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ACC 290 Final Exam Guide (New, 2018, 100% Score)

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Question 1 The best definition of assets is the

collections of resources belonging to the company and the claims on these resources. cash owned by the company. owners’ investment in the business. resources belonging to a company that have future benefit to the company.

Question 2 Which of the following is not a liability?

Accounts Payable


Accounts Receivable Interest Payable Unearned Service Revenue

Question 3 Which of the following financial statements is divided into major categories of operating, investing, and financing activities?

The statement of cash flows. The income statement. The balance sheet. The retained earnings statement.

Question 4 Ending retained earnings for a period is equal to beginning

Retained earnings + Net income – Dividends. Retained earnings – Net income + Dividends

Retained earnings – Net income – Dividends.


Retained earnings + Net income + Dividends.

Question 5 Which of the following is not an advantage of the corporate form of business organization?

No personal liability Easy to raise funds Easy to transfer ownership Favorable tax treatment

Question 6 An advantage of the corporate form of business is that

it is simple to establish. it has limited life. its owner’s personal resources are at stake.


its ownership is easily transferable via the sale of shares of stock

Question 7 A small neighborhood barber shop that is operated by its owner would likely be organized as a

proprietorship. partnership. joint venture. corporation.

Question 8

If services are rendered for cash, then

stockholders’ equity will decrease. liabilities will increase. liabilities will decrease.


assets will increase.

Question 9

A revenue generally

increases assets and stockholders’ equity. increases assets and liabilities. increases assets and decreases stockholders’ equity. leaves total assets unchanged.

Question 10 A revenue account

has a normal balance of a debit. is decreased by credits. is increased by credits. is increased by debits.

Question 11


Which accounts normally have debit balances?

Assets, expenses, and dividends Assets, expenses, and revenues Assets, expense, and retained earnings Assets, liabilities, and dividends

Question 12 In recording an accounting transaction in a double-entry system

the number of debit accounts must equal the number of credit accounts. there must only be two accounts affected by any transaction. there must always be entries made on both sides of the accounting equation. the amount of the debits must equal the amount of the credits.

Question 13


The usual sequence of steps in the transaction recording process is

journalize, analyze, post to the ledger. post to the ledger, journalize, analyze. analyze, journalize, post to the ledger. journalize, post to the ledger, analyze.

Question 14

Under the expense recognition principle expenses are recognized when

they contribute to the production of revenue. they are billed by the supplier. they are paid. the invoice is received.

Question 15


The revenue recognition principle dictates that revenue should be recognized in the accounting records:

in the period that income taxes are paid. when cash is received. when the performance obligation is satisfied. at the end of the month.

Question 16

Merchandising companies that sell to retailers are known as

brokers. corporations. wholesalers. service firms.

Question 17


Gross profit equals the difference between

sales revenue and cost of goods sold. sales revenue and operating expenses. net income and operating expenses. sales revenue and cost of goods sold plus operating expenses

Question 18

Net income will result if gross profit exceeds

purchases. cost of goods sold. operating expenses. cost of goods sold plus operating expenses.

Question 19 Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account?


Freight-In Inventory Freight Expense Freight-Out

Question 20

Financial information is presented below: Operating expenses Sales revenue Cost of goods sold

$ 25000 175000 125000

The profit margin ratio would be

Question 21

Financial information is presented below: Operating expenses

$ 31000


Sales returns and allowances 6000 Sales discounts

5000

Sales revenue 180000 Cost of goods sold

87000

The gross profit rate would be

Question 22

Financial information is presented below: Operating expenses

$ 54000

Sales returns and allowances 5000 Sales discounts

5000

Sales revenue 206000 Cost of goods sold

Gross Profit would be

109000


$102000. $92000. $97000. $87000

Question 23 The LIFO inventory method assumes that the cost of the latest units purchased are

not allocated to cost of goods sold or ending inventory. the first to be allocated to cost of goods sold. the last to be allocated to cost of goods sold. the first to be allocated to ending inventory.

Question 24

Which of the following statements is correct with respect to inventories?

FIFO seldom coincides with the actual physical flow of inventory. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold.


It is generally good business management to sell the most recently acquired goods first. Under FIFO, the ending inventory is based on the latest units purchased.

Question 25

All of the following are examples of internal control procedures except

reconciling the bank statement. customer satisfaction surveys. insistence that employees take vacations. using prenumbered documents.

Question 26 Each of the following is a feature of internal control except


recording of all transactions. bonding of employees. an extensive marketing plan. separation of duties.

Question 27 For which of the following errors should the appropriate amount be subtracted from the balance per books on a bank reconciliation?

Check written for $95, but recorded by the company as $59

Deposit of $500 recorded by the bank as $50. Check written for $53, but recorded by the company as $35. A returned $200 check recorded by the bank as $20.

Question 28 A check written by the company for $126 is incorrectly recorded by a company as $162. On the bank reconciliation, the $36 error should be


deducted from the balance per books. added to the balance per bank. added to the balance per books. deducted from the balance per bank.

Question 29 The following information was available for Blossom Company at December 31, 2017: beginning inventory $93000; ending inventory $146000; cost of goods sold $676000; and sales $824000. Blossom inventory turnover ratio (rounded) in 2017 was

7.3 times. 4.6 times. 6.9 times. 5.7 times.

Question 30

The following information was available for Sheridan Company at December 31, 2017: beginning inventory $80000; ending inventory $132000; cost of goods sold $644000; and sales $816000. Sheridan days in inventory (rounded) in 2017 was


47.4 days. 45.1 days. 59.8 days. 74.5 days.

ACC 290 Week 1 Apply Connect Assignment

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ACC 290 Week 1 Apply Connect Assignment Complete the Week 1 Assignment in Connect. Note: You have only 1 attempt available to complete assignments. 1 Harold Joseph is a painting contractor who specializes in painting commercial buildings. At the beginning of June, his firm’s financial records showed the following assets, liabilities, and owner’s equity.

Cash $ 60,200 Accounts Receivable 15,800


Office Furniture 35,000 Auto 22,700 Accounts Payable 10,400 Harold Joseph, Capital 90,700 Revenue 56,200 Expenses 23,600

TRANSACTIONS 1. Performed services for $6,600 on credit. 2. Paid $1,620 in cash for new office chairs. 3. Received $10,400 in cash from credit clients. 4. Paid $800 in cash for telephone service. 5. Sent a check for $2,900 in partial payment of the amount due creditors. 6. Paid salaries of $8,900 in cash. 7. Sent a check for $1,040 to pay electric bill. 8. Performed services for $9,700 in cash. 9. Paid $2,270 in cash for auto repairs. 10. Performed services for $11,700 on account. Enter the above transactions in to the following accounting equations. Analyze: What is the amount of total assets after all transactions have been recorded?


