Accounting Quiz

Part I

1 . Office Supplies 600

Accounts Payable 600

Cash 16 ,000

Service Income 16 ,000

Accounts Receivable 8 ,000

Service Income 8 ,000

Cash 3 ,000

Unearned Services 3 ,000

Advertising Expense 1 ,200

Cash 1 ,200

Salaries Expense 5 ,700

Cash 5 ,700

2

Cash

Accounts Payable

25 ,300 .00 1 ,200 .00

2 ,000 .00

16 ,000 .00 5 ,700 .00

600 .00

3 ,000 .00

2 ,600 .00

37 ,400 .00

Unearned Fees

p Accounts Receivable

1 ,500 .00

11 ,300 .00

3 ,000 .00

8 ,000 .00 4 ,500 .00

19 ,300 .00 Office Supplies 500 .00 600 .00 1 ,100 .00

3

Spring Garden Lawn Care Incorporated

Unadjusted Trial Balance

As of May 31 , 2008

Cash 37 ,400

Accounts Receivable 19 ,300

Office Supplies 1 ,100

Prepaid Insurance 3 ,300

Prepaid Rent 46 ,000

Office Building 80 ,000

Accumulated Depreciation 400

Accounts Payable 2 ,600

Unearned Fees 4 ,500

Common Stock 150 ,000

Retained Earnings 12 ,500

4

Supplies Expense 400

Office Supplies 400

Unearned Fees 1 ,700

Fees Earned 1 ,700

Insurance Expense 275

Prepaid Insurance 275

Rent Expense 3 ,833

Prepaid Rent 3 ,833

Depreciation Expense 33

Accumulated Depreciation 33

5

Office Supplies

Unearned Fees

Prepaid Insurance

500 .00 1 ,500 .00

3 ,300 .00 275 .00

600 .00

3 ,000 .00

3 ,025 .00

1 ,100 .00 400 .00

1 ,700 .00 4 ,500 .00 700 .00

2 ,800 .00 Prepaid Rent

Accumulated Depreciation 46 ,000 .00 3 ,833 .00

400 .00 42 ,167 .00

33 .00

433 .00 6

Spring Garden Lawn Care Incorporated

Adjusted Trial Balance

As of May 31 , 2008

Cash 37 ,400

Accounts Receivable 19 ,300

Office Supplies 700

Prepaid Insurance 3 ,025

Prepaid Rent 42 ,167

Office Building 80 ,000

Accumulated Depreciation 433

Accounts Payable 2 ,600

Unearned Fees 2 ,800

Common Stock 150 ,000

Retained Earnings 12 ,500

7

Spring Garden Lawn Care Incorporated

Income Statement

For the period ended May 31 , 2008

Service Income 24 ,000

Fees Earned 1 ,700

Gross Income 25 ,700

Less

Salaries Expense 5 ,700

Advertising Expense 1 ,200

Supplies Expense 400

Insurance Expense 275

Rent Expense 3 ,833

Depreciation Expense 33 11 ,441

Net Income 14 ,259

Spring Garden Lawn Care Incorporated

Statement of Retained Earnings

As of May 31 , 2008

Retained Earnings , beginning 12 ,500

Add : Net Income 14 ,259

Retained Earnings , end 26 ,759

Spring Garden Lawn Care Incorporated

Balance Sheet

As of May 31 , 2008

Assets : Liabilities and Stockholders ' Equity

Current Assets Current Liabilities

Cash 37 ,400 Accounts Payable 2 ,600

Accounts Receivable 19 ,300 Unearned Fees 2 ,800

Office Supplies 700

Prepaid insurance 3 ,025 Prepaid Rent 42 ,167 Common Stock 150 ,000

Non Current Assets Retained Earnings 26 ,759

Office Building (net ) 79 ,567 Equity 176 ,759

p Part II

E

D

187 ,500

D

31 ,000

9 ,000

24 ,000

0

11 ,700

A

41 ,410

B

D

D

D

A

A

B

B

C

Part III

1 . Insurance Expense 200

Unexpired Insurance 200

2...