ACC 20364 Accounting for Business Operations Final Examination
Accounting for Business Operations
ACC 20364 – Final Examination
1. Bella’s Beauty Salon’s unadjusted trial balance for the current year follows:
a. An insurance policy examination showed $1,240 of expired insurance.
b. An inventory count showed $210 of unused shop supplies still available.
c. Depreciation expense on shop equipment, $350.
d. Depreciation expense on the building, $2,220.
e. A beautician is behind on space rental payments and $200 of accrued revenue was unrecorded at the time the trial balance was prepared.
f. $800 of the Unearned Rent account balance was earned by year-end.
g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.
h. Three months’ property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.
i. One month’s interest on the note payable, $600, has accrued but is unrecorded.
Based on the additional information, prepare the adjusting journal entries for Bella’s Beauty Salon.
2. The following is the adjusted trial balance for Rapid Car Services for the most recent year:
Rapid Car Services, Inc.
Adjusted Trial Balance
For the year ended December 31
Accounts receivable 14,200
Office supplies 1,700
Accumulated depreciation—Vehicles 45,000
Accounts payable 11,500
Common stock 1,000
Retained earnings 70,900
Fees earned 155,000
Rent expense 13,000
Office supplies expense 2,000
Utilities expense 2,500
Depreciation Expense—Vehicles 15,000
Salary expense 50,000
Fuel expense 12,000
Totals $283,400 $283,400...