Intermediate Accounting Exam 1 Study Guide Questions
and answers with Complete Solutions | 100% Pass
American Chip Corporation's fiscal year-end is
December 31. The following is a partial adjusted trial
balance as of December 31, 2016.
Account Title:
R/E $80,000 CR
Sales rev $750,000 CR
Interest rev $3,00 CR
COGS $420,000 DB
Salaries exp $100,000 DB
Rent exp $15,000 DB
Depr. exp $30,000 DB
Interest exp $5,000 DB
Ins. exp $6,000 DB
Prepare the necessary closing entries at December
31, 2016. - answer>>>Date: Dec. 31, 2016
Debit Sales revenue $750,000
Credit Interest revenue $3,000
Credit Income summary $753,000
Debit Income summary $576,000
Credit COGS $420,000
Credit salaries expense $100,000
,Credit rent expense $15,000
Credit depreciation expense $30,000
Credit interest expense $5,000
Credit insurance expense $6,000
Debit Income summary $177,000
Credit retained earnings $177,000
Cone Corporation is in the process of preparing its
December 31, 2016, balance sheet. There are some
questions as to the proper classification of the
following items:
a. $50,000 in cash restricted in a savings account to
pay bonds payable. The bonds mature in 2020.
b. Prepaid rent of $24,000, covering the period
January 1, 2017, through December 31, 2018.
c. Note payable of $200,000. The note is payable in
annual installments of $20,000 each, with the first
installment payable on March 1, 2017.
d. Accrued interest payable of $12,000 related to the
note payable.
e. Investment in marketable securities of other
corporations, $80,000. Cone intends to sell one-half
of the securities in 2017.
Prepare a partial classified balance sheet to show
how each of the above items should be reported. -
answer>>>http://i357.photobucket.com/albums/oo13
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, For the following note disclosures, indicate whether
the disclosure would likely appear in (A) the
summary of significant accounts policies or (B) a
separate note:
Cash equivalent designation - answer>>>A
For the following note disclosures, indicate whether
the disclosure would likely appear in (A) the
summary of significant accounts policies or (B) a
separate note:
Contingency information - answer>>>B
For the following note disclosures, indicate whether
the disclosure would likely appear in (A) the
summary of significant accounts policies or (B) a
separate note:
Depreciation method - answer>>>A
For the following note disclosures, indicate whether
the disclosure would likely appear in (A) the
summary of significant accounts policies or (B) a
separate note:
Inventory costing method - answer>>>A
For the following note disclosures, indicate whether
the disclosure would likely appear in (A) the
