Name: __________________________ Date: _____________
You must complete answer all questions – be a very careful reader
4 Questions: 3 essays; plus 1 Problem
Ch 1 – 2 – 3 – 4 – 5 – 6 …
please try to complete the quiz in one setting
Save the exam file as a word document with your name in the file name & Quiz 1 such as Bill_Murray_Quiz_1
UMUC – ACCT 301 Due Wednesday February 3, 2015
This quiz is to be completed without the assistance of any other person.
Use only the resources provided in LEO and by your instructor for this class.
** Save this file and include your name in the file name: Bill_Murray_Quiz_1
You may create an Excel and / or Word File for your work. Please verify that each page prints out formatted with your name and page number on the page. Excel files should show gridlines.
Excel ‘page format’ has options for grid lines (sheet) and headers/footers.
At a minimum, use print preview so you can see how the work will print out.
I pledge on my honor that I have not given or received any unauthorized assistance on this examination. In addition, I pledge that I will not disclose to, or discuss the contents of this examination with, students who have not taken it.
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Signed
Good Luck!!!
For all questions, assume no other transactions or activities have taken place during the period except as noted. Answer all questions! Always write, showing what you know, in your own words. Do not use the sentences and the work of others. This is a key concept for work in our course and at UMUC.
Prepare and present calculations for partial credits for questions with calculations and presentations.
Question 1:
During October, the following transactions were completed by Trout Company, a new business started on October 1, 2015.
October 1 Sold 30,000 shares of $10 par value stock for $300,000 cash.
1 Purchased equipment for $42,000, paying $14,000 cash, charging the balance on account.
3 Purchased office supplies for $2,000 on account.
5 Paid $1,200 cash for 1-year insurance policy effective October 1. Use the account Prepaid Insurance to record this asset.
12 Billed customers $12,000 for professional services.
18 Paid $15,000 cash on amount owed on equipment and $ 500 on amount owed on office supplies.
20 Paid $5,000 cash for employee salaries.
21 Collected $5,000 cash from customers billed on October 12.
25 Billed customers $8,000 for professional services.
31 Paid $600 for the monthly utilities for the office.
31 Paid cash dividend of $.50 per share to shareholders
1. Journalize the Transactions, omitting explanations
2. Create T Accounts on a paper you will not submit to accumulate information for the remaining requirements of this problem
The following additional information is provided for your use before preparing the income statement:
Unbilled and uncollected revenue for services performed as of October 31 is $4,000.
Depreciation on equipment for the month was $300.
An inventory count shows $200 of office supplies on hand at October 31.
Accrued but unpaid employee salaries were $3,000 (the salaries have not yet been recorded).
3. Prepare any necessary journal entries to record the above adjustments
4. Prepare any additional journal entries to properly record expenses, assuring the balance sheet accounts will be properly presented.
5. Prepare the appropriate closing entries for the month of October, 2015.
6. Update your T Accounts on the paper you will not submit
7. Prepare the Income Statement, for the month ending October 31, 2015.
8. Prepare the Statement of Owners Equity for the month ending October 31, 2015
9. Prepare the Classified Balance Sheet for October 31, 2015.
Go on to next page
Question 2:
Why is there an order for preparing financial statements? Suggest you make a list with the name of the financial statement and explanation of how one financial statement affects the next in your list. Do not consider the statement of cash flows. You can create a list and use bullet points or create a paragraph.
Question 3:
In explaining the financial statements to your team (you are the manager), explain the terms relevance, reliability, and materiality in terms of accounting and financial reporting. Separately, use at least one sentence for each of the three terms. Your answer here should be very short as each of the three terms can be defined with one or two words or with one sentence at most.
Question 4:
Who might have an interest in the financial statements of a company? Make a list of these stakeholders and their key concern (a bullet style list would be great here)
Questions 5:
Using your SEC 10-K balance sheet and income statement identify , for each of the two financial statements, five line items and / or concepts that you would mention if explaining the financial statements to a team member (you are the manager) who never successfully completed an accounting course. A list would be adequate for this question but be certain to create two lists with the name of the financial statement as your first item in the list.