2 The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton. Required: Analyze each transaction carefully. Prepare an income statement and a statement of owner’s equity for the month. Prepare a balance sheet for May 31, 2019. ACC 290 Week 1 Assignment Preparing an Income Statement Retained Earnings Statement and Balance Sheet

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Purpose of Assignment The purpose of this assignment is to help students become familiar with the presentation of the income statement and the retained earnings statement, including how parts of the financial statement is evaluated to determine the operational success of the business. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making p. 36 Scenario: On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Below are the assets, liabilities, and common stock of the company June 30, 2017, and the revenues and expenses for the month of June, its first month of operations: Cash $ 4,600Notes payable $12,000 Accounts receivable 4,000Accounts payable 500 Service revenue 7,500Supplies expense 1,000 Supplies 2,400Maintenance and repairs expense 600 Advertising expense 400Utilities expense 300 Equipment 26,000Salaries and wages expense 1,400


Common stock 22,100 In June, the company issues no additional stock but paid dividends of $1,400. Prepare an income statement retained earnings statement and balance sheet analyzing your findings using the questions below in a total of 1050 words: · Briefly address whether the company’s first month of operations was a success. · Discuss the company’s decision to distribute a dividend. Use the Excel® spreadsheet to show your work and submit it with your analysis. Click the Assignment Files tab to submit your assignment.

ACC 290 Week 1 Discussion Question 1

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ACC 290 Week One - DQ #1 What are the four basic financial statements? What is the primary purpose of each of the four basic financial statements? In your opinion, which financial statement is the most important? Explain why. How would the financial statements be useful to managers and employees? How would the financial statements be useful to investors and creditors?

ACC 290 Week 1 Discussion Question 2

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What are debits and credits? How are debits and credits used to record business transactions? Why do accountants debit asset accounts to increase them but credit liability accounts to increase them? Why do accountants debit expenses to increase them but credit revenues to increase them?

ACC 290 Week 1 Individual Assignment Financial Statements Paper

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Individual - Financial Statements Paper - Prepare a 700 -1,050 word paper in which you identify the four basic financial statements. Describe the purpose of each of the four financial statements. Discuss how the financial statements would be useful to internal users, such as to managers and employees. Discuss how the financial statements would be useful to external users, such as investors and creditors. Format paper according to APA standards.

ACC 290 Week 1 Practice Connect Practice Assignment

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ACC 290 Week 1 Practice Connect Practice Assignment Complete the Week 1 Practice in Connect. Note: You have unlimited attempts available to complete practice assignments 1 On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings. TRANSACTIONS 1. The owner invested $100,000 in cash to begin the business. 2. Paid $20,250 in cash for the purchase of equipment. 3. Purchased additional equipment for $15,200 on credit. 4. Paid $12,500 in cash to creditors. 5. The owner made an additional investment of $25,000 in cash. 6. Performed services for $9,750 in cash. 7. Performed services for $7,800 on account. 8. Paid $6,000 for rent expense. 9. Received $5,500 in cash from credit clients. 10. Paid $7,550 in cash for office supplies. 11. The owner withdrew $12,000 in cash for personal expenses.


Record in equation form the changes that occur in assets, liabilities, and owner’s equity for the above transactions. Analyze: What is the ending balance of cash after all transactions have been recorded?

2 On December 1, Kate Holmes opened a speech and hearing clinic. During December, her firm had the following transactions involving revenue and expenses. Paid $3,100 for advertising. Provided services for $2,800 in cash. Paid $800 for telephone service. Paid salaries of $2,600 to employees. Provided services for $3,000 on credit. Paid $450 for office cleaning service. Did the firm earn a net income or incur a net loss for the period? What was the amount? 3 At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information. Prepare an income statement for the month of September 2019.

4 The fundamental accounting equations for several businesses follow. Supply the missing amounts.


5 At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information. Required: Prepare a statement of owner’s equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019.

6 Taylor Equipment Repair Service is owned by Jason Taylor. Use the above figures to prepare a balance sheet dated February 28, 2019. Analyze: What is the net worth, or owner’s equity, at February 28, 2019, for Taylor Equipment Repair Service? ACC 290 Week 1 Practice Quiz(New)

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Question 1


Current assets are expected to be converted to cash or consumed within the next year or the normal operating cycle, whichever is longer. Current assets are economic resources that are expected to be converted to cash or used up by the business within one year or the normal operating cycle, whichever is shorter. Question 2 Land or a building which is currently not used in operation is considered to be a long-term investment. A company purchased a tract of land on which it expects to build a production plant on in approximately five years. During the five years before construction, the land will be idle. In what classification should the land be reported? Question 3 Common stock and retained earnings are both elements of stockholders’ equity. Common stock of $50,000 plus retained earnings of $70,000 equals $120,000 in stockholders’ equity. Current liabilities are $10,000, long-term liabilities are $20,000, common stock is $50,000, and retained earnings totals $70,000. How much is total stockholders' equity? Question 4 Net income ($24,000) divided by average shares outstanding (6,000) = $4.00/share. For 2014, Stoneland Corporation reported net income, $24,000; net sales, $400,000; and average shares outstanding, 6,000. There were no preferred stock dividends. How much was the 2014 earnings per share? Question 5 The beginning balance of retained earnings is the ending balance minus net income plus dividends. Working backwards, $X + $402,000 - $34,000 = $2,184,000. Therefore, beginning retained earnings = $1,816,000. At December 31, 2014, Shorts Company had retained earnings of $2,184,000. During 2014, the company issued stock for $98,000, and paid dividends of $34,000. Net income for 2014 was $402,000. How much was the retained earnings balance at the beginning of 2014? Question 6 The current ratio measures liquidity and higher means the company is more liquid. The debt to assets ratio measures solvency and higher is not always better. We


don’t know how many outstanding shares each company has so we cannot compare profitability.

The following ratios are available for Leer Inc. and Stable Inc. Current Ratio Debt to Assets Ratio Earnings per Share Leer Inc. 2:1 75% $3.50 Stable Inc. 1.5:1 40% $2.75 Question 7 Solvency ratios are good indicators of a company’s ability to survive over an extended period of time. Which of the following ratios measures the ability of the company to survive over a long period of time? Question 8 Free cash flow can be used to pay dividends; acquire property, plant, and equipment; and pay off debts. Question 9 Generally accepted accounting principles, or ―GAAP‖ have substantial authoritative support, and are recognized as a general guide for financial reporting purposes. Question 10 Management can justify a new method of accounting if the financial information is more meaningful.

ACC 290 Week 1 Vocabulary Activity (New)

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WileyPLUS Assignment: Week 1 Vocabulary Activity Resource: WileyPLUS Complete the following Week 1 Assignment in WileyPLUS: • Chapter 1 WileyPLUS Crossword Puzzle 1

ACC 290 Week 1 WileyPlus Assignment DI1-3, E1-3,E1-4, E2-4, IFRS2-4 (New)

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WileyPLUS Assignment: Week 1 Assignment Resource: WileyPLUS Complete the following Week 1 Assignment in WileyPLUS: • DO IT! 1-3 • Exercise 1-3 • Exercise 1-4 • Exercise Excel E 2-4 • IFRS 2-4

ACC 290 Week 2 Apply Connect Assignment

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ACC 290 Week 2 Apply Connect Assignment Complete the Week 2 Assignment in Connect. Note: You have only 1 attempt available to complete assignments 1 The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant. Transactions: Guttery invested $156,000 in cash to start the business. Paid $5,600 for the current month’s rent. Bought office furniture for $16,320 in cash. Performed services for $7,800 in cash. Paid $1,210 for the monthly telephone bill. Performed services for $13,600 on credit. Purchased a computer and copier for $37,200; paid $12,600 in cash immediately with the balance due in 30 days. Received $6,800 from credit clients. Paid $3,600 in cash for office cleaning services for the month. Purchased additional office chairs for $5,400; received credit terms of 30 days. Purchased office equipment for $36,000 and paid half of this amount in cash immediately; the balance is due in 30 days. Issued a check for $9,000 to pay salaries. Performed services for $14,100 in cash. Performed services for $15,600 on credit. Collected $7,600 on accounts receivable from charge customers. Issued a check for $2,700 in partial payment of the amount owed for office chairs. Paid $660 to a duplicating company for photocopy work performed during the month. Paid $1,180 for the monthly electric bill. Guttery withdrew $8,600 in cash for personal expenses. Post the above transactions into the appropriate T accounts.


Analyze: What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

2 The following occurred during June at Hicks Family Counseling. Post the following transactions into the appropriate T accounts. Transactions: Purchased office supplies for $1,900 in cash. Delivered monthly statements, collected fee income of $26,500. Paid the current month’s office rent of $3,900. Completed professional counseling, billed client for $4,100. Client paid fee of $2,100 for weekly counseling, previously billed. Paid office salaries of $3,500. Paid telephone bill of $470. Billed client for $3,100 fee for preparing a counseling evaluation. Purchased office supplies of $990 on account. Paid office salaries of $3,500. Collected $3,100 from client who was billed. Clients paid a total of $9,200 cash in fees. Analyze: How much cash did the business spend during the month? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

ACC 290 Week 2 Chapter 1,2,3 Orion WileyPlus Proficiency and Practice Quiz

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ACC 290 Chapter 1 Orion WileyPlus Build your Proficiency

Q 1.1: What is the primary purpose of the statement of cash flows? Q 1.2: Which financial statement summarizes the financial position of a company? Q 1.3: Which financial statement provides information for a specific point in time? Q 1.4: The reports revenues and expenses and resulting net income or less for a period in time. Q 1.5: The income statement does not report cash received from the sale of stock because it is not considered revenue. Q 1.6: Torres Travel’s stockholders' equity at the beginning of March 2014 was $200,000. During the month, the company earned net income of $50,000 and paid dividends of $10,000. At the end of March 2014, what is the amount of stockholders' equity? Q 1.7: According to the basic accounting equation, must equal liabilities plus stockholders' equity on the balance sheet. Q 1.8: Tonelli Trucking buys a $65,000 truck on credit. Which financial statement will be affected by this transaction? Q 1.9: Which of the following financial statements would be included in an annual report?Q 1.10: An independent audit of an annual report must be completed by a Q 1.11: An owner who wants to have limited liability should form which type of business enterprise? Q 1.12: Which of the following statements about accounting information is true? Q 1.13: Which of the following would NOT be considered internal users of accounting information for a company? Q 1.14: Ethics are the principles of conduct that are used to judge whether decisions are Q 1.15: When a company borrows money from a bank to purchase equipment, this action is called Q 1.16: Companies can borrow money if they need a source of outside funds. Borrowing money is Q 1.17: Purchasing plant assets that a company needs in order to operate is called Q 1.18: The main purpose of operating activities is to Q 1.19: Which of the following components supplement the financial statements in an annual report? Q 1.20: Which of the following is true of a partnership?


ACC 290 Chapter 1 Orion

• Question 1 Corporations generally receive more favorable tax treatment than sole proprietorships and partnerships. • Question 2 In which forms of business organization are the owners personally liable for all the debts of the business? • Question 3 Which of the following is not an external user of accounting data? • Question 4 Which of the following is required as a result of SOX? • Question 5 Which of the following is not one of the three primary business activities? • Question 6 In terms of the principal types of business activities, paying salaries expense is an example of • Question 7 How much was Harold’s net income? • Question 8 In which of the following sequences are the financial statements usually prepared? • Question 9 What section of a cash flow statement shows the cash spent on new equipment during the past accounting period? • Question 10 Which of the following are not considered to be primary users of financial statements in countries outside the U.S.?

