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Accounting Questions

Need some help with understanding and completing these accounting problems for my accounting review and CPA studies. These questions are at the basic accounting level. Thanks for any help you can provide.

1. Jamison Corp. prepares monthly financial statements. Below are listed selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September. (Note: Debit and credit columns are not equal, this is a partial listing of selected account balances)

Jamison Corp
Trial Balance (Selected Accounts)
September 30, 2005
Debit Credit
Office Supplies $2,700
Prepaid Insurance 4,200
Office Equipment 16,200
Accumulated Depreciation?Office Equipment $900
Unearned Service Revenue 1,200
An analysis of the account balances by the company's accountant provided the following
additional information:

(a) A physical count of office supplies revealed $1,200 on hand on September 30.
(b) A two-year life insurance policy was purchased on June 1 for $4,800.
(c) Office equipment depreciated $5,400 per year.
(d) The amount of services revenue received in advance that remains unearned at September
30 is $500.

Instructions:
Prepare the General Journal adjusting entries (without explanations) that should be made by Jamison Corp on September 30.

2. The adjusted account balances of the Home Gym at December 31, 2006 are as follows:

Home Gym
Adjusted Trial Balance
December 31, 2006
Adjusted
Trial Balance
Account Debit Credit
Cash $10,000
Accounts Receivable 26,000
Supplies 5,000
Prepaid Insurance 7,000
Land 20,000
Buildings 210,000
Accumulated Depreciation, Building $95,000
Equipment 60,000
Accumulated Depreciation, Equipment 25,000
Patents 12,000
Accounts Payable 5,000
Wages Payable 4,000
Notes Payable (due 2010) 15,000
Far-Away, Capital 190,000
Far-Away, Drawing 13,000
Service Revenue 102,000
Interest Revenue 13,000
Utilities Expense 10,000
Salaries Expense 32,000
Supplies Expense 12,000
Insurance Expense 3,000
Depreciation Expense, Building 20,000
Depreciation Expense, Equipment 9,000 _______
Totals $449,000 $449,000
Instructions:
Prepare end of the year General Journal closing entries (without explanations) for the Home Gym. Home Gym made no additional owner investments during 2006.

3.
Instructions:
Use the information provided in the Home Gym's Adjusted Trial Balance
December 31, 2006 (Problem 2 ) prepare the Statement of Owner's Equity and a Classified Balance Sheet for the Home Gym.

4.
Compute Bad Debts Expense based on the following information:

(a) Corrington Company estimates that 2% of net credit sales will become uncollectible.
Sales are $600,000, Sales Returns & Allowances are $30,000, and the
Allowance for Doubtful Accounts has a $6,000 credit balance.

Bad Debts Expense answer:

Show any calculations for this answer below:

(b) Corrington Company estimates that 4% of Accounts Receivable will become
uncollectible. Accounts Receivable has a $100,000 normal balance at the end
of the year, and the Allowance for Doubtful Accounts has a $500 debit balance.

Bad Debts Expense answer:

Show any calculations for this answer below:

5.
Dierte Company uses the allowance method for estimating uncollectible accounts.

Prepare General Journal entries (without explanations) to record the following transactions:

January 5 Sold merchandise to James Dean for $1,200, terms n/15.

April 15 Received $200 from James Dean on account.

August 21 Wrote off as uncollectible the balance of the James Dean account when he declared bankruptcy.

October 5 Unexpectedly received a check for $250 from James Dean.

6.
Rinaldi Company purchased equipment on January 1, 2004 for $65,000. It is
estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.

Instructions: Answer the following independent questions.

(a) Compute the amount of depreciation expense for the year ending December 31,2004, using the straight-line method of depreciation.

2004 Depreciation expense:

Show any calculations for this answer below:

(b) If 18,000 units of product are produced in 2004 and 25,000 units are produced in
2005, what is the book value of the equipment on December 31, 2005? The
company uses the units-of-activity depreciation method.

Dec 31, 2005 Book Value:

Show any calculations for this answer below:

(c) If the company uses the double-declining-balance method of depreciation, what is the balance in the Accumulated Depreciation, Equipment account on December 31, 2006?

