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ACCT2010 Principles of Accounting I
FALL 2011

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Section #:
. This is a closed book quiz.
. Please write your name, student ID, lecture section number on this page (put in the time

of the section if you do not know the section number). . Please sign the agreement below. . Answer all the questions within the space provided on the answer sheets. . No pencil is allowed.
I agree that I will not discuss the content of the quiz with anyone before October 14, 2011.
Required 1) Required 2) Required 3) Required 4) Total
Max Points 12 28 14 6 60

TST Rental Corporation has been operating for five years. The income statement of the company
for fiscal year ended December 31, 2009 is given below:
For TST Rental Corporation Income Statement the Year Ended December 31, 2009
Revenues Rental revenue Expenses Supplies expense Wage expense Depreciation expense Pretax Income Income tax expense Net income $2,500 6001,000200 700200 $500
The company did not pay any dividend in 2009.
During 2010, the company completed the transactions given below:

A. Incurred employee wage expense of $1,200. Payment will be made in January 2011.
B. On January 1, paid $600 for a two-year premium for insurance policy covering the equipment. The transaction was properly recorded on that date.
C. On January 1, rented storage place to customer A and received cash payment of $8,000 for two years starting from January 1, 2010. The transaction was properly recorded on that date.
D. On July 1, borrowed $10,000 from a local bank and signed an 8 percent (annual interest rate) note for that amount. The principal and interest are payable on the maturity date, June 30, 2011.
E. The estimated income tax expense for the year is $500. Payment will be made in 2011.
F. The estimated depreciation expense on the equipment for the year is $300.
G. The supplies on hand at December 31 are $1,200 and $1,000 respectively for 2009 and 2010. During 2010, TST purchased supplies totaling $500 in cash.
Code Account Code Account
A Cash M Dividend payable
B Accounts receivable N Contributed capital
C Prepaid expense O Retained earnings
D Supplies P Rental revenue
E Equipment Q Interest income
F Accumulated depreciation R Cost of goods sold
G Accounts payable S Supplies expense
H Unearned revenue T Wage expense
I Interest payable U Insurance expense
J Wages payable V Depreciation expense
K Income tax payable W Interest expense
L Notes payable X Income tax expense

1) Prepare the closing entry for fiscal year 2009. Note: Please use the account titles from the above lists (12 points).
2) Prepare all adjusting entries that are to be recorded at the end of year 2010. For each adjustment, indicate whether the adjustment relates to deferred revenue, deferred expense, accrued revenue, or accrued expense. Not