Q1. Differentiate between fundamental qualities and enhancing qualities for qualitative characteristics of financial information, give examples. (1 mark)

Answer:

Q2. Both the unadjusted trial balance and adjusted trial balance for Smith Corporation on December 31, 2013, are listed below: (2 mark)
Smith Corporation
Trial Balance
December 31, 2013
Unadjusted Adjusted
Debit Credit Debit Credit
Cash
Accounts Receivables
Supplies
Prepaid Insurance
Land
Vehicles
Accumulated Depreciation-Vehicles
Notes Payable
Wages Payable
Common Stock
Dividends
Revenue
Wages Expense
Utilities Expense
Insurance Expense
Rent Expense
Depreciation Expense
Supplies Expense
8,000
19,000
6,000
10,000
13,000
20,000

4,000

12,000
4,000
0
4,000
0
0

4,000
13,000
0
46,000

37,000

8,000

21,000
5,000
6,000
13,000
20,000

4,000

13,000
4,000
4,000
4,000
1,000
1,000

5,000
13,000
1,000
46,000

39,000

100,000 100,000 104,000 104,000

Required: Prepare the five adjusting entries required at December 31, 2013.
Answer:

Q3. From the following information of NaNo Company prepare a multi-step income statement For the Year Ended December 31, 2019 (2 marks)
Sales $137,460
Sales Returns $2,060
Sales Discounts $5,190
Cost of Goods Sold $62,990
Freight-Out $6,150
Advertising Expense $5,790
Sales Commissions Expense $3,470
Office Salaries Expense $18,510
Office Rent Expense $14,000
Office Supplies Expense $5,330
Gains on Sale Equipment $2,430
Loss on Sales of Investments $1,640
Interest Expense $930
Answer: