Acc 20364 Accounting for Business Operations Final Examination

ACC 20364 Accounting for Business Operations Final Examination

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Accounting for Business Operations

ACC 20364 – Final Examination

1. Bella’s Beauty Salon’s unadjusted trial balance for the current year follows:

Additional information:

a. An insurance policy examination showed $1,240 of expired insurance.

b. An inventory count showed $210 of unused shop supplies still available.

c. Depreciation expense on shop equipment, $350.

d. Depreciation expense on the building, $2,220.

e. A beautician is behind on space rental payments and $200 of accrued revenue was unrecorded at the time the trial balance was prepared.

f. $800 of the Unearned Rent account balance was earned by year-end.

g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.

h. Three months’ property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.

i. One month’s interest on the note payable, $600, has accrued but is unrecorded.

Required:

Based on the additional information, prepare the adjusting journal entries for Bella’s Beauty Salon.

2. The following is the adjusted trial balance for Rapid Car Services for the most recent year:

Rapid Car Services, Inc.

Adjusted Trial Balance

For the year ended December 31

Cash $33,000

Accounts receivable 14,200

Office supplies 1,700

Vehicles 100,000

Accumulated depreciation—Vehicles 45,000

Accounts payable 11,500

Common stock 1,000

Retained earnings 70,900

Dividends 40,000

Fees earned 155,000

Rent expense 13,000

Office supplies expense 2,000

Utilities expense 2,500

Depreciation Expense—Vehicles 15,000

Salary expense 50,000

Fuel expense 12,000

Totals $283,400 $283,400

Required:...