Penn Foster 06101501 Financial Accounting Exam Parts 1& 2 Manville Corporation and Coleman-Foose Company

PENN FOSTER 06101501 Financial Accounting Examination PART 1 The list of accounts below and the unadjusted balances of these accounts were taken from the ledger of the Manville Corporation at the end of their accounting period, March 31, 20X2: Cash 3,995 Accounts Receivable 13,240 Allowance for Doubtful Accounts 120 Inventory, April 1, 20X1 22,800 Prepaid Insurance 360 Supplies on Hand 520 Equipment 15,000 Accumulated Depreciation’Equipment 4,500 Accounts Payable 11,870 Taxes Payable 390 Capital Stock 25,000 Retained Earnings 11,920 Dividends 9,000 Sales 89,490 Sales Returns and Allowances 920 Sales Discounts 1,330 Purchases 56,320 Purchase Returns and Allowances 490 Purchase Discounts 1,125 Transportation-In 880 Sales Salaries 11,800 Rent Expense 3,600 Advertising Expense 2,700 Utilities Expense 1,880 Maintenance Expense 560 Additional data: A. Merchandise inventory at March 31, 20X2, was $23,300. B. The Allowance for Doubtful Accounts should be increased by $600. C. Prepaid insurance represents a three-year policy purchased April 1, 20X1. D. Supplies on hand were estimated to be $170 on March 31, 20X2. E. The cost of the equipment is being depreciated over a 15-year estimated life using the straight-line method. Salvage value should be ignored. F. Unpaid sales salaries on March 31, 20X2, amounted to $200. Instructions: 1. Prepare a worksheet (Adjusted trial balance columns may be omitted). 2. Prepare an income statement. 3. Prepare a statement of retained earnings. 4. Prepare a balance sheet. 5. Prepare the closing entries. Part 2 The trial balance of the Coleman-Foose Company was prepared from the record of the company on November 30, 20X2, the close of its fiscal year: Coleman-Foose Company Trial Balance November 30, 20X2 Cash 12,200 Accounts receivable 16,300 Allowance for doubtful accounts 200 Inventory – 12/1/X1 14,175 Unexpired insurance 660 Supplies on hand 265 Land 18,000 Building 22,000 Accumulated depreciation – building 6,000 Office equipment 6,800 Accumulated depreciation – office equipment 2,100 Accounts payable 11,400 Mortgage payable 9,000 Capital stock 40,000 Retained earnings 2,200 Dividends 8,000 Sales 172,000 Sales returns and allowances 600 Sales discounts 2,700 Purchases 109,800 Purchases returns and allowances 1,200 Purchase discounts 2,300 Transportation-in 900 Salaries expense 23,000 Travel expense 5,200 Office expense 1,300 Professional fee expense 2,500 Telephone expense 1,200 Building repair expense 800 Total 246,400 246,400 Additional data: A. The allowance for doubtful accounts should be increase by $400 B. Merchandise inventory at November 30, 20×2 was $16,200. C. Unexpired insurance on November 30, 20×2 amounted to $440. D. Supplies on hand November 30, 20×2, $120. E. Building depreciation is calculated at 5% per year F. Office depreciation is calculated at 10% per year G. Salaries accrued at November 30, 20×2, are $400. Required: 1. Prepare a work sheet (The adjusted trial balance columns are to be omitted). 2. Prepare an income statement for the year. 3. Prepare closing entries.