Problem 1. Preparation of Basic Financial Statements Below is an alphabetical li
ID: 2600316 • Letter: P
Question
Problem 1. Preparation of Basic Financial Statements Below is an alphabetical list of account balances of Kemper Supply Corporation as of December 31,2015 and 2016 prior to the preparation of closing entries and financial statements. REQUIRED A-“ (10 pointstotal) olumn 1- Type of Account- Identify each account listed as an Asset (A), a Contra-Asset (CA), a iability (), an Equity (EQ), a Revenue (R), or an Expense (EXP). Column 2 - Financial Statement-Identify each account listed as going on the Balance Sheet (BS), Income Statement (IS) or Statement of Retained Earnings (RE) 1. C 2. December 31, 2016 2015 Type of Financial Account Statement Account Title Debit Credit Debit Credit Accounts Payable 35,500 31,300 58,800 62,000 Accounts Receivable Accumulated Depreciation, Equipment Allowance for Doubtful Accounts Cash and Cash Equivalents Common Stock, no-par Cost of Goods Sold Depreciation Expense Dividends Equipment Income Tax Expense Insurance Expense Inventories Land 64,400 48,300 2,100 2,000 17,900 14,000 88,200 64,000 185,100 16,100 62,200 126,500 29,300 24,600 37,700 69,100 175,845 15,295 62,200 97,600 27,835 23,370 52,200 22,100 Notes Payable 52,000 38,000 Other Operating Expense Prepaid Insurance Retained Earnings Salary Expense 50,100 47,595 1,700 3,900 23,000 35,095 76,900 76,055 Salary Payable Sales Revenue Unearned Revenue Totals 21,100 416,100 24,100 756,000 756,000 679,995 79,995 30,000 438,000 22,800Explanation / Answer
PROB 1
Fin state
Type
DR
CR
BALANCE SHEET
LIABILITY
ACC PAY
BS
ASSET
ACC REC
BS
CA
ACC DEP
BS
CA
ALLOWANCE DD
BS
A
CASH &EQU
BS
EXP
COMMON STOCK
IS
EXPENSE
COGS
IS
EXP
DEP
RE
EQ
DIV
BS
A
EQUIPMENT
IS
EXP
I TAX EXPENSE
IS
EXP
INSURANCE EXP
BS
A
INVENTORIES
BS
A
LAND
BS
L
NOTE PAYABLE
IS
EXP
OTHER OP EXPENSE
BS
A
PREPAID INSUR
BS
EQU
RETAIN EARN
IS
EXP
SALARY EXP
BS
L
SALARY PAY
IS
REV
SALES REV
BS
L
UNEARNED REV
PROBLEM 2
AGREE/ DISAGREE
1 THIS IS A LONG TERM ASSET SO SHOULD BE IN BALANCE SHEET AS IT HAS A 10 YEAR LIFE
DISAGREE
2 PERSONAL TRAVEL OF OFFICER
DISAGREE
THE OFFICER MUST PAY, NOT COMPANY
3THIS IS UNEARNED REVENUE. SO CREDIT LIABILITY IN BALANCE SHEET
DISAGREE
4 HALF OF THIS SHOULD BE CHARGED TO INSURANCE IN INCOME STATEMENT THE OTHER HALF TAKE TO PREPAYMENTS
DISAGREE
5 THE PERPETUAL INVENTORY SHOULD BE DONE IMMEDIATELY NOT ON AVERAGE BASIS
DISAGREE
6 THIS IS A DEPOSIT AWAITING REALISATION AND NO ENTRY IS REQUIRED IN G/L
DISAGREE
7 RECORD IT’S PROVISION AS A BAD DEBT IN 2017 AS THE COMPANY KNOWS ABT IT IN 2017 AND SALE DONE IN 2017
DISAGREE
PROBLEM 3
DEBIT A/C
CREDIT A/C
INVENTORY ON A/C
PURCHASES
ACC PAY
SERVICES FOR CASH
CASH
SALES
RECORDED DEPRECIATION
DEP
ACC DEP
PAID INSURANCE FOR NXT YEAR
PREPAYMENTS
CASH
PAID VENDOR ON A/C
ACC PAY VENDOR
CASH
PAID UTILITY BILL
UTILITIES
CASH
CUSTOMER DEPOSIT FOR FUTURE WORK
CASH
UNEARNED INCOME
ACC REC RECEIPT
CASH
ACC REC
PURCHASED MACHINE WITH NOTE
MACHINE
NOTE PAYABLE
ISSUED BOND AT FACE VALUE
CASH
BOND PAYABLE
PAID INTEREST ON BOND
INTEREST
ACCRUED INTEREST
ISSUED C/ STOCK AT PAR
CASH
C/STOCK
ISSUED C/ STOCK AT PAR FOR BLDG
BLDG
C/STOCK
PAID DIVIDEND
DIVIDENDS PAID
CASH
PAID DIV PAYABLE
DIVIDENDS PAYABLE
CASH
DISPOSED FULLY DEPRECIATED EQUIPMENT
CASH
SALE OF EQUIPMENT
ESTIMATED BAD DEBTS
BAD DEBTS
PROVISION FOR BAD DEBTS
CLOSING REV A/C
REVENUE
INCOME STATEMENT
CLOSING EXPENSES A/CS
INCOME STATEMENT
EXPENSE A/CS
BANK SERVICE CHARGES
BANK CHARGES
BANK
PROB 1
Fin state
Type
DR
CR
BALANCE SHEET
LIABILITY
ACC PAY
BS
ASSET
ACC REC
BS
CA
ACC DEP
BS
CA
ALLOWANCE DD
BS
A
CASH &EQU
BS
EXP
COMMON STOCK
IS
EXPENSE
COGS
IS
EXP
DEP
RE
EQ
DIV
BS
A
EQUIPMENT
IS
EXP
I TAX EXPENSE
IS
EXP
INSURANCE EXP
BS
A
INVENTORIES
BS
A
LAND
BS
L
NOTE PAYABLE
IS
EXP
OTHER OP EXPENSE
BS
A
PREPAID INSUR
BS
EQU
RETAIN EARN
IS
EXP
SALARY EXP
BS
L
SALARY PAY
IS
REV
SALES REV
BS
L
UNEARNED REV
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