Mid-Semester Exam for US Accounting Course

Allowed Time: 75minutes – Closed Book Exam

1. Using the following information to make the journal entries for transactions from A to H:
Starbright Lightings buys lamps for $40 each and sell them for $60 each. On 1 April 2003, 240 lamps
were in inventory, A/R amounted to S10,000, Allowances for Bad Debt amounted to $200. A physical
inventory taken on 30 April 2003 showed 50 lamps in stock. The company used a periodic inventory
system and net method for purchase transactions. (11points)
April 3, purchased 40 lamps on
account Terms: 2/1 0, n/30, FOB
A (1p)
shipping point
April 4, paid freight cost of $60
B (1p)
on 3 April purchase
April 5, sold 220 lamps on
C (1p) account. Terms: 3/10, n/30, FOB
destination
April 8, paid freight cost of $30
D (1p)
on 5 April sales

April 9, returned 10 of the lamps

E (1p)
purchased on 3 April
April 11, customer returned 5
F (1p) lamps sold on 5 April. The lamps
were returned to stock.
April 12, paid the amount due on
G (1p) the lamps retained in stock
purchased on April 3.
H Cost of Goods Sold = ………………(1p) Gross profit = ………………(1p)
If Doubtful debt is estimated 2%
I (1p) of Net Sale, the Allowances entry
will be:
If Doubtful debt is estimated
J (1p) 1.5% of A/R, the Allowances
entry will be:

2. . Using the following information to make the journal entries for transactions from A to D: On Jan
1, Short-term Investment (Well): 100.000 (5000 shares x $20 per share) with Allowances: $5000 (Dr)
Oct.16 Invested $146,000 in 120-
A (1p) day U.S. Treasury bills that had a
maturity value of $150,000.

Nov 15 Purchased 10,000 shares

of Rani Tools stock at $40/share
B (1p)
and 5,000 shares of Soder Gas
at $30/

Dec 2 Received dividends of

$2.00 per share from Rani Tools
C (1p)
and $1.50 per share from Soder
Gas

Dec 31 Making adjustment

entries if Market price of Rani
Tools share is $32 per share,
D (2p)
market price of Well is $18 and
of Soder Gas shares is $35 per
share
3 Complete the worksheet by filling only the grey cells in the table below if necessary. Note that the blank cells have no figure. (One correct grey cell will be 1 point)

Trial Balance Adjustment Adjusted Trial Balance Income Statement Balance Sheet
Account Name
Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
CASH 6000       6000 0    6000  
A/R 9000       9000 0    9000  
MER INV 30000         0       
STORE SUPPLIES       1700 300 0    300  
PREPAID INSURANCE 1000         0       
STORE EQUIPMENT 38000       38000 0    38000  
ACC DEP S.E   14000     0          
A/P   12000     0          
CAPITAL         0          
WITHDRAWAL           0        
SALES               100000    
SALES R&A         1000 0        
PURCHASES 63000                  
PURCHASES R&A   20000                
PURCHASES DISCOUNT   1000                
FREIGHT IN 2000       2000 0      
SALARIES EXP 20000   100   20100 0      
RENT EXP 3000       3000 0      
SELLING EXP 3000       3000 0      
UTILITY EXP 2000       2150 0        
INCOME SUMMARY                    
INSURANCE EXP         200 0   0    
SUPPLIES EXP           0   0    
SALARIES PAYABLE       100 0 100 0     100
DEP EXP           0   0    
NET INCOME                   35850
  190000 190000 81150 81150 209250 209250 166000 166000 109100 109100

Lucky Question: “What will be the maximum POINTS in the class?” Students who have correct answer will be added 10 points more in the test !