ACCT 221 Mid-Term Exam: Ch. 1-5

Problem

            1.   Journalize the following selected transactions for April 2013 in a two-column journal.  Journal entry explanations may be omitted.

            2.   Journalize in a two column journal the adjusting entries required at August 31, 2013. Omit explanations.

1.  Fees accrued but unbilled are $4,500.

2.  The supplies account balance on December 31 is $5,250.  The supplies on hand are $1,015.

3.  Wages accrued but not paid are $3,500.

4.  Depreciation of office equipment is $2,200.

5.  Rent expired during year, $7,800.

            3.   On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.

      4.Merchandise with a list price of $7,500 is purchased on account, terms FOB shipping point, 1/10, n/30. The

           seller prepaid transportation costs of $300. Prior to payment, $2,000 of the merchandise is returned. The

           correct amount is paid within the discount period.

Record the foregoing transactions of the buyer in the sequence indicated below.

      5. Merchandise with a list price of $3,800 and costing $2,000 is sold on account, subject to the following terms:

          FOB shipping point, 2/10, n/30.  The seller prepays the $50 shipping charges and bills the customer, (seller

          pays Cash). Prior to payment for the goods, the seller issues a credit memorandum for $800 to the customer for

          merchandise costing $500 that is returned. The correct amount is received within the discount period.

Record the foregoing transactions of the seller in the sequence indicated below.