Mock test preparation – Accounting 2020

Problem 1.
Preparing adjusting entries for the month of January, 2017.

GENERAL JOURNAL
Date Account Titles and Explanations Debit Credit
  Adjusting entries    
june. $
30 Insurance expense 200  
$
    Prepaid insurance   200
         
june.
30 Unearned rent revenue 900  

    Rent revenue   900

         
june.
30 Office supplies expense 450  

    Office supplies   450

         
june.
30 Depreciation expense 2,100  
Accumulated depreciation -
    Equipment   2,100
         
june.
30 Salaries and Wages expense 680  

    Salaries and Wages payable   680

Cái transaction của Jun. 30 t lấy 8,400:12=700 cơ Tây ạ.

Problem 2.
GENERAL JOURNAL
Account Titles and
Date Explanations Debit Credit
       
Oct. 5 Accounts payable $ 15,000  
    Cash   $ 15,000
         
8 Inventory 12,000  
     Accounts payable   12,000
         
10 Inventory 200  
    Cash   200
         
15 Accounts payable 12,000  
    Inventory   240
    Cash   11,760
         
20 Accounts receivable 16,000  
    Sales revenue   16,000
         
20 Cost of goods sold 9,500  
    Inventory   9,500
         
25 Sales returns and allowances 1,000  
    Accounts receivable   1,000
         
25 Inventory 600  
    Cost of goods sold   600
Transaction của Oct. 15 t credit 240 vào Sales Discount.
Problem 3.
TL DEPARTMENT STORE
Income Statement
For the Year Ended December 31, 2016
Sales      

Sales revenue     400,000

Less: Sales discounts 20,000   20,000

Net sales     380,000

Cost of goods sold     260,000

Gross Profit     120,000

Operating expenses      

  Selling expenses 36,000    

  Interest expense 2,500    

  Administrative expenses 17,000    

 Total operating
  expenses     55,500

Income from operations     175,500

Net income     175,500

T xem sách thì Interest Expense nằm trong phần Other expenses and losses. Với cả
t thấy trong income statement này còn thiếu Interest Revenue nữa.
Đáp án t ra là 65,400.

Problem 4.
1.1. A, ending inventory as of November 30; using cost-average method
Cost of goods available for sale: $9,600

Total units available for sale: 800 units

Cost of goods Total units
available for / available for = Weighted-average
sale sale unit cost
$9,600 / 800 = $12
Ending inventory

Ending Inventory

Unit
s + Unit cost = Total cost
350   $ 12   $ 4,200
Cost of goods sold

Cost of goods sold

Cost of goods available for $

sale   9,600

Less: Ending inventory   4,200

$
Cost of goods sold   5,400
1.2. B, ending inventory calculation using FIFO
Ending inventory:
 Ending Inventory

Unit
Date s Unit cost Total cost
Nov. 25 250 $16 $4,000
Nov. 5 200 $12 $2,400
Total 450   $6,400
Cost of goods sold:

Cost of goods sold

$
Cost of goods available for sale 9,600

Less: Ending inventory 6,400

$
Cost of goods sold 3,200
Units of ending inventory của t là 800-150-300=350 nên chỗ t bôi đỏ kia t thì t ghi
là 100. Cost của EI t ra là $5,200 với CGS thì t ra là $4,400.
Problem 5.
GENERAL JOURNAL
Date Account Titles Debit Credit
Jul.
1 Notes receivable $ 10,000  
    Sales revenue   $ 10,000
         
31 Interest receivable 67  
    Interest revenue   67
         
Oct.
1 Cash 10,267  
    Notes receivable   10,000
    Interest receivable   200
    Interest revenue   67
         
1 Accounts receivable 10,000  
    Notes receivable   10,000
Cái trans của Jul. 1 thì t credit Accounts Receivable vì t nghĩ cụm ‘for the balance
due on TL’s account’ nghĩa kiểu nó past due của cái accounts receivable rồi nên
giờ nó chuyển sang thành note à?!?
Cái trans đầu của Oct. 1 thì Interest Receivable là 66,7 còn Interest Revenue là $10,000 x
8% x 2/12 = 133,3 (T không chắc về cách dùng account title của Interest Receivable với
Revenue lắm đâu nhé hic nên cái này k chắc @@)  Cash là 10,200.

Cái trans cuối của Oct. 1 t tính thêm cả Interest Revenue nữa đúng không nhỉ?

Problem 6.
GENERAL JOURNAL
Date Account Titles Debit Credit
Mar. Accumulated depreciation - $
1 Equipment 16,000  

  Loss on disposal of plant assets 4,000  

    Equipment   $ 20,000
         

Jul. 31 Cash 8,000  

Accumulated depreciation -
  Equipment 24,000  
    Equipment   30,000
    Gain on disposal of plant assets   2,000
         
Sept.
30 Cash 5,000  
Accumulated depreciation -
  Equipment 12,000  
    Equipment   16,000
    Gain on disposal of plant assets   1,000
Problem 7.

1.3. Delivery truck

- Cost: $50,000
- Depreciable cost: $45,000
- Total units of activity: 100,000 miles
- Depreciation per unit ($): 45,000/100,000 = $0.45 per unit (mile)
- Depreciation expense for the year 2016: 30,000 * 0.45 = 13,500 ($)
- Book value at December 31, 2016: Accumulated depreciation = $12,500 +
$13,500 = $26,000; Book value = $50,000 - $26,000 = $24,000
1.4. Building
- Cost: $8,800,000e
- Depreciable cost: $8,800,000 - $80,000 = $8,720,000
- Depreciation per year: 8,720,000/40 = 218,000 ($)
- Book value = $8,066,000 + $218,000 = $8,284,000 (Cái này t lấy 8,800,000-
8,066,00-218,000=516,000)

1.5. Store equipment

- Cost: $90,000
- Depreciable cost: $90,000 - $9,000 = $81,000
- Straight-line rate for 5 years useful life: 20%
- Double-declining depreciation rate: 40%
- Accumulated depreciation – Equipment for the year 2015: $90,000 * 40% =
$36,000 -> Book value at the end of 2015: $90,000 - $36,000 = $54,000
- Depreciation expense for the year 2016: $54,000 * 40% = $21,600 -> Book
value at the end of 2016: $54,000 - $21,600 = $32,400