- •Chapter 2 Review of the Accounting Process
- •Q Questions for Review of Key Topicsuestion 2-1
- •Question 2-2
- •Question 2-3
- •Question 2-4
- •Question 2-5
- •Question 2-18
- •Question 2-19
- •Question 2-20
- •Question 2-21
- •Brief Exercises
- •Balance sheet Accounts
- •Inventory Accounts payable
- •InCome statement Accounts
- •Inventory Prepaid Insurance
- •InCome statement Accounts
- •Exercise 2-19 (continued)
- •2.Original transaction on November 1:
- •6.Original transaction during the year:
- •Cpa rEview qUestions
- •Problems
- •Problem 2-1 (continued)
- •Inventory Prepaid insurance
- •InCome statement Accounts
- •Problem 2-2 (continued)
- •Inventory Equipment
- •Problem 2-2 (continued)
- •InCome statement Accounts
- •Balance sheet Accounts
- •Problem 2-4 (continued) pastina company
- •Problem 2-4 (continued)
- •Interest expense Supplies expense
- •Insurance expense Bad debt expense
- •Income summary Retained earnings
- •Balance sheet Accounts
- •InCome statement Accounts
- •Problem 2-6 (continued)
- •Balance sheet Accounts
- •InCome statement Accounts
- •Problem 2-6 (continued)
- •Balance sheet Accounts
- •InCome statement Accounts
- •Income overstated
- •Balance sheet Accounts
- •InCome statement Accounts
- •Insurance expense Utility expense
- •Interest expense
- •Zambrano Wholesale Corporation
- •Income statement
- •Problem 2-13 (continued)
- •Excalibur corporation
Zambrano Wholesale Corporation
Income statement
For the Year Ended December 31, 2011
Sales revenue $705,000
Cost of goods sold 420,000
Gross profit 285,000
Operating expenses:
Insurance $ 6,500
Salaries 214,000
Rent 23,000
Depreciation 10,000
Total operating expenses 253,500
Operating income 31,500
Other income (expense):
Interest revenue 4,000
Interest expense (1,000) 3,000
Net income $34,500
Problem 2-12 (concluded)
Requirement 2
a. Prepaid insurance $ 2,000
b. Prepaid rent 12,000
c. Interest receivable 3,000
d. Interest payable 1,000
Problem
2-13
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Account Title |
Unadjusted Trial Balance |
Adjusting Entries |
Adjusted Trial Balance |
Income Statement |
Balance Sheet |
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Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
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Cash |
23,300 |
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23,300 |
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23,300 |
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Accounts receivable |
32,500 |
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32,500 |
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32,500 |
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Allowance for |
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uncollectible accounts |
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100 |
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(3) 550 |
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650 |
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650 |
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Supplies |
0 |
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(5) 500 |
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500 |
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500 |
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Prepaid rent |
0 |
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(6) 1,000 |
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1,000 |
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1,000 |
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Inventory |
65,000 |
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65,000 |
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65,000 |
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Equipment |
75,000 |
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75,000 |
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75,000 |
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Accumulated depreciation- |
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equipment |
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10,000 |
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(1) 9,375 |
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19,375 |
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19,375 |
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Accounts payable |
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26,000 |
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26,000 |
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26,000 |
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Wages payable |
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3,000 |
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(2) 1,500 |
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4,500 |
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4,500 |
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Note payable |
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30,000 |
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30,000 |
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30,000 |
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Interest payable |
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0 |
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(4) 1,000 |
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1,000 |
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1,000 |
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Common stock |
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80,000 |
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80,000 |
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80,000 |
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Retained earnings |
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16,050 |
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16,050 |
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16,050 |
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Sales revenue |
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180,000 |
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180,000 |
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180,000 |
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Cost of goods sold |
95,000 |
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95,000 |
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95,000 |
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Interest expense |
0 |
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(4) 1,000 |
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1,000 |
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1,000 |
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Wage expense |
32,350 |
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(2) 1,500 |
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33,850 |
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33,850 |
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Rent expense |
14,000 |
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(6) 1,000 |
13,000 |
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13,000 |
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Supplies expense |
2,000 |
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(5) 500 |
1,500 |
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1,500 |
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Utility expense |
6,000 |
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6,000 |
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6,000 |
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Bad debt expense |
0 |
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(3) 550 |
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550 |
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550 |
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Depreciation expense |
0 |
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(1) 9,375 |
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9,375 |
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9,375 |
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Net Income |
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19,725 |
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19,725 |
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Totals |
345,150 |
345,150 |
13,925 |
13,925 |
357,575 |
357,575 |
180,000 |
180,000 |
197,300 |
197,300 |
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