SEBELUM UTS

Assignment 1
Presented below is selected information related to Kirby Company at December 31, 2020. Kirby reports
financial information monthly.
 Accounts Payable $ 3,000
 Cash 6,500
 Advertising Expense 6,000
 Service Revenue 53,500
 Equipment 29,000
 Salaries and Wages Expense $16,500
 Notes Payable 25,000
 Rent Expense 10,500
 Accounts Receivable 13,500
 Owner’s Drawings 7,500
a. Determine the total assets of Kirby Company at December 31, 2020.
b. Determine the net income that Kirby Company reported for December 2020.
c. Determine the owner’s equity of Kirby Company at December 31, 2020.

Assignment 2
An analysis of the transactions made by Peat Deloitte & Co., a certifi ed public accounting fi rm, for the
month of August is shown below. The expenses were $560 for rent, $4,800 for salaries and wages, and
$400 for utilities.

Instructions
a. Describe each transaction that occurred for the month.
 b. Determine how much owner’s equity increased for the month.
c. Compute the amount of net income for the month.

Assignment 3
On April 1, Adventures Travel Agency began operations. The following transactions were completed
during the month.
1. Owner invested $24,000 in the business.
2. Obtained a bank loan for $7,000 by issuing a note payable.
3. Paid $11,000 cash to buy equipment.
4. Paid $1,200 cash for April offi ce rent.
5. Paid $1,450 for supplies.
6. Purchased $600 of advertising in the Daily Herald, on account.
7. Performed services for $18,000: cash of $2,000 was received from customers, and the balance
of $16,000 was billed to customers on account.
8. Cash withdrawal of $400 by owner for personal use.
9. Paid the utility bill for the month, $2,000.
10. Paid Daily Herald the amount due in transaction (6).
11. Paid $40 of interest on the bank loan obtained in transaction (2).
12. Paid employees’ salaries and wages, $6,400.
13. Received $12,000 cash from customers billed in transaction (7).
Instructions:
Journalize the transactions.

Assignment 4
Devin Wolf Company has the following balances in selected accounts on December 31, 2020.
Accounts Receivable $ –0–
Accumulated Depreciation—Equipment –0–
Equipment 7,000
Interest Payable –0–
Notes Payable 10,000
Prepaid Insurance 2,100
Salaries and Wages Payable –0–
Supplies 2,450
Unearned Service Revenue 32,000
All the accounts have normal balances. The information below has been gathered at December 31,
2020.
1.Devin Wolf Company borrowed $10,000 by signing a 9%, one-year note on September 1, 2020.
2.A count of supplies on December 31, 2020, indicates that supplies of $900 are on hand.
3.Depreciation on the equipment for 2020 is $1,000.
4.Devin Wolf Company paid $2,100 for 12 months of insurance coverage on June 1, 2020.
5.On December 1, 2020, Devin Wolf collected $32,000 for consulting services to be performed
from December 1, 2020, through March 31, 2021.
6. Devin Wolf performed consulting services for a client in December 2020. The client will be billed
$4,200.
7. Devin Wolf Company pays its employees total salaries of $9,000 every Monday for the preceding
5-day week (Monday through Friday). On Monday, December 29, employees were paid for the
week ending December 26. All employees worked the last 3 days of 2020.

Instructions:
Prepare adjusting entries for the seven items described above.

SEBELUM UAS

Assignment 1
The actual selling expenses incurred in March 2020 by Fallon Company are as follows.

Instructions:
a. Prepare a flexible budget performance report for March using the budget data in E25.5,
assuming that March sales were $170,000.
b. Prepare a flexible budget performance report, assuming that March sales were $180,000.
c. Comment on the importance of using fl exible budgets in evaluating the performance of the
sales manager.
Assignment 2
Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing
process are shown below for two levels of production.

Instructions:
a. Define the terms variable costs, fi xed costs, and mixed costs.
b. Classify each cost above as either variable, fi xed, or mixed

Assignment 3
As sales manager, Joe Batista was given the following static budget report for selling expenses in the
Clothing Department of Soria Company for the month of October.

As a result of this budget report, Joe was called into the president’s offi ce and congratulated on his fi
ne sales performance. He was reprimanded, however, for allowing his costs to get out of control. Joe
knew something was wrong with the performance report that he had been given. However, he was not
sure what to do, and comes to you for advice.

Instructions:
a. Prepare a budget report based on flexible budget data to help Joe.
b. Should Joe have been reprimanded? Explain.