ACC 290 Chapter 2 Orion WileyPlus Build your Proficiency

Q 2.1: Which of the following are current liabilities? Select all that apply. Q 2.2: Long-term investments include which of the following? Select all that apply. Q 2.3: The operating cycle of a company is Q 2.4: ________ measure the ability of a company to survive over a long period of time. Q 2.5: measures the net income earned on each share of common stock. Q 2.6: Earnings per share is considered a measure of a company's Q 2.7: A company is more likely to Q 2.8: The difference between current assets and current liabilities Q 2.9: The debt to assets ratio measures the percentage of total financing provided by Q 2.10: Because is a measure of a company's ability to turn assets into cash, it is of particular interest to short-term creditors Q 2.11: Free cash flow describes the net cash Q 2.12: A company reported $50,000 net cash provided by operating activities. It invested $1,000 in equipment and paid $1,000 in dividends. Its free cash flow is


Q 2.13: Which of the following questions would be answered by generally accepted accounting principles? Select all that apply. Q 2.14: means that information that is presented is complete, neutral, and free from error. Q 2.15: Which principle would a company be violating if it withheld information that would make a difference to users of financial statements? Q 2.16: According to the historical cost principle, if an asset costs $50,000 when it was purchased, it would be recorded at its ________ over the time the asset is held. Q 2.17: Which of the following can affect stockholders' equity? Select all that apply. Q 2.18: Which of the following statements is true? Q 2.19: What does a current ratio of 1.20:1 mean? Q 2.20: Earnings per share measures the net income earned

ACC 290 Chapter 2 Orion

• Question 1 Current assets are economic resources that are expected to be converted to cash or used up by the business within one year or the normal operating cycle, whichever is shorter. • Question 2 A company purchased a tract of land on which it expects to build a production plant on in approximately five years. During the five years before construction, the land will be idle. In what classification should the land be reported? • Question 3 Current liabilities are $10,000, long-term liabilities are $20,000, common stock is $50,000, and retained earnings totals $70,000. How much is total stockholders' equity? • Question 4 For 2014, Stoneland Corporation reported net income, $24,000; net sales, $400,000; and average shares outstanding, 6,000. There were no preferred stock dividends. How much was the 2014 earnings per share? • Question 5 in millions 2011 2010 Net income $1,277 $1,317 Preferred dividends -0-0Shares outstanding at beginning of year 419 414 Shares outstanding at end of year 393 419 At December 31, 2014, Shorts Company had retained earnings of $2,184,000. During 2014, the company issued stock for $98,000, and paid dividends of $34,000. Net income


for 2014 was $402,000. How much was the retained earnings balance at the beginning of 2014? • Question 6 The current ratio measures liquidity. The debt to assets ratio measures solvency. We don’t know how many outstanding shares each company has, so we cannot compare profitability. Current Ratio Leer Inc. 2:1 Stable Inc. 1.5:1

Debt to Assets Ratio 75% $3.50 40% $2.75

Earnings per Share

Compared to Stable Inc., Leer Inc. has Lllustation 2-15 • Question 1 Which of the following ratios measures the ability of the company to survive over a long period of time? • Question 2 For what purpose might a company use free cash flow? • Question 3 What are the accounting rules that have substantial authoritative support and are recognized as a general guide for financial reporting purposes in the U. S.? • Question 4 A company can change to a new method of accounting if management can justify that the new method results in terms of

ACC 290 Chapter 3 Orion WileyPlus Build your Proficiency

Q 3.1: Which of the following would be considered an economic event that requires an accounting transaction? Q 3.2: If an asset is increased, there must be a corresponding in another asset. Q 3.3: What is a T-account? Q 3.4: Which of the following statements about credits is true? Q 3.5: Increases in liabilities must be entered on the right or Q 3.6: An account shows a balance if the total of the debit amounts exceeds the credits. Q 3.7: How must each transaction be recorded in the double-entry system? Q 3.8: The recording process in a journal is useful because ________. Select all that apply. Q 3.9: Which of the following describes the standard form of a journal entry? Q 3.10: Which of the following is true in journalizing? Q 3.11: What is the entire group of accounts maintained by a company called?


Q 3.12: What is the usual order of accounts in the general ledger? Q 3.13: The process of transferring journal entry amounts to ledger accounts is called. Q 3.14: The first step in transferring journal entry amounts to ledger accounts involves Q 3.15: On January 14, Welsford Agency purchased supplies of $500 on account. The entry to record the purchase will include Q 3.16: What is a list of accounts and their balances at a given time called? Q 3.17: Which of the following steps is NOT included in preparing a trial balance? Q 3.18: Journalizing with analyzing source documents to determine the effect of the transaction on the journal. Q 3.19: A trial balance may balance even when which of the following occurs? Select all that apply. Q 3.20: When a company performs a service, even if it has not been paid for this service, it still creates

ACC 290 Chapter 3 Orion

• Question 1 Correct! The costs that a firm incurs when operating its business cause retained earnings to decrease.Expenses decrease retained earnings. • Question 2 Correct! Since assets only decreased $50,000, and liabilities decreased by $90,000, stockholders’ equity has to increase by $40,000 to keep the accounting equation balanced.During 2014, Gibson Company assets decreased $50,000 and its liabilities decreased $90,000. Its stockholders’ equity • Question 3 Correct! Payment of dividends reduces both cash and retained earnings. Payment of a dividend • Question 4 An account is a part of the financial information system and is described by all except which one of the following? • Question 5 Which accounts normally have debit balances? • Question 6 Which of the following is the correct sequence of events? • Question 7 Where is the first place every transaction is recorded? • Question 8 What type of account is unearned revenue? • Question 9 Correct! Accounts will appear in the trial balance in the same order that they appear in the ledger.Accounts are listed on the trial balance in

Practice Question 51 • Question 1 Which of the following is not one of the primary types of the financing activities in the statement of cash flows?


ACC 290 Week 2 Charter for Collaborative Learning Activities

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Resources: Week 2 Learning Team Collaborative Discussion and the Learning Team Charter for Collaborative Learning Activities Write a 150- to 200-word individual response to the following: · Consider the multiple definitions of collaboration. · Define collaboration and how you will apply it in this course based upon the discussion with your Learning Team. Be sure to reference and cite your sources. · Answer the question individually. Click the Assignment Files tab to submit your assignment and be sure to attach a copy of your Learning Team Charter for Collaborative Learning Activities.

ACC 290 Week 2 Discussion Question 1

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What is the revenue recognition principle? What is the expense recognition principle? Why are they important to financial reporting? What are adjusting entries and why are they necessary? What are accruals? Provide examples of accruals. Why do accruals require adjusting entries? What are deferrals? What are some examples of deferrals? Why do deferrals require adjusting entries?

ACC 290 Week 2 Discussion Question 2

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What accounts are subject to adjusting journal entries and why? How would you explain the purpose of the adjusted trial balance?

ACC 290 Week 2 E3-1 (New)

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The balance sheet makes sure that the finances are in balance. Below is a list of Thyme Advertising Company, Inc. transactions. Each of these is affected differently. 

Issued common stock to investors in exchange for cash received from investors.

Paid monthly rent.

Received cash from customers when service was performed.

Billed customers for services performed.