Dec 31, 2006 Accumulated Depreciation:

Show any calculations for this answer below:

7.
On March 1, Carry Company borrows $60,000 from Downtown Bank by signing a 6-month, 8%, interest-bearing note.

Instructions:
Prepare the necessary General Journal entries associated with the note payable on the books of Carry Company. No explanations are required.

(a) Prepare the entry on March 1 when the note was issued.

(b) Prepare any adjusting entries necessary on June 30 in order to prepare the
semi-annual financial statements. Assume no other interest accrual entries have been made.

(c) Prepare the adjusting entry at August 31 to accrue interest.

(d) Prepare the entry to record payment of the note at maturity.

8.
Ken Daily earned a salary of $9,000 for January. The employee FICA taxes are
$720. Federal unemployment insurance taxes are 0.8% of the first $7,000 and the state unemployment insurance taxes are 5.4% on the first $7,000. Banks had $1,300 withheld for federal income taxes and $500 was withheld for state income taxes.

Instructions:
(a) Prepare a General Journal entry to record the payroll expense for Ken Daily's January salary. (No explanations are required.)

(b) Prepare a General Journal entry to record the employer payroll tax expense
for the employment of Ken Daily for the month of January. (No explanations
are required.)

9.
The Hope and Charity partnership reports net income of $55,000. Partner salary
allowances are Hope $20,000 and Charity $15,000. No interest allowance will be
used. Any remaining income is shared 70:30 ratio.

Instructions:
(a) Determine the amount of net income allocated to each partner.

(b) Prepare the General Journal entry (without explanation) to close the Income
Summary Account into partnership equity accounts.

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1. Jamison Corp. prepares monthly financial statements. Below are listed selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September. (Note: Debit and credit columns are not equal, this is a partial listing of selected account balances)

Jamison Corp
Trial Balance (Selected Accounts)
September 30, 2005
Debit Credit
Office Supplies $2,700
Prepaid Insurance 4,200
Office Equipment 16,200
Accumulated Depreciation?Office Equipment $900
Unearned Service Revenue 1,200
An analysis of the account balances by the company's accountant provided the following
additional information:

(a) A physical count of office supplies revealed $1,200 on hand on September 30.
(b) A two-year life insurance policy was purchased on June 1 for $4,800.
(c) Office equipment depreciated $5,400 per year.
(d) The amount of services revenue received in advance that remains unearned at September
30 is $500.

Instructions:
Prepare the General Journal adjusting entries (without explanations) that should be made by Jamison Corp on September 30.

(a) The actual supplies are 1,200 and the account balance is 2,700. This implies that 1,500 of supplies are used. The entry is
Office Supplies Expense Dr 1,500
Office Supplies Cr 1,500

(b) Insurance policy is for 24 months and the amount is 4,800. The insurance expired per month is 4,800/24=200. The entry for September is
Insurance Expense Dr 200
Prepaid Insurance Cr 200

(c) The depreciation per month is 5,400/12 = 450. The entry is
Depreciation Expense Dr 450
Accumulated Depreciation Cr 450

(d) The unearned revenue balance is 1,200 and the amount that remains is 500. $700 of unearned revenue is earned. The entry is
Unearned Service Revenue Dr 700
Service Revenue Cr 700

2. The adjusted account balances of the Home Gym at December 31, 2006 are as follows:

Home Gym
Adjusted Trial Balance
December 31, 2006
Adjusted
Trial Balance
Account Debit Credit
Cash $10,000
Accounts Receivable 26,000
Supplies 5,000
Prepaid Insurance 7,000
Land 20,000
Buildings 210,000
Accumulated Depreciation, Building $95,000
Equipment 60,000
Accumulated Depreciation, Equipment 25,000
Patents 12,000
Accounts Payable 5,000
Wages Payable 4,000
Notes Payable (due 2010) 15,000
Far-Away, Capital 190,000
Far-Away, Drawing 13,000
Service Revenue 102,000
Interest Revenue 13,000
Utilities Expense 10,000
Salaries Expense 32,000
Supplies Expense 12,000
Insurance Expense 3,000
Depreciation Expense, Building 20,000
Depreciation Expense, Equipment 9,000 _______
Totals $449,000 $449,000
Instructions:
Prepare end of the year General Journal closing entries (without explanations) for the Home Gym. Home Gym made no additional owner ...

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