck Rental had the following transactions: 1. Bought office equipment at a cost of $2,700. Paid cash. 2. Collected $4,000 of accounts receivable. 3. Paid $3,200 of accounts payable. 4. Borrowed $10,000 from a bank. Signed a note payable for that amount. 5. Purchased two trucks for $30,500. Paid $15,000 cash and signed a note payable for the balance. 6. Sold additional stock to investors for $75,000. Instructions a. List the December 31 balances of assets, liabilities, and owners’ equity in tabular form as shown above. b. Record the effects of each of the six transactions in the preceding tabular arrangement. Show the totals for all columns after each transaction. PROBLEM 2.5A HERE COME THE CLOWNS! is the name of a traveling circus. The ledger accounts of the business at June 30, 2007, are listed here in alphabetical order: Instructions a. Prepare a balance sheet by using these items and computing the amount of Cash at June 30, 2007. fatihbook.com 2 EXERCISE 3.12 Herrold Consulting incorporated on February 1, 2007. The company engaged in the following transactions during its first month of operations: Feb. 1 Issued capital stock in exchange for $750,000 cash. Feb. 5 Borrowed $50,000 from the bank by issuing a note payable. Feb. 8 Purchased land, building, and office equipment for $600,000. The value of the land was $100,000, the value of the building was $450,000, and the value of the office equipment was $50,000. The company paid $300,000 cash and issued a note payable for the balance. Feb. 11 Purchased office supplies for $600 on account. The supplies will last for several months. Feb. 14 Paid the local newspaper $400 for a full-page advertisement. The ad will appear in print on February 18. Feb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11 were defective. The cartridges were returned and the office supply store reduced Herrold’s outstanding balance by $100. Feb. 22 Performed consulting services for $6,000 cash. Feb. 24 Billed clients $9,000. Feb. 25 Paid salaries of $5,000. Feb. 28 Paid the entire outstanding balance owed for office supplies purchased on February 11. A partial list of the account titles used by the company includes: Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Land Client Service Revenue Building Advertising Expense Office Equipment Salaries Expense a. Prepare journal entries, including explanations, for the above transactions. b. Post each entry to the appropriate ledger accounts c. Prepare a trial balance dated February 28, 2007. Assume accounts with zero balances are not included in the trial balance. fatihbook.com 3 PROBLEM 5.5A Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 31. The firm’s unadjusted trial balance dated December 31, 2007, is shown below: Other Data 1. Accrued but unrecorded and uncollected consulting services revenue totals $1,500 at December 31, 2007. 2. The company determined that $2,500 of previously unearned consulting services revenue had been earned at December 31, 2007. 3. Office supplies on hand at December 31 total $110. 4. The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years (72 months). 5. The company prepaid its six-month rent agreement on October 1, 2007. 6. The company prepaid its 12-month insurance policy on March 1, 2007. 7. Accrued but unpaid salaries total $1,900 at December 31, 2007. 8. On June 1, 2007, the company borrowed $9,000 by signing a nine-month, 8 percent note payable. The entire amount, plus interest, is due on March 1, 2008. 9. The company’s CPA estimates that income taxes expense for the entire year is $7,500. The unpaid portion of this amount is due early in 2008. Instructions a. Prepare the necessary adjusting journal entries on December 31, 2007. Prepare also an adjusted trial balance dated December 31, 2007. b. From the adjusted trial balance prepared in part a, prepare an income statement and statement of retained earnings for the year ended December 31, 2007. Also prepare the company’s balance sheet dated December 31, 2007. c. Prepare the necessary year-end closing entries. d. Prepare an after-closing trial balance.