Maryland Acct 220 Final Examination

| November 29, 2016

Question
For this exam, omit all general journal entry explanations.
Question 1: Suggested time 20 minutes: 15% points:
The account balances appearing on the trial balance (below) were taken from the
general ledger of Flip’s Copy Shop at June 30, 2012.
Additional information for the month of June which has not yet been recorded in the
accounts is as follows:
(a) A physical count of supplies indicates $300 on hand at June 30.
(b) The amount of insurance that expired in the month of June was $200.
(c) Depreciation on equipment for June was $400.
(d) Rent owed on the copy shop for the month of June was $600 but will not be paid
until July.
Flips Copy Shop
Trial Balance
For the Month Ended June 30, 2012
Account Titles
Debit
Credit
Cash
$1,000
Supplies
1,100
Prepaid Insurance
2,200
Equipment
24,000
$4,500
Accum. Depreciation Equipment
Accounts Payable
2,400
Notes Payable
4,000
Flips Capital
15,300
Flips Drawings
2,400
Service Revenue
4,900
Utilities Expense
400
Totals
$31,100
$31,100
Instructions: Prepare in journal form, without explanations, the end of month adjusting
entries & closing entries for Flip’s Copy Shop for the month of June.

Question 2: Suggested time 15 minutes: 15% points:
The following items were taken from the post adjusted trial balance of Flip Company.
(All balances are normal.)
Mortgage payable
Prepaid expenses
Equipment
Long-term investments
Short-term investments
Notes payable in 2014
Cash

$ 1,443
880
11,000
1,100
3,690
1,000
2,100

Accumulated depreciation
Accounts payable
Notes payable after 2015
Flips capital
Accounts receivable
Inventories

3,655
1,444
1,200
13,480
1,696
1,756

Instructions: Prepare a classified balance sheet in good form as of December 31, 2013.
Question 3: Suggested time 15 minutes: 15% points:
The following information is available for Flip Company:
Beginning inventory

600 units at $4

First purchase

900 units at $6

Second purchase

500 units at $7.20

Assume that Flip uses a periodic inventory system and that there are 700 units left at the
end of the month.
Instructions: Compute the cost of ending inventory and Cost of Good Sold under the
(a) LIFO method.
(b) FIFO method.
(c) Average-cost method

Question 4: Suggested time 15 minutes: 10% points:
Prepare journal entries to record the following transactions entered into by Flip
Company:
2012
June 1

Accepted a $10,000, 12%, 1-year note from Flop as full payment on her
account.

Nov. 1

Sold merchandise on account to Flap, Inc. for $12,000, terms 2/10, n/30.

Nov. 5

Flap, Inc. returned merchandise worth $500.

Nov. 9

Received payment in full from Flap, Inc.

Dec. 31

Accrued interest on Flop’s note.

2013
June 1

Flop honored her promissory note by sending the face amount plus interest.
No interest has been accrued in 2013

Get a 30 % discount on an order above $ 100
Use the following coupon code:
RESEARCH
Order your essay today and save 30% with the discount code: RESEARCHOrder Now
Positive SSL