case_accounting cycle 会计循环练习题

Manual homework no.2Class_________ name__________ student no.__________The following post-closing trial balance is for Valley View Company as of December 31, 2004.Valley View CompanyPost Closing Trial BalanceDecember 31, 2004Dr CrCash $17,500Accounts Receivable 17,000Inventory 28,800Supplies on Hand 1,200Building 80,000Accounts Payable $18,000Mortgages Payable (7-year, 10%) 56,000Capital Stock (3600 shares outstanding) 54,000Retained Earnings 16,500Totals $144,500 $144,500 Following is a summary of the company’s transactions for 2005.(a)At the beginning of 2005, the company issued 1,500 new shares of stock at $20per share.(b)Total inventory purchases were $49,500; all purchases were made on credit andare recorded in the Inventory account on each purchase.(c)Total sales were $125,000; $102,900 were on credit, the rest were for cash. Thecost of goods sold was $47,500; the Inventory account is reduced at the time of each sale.(d)In December, a customer paid $3,500 cash in advance for merchandise that wastemporarily out of stock. The advance payments received from customers are initially worded as unearned sales revenue (liabilities). The $3,500 is not included in the sales figures in (c) above.(e)The company paid $66,500 on accounts payable during the year.(f)The company collected $102,000 of accounts receivable during the year.(g)The company purchased $600 of supplies for cash during 2005, debiting Supplieson Hand for the cost of each purchase.(h)The company paid $850 for advertising during the year, debiting PrepaidAdvertising.(i)Total salaries paid for the year were $45,000 and total utilities paid for the yearwere $650.(j)The company paid $8,000 on the mortgages.(k)Dividends of $7,500 were declared and paid to stockholders in December.On December 31, 2005, the company’s accountant gathers the following information that is needed to adjust the accounts:(l)As of December 31, salaries of $750 had been earned by employees but will not be paid until January 3, 2006.(m)A count of the remaining supplies at December 31 shows $800 of supplies still on hand.(n)The $850 prepaid advertising includes $400 paid on December 1, 2005, for a series of radio advertisements to be broadcast throughout December 2005 and January 2006. The other $450 represents advertisements that were broadcast during 2005.(o)For some reason the company failed to pay interests due on the mortgages payable in 2005, which is calculated as 5,600. The company promised to pay in the beginning of next year.(p)On December 20, 2005, a $150 bill was received for utilities. So far no entry was made to record the receipt of the bill, which is due to be paid on January 4, 2006. (q)As of December 31, 2005, the merchandise paid for in advance (transaction d) was still out of stock. The company expects to receive the merchandise and fill the order by January 15, 2006.(r)The company’s income is taxed at a rate of 15%.Required: 1. Make entries in the General Journal to record each of the transactions (items a through k)2. Using T-accounts to represent the General Ledger accounts, post the transactions recorded in the General Journal. Enter the beginning balances in the accounts that appear in the December 31, 2004, post-closing trial balance before posting 2005 transactions. When all transactions have been posted to the T-accounts, determine the balance for each account.3. Prepare a trial balance as of December 31, 2005.4. Record adjusting entries (item l through r) in the General Journal, and post these entries to the General Ledger (T-accounts).5. Prepare an income statement and balance sheet for 2005.6. Record closing entries (items s through u) in the General Journal, and post these entries to the General Ledger (T-accounts).7. Prepare a post-closing trial balance.Solution 1 Journal Entries (choose the name of accounts according to the2. T-Accountsnote 1: Accounts that are entered more than once (beginning balance should be viewed as an entry) need to be balanced under the first balancing line.2: mark the transaction number in front of each entry3. Trial BalanceValley View CompanyTrial BalanceDecember 31, 2005Dr Cr CashAccounts ReceivableInventorySupplies on HandPrepaid AdvertisingBuildingAccounts PayableUnearned sales revenueMortgages PayableCapital StockRetained EarningsDividendsSales RevenueCost of goods soldSalaries ExpenseUtilities ExpenseTotals $278,000 $278,000 4. Recording and Posting Adjustments②Now go back to update the T-Accounts above in part 2, then balance the accounts under the second (first) balancing line given in the accounts. Accounts that are entered only once so far (the beginning balance should be viewed as an entry) don’t need to be balanced.③The adjusted trial balance is as following.Valley View CompanyAdjusted Trial BalanceDecember 31, 2005Dr CrCashAccounts ReceivableInventorySupplies on HandPrepaid AdvertisingBuildingAccounts PayableSalaries PayableUtilities PayableIncome Taxes PayableUnearned Sales RevenueInterest PayableMortgages PayableCapital StockRetained EarningsDividendsSales RevenueCost of goods soldSalaries ExpenseAdvertising ExpenseUtilities ExpenseSupplies ExpenseInterest ExpenseIncome Tax ExpenseTotals $ $5. Prepare Financial StatementsValley View CompanyIncome StatementFor the Year Ended December 31, 2005Sales revenue $Less cost of goods soldGross profit $Less operating expenses:Salaries expense $Advertising expenseUtilities expenseSupplies expenseTotal operating expense $ Operating income $ InterestIncome before taxes $ Income taxNet income $ 20,145Valley View CompanyStatement of owners’ equityFor the Year Ended December 31, 2005Owners’ equity 12/31/04Add: issuance of stockNet incomeLess: DividendsOwner s’ equity 12/31/05 $ 113,145Valley View CompanyBalance Sheet6. Journalizing and posting closing entries②Go back and update the T-Accounts above in part 2, then balance the Retained earnings account and make sure that all the nominal accounts have been cleared.7. Post-closing Trial BalanceValley View CompanyPost-closing Trial BalanceDecember 31, 2005Dr CrCash $Accounts ReceivableInventorySupplies on HandPrepaid AdvertisingBuildingAccounts PayableSalaries PayableUtilities PayableInterest PayableIncome Taxes PayableUnearned Sales RevenueMortgages PayableCapital StockRetained EarningsTotals $ $。