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(H) Match the statements below with the appropriate terms by entering the appropriate letter code in the

spaces provided. TERMS: A. B. C. D. Prepaid Expenses Unearned Revenues Accrued Revenues Accrued Expenses

STATEMENTS: _____ 1. A revenue not yet earned; collected in advance.

_____ 2. Office supplies on hand that will be used in the next period.

_____ 3. Interest revenue collected; not yet earned.

_____ 4. Rent not yet collected; already earned.

_____ 5. An expense incurred; not yet paid or recorded.

_____ 6. A revenue earned; not yet collected or recorded.

_____ 7. An expense not yet incurred; paid in advance.

_____ 8. Interest expense incurred; not yet paid.

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(I) The Comets, a semi-professional baseball team, prepare financial statements on a monthly basis. Their season begins in April, but in March the team engaged in the following transactions: (a) (b) Paid $90,000 to Wichita City as advance rent for use of Wichita City Stadium for the six month period April 1 through September 30. Collected $160,000 cash from sales of season tickets for the team's 20 home games. This amount was credited to Unearned Ticket Revenue.

During the month of April, the Comets played four home games and five road games. Instructions Prepare the adjusting entries required at April 30 for the transactions above.

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(J) Clark Coat Company purchased a delivery truck on June 1 for $36,000, paying $8,000 cash and signing a 12%, 2-month note for the remaining balance. The truck is expected to depreciate $9,000 each year. Clark Coat Company prepares monthly financial statements. Instructions (a) Prepare the general journal entry to record the acquisition of the delivery truck on June lst. (b) Prepare any adjusting journal entries that should be made on June 30th. (c) Show how the delivery truck will be reflected on Clark Coat Company's balance sheet on June 30th.

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(K)COMPLETION STATEMENTS 1. An _______________ is a record of increases and decreases in specific assets,

liabilities, and owner's equity items. 2. The process of entering an amount on the left side of an account is called

____________ the account, and making an entry on the right side is called _________________ the account. 3. ______________, _______________, and _______________ have debit normal

account balances whereas _______________, ________________, and ________________ have credit normal account balances. 4. The four subdivisions of owner's equity are: ________________,

________________, ________________, and ________________. 5. The basic steps in the recording process are: _______________ each transaction,

enter the transaction in a ________________, and transfer the _______________ information to appropriate accounts in the ________________. 6. A sales slip, a check, and a cash register tape are examples of ________________

used as evidence that a transaction has taken place. 7. An accounting record where transactions are initially recorded in chronological order

is called a ________________. 8. When three or more accounts are required in one journal entry, the entry is referred

to as a ________________ entry. 9. The entire group of accounts and their balances maintained by a company is called

the ________________. 10. A two column list of all accounts and their balances at a given time is a

______________.

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(L) MATCHING Match the items below by entering the appropriate code letter in the space provided. A. B. C. D. E. Account Normal account balance Debit Revenue account Compound entry F. G. H. I. J. Journal Posting Chart of accounts Trial balance Simple entry

______ 1. An entry that involves three or more accounts.

______ 2. Transferring journal entries to ledger accounts.

______ 3. The side which increases an account.

______ 4. A list of all the accounts used by an enterprise.

______ 5. A record of increases and decreases in specific assets, liabilities, and owner's equity items. ______ 6. Left side of an account.

______ 7. An entry that involves only two accounts.

______8.A book of original entry.

______ 9. A list of accounts and their balances at a given time.

______ 10. Has a credit normal balance

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(M) At March 31, account balances after adjustments for Norton Cinema are as follows: Accounts Cash Concession Supplies Theatre Equipment Accumulated DepreciationTheatre Equipment Accounts Payable Norton, Capital Norton, Drawing Admission Ticket Revenues Popcorn Revenues Candy Revenues Advertising Expense Concession Supplies Expense Depreciation Expense Film Rental Expense Rent Expense Salaries Expense Utilities Expense Instructions: Prepare the closing journal entries for Norton Cinema. Account Balances (After Adjustment) $ 24,000 4,000 40,000 12,000 5,000 20,000 18,000 70,000 37,000 19,000 12,000 15,000 4,000 16,000 12,000 13,000 5,000

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(N) Presented below is an adjusted trial balance for Rand Company, at December 31, 2002. Cash Accounts receivable Prepaid insurance Equipment Depreciation expense M. Rand, Drawing Advertising expense Rent expense Salary expense Insurance expense $ 19,700 20,000 15,000 35,000 7,000 5,500 1,400 800 1,000 2,600 $108,000 Accounts payable Notes payable Accumulated Depreciation Equipment Service revenue M. Rand, Capital Unearned revenue $ 15,000 9,000 14,000 30,000 24,000 16,000

$108,000

Instructions (a) Prepare closing entries for December 31, 2002. (b) Determine the balance in M. Rand's capital account after the entries have been posted.

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(O)The adjusted account balances of the Fitness Center at July 31 are as follows: Accounts Account Balances Cash $ 9,000 Accounts Receivable 25,000 Supplies 4,000 Prepaid Insurance 8,000 Buildings 300,000 Accumulated Depreciation Buildings 120,000 Accounts Payable 19,000 Vann, Capital 195,000 Vann, Drawing 12,000 Accounts Account Balances Service Revenue $105,000 Interest Revenue 8,000 Depreciation Expense 32,000 Insurance Expense 6,000 Salary Expense 30,000 Supplies Expense 9,000 Utilities Expense 12,000

Instructions Prepare the end of the period closing entries for the Fitness Center.

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(P) The income statement of Gregg's Shoe Repair is as follows: GREGG'S SHOE REPAIR Income Statement For the Month Ended April 30, 2002 Revenue Shoe Repair Revenue ................................................................. Expenses Salaries Expense ......................................................................... Depreciation Expense ................................................................. Utilities Expense .......................................................................... Rent Expense .............................................................................. Supplies Expense ........................................................................ Total Expenses .................................................................... Net Income ........................................................................................... $9,000 $4,200 350 400 600 1,050 6,600 $2,400

On April 1, the owner, Lee Gregg, had a capital balance of $14,900. During April, Gregg withdrew $3,000 cash for personal use. Instructions (a) Prepare closing entries at April 30. (b) Prepare an owner's equity statement for the month of April.

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