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Penn Foster 06101501 Financial Accounting Exam Parts 1 and 2 Manville and Coleman-Foose

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Penn Foster 06101501 Financial Accounting Exam Parts 1 and 2_Manville and Coleman-Foose_Answer

PENN FOSTER 06101501
Financial Accounting Examination

PART 1
The list of accounts below and the unadjusted balances of these accounts were taken from the ledger of the Manville Corporation at the end of their accounting period, March 31, 20X2:
Cash 3,995
Accounts Receivable 13,240
Allowance for Doubtful Accounts 120
Inventory, April 1, 20X1 22,800
Prepaid Insurance 360
Supplies on Hand 520
Equipment 15,000
Accumulated Depreciation’Equipment 4,500
Accounts Payable 11,870
Taxes Payable 390
Capital Stock 25,000
Retained Earnings 11,920
Dividends 9,000
Sales 89,490
Sales Returns and Allowances 920
Sales Discounts 1,330
Purchases 56,320
Purchase Returns and Allowances 490
Purchase Discounts 1,125
Transportation-In 880
Sales Salaries 11,800
Rent Expense 3,600
Advertising Expense 2,700
Utilities Expense 1,880
Maintenance Expense 560

Additional data:
A. Merchandise inventory at March 31, 20X2, was $23,300.
B. The Allowance for Doubtful Accounts should be increased by $600.
C. Prepaid insurance represents a three-year policy purchased April 1, 20X1.
D. Supplies on hand were estimated to be $170 on March 31, 20X2.
E. The cost of the equipment is being depreciated over a 15-year estimated life using the straight-line method. Salvage value should be ignored.
F. Unpaid sales salaries on March 31, 20X2, amounted to $200.

Instructions:
1. Prepare a worksheet (Adjusted trial balance columns may be omitted).
2. Prepare an income statement.
3. Prepare a statement of retained earnings.
4. Prepare a balance sheet.
5. Prepare the closing entries.

Part 2
The trial balance of the Coleman-Foose Company was prepared from the record of the company on November 30, 20X2, the close of its fiscal year:
Coleman-Foose Company
Trial Balance
November 30, 20X2
Cash 12,200
Accounts receivable 16,300
Allowance for doubtful accounts 200
Inventory – 12/1/X1 14,175
Unexpired insurance 660
Supplies on hand 265
Land 18,000
Building 22,000
Accumulated depreciation – building 6,000
Office equipment 6,800
Accumulated depreciation – office equipment 2,100
Accounts payable 11,400
Mortgage payable 9,000
Capital stock 40,000
Retained earnings 2,200
Dividends 8,000
Sales 172,000
Sales returns and allowances 600
Sales discounts 2,700
Purchases 109,800
Purchases returns and allowances 1,200
Purchase discounts 2,300
Transportation-in 900
Salaries expense 23,000
Travel expense 5,200
Office expense 1,300
Professional fee expense 2,500
Telephone expense 1,200
Building repair expense 800
Total 246,400 246,400

Additional data:
A. The allowance for doubtful accounts should be increase by $400
B. Merchandise inventory at November 30, 20×2 was $16,200.
C. Unexpired insurance on November 30, 20×2 amounted to $440.
D. Supplies on hand November 30, 20×2, $120.
E. Building depreciation is calculated at 5% per year
F. Office depreciation is calculated at 10% per year
G. Salaries accrued at November 30, 20×2, are $400.

Required:
1. Prepare a work sheet (The adjusted trial balance columns are to be omitted).
2. Prepare an income statement for the year.
3. Prepare closing entries.

Penn Foster 06101501 Financial Accounting Exam Parts 1 and 2_Manville and Coleman-Foose_Answer

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