Paid dividend to stockholders.

Incurred advertising expense on account.

Received cash from customers billed in (4).

Purchased additional equipment for cash.

Purchased equipment on account. ACC 290 Week 2 LT Reflection Summary (New)

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Discuss the objectives for ACC 290 Week Two. What do you think will be the most important of the skills learned when you are in an accounting position? Differentiate between accrual basis and cash basis of accounting. Create Adjusting Entries. Prepare an adjusted trial balance. Write a 350 to 500 word summary of your Learning Team’s discussion.

ACC 290 Week 2 LT Reflection Summary (New)

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Discuss the objectives for ACC 290 Week Two. What do you think will be the most important of the skills learned when you are in an accounting position? Differentiate between accrual basis and cash basis of accounting. Create Adjusting Entries. Prepare an adjusted trial balance. Write a 350 to 500 word summary of your Learning Team’s discussion.

ACC 290 Week 2 Practice Connect Practice Assignment


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ACC 290 Week 2 Practice: Connect Practice Assignment Complete the Week 2 Practice in Connect. Note: You have unlimited attempts available to complete practice assignments 1 The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the letter (a), the entries for the second transaction with the letter (b), and so on. Cash (a) 95,000 (b) 23,000 (d) 15,000 (e) 350 (g) 1,500 (h) 5,500 (i) 2,500

Equipment (c) 40,000

Accounts Receivable (f) 5,000 (g) 1,500

Accounts Payable (c) 40,000


Supplies (b) 23,000

Wade Wilson, Capital (a) 95,000

Fees Income (d) 15,000 (f) 5,000

Telephone Expense (e) 350

Wade Wilson, Drawing (i) 2,500

Salaries Expense (h) 5,500

Determine the balance of each account.


2 Derrick Wells decided to start a dental practice. The first five transactions for the business follow. Derrick invested $45,000 cash in the business. Paid $15,000 in cash for equipment. Performed services for cash amounting to $4,500. Paid $1,900 in cash for advertising expense. Paid $1,500 in cash for supplies. (1) Select which two accounts are affected in each of the above transactions. (2&3) Post the above transactions into the appropriate T accounts.

3 The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant. Transactions: Guttery invested $80,000 in cash to start the business. Paid $3,000 for the current month’s rent. Bought office furniture for $8,360 in cash. Performed services for $4,100 in cash. Paid $625 for the monthly telephone bill. Performed services for $7,000 on credit. Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days. Received $3,500 from credit clients. Paid $2,000 in cash for office cleaning services for the month. Purchased additional office chairs for $2,900; received credit terms of 30 days. Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days. Issued a check for $4,700 to pay salaries. Performed services for $7,250 in cash. Performed services for $8,000 on credit. Collected $4,000 on accounts receivable from charge customers. Issued a check for $1,450 in partial payment of the amount owed for office chairs.


Paid $350 to a duplicating company for photocopy work performed during the month. Paid $610 for the monthly electric bill. Guttery withdrew $4,500 in cash for personal expenses. Post the above transactions into the appropriate T accounts. Analyze: What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.

4 The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local Housing rentals. Cash (a) 95,000 (b) 23,000 (d) 15,000 (e) 350 (g) 1,500 (h) 5,500 (i) 2,500

Equipment (c) 40,000

Accounts Receivable (f) 5,000 (g) 1,500

Accounts Payable (c) 40,000


Supplies (b) 23,000

Wade Wilson, Capital (a) 95,000

Fees Income (d) 15,000 (f) 5,000

Telephone Expense (e) 350

Wade Wilson, Drawing (i) 2,500

Salaries Expense (h) 5,500

Required: Prepare a statement of owner’s equity and a balance sheet for Residential Relocators as of December 31, 2019.


5 The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. Cash (a) 95,000 (b) 23,000 (d) 15,000 (e) 350 (g) 1,500 (h) 5,500 (i) 2,500

Equipment (c) 40,000

Accounts Receivable (f) 5,000 (g) 1,500

Accounts Payable (c) 40,000

Supplies (b) 23,000

Wade Wilson, Capital (a) 95,000

Fees Income


(d) 15,000 (f) 5,000

Telephone Expense (e) 350

Wade Wilson, Drawing (i) 2,500

Salaries Expense (h) 5,500

Required: Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the income statement is for the month ended December 31, 2019.

6 The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. Transactions: Guttery invested $80,000 in cash to start the business. Paid $3,000 for the current month’s rent. Bought office furniture for $8,360 in cash. Performed services for $4,100 in cash. Paid $625 for the monthly telephone bill.


Performed services for $7,000 on credit. Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days. Received $3,500 from credit clients. Paid $2,000 in cash for office cleaning services for the month. Purchased additional office chairs for $2,900; received credit terms of 30 days. Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days. Issued a check for $4,700 to pay salaries. Performed services for $7,250 in cash. Performed services for $8,000 on credit. Collected $4,000 on accounts receivable from charge customers. Issued a check for $1,450 in partial payment of the amount owed for office chairs. Paid $350 to a duplicating company for photocopy work performed during the month. Paid $610 for the monthly electric bill. Guttery withdrew $4,500 in cash for personal expenses. Required: Prepare a trial balance, an income statement, a statement of owner’s equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 2019. Determine the account balances before you start work on the financial statements. Analyze: What is the change in owner’s equity for the month of June?

ACC 290 Week 2 Practice Quiz (New)

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Question 1


Expenses decrease retained earnings. Question 2 During 2014, Gibson Company assets decreased $50,000 and its liabilities decreased $90,000. Its stockholders’ equity Question 3 Payment of a dividend Question 4 An account is a part of the financial information system and is described by all except which one of the following? Question 5 Which accounts normally have debit balances? Question 6 Which of the following is the correct sequence of events? Question 7 Where is the first place every transaction is recorded? Question 8 What type of account is unearned revenue? Question 9 Accounts are listed on the trial balance in Question 10 Which of the following is not one of the primary types of the financing activities in the statement of cash flows?

