Accounting Review

Name:

1. Given the following year-end balances for XYZ, enter account balances into most appropriate
column(s). Prepare in good form the income statement and balance sheet for year 201X. The
income and expense accounts have not been closed to retained earnings.
Account Income Stmt Balance Sheet
balances Debit Credit Debit Credit
Accounts payable
30
30
Accounts receivable
60
60
Accrued liablilties
7
7
Accumulated depreciation
24
24
Advertising
3
3
Allowance for doubtful accounts
5
5
Bad debt expense
4
4
Bonds payable
80
80
Buildings
120
120
Capital paid in excess of par
20
20
Cash
8
8
Common stock (par value)
60
60
Cost of merchandise sold
380
380
Depreciation expense
10
10
Furniture and fixtures
20
20
Interest expense
8
8
Interest income
5
5
Land and other investments
25
25
Marketable securities
2
2
Merchandise Inventory 01/01/1X
70
Merchandise inventory 12/31/1X
90
90
Merchandise purchases for 201X
400
Net sales
600
600
Notes payable
10
10
Office and administrative expenses
60
60
Prepaid expenses
4
4
Retained earnings
23
23
Sales salaries and expenses
40
40
Tax on earned income
30
30
535

605

329

70

70

259

Accounting Review

Name:

1. Given the following year-end balances for XYZ, enter account balances into most appropriate
column(s). Prepare in good form the income statement and balance sheet for year 201X. The
income and expense accounts have not been closed to retained earnings.
Account Income Stmt Balance Sheet
balances Debit Credit Debit Credit
Accounts payable
30
30
Accounts receivable
60
60
Accrued liablilties
7
7
Accumulated depreciation
24
24
Advertising
3
3
Allowance for doubtful accounts
5
5
Bad debt expense
4
4
Bonds payable
80
80
Buildings
120
120
Capital paid in excess of par
20
20
Cash
8
8
Common stock (par value)
60
60
Cost of merchandise sold
380
0
Depreciation expense
10
10
Furniture and fixtures
20
20
Interest expense
8
8
Interest income
5
5
Land and other investments
25
25
Marketable securities
2
2
Merchandise Inventory 01/01/1X
70
70
Merchandise inventory 12/31/1X
90
90
90
Merchandise purchases for 201X
400
400
Net sales
600
600
Notes payable
10
10
Office and administrative expenses
60
60
Prepaid expenses
4
4
Retained earnings
23
23
Sales salaries and expenses
40
40
Tax on earned income
30
30
625

695

329

70

70

259