Acct 220 Final Examination

Question 1: Suggested time 20 minutes: 15% points:The account balances appearing on the trial balance (below) were taken from the general ledger of Flip’s Copy Shop at June 30, 2012. Additional information for the month of June which has not yet been recorded in the accounts is as follows:(a) A physical count of supplies indicates $300 on hand at June 30.(b) The amount of insurance that expired in the month of June was $200.(c) Depreciation on equipment for June was $400.(d) Rent owed on the copy shop for the month of June was $600 but will not be paid until July.Flips Copy ShopTrial BalanceFor the Month Ended June 30, 2012Account TitlesDebitCreditCash$1,000Supplies1,100Prepaid Insurance2,200Equipment24,000$4,500Accum. Depreciation EquipmentAccounts Payable2,400Notes Payable4,000Flips Capital15,300Flips Drawings2,400Service Revenue4,900Utilities Expense400Totals$31,100$31,100Instructions: Prepare in journal form, without explanations, the end of month adjusting entries & closing entries for Flip’s Copy Shop for the month of June.Question 2: Suggested time 15 minutes: 15% points:The following items were taken from the post adjusted trial balance of Flip Company.(All balances are normal.)Mortgage payablePrepaid expensesEquipmentLong-term investmentsShort-term investmentsNotes payable in 2014Cash$ 1,44388011,0001,1003,6901,0002,100Accumulated depreciationAccounts payableNotes payable after 2015Flips capitalAccounts receivableInventories3,6551,4441,20013,4801,6961,756Instructions: Prepare a classified balance sheet in good form as of December 31, 2013.Question 3: Suggested time 15 minutes: 15% points:The following information is available for Flip Company:Beginning inventory600 units at $4First purchase900 units at $6Second purchase500 units at $7.20Assume that Flip uses a periodic inventory system and that there are 700 units left at theend of the month.Instructions: Compute the cost of ending inventory and Cost of Good Sold under the(a) LIFO method.(b) FIFO method.(c) Average-cost methodQuestion 4: Suggested time 15 minutes: 10% points:Prepare journal entries to record the following transactions entered into by Flip Company:2012June 1Accepted a $10,000, 12%, 1-year note from Flop as full payment on heraccount.Nov. 1Sold merchandise on account to Flap, Inc. for $12,000, terms 2/10, n/30.Nov. 5Flap, Inc. returned merchandise worth $500.Nov. 9Received payment in full from Flap, Inc.Dec. 31Accrued interest on Flop’s note.2013June 1Flop honored her promissory note by sending the face amount plus interest.No interest has been accrued in 2013