ACC 290 Week 2 Vocabulary Activity (New)

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WileyPLUS Assignment: Week 2 Vocabulary Activity Resource: WileyPLUS


Complete the following Week 2 Assignment in WileyPLUS: • Chapter 2 Wiley PLUS Crossword Puzzle 1

ACC 290 Week 2 WileyPlus Assignment BYP2-2, IFRS2-6, E3-4, E3-8, BYP 3-2, IFRS 3-2, P3-5, P3-6 (New)

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WileyPLUS Assignment: Week 2 Assignment

Resource: WileyPLUS

Complete the following Week 2 Assignment in WileyPLUS:

• BYP 2-2

• IFRS 2-6

• Exercise 3-4


• Exercise 3-8

• Exercise 3-10

• BYP 3-2

• IFRS 3-2

• Problem 3-5

• Problem 3-6

ACC 290 Week 3/4 Learning Team Financial Reporting Problem, Part 1 (**2 Different Papers**)(New)

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Financial Reporting Problem Part I Browse the Internet to acquire a copy of the most recent annual report for a publicly traded company. Analyze the information contained in the company’s balance sheet and income statement to answer the following questions:


What are the company’s total assets at the end of its most recent annual period? Why is this important?

reporting

What are the total assets at the end of the previous annual reporting period? How much cash and cash equivalents did the company have at the end of its most recent annual reporting period? What amount of accounts payable did the company have at the end of its most recent annual reporting period? What amount of accounts payable did the company have at the end of the previous annual reporting period? What are the company’s net revenues for the last three annual reporting periods? What is the change in dollars in the company’s net income from its most recent annual reporting period to the previous annual reporting period? What are the company’s total current assets at the end of its most recent annual reporting period? What are the total current assets at the end of the previous annual reporting period? What in the information above would be important to a potential investor, employee, and so on? Summarize the analysis in a 1,050-1,400 word paper in a Microsoft® Word document. Include a copy of the company’s balance sheet and income statement. Format your paper consistent with APA guidelines.

ACC 290 Week 3 Apply Connect Assignment

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ACC 290 Week 3 Apply Connect Assignment Complete the Week 3 Assignment in Connect. Note: You have only 1 attempt available to complete assignments 1 On October 1, 2019, Helen Kennedy opened an advertising agency.

DATE TRANSACTIONS Oct. 1 Helen Kennedy invested $61,000 cash in the business. 2 Paid October office rent of $3,050; issued Check 1001. 5 Purchased desks and other office furniture for $13,900 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days. 6 Issued Check 1002 for $3,250 to purchase art equipment. 7 Purchased supplies for $1,600; paid with Check 1003. 10 Issued Check 1004 for $490 for office cleaning service.


12 Performed services for $4,150 in cash and $1,950 on credit. (Use a compound entry.) 15 Returned damaged supplies for a cash refund of $290. 18 Purchased a computer for $3,050 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,775 down payment, with the balance payable in 30 days. (Use one compound entry.) 20 Issued Check 1006 for $6,950 to Office Furniture Mart, Inc., as payment on account for Invoice 6704. 26 Performed services for $4,450 on credit. 27 Paid $270 for monthly telephone bill; issued Check 1007. 30 Received $3,750 in cash from credit customers. 30 Mailed Check 1008 to pay the monthly utility bill of $345. 30 Issued Checks 1009–1011 for $8,050 for salaries.

Required: 1.

Journalize the above transactions.


2.

Post the above transactions to the ledger accounts.

Analyze: What is the balance of account 202 in the general ledger? 2 The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons. DATE TRANSACTIONS Sept. 1 Issued Check 1169 for $1,200 to pay the September rent.

5 Performed services for $3,200 in cash.

6 Performed services for $2,050 on credit.

10 Paid $560 for monthly telephone bill; issued Check 1170.


11 Paid for equipment repairs of $800 with Check 1171.

12 Received $3,000 on account from credit clients.

15 Issued Checks 1172–1177 for $4,000 for salaries.

18 Issued Check 1178 for $1,800 to purchase supplies.

19 Purchased new tennis rackets for $2,050 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.

20 Issued Check 1179 for $2,720 to purchase new nets. (Equip.)

21 Received $910 on account from credit clients.


21 Returned a damaged net and received a cash refund of $410.

22 Performed services for $3,400 in cash.

23 Performed services for $4,990 on credit.

26 Issued Check 1180 for $600 to purchase supplies.

28 Paid the monthly electric bill of $2,390 with Check 1181.

30 Issued Checks 1182–1187 for $4,000 for salaries.

30 Issued Check 1188 for $4,000 cash to Ellis Carter for personal expenses.

Required:


Record each of the above transactions in the general journal. Analyze: If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?

ACC 290 Week 3 Chapter 4,5 Orion WileyPlus Proficiency and Practice Quiz

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ACC 290 Chapter 4 Orion WileyPlus Build your Proficiency

Q 4.1: Which of the following statements about accrual-basis accounting is NOT true? Q 4.2: If a company spends $12 million dollars for a warehouse, when should the cost be written off? Q 4.3: If an expense has been used or consumed but a bill has not been received at the end of the accounting period, which of the following is needed? Q 4.4: Which of the following is true about unearned revenues? Q 4.5: Which of the following exemplify an asset-expense relationship? Q 4.6: If an adjustment is needed for unearned revenues, the liability is Q 4.7: Which of the following explains the process of depreciation? Q 4.8: The of an asset is the difference between the cost of a depreciable asset and its related accumulated depreciation. Q 4.9: From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term Q 4.10: What does the time period assumption state?


Q 4.11: Which of the following are common time periods that businesses use as their accounting period? Select all that apply. Q 4.12: A is an accounting period that is one year long Q 4.13: basis accounting is in accordance with generally accepted accounting principles. Q 4.14: According to the revenue recognition principle, when should revenue be recognized in the accounting period? Q 4.15: Companies must make adjusting entries Q 4.16: Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. The result of this error would be to Q 4.17: If an adjusting entry for depreciation is NOT made, will be understated. Q 4.18: The adjusted trial balance is the primary basis of the financial statements. Q 4.19: All balance sheet accounts are considered accounts because their balances are carried over into future accounting periods. Q 4.20: Closing entries and a post-closing trial balance are steps in the accounting cycle that occur

ACC 290 Chapter 4 Orion ACC 290 Ch 4 practice quiz Practice Question 01 The revenue recognition principle dictates that revenue is recognized in the period in which the cash is received. Practice Question 05 The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the Practice Question 10 Which statement is correct? Practice Question 16 Book value is equal to cost minus accumulated depreciation Practice Question 21 Adjustments for unearned revenues: Practice Question 26 At December 31, 2013, before any year-end adjustments, Macarty Company's Prepaid Insurance account had a balance of $2,700. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusting entry for Insurance Expense for the year would be Practice Question 31 Which of the following is not a typical example of an accrued expense? Practice Question 36 Saira works for a sports franchise which pays wages and salaries earned on a monthly basis. A new accountant was hired by the sports franchise in late May. Due to inexperience, the new accountant failed to accrue Saira’s salary for May. What is the impact on the May 31 financial statements of the sports franchise ? Practice Question 42 At the end of the accounting period, all balance sheet accounts are closed out. Practice Question 53 Which is the correct order of steps in the accounting cycle?


