Question

1.Phipps Company borrowed $25,000 cash onOctober 1, 2010, and signed a six-month, 8% interest-bearing notepayable with interest payable at maturity. Assuming that noadjusting entries have been made during the year, what is theamount of accrued interest payable to be reported on the December31, 2010 balance sheet?

2.. On January 1, 2011, thegeneral ledger of Global Corporation included supplies inventory of$2,000. During 2011, supplies purchases amounted to $6,000. Aphysical count of inventory on hand at December 31, 2011 determinedthat the supplies inventory was $1,300. How much is the 2011supplies expense?

3.   A company reported the followinginformation for its most recent year of operation: purchases,$300,000; beginning inventory, $20,000; and cost of goods sold,$10,000. How much was the company's endinginventory?

4.The following data weretaken from the records of Lilo Corporation for the year endedDecember 31, 2010:                

Sales                                                                                        900,000             

Sales returns andallowances                                          10,000

Selling and administrativeexpenses                          170,000

Cost of goods sold                                                             510,000

The income tax rate is 35%.

Based on the above data, prepare a multiple-step income statementusing good form.  Include grossprofit and pretax income.  Usethe form below.

5. For each of the accounts listed below,indicate whether they would be classified as an

ASSET (A) , LIABILITY(L), STOCKHOLDERS EQUITY (SE), REVENUE (R), EXPENSE (E)

______Inventory                                           ______Prepaid insurance

______Notes payable                                  ______Accountspayable

______Retained earnings                          ______Costof Goods Sold

______Equipment                                         ______Cash

______Accounts receivable                      ______Wage Expense

______Revenue                                                              ______Contributedcapital