- Description
ACC 290 Week 5 Practice: Connect® Knowledge Check
Complete the Week 5 Knowledge Check in Connect®.
Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.
These assignments have earlier due dates, so plan accordingly.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
1
Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:
| REVENUE AND EXPENSE ACCOUNTS | |||||
| 401 | Fees Income | $ | 200,000 | Cr. | |
| 511 | Depr. Expense—Office Equipment | 9,160 | Dr. | ||
| 514 | Rent Expense | 26,000 | Dr. | ||
| 517 | Salaries Expense | 99,000 | Dr. | ||
| 520 | Supplies Expense | 4,680 | Dr. | ||
| 523 | Telephone Expense | 2,700 | Dr. | ||
| 526 | Travel Expense | 20,780 | Dr. | ||
| 529 | Utilities Expense | 2,500 | Dr. | ||
| DRAWING ACCOUNT | ||||
| 302 | Gloria Johnson, Drawing | 22,000 | Dr. | |
Required:
- Record the adjusting entries in the general journal (transactions 1-3).
- Record the closing entries in the general journal (transactions 4-7).
2
A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.
Required:
- Complete the worksheet.
- Record the adjusting entries in the general journal (transactions 1-3).
- Record the closing entries in the general journal (transactions 4-7).
- Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.
- Prepare a post-closing trial balance.
Analyze:
What total debits were posted to the general ledger to complete all closing entries for the month of December?
3
On December 31, 2019, the ledger of Lopez Company contained the following account balances:
| Cash | $ | 66,000 | Maria Lopez, Drawing | $ | 52,000 |
| Accounts Receivable | 5,800 | Fees Income | 107,500 | ||
| Supplies | 4,200 | Depreciation Expense | 5,500 | ||
| Equipment | 52,000 | Salaries Expense | 34,000 | ||
| Accumulated Depreciation | 5,000 | Supplies Expense | 6,000 | ||
| Accounts Payable | 6,000 | Telephone Expense | 5,200 | ||
| Maria Lopez, Capital | 121,500 | Utilities Expense | 9,300 | ||
4
The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:
| ACCOUNT NO. | ACCOUNT | BALANCE | |
| 101 | Cash | $ | 40,000 |
| 111 | Accounts Receivable | 29,910 | |
| 121 | Supplies | 5,300 | |
| 131 | Prepaid Insurance | 12,500 | |
| 141 | Equipment | 59,000 | |
| 142 | Accumulated Depreciation—Equipment | 20,660 | |
| 202 | Accounts Payable | 7,000 | |
| 301 | Aretha Hinkle, Capital | 65,000 | |
| 302 | Aretha Hinkle, Drawing | 6,500 | |
| 401 | Fees Income | 187,230 | |
| 510 | Depreciation Expense—Equipment | 10,580 | |
| 511 | Insurance Expense | 5,700 | |
| 514 | Rent Expense | 16,500 | |
| 517 | Salaries Expense | 83,000 | |
| 518 | Supplies Expense | 2,800 | |
| 519 | Telephone Expense | 3,400 | |
| 523 | Utilities Expense | 4,700 | |
All accounts have normal balances.
Required:
- Prepare the closing entries.
- Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.
5
The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.
| Income Summary | Account No. 399 | ||||
| Balance | |||||
| Date | Description | Debit | Credit | Debit | Credit |
| 2019 | |||||
| Dec. 31 | Closing | 134,000 | 134,000 | ||
| 31 | Closing | 71,800 | 62,200 | ||
| 31 | Closing | 62,200 | 0 | ||
| Linda Carter, Capital | Account No. 301 | ||||
| Balance | |||||
| Date | Description | Debit | Credit | Debit | Credit |
| 2019 | |||||
| Dec. 1 | 240,000 | 240,000 | |||
| 31 | Closing | 62,200 | 302,200 | ||
| 31 | Closing | 22,000 | 280,200 | ||
6
On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000.
Required:
- Record the journal entries necessary to complete closing the accounts.
- What is the new balance of Madison Wells, Capital?