ACC 290 Chapter 5 Orion WileyPlus Build your Proficiency

Q 5.1: All of the following would be considered merchandising companies EXCEPT Q 5.2: A department store uses a perpetual inventory system. At year-end, the balance in the merchandise inventory account is $2 million. Assuming that the inventory records have been maintained properly, a year-end physical inventory Q 5.3: In a inventory system, the cost of goods is determined only at the end of the accounting period Q 5.4: A company receives a discount for paying for merchandise purchased within the discount period. How will the amount of the discount be recorded in a perpetual inventory system? Q 5.5: What does the freight term ―FOB destination‖ mean? Q 5.6: A retailer acquires merchandise for resale. How would this be recorded in a perpetual inventory system? Q 5.7: If the credit terms on a sales invoice read ―2/10, n/30,‖ what does this mean? Q 5.8: In which of the following scenarios would a Sales and Returns and Allowances account NOT be debited? Q 5.9: ________ has a normal credit balance. Q 5.10: Which of the following is NOT a contra revenue account? Q 5.11: In a perpetual inventory system, when is the Cost of Goods Sold account used? Q 5.12: ________ is shown on a multiple-step but not on a single-step income statement. Q 5.13: Why might a company choose to use the single-step income statement? Select all that apply. Q 5.14: At the beginning of January 2014, a company reported inventory of $4,000. During the month, the company made purchases of $17,800. On January 31, 2014, a physical count of inventory reported $4,200 on hand. Find the cost of goods sold for the month. Q 5.15: ________ requires a physical count of goods on hand to compute the cost of goods sold. Q 5.16: During the year, a company’s inventory decreased by $20,000. If the company’s cost of goods sold for the year was $400,000, find the amount for purchases. Q 5.17: How is the gross profit rate computed Q 5.18: How is the profit margin computed? Q 5.19: How is the quality of earnings ratio computed? Q 5.20: How do you calculate the cost of goods for sale if closing inventory is nil?


ACC 290 Chapter 5 Orion WileyPlus Build your Proficiency • Question 1 The operating cycle of a merchandising company is ordinarily shorter than that of a service company. • Question 2 The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm. • Question 3 Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for which it must pay the shipping charges. Which of the following is one part of the required journal entry when Jax pays the shipping charges of $200? • Question 4 Sales Discounts is a contra asset account. • Question 5 Which statement is true when recording the sale of goods for cash in a perpetual inventory system? • Question 6 Net income is $15,000, operating expenses are $20,000, and net sales total $75,000. How much is cost of goods sold? • Question 7 Which one of the following will result in gross profit? • Question 8 Under what system is cost of goods sold determined at the end of an accounting period? • Question 9 Net income is $15,000, operating expenses are $20,000, net sales total $75,000, and sales revenues total $95,000. How much is the profit margin? • Question 10 In a periodic inventory system, when is the cost of the merchandise sold determined?

ACC 290 Week 3 Discussion Question 1

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What are the steps in completing the accounting cycle? How do the different steps affect the financial statements? What is the effect on the financial statements of missing a step when completing the accounting cycle? What are the four closing journal entries? Why


are they necessary? What are reversing entries? Why are they used? What are the pros and cons of using reversing entries? Why are reversing entries optional?

ACC 290 Week 3 Discussion Question 2

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What are the pros and cons of using reversing entries? Why are reversing entries optional? What is the main purpose of a financial statement worksheet and its benefits? How has automation aided the preparation, accuracy, and use of the financial statement worksheet?

ACC 290 Week 3 LT Reflection Summary

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Discuss the objectives for ACC 290 Week Two. What do you think will be the most important of the skills learned when you are in an accounting position? Differentiate between accrual basis and cash basis of accounting. Create Adjusting Entries. Prepare


an adjusted trial balance. Write a 350 to 500 word summary of your Learning Team’s discussion.

ACC 290 Week 3 Practice Connect Practice Assignment

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ACC 290 Week 3 Practice Connect Practice Assignment Complete the Week3 Practice in Connect. Note: You have unlimited attempts available to complete practice assignments 1 On October 1, 2019, Helen Kennedy opened an advertising agency. DATE TRANSACTIONS Oct. 1 Helen Kennedy invested $70,000 cash in the business. 2 Paid October office rent of $4,000; issued Check 1001. 5 Purchased desks and other office furniture for $18,000 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days. 6 Issued Check 1002 for $4,100 to purchase art equipment. 7 Purchased supplies for $1,670; paid with Check 1003. 10 Issued Check 1004 for $800 for office cleaning service. 12 Performed services for $4,200 in cash and $1,800 on credit. (Use a compound entry.) 15 Returned damaged supplies for a cash refund of $300. 18 Purchased a computer for $3,000 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,750 down payment, with the balance payable in 30 days. (Use one compound entry.) 20 Issued Check 1006 for $9,500 to Office Furniture Mart, Inc., as payment on account for Invoice 6704. 26 Performed services for $4,800 on credit.


27 Paid $375 for monthly telephone bill; issued Check 1007. 30 Received $4,200 in cash from credit customers. 30 Mailed Check 1008 to pay the monthly utility bill of $1,080. 30 Issued Checks 1009–1011 for $9,000 for salaries. Required: Journalize the above transactions. Post the above transactions to the ledger accounts.

Analyze: What is the balance of account 202 in the general ledger?

2 The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons. DATE TRANSACTIONS Sept. 1 Issued Check 1169 for $2,000 to pay the September rent. 5 Performed services for $4,000 in cash. 6 Performed services for $2,950 on credit. 10 Paid $900 for monthly telephone bill; issued Check 1170. 11 Paid for equipment repairs of $1,050 with Check 1171. 12 Received $1,500 on account from credit clients. 15 Issued Checks 1172–1177 for $5,200 for salaries. 18 Issued Check 1178 for $2,700 to purchase supplies. 19 Purchased new tennis rackets for $3,250 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days. 20 Issued Check 1179 for $3,820 to purchase new nets. (Equip.) 21 Received $500 on account from credit clients. 21 Returned a damaged net and received a cash refund of $570. 22 Performed services for $3,480 in cash. 23 Performed services for $5,050 on credit. 26 Issued Check 1180 for $620 to purchase supplies. 28 Paid the monthly electric bill of $2,500 with Check 1181. 30 Issued Checks 1182–1187 for $5,200 for salaries. 30 Issued Check 1188 for $5,000 cash to Ellis Carter for personal expenses. Required:


Record each of the above transactions in the general journal. Analyze: If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?

