ACCT 310 ACCT310 Homework 2 Solution / Intermediate Accounting I

ACCT 310 ACCT310 Homework 2 Solution / Intermediate Accounting I

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ACCT 310 Intermediate Accounting I Homework 2 Answers  

1. An extract from the trial balance of Armstrong Corp. at June 30, 2016 is reproduced below:

	Account	Amount in unadjusted trial balance	Amount in adjusted trial balance
1	Prepaid insurance	$1,200	$  800
2	Salaries payable	$  650	$  950
3	Interest payable	$    0	$  470
4	Unearned revenue	$2,500	$1,800
5	Accumulated depreciation	$  875	$1,150
6	Unused office supplies	$  280	$   75

Required: Prepare in general journal format the entries that were posted, including a plausible description. General ledger account numbers are not necessary.

2. The following account balances in the unadjusted trial balance at November 30, 2015 are presented below:

Unearned commissions revenue    $1,875

Prepaid insurance                  600

Office supplies                    875

Prepaid rent                       750

Salaries expense                 6,240

3.

 The following information is provided for the Ramsey Corporation as of December 31, 2016:

Account	Debit	Credit
Cost of goods sold	$78,460
Delivery expenses	3,250
Depreciation sales equipment	4,500
Depreciation office equipment	6,500
Sales basic salaries + commission	9,250
Office salaries	6,890
Sales revenue		125,000
Interest revenue		2,500
Interest expense	1,225
Income tax 30%

Required:

1) Prepare a multi-step income statement

4. The Tansian Company had 200,000 shares outstanding on January 1, 2016. On March 1 Tansian issued 125,000 shares. On June 1 Tansian issued a 12% stock dividend. On 8/1 Tansian repurchased 24,000 shares of treasury stock. On December 31, 2016 Tansian declared a 1.5 to 1 stock split.