Ac2001

SPRING 2014

BONUS PROBLEM #1

MAXIMUM 3 POINTS

PLEASE ANSWER THE QUESTIONS BELOW USING THESE DIRECTIONS:

Bonus Problem due in-class only. See your class schedule for date due.
(Papers will NOT be accepted after class)
Answers MUST BE TYPED in space provided. (Handwritten NOT accepted)

To make your answer easy to grade, please use the answer sheet provided at the start of
the bonus problem. Turn in ONLY the answer sheet.
Hand in the ANSWER SHEET ONLY (no supporting work).

SIGN YOUR NAME TO STATE THAT YOU DID YOUR OWN WORK.
You can work together BUT, each person must do their own solution.
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ANSWER SHEET FOR BONUS #1 (TO HAND IN)

(

TYPE BOTH NAME AND PEOPLESOFT NUMBER BELOW)

NAME: ___Brenna Coughlin_____ Peoplesoft ID # ___1927441______

CLASS TIME: __11am__

SIGNATURE: ____________________

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1.

Credit to
For

____Rent Expense_____ (Account Title)

$____6,600_______ (Amount)

2.

Credit to
For

__Earned Rent Revenue____ (Account Title)

$__30,000______ (Amount)

3.

Credit to
For

__Prepaid Insurance____ (Account Title)

$_____16,000_____ (Amount)

4.

Debit to
Credit to

___Accounts Recievable __ (Account Title)

__Service Revenue_____ (Account Title)

5.

Percentage increase in revenues from 2011 to 2013 is _41.3___%

Percentage increase in revenues from 2012 to 2013 is __167___%

6.

$__1,075,000_______ (Amount)

7.

$__(18,000)______ (Amount)
___(Net Loss)__ Net Income OR (Net Loss)

8.

$___643,000______ (Amount)

9.

$__706,000_______ (Amount)

10.

$___236,000______ (Amount)

BONUS 1 SPRING 2014

1.

On June 1, 2014, ten months' rent totaling $22,000 was paid on an office rental. The payment of cash was originally
recorded by a debit to Rent Expense. The adjusting entry at December 31, 2014 would require a
Credit to _______________ (Account Title)
For
$_______________ (Amount)

2.

On July 1, 2014, ten months' rent income totaling $50,000 was received on an office rental. The receipt of cash was
originally recorded by a credit to Unearned Rent Revenue. The adjusting entry at December 31, 2014 would require a
Credit to _______________ (Account Title)
For
$_______________ (Amount)

3.

The unadjusted trial balance amount for Prepaid Insurance on December 31, 2014, was $24,000. The insurance policy
was purchased on May 1, 2014 and is effective for 12 months starting on that date. The adjusting entry on December 31,
2014 would require a
Credit to _______________ (Account Title)
For
$_______________ (Amount)

4.

On December 27, 2014 Vivian Company completes Service Revenue on account for a client in the amount of $78,000.
No entry was ever made for this transaction as of December 31, 2014. Vivian Company ends it reporting year on December
31, 2014. On December 31, 2014, Vivian Company needs to make an entry for $78,000 which debits and credits the
following accounts:
Debit to _______________ (Account Title)
Credit to _______________ (Account Title)

5.

Total revenues for Sarah Company over a three year period (in millions) were:
2012
$364,000
2013
$688,000
2014
$972,000
The percentage increase in revenues from 2013 to 2014 is _________%
The percentage increase in revenues from 2012 to 2014 is _________%
(For Question 5, ROUND YOUR ANSWERS TO NEAREST WHOLE PERCENT)

** PLEASE SEE QUESTIONS 6-10 ON THE NEXT PAGE **

QUESTIONS 6-10 ARE BASED ON THE FOLLOWING INFORMATION:

(Hint: do a complete set of financial statements before answering these questions)
Vernon Company has the following adjusted account balances at December 31, 2014:
Equipment
Salaries Expense
Unearned Revenue
Accounts Receivable
Cash
Rent Expense
Depreciation Expense
Accounts Payable
Office Supplies
Dividends
Land
Revenues
Office Supplies Expense
Common Stock ($1 par)
Prepaid Rent
Salaries Payable
Accumulated Depreciation- Equipment
Retained Earnings (1/1/2014)

$290,000
180,000
10,000
95,000
80,000
115,000
5,000
42,000
1,000
11,000
220,000
300,000
18,000
590,000
60,000
11,000
40,000
82,000

6. A Trial Balance prepared on December 31, 2014 using the account balances above would balance at:
$____________.

7. The income statement prepared at December 31, 2014, would report net income or (net loss) of:
$____________.
____________.
Indicate net income OR (net loss)
8. The balance sheet prepared at December 31, 2014, would report total owners equity of:
$____________.
9. The balance sheet prepared at December 31, 2014, would report total assets of:
$____________.
10. The balance sheet prepared at December 31, 2014, would report total current assets of:
$____________.