Acct 101 - Practice Questions

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ACCT 101 PRACTICE QUESTIONS by Adekoya Ayodele

OBJECTIVE

The objective of this project is to enable student to record transactions into the accounting cycle. The second objective is to enable them record adjustments and post them to the General Ledger The third Objective is to enable them prepare accurate Income Statements and Balance Sheets.

INSTRUCTIONS: Each group is required to

1.Journalize the transactions

2.Post the transactions from journal to ledgers.

3.Prepare a trial balance

4.Journalize the adjusting entries and post them to the General Ledger

5.Prepare post adjustments trial balance

6.Prepare a worksheet and complete it. (Using Microsofts Excel)

7.Prepare financial statements – Balance Sheet and Income Statement

QUESTION

Ameen Ali Muhammad started his own security services company, AM Services, in January 2009. Listed below is the opening trial balance as at the beginning of January 2009

AAM Security Services Limited
Opening Trial Balance as at January 1, 2009
$ $
Cash 5, 500
Bank 60,500
Account receivable 25,000
Land50,000
Prepaid Insurance 24,000
Supplies 10,000
Equipment 25,000
Accumulated Depreciation (Equipment) 10, 000
Account Payable 15, 000
Unearned revenue 35, 000
Capital40, 000
Total 200,000200,000
During 2007 the following transactions were completed:-

January 1Paid $10,000 for account payable

January 1Purchased a Patrol Van worth $150,000; paid $50,000 by cheque and sign a note payable for the remainder (note payable is for 2 years with 10% interest rate)

February 2Purchase $10,000...
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