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a. _UR____ Atlas Magazine was previously prepaid $400,000 by subscribers and has delivered
b. __UR___ Hornsby Company agreed to provide 1,000 units of its product to Michaels Inc. and
c. ___AE__ Nancy and Sons owes its employees $30,000 for work done over the past two weeks.
d. __AE___ Replay Inc. advertised on TV 44 during the month of April, but has not yet made an
e. __PE___ Centurion Company paid Reliable Insurance Company $54,000 for insurance for
f. ___UR__ Reliable Insurance Company received a payment of $54,000 for insurance for twelve
4.) Leon Jackson is esctatic! First National Bank just approved a loan for Leon to start a Web site
design and maintenance business called Webworks. He is now ready to purchase his needed
equipment, hire his administrative help, and begin designing sites. During June, his first month of
business, the following occurred:
2. Determine if the following transactions for Marlin Corporation require an adjustment or not. If an
a. At the beginning of the month, Marlin agreed to perform services for the next three months
for Catsui Corporation for $30,000 per month. Catsui paid Marlin $90,000 in advance. One
AT the
b. Marlin pays its employees every two weeks. At the end of the month, Marlin owes its
employees $480,000, but will not pay them until the following week.
Financial Accounting Midterm
c. Marlin paid $300,000 for rent at the beginning of the month by debiting prepaid rent and
crediting cash. The $300,000 covered six months of occupancy, but only one month has passed.
d. At the beginning of the month, Marlin agreed to perform services for Ryland Company for
$16,000 per month for the next six months. Ryland has not yet paid any cash to Marlin and the
3. Keating Inc. rents its headquarters from Starling Enterprises for $10,000 per month. On September
1, 20XX, Keating pays Starling $60,000 for six months worth of rent.
a)
Cash 60000
b)
c)
d)
4. Leon Jackson is ecstatic! First National Bank just approved a loan for Leon to start a Web site design
and maintenance business called Webworks. He is now ready to purchase his needed equipment,
hire his administrative help, and begin designing sites. During June, his first month of business, the
following occur:
Financial Accounting Midterm
Financial Accounting Midterm
Financial Accounting Midterm
5. Jan Haley owns and operates Haley’s Dry Cleaners. The following occurred during December:
Financial Accounting Midterm
Financial Accounting Midterm
Financial Accounting Midterm
Financial Accounting Midterm
8.The following events occurred during the month of May for McLain Company.
a. McLain sells 240 units for $20 each. McLain collects cash for 200 of these units. The units
g. McLain purchased a new piece of equipment. The new equipment cost $1,000 and was paid
for in cash.
i. McLain incurs $500 in salaries expense, but will not pay workers until next month.
Required:
b. Complete the T-accounts below. Numbers already under the accounts represent the prior balance
in that account.
(a)
c cash Dr $500
$500
To accounts receivable a/c
d cash Dr $400
To cash $350
f cash Dr $600
To Capital $600
g Equipment Dr $1,000
To cash $1,000
To cash $500
To cash $300
To cash $200
To cash $110
(b&c)