Acc550 Intermediate Accounting: PRINCIPLES REVIEW #2 (Spring Semester 2016) - Ski Training Company

Acc550 Intermediate Accounting 
PRINCIPLES REVIEW #2 (Spring Semester 2016) 
The following transactions pertain to Ski Training Company for 2015: 
· Jan 30 Established the business when it acquired $75,000 cash from the issuance of common stock. 
· Feb 1 Paid rent for office space for two years, $24,000 cash. 
· Mar 1 Borrowed $20,000 cash from National Bank. The note issued had a 9% annual rate of interest and matures in one year. 
· Apr 10 Purchased $5,300 of supplies on account. 
· Jun 1 Paid $27,000 cash for a computer system which had a three-year useful life and no salvage value. 
· July 1 Received $50,000 cash in advance for services to be provided over the next year. 
· July 20 Paid $1,800 of the accounts payable from April 10. 
· Aug 15 Billed a customer $32,000 for services provided during August. 
· Sep 15 Completed a job and received $19,000 cash for services rendered. 
· Oct 1 Paid employee salaries of $20,000 cash. 
· Oct 15 Received $25,000 cash from accounts receivable. 
· Nov 16 Billed customers $37,000 for services rendered on account 
· Dec 1 Paid a dividend of $6,000 cash to the stockholders. 
· Dec 31 Adjusted records to recognize the amount of services provided on contract on July 1 (assume earned ratably). 
· Dec 31 Recorded the accrued interest on the note to National Bank (see March 1). 
· Dec 31 Recorded depreciation on the computer system used in the business (see June 1). 
· Dec 31 Recorded $4,500 of accrued salaries as of December 31. 
· Dec 31 Recorded the rent expense for the year (see February 1). 
· Dec 31 Physically counted supplies; $480 was on hand at the end of the period. 

(a) Prepare journal entries for the transactions above. Use good form for the journal entries. 
(b) Prepare a trial balance at December 31 based on the journal entries above. 
(c) Prepare an income statement for the year. 
(d) Prepare a statement of shareholders’ equity for the year. 
(e) Prepare a classified balance sheet as of the end of the year. 
(f) Prepare closing journal entries for the month. 
(g) Prepare a post-closing trial balance after making the closing entries above.
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