ACCT 220 Midterm Review Questions 1. JOURNAL ENTRIES Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. 1. Received $50,000 from stockholders. 2. Purchased equipment for $75,000, paying $15,000 in cash and giving a note payable for the remainder. 3. Paid $3,000 rent for the month. 4. Recorded $12,500 of services provided on account. 5. Paid wages of $9,500. 6. Received $7,000 in cash for services provided. 7. Collected $2,000 from customers on account. 2. ADJUSTING ENTRIES A review of the ledger of Wilde Co. at December 31, 2014, produces the following data pertaining to the preparation of annual adjusting entries: (a) Salaries and Wages Payable $0: Salaries are paid every Friday for the current week. Five employees receive a weekly salary of $800, and three employees earn a weekly salary of $700. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. (b) Unearned Rent Revenue $58,000: The company had several lease contracts during the year as shown below: Rent Term per Number of Date (in months) lease leases Oct. 1 12 $ 8,000 3 Dec. 1 12 18,000 2 (c) Notes Receivable $90,000: This is a 6-month note, dated November 1, 2014, with a 6% interest rate. Instructions: Prepare the adjusting entries at December 31, 2014. Show all computations. 3. INVENTORY COMPUTATIONS Lan Enterprises uses a periodic inventory system for buckets it sells. It had a beginning inventory on April 1 of 80 units at a cost of $6 per unit. During April, the following purchases and sales were made. Purchases Sales April 7 60 units at $7.00 April 5 120 units at $20 13 120 units at $7.50 11 90 units at $20 23 90 units at $8.00 20 80 units at $20 29 50 units at $8.80 30 40 units at $20 320 330 Instructions: Compute the April 30 ending inventory and April cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO. Provide appropriate supporting calculations. (1) Average - Ending Inventory = $_________; Cost of Goods Sold = $_________. (2) FIFO - Ending Inventory = $_________; Cost of Goods Sold = $_________. (3) LIFO - Ending Inventory = $_________; Cost of Goods Sold = $_________. 4. RATIOS Sanders Enterprises reported the following information for 2014: Beginning inventory $ 32,000 Cost of goods sold 404,000 Ending inventory 45,000 Net income 28,000 Net sales 750,000 Operating expenses 220,000 Sales revenue 765,000 Instructions: Compute each of the following ratios: (1) Gross profit rate (2) Inventory turnover (3) Days in inventory (4) Profit margin 5. Multiple-Step Income Statement Below is a partial listing of the adjusted account balances of Barnett Cabinets at year-end on December 31, 2014: Accounts receivable $ 24,000 Cost of goo.

1. ACCT 220 Midterm Review Questions
1. JOURNAL ENTRIES
Journalize the following business transactions in general journal
form. Identify each transaction by number. You may omit
explanations of the transactions.
1. Received $50,000 from stockholders.
2. Purchased equipment for $75,000, paying $15,000 in
cash and giving a note payable for the remainder.
3. Paid $3,000 rent for the month.
4. Recorded $12,500 of services provided on account.
5. Paid wages of $9,500.
6. Received $7,000 in cash for services provided.
7. Collected $2,000 from customers on account.

2. 2. ADJUSTING ENTRIES
A review of the ledger of Wilde Co. at December 31, 2014,
produces the following data pertaining to the preparation of
annual adjusting entries:
(a) Salaries and Wages Payable $0: Salaries are paid every
Friday for the current week. Five employees receive a weekly
salary of $800, and three employees earn a weekly salary of
$700. December 31 is a Tuesday. Employees do not work
weekends. All employees worked the last 2 days of December.
(b) Unearned Rent Revenue $58,000: The company had several
lease contracts during the year as shown below:
Rent
Term per Number of
Date (in months) leaseleases
Oct. 1 12 $ 8,000 3
Dec. 1 12 18,000 2
(c) Notes Receivable $90,000: This is a 6-month note, dated
November 1, 2014, with a 6% interest rate.
Instructions:
Prepare the adjusting entries at December 31, 2014. Show all
computations.

3. 3. INVENTORY COMPUTATIONS
Lan Enterprises uses a periodic inventory system for buckets it
sells. It had a beginning inventory on April 1 of 80 units at a
cost of $6 per unit. During April, the following purchases and
sales were made.
Purchases Sales
April 7 60 units at $7.00 April 5 120 units at
$20
13 120 units at $7.50 11 90 units at $20
23 90 units at $8.00 20 80 units at $20
29 50 units at $8.80 30 40 units at $20
320 330
Instructions: Compute the April 30 ending inventory and April
cost of goods sold under (a) average cost, (b) FIFO, and (c)
LIFO. Provide appropriate supporting calculations.
(1) Average - Ending Inventory = $_________; Cost of
Goods Sold = $_________.

4. (2) FIFO - Ending Inventory = $_________; Cost of Goods
Sold = $_________.
(3) LIFO - Ending Inventory = $_________; Cost of Goods
Sold = $_________.

5. 4. RATIOS
Sanders Enterprises reported the following information for
2014:
Beginning inventory $ 32,000
Cost of goods sold 404,000
Ending inventory 45,000
Net income 28,000
Net sales 750,000
Operating expenses 220,000
Sales revenue 765,000
Instructions: Compute each of the following ratios:
(1) Gross profit rate
(2) Inventory turnover
(3) Days in inventory
(4) Profit margin
5. Multiple-Step Income Statement
Below is a partial listing of the adjusted account balances of
Barnett Cabinets at year-end on December 31, 2014:
Accounts receivable $ 24,000

6. Cost of goods sold 256,000
Selling expenses (includes depreciation) 48,000
Interest expense 3,000
Accumulated depreciation—Building 15,000
Sales discounts5,000
Inventory 52,000
Administrative expenses (includes depreciation) 65,000
Sales revenue 418,000
Accounts payable 34,000
Interest revenue 500
Instructions: Using whatever data you believe appropriate,
prepare a multiple-step income statement for the Barnett
Cabinets for the year ended December 31, 2014.
ACCT 301 HW 1 SECTION 4510 FALL 2015
University of MD University College ACCT 301 Section 4510
Professor Name: Ayodele Gbenjo, CPA, MBA
Student Name: ________________________
Administrative Notes:
· You may use a calculator, your textbook, and anything posted
in our LEO classroom.
· Write directly on this HW 1 paper.
· Late submissions will be penalized.
· You must show all your computations to receive credit for
your answer

7. · Do not provide your answer on a PDF document (Provide
solution on this paper)
· No scanned documents will be accepted nor graded
· Late submission is not allowed
· You must submit your paper by Sunday 8/23/2015 11.59pm
no exception
Chapter 2
Question 1 – (Knowledge test – Accounting and Its use in
Business Decisions)
The following data are for Central District Parking Corporation:
Central District Parking Corporation
Balance Sheet
October 1, 2010
Assets
$

8. Cash
344,000.00
Accounts Receivable
18,000.00
Total Assets
362,000.00
Liabilities and Stockholders' Equity
Accounts Payable
94,000.00
Capital Stock
232,000.00
Retained Earnings
36,000.00

9. Total Liabilities and Stockholders' Equity
362,000.00
The summarized transactions for October 2010 are as follows:
Oct.1 The accounts payable owed as of September 30 (USD
94,000) were paid.
1 The company paid rent for the premises for October, USD
19,200.
7 The company received cash of USD 4,200 for parking by
daily customers during the week.
10 The company collected USD 14,400 of the accounts
receivable in the balance sheet at
September,30
14 Cash receipts for the week from daily customers were USD
6,600.
15 Parking revenue earned but not yet collected from fleet
customers was USD 6,000.
16 The company paid salaries of USD 2,400 for the period
October 1–15.
19 The company paid advertising expenses of USD 1,200 for
October.
21 Cash receipts for the week from daily customers were USD
7,200.
24 The company incurred miscellaneous expenses of USD 840.
Payment will be due Nov 10.
31 Cash receipts for the last 10 days of the month from daily
customers were USD 8,400.
31 The company paid salaries of USD 3,000 for the period
October 16–31.
31 Billings to monthly customers totaled USD 21,600 for
October.
31 Paid cash dividends of USD 24,000.

10. Requirements:
a. Prepare a summary of transactions (as demonstrated in class,
and see Part A of Exhibit 4- refer to chapter 2 of our text) using
column headings. Determine balances after each transaction.
b. Prepare an income statement for October 2010.
c. Prepare a statement of retained earnings for October 2010
d. Prepare a balance sheet as of October 31, 2010
Chapter 3
Question 2 – (Knowledge Test – Recording Business
Transactions)
The transactions listed below are those of Reliable Computer
Repair, Inc., for April 2010:
Apr. 1 Cash of USD 500,000 was received for capital stock
issued to the owners.
3 Rent was paid for April, USD 3,500.
6 Trucks were purchased for USD 56,000 cash.
7 Office equipment was purchased on account from Wagner
Company for USD 76,800.
14 Salaries for first two weeks were paid, USD 12,000.
15 USD 28,000 was received for services performed.
18 An invoice was received from Roger's Gas Station for USD
400 for gas and oil used during April.
23 A note was arranged with the bank for USD 80,000. The
cash was received, and a note promising to return the USD
80,000 on 2010 May 30, was signed.
29 Purchased trucks for USD 73,600 by signing a note.
30 Salaries for the remainder of April were paid, USD 14,400.
Requirements :
a. Prepare journal entries for these transactions.
b. Post the journal entries to T-accounts. Enter the account
number in the Posting Reference
column of the journal as you post each amount. Use the

11. following account numbers:
Acct.
No. Account Title
100 Cash
150 Trucks
172 Office equipment
200 Accounts payable
201 Notes payable
300 Capital stock
400 Service revenue
506 Gas and oil expense
507 Salaries expense
515 Rent expense
c. Prepare a trial balance as of 2010 April 30.
1