3 Selected activity of Mason Consulting Services follow. DATE TRANSACTIONS 2019 Sept. 1 Zack Mason invested $30,000 in cash to start the firm. 4 Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days. 16 Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment. 20 Purchased supplies for $260; paid immediately with Check 1002. 23 Returned damaged supplies for a cash refund of $85. 30 Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823. 30 Withdrew $1,500 in cash for personal expenses. 30 Issued Check 1004 for $3,500 to pay the rent for October. 30 Performed services for $7,325 in cash. 30 Paid $220 for monthly telephone bill, Check 1005. Post the above transactions into the appropriate Ledger accounts.

4 The following transactions took place at the Cook Employment Agency during November 2019. DATE TRANSACTIONS Nov. 5 Performed services for Job Search, Inc., for $20,000; received $9,500 in cash and the client promised to pay the balance in 60 days. 18 Purchased a graphing calculator for $450 and some supplies for $600 from Office Supply; issued Check 1008 for the total.


23 Received Invoice 1602 for $2,500 from Automotive Technicians Repair for repairs to the firm’s automobile; issued Check 1009 for half the amount and arranged to pay the other half in 30 days. Prepare journal entries for the above transactions.

5 Selected activity of the Ray Shipping Service follow. TRANSACTIONS Gave a cash refund of $750 to a customer because of a lost package. (The customer had previously paid in cash.) Sent a check for $1,050 to the utility company to pay the monthly bill. Provided services for $7,800 on credit. Purchased new equipment for $4,600 and paid for it immediately by check. Issued a check for $3,500 to pay a creditor on account. Performed services for $15,250 in cash. Collected $6,250 from credit customers. The owner made an additional investment of $25,000 in cash. Purchased supplies for $3,250 on credit. Issued a check for $3,750 to pay the monthly rent.

Analyze the above transactions and record a journal entry for each transaction.

6 Selected activity of Mason Consulting Services follow. DATE TRANSACTIONS 2019 Sept. 1 Zack Mason invested $30,000 in cash to start the firm. 4 Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days. 16 Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment. 20 Purchased supplies for $260; paid immediately with Check 1002. 23 Returned damaged supplies for a cash refund of $85.


30 Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823. 30 Withdrew $1,500 in cash for personal expenses. 30 Issued Check 1004 for $3,500 to pay the rent for October. 30 Performed services for $7,325 in cash. 30 Paid $220 for monthly telephone bill, Check 1005. Prepare journal entries for the transactions incurred during September of 2019.

ACC 290 Week 3 Practice Quiz (New)

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Question 1 The revenue recognition principle dictates that revenue is recognized in the period in which the cash is received. Question 2 The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the Question 3 Which statement is correct? Question 4 Book value is equal to cost minus accumulated depreciation. Question 5


Adjustments for unearned revenues: Question 6 At December 31, 2013, before any year-end adjustments, Macarty Company's Prepaid Insurance account had a balance of $2,700. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be Question 7 Which of the following is not a typical example of an accrued expense? Question 8 Saira works for a sports franchise which pays wages and salaries earned on a monthly basis. A new accountant was hired by the sports franchise in late May. Due to inexperience, the new accountant failed to accrue Saira’s salary for May. What is the impact on the May 31 financial statements of the sports franchise? Question 9 At the end of the accounting period, all balance sheet accounts are closed out. Question 10 Which is the correct order of steps in the accounting cycle?

ACC 290 Week 3 Problem 5-5A (Simon Company)

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Purpose of Assignment The purpose of this assignment is to help you become familiar with the parts of the multiple‐ step income statement. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company a retail firm that has been in business for a number of years. SIMON COMPANY Income Statement For the Year Ended December 31, 2017 Revenues Net sales $850,000 Other revenues 22,000 872,000 Cost of goods sold 555,000 Gross profit 317,000 Operating expenses Selling expenses 109,000 Administrative expenses 103,000 212,000 Net earnings $105,000 As an experienced, knowledgeable accountant, you review the statement and determine the following facts: 1. Net sales consist of: sales $911,000, less freight-out on merchandise sold $33,000, an d sales returns and allowances $28,000. 2. Other revenues consist of sales discounts $18,000 and rent revenue $4,000. 3. Selling expenses consist of salespersons’ salaries $80,000, depreciation on equipment $10,000, advertising $13,000, and sales commissions $6,000. The commissions represent commissions paid. At December 21, $3,000 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. 4. Administrative expenses consist of office salaries $17,000, dividends $18,000, utilities $12,000, interest expense $2,000, and rent expense $24,000, which includes prepayments totaling $6,000 for the first quarter of 2018. Assume a 25% tax rate. Prepare a detailed multi-step income statement with a brief explanation of 700 words. Assume a 25% tax rate. Show your work on the Excel® spreadsheet and submit with your explanation.


ACC 290 Week 3 Vocabulary Activity (New)

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WileyPLUS Assignment: Week 3 Practice Quiz Resource: WileyPLUS Complete the following Week 3 Assignment in WileyPLUS: • Chapter 4 Practice Quiz =========================================

ACC 290 Week 3 WileyPlus Assignment BE4-1, P4-2A, P4-3A, BYP4-1, IFRS PQ-1, PQ-2, PQ-3, PQ-4 (New)

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Assignment: Week 3 Assignment Complete the following Week 3 Assignment


• Brief Exercise 4-1 • Problem 4-2A • Problem 4-3A • BYP 4-1 • IFRS Practice Question 1 • IFRS Practice Question 2 • IFRS Practice Question 3 • IFRS Practice Question 4

ACC 290 Week 4/5 Individual Assignment Financial Reporting Problem Part II (**2 Different Papers**)(New)

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Financial Reporting Problem Part II Access the internet to acquire a copy of the most recent annual report for the public traded company used to complete the Financial Reporting Problem, Part 1 assignment due in ACC 290 Week Four. Analyze the information contained in the company’s balance sheet and income statement to answer the following questions: Are the assets included under the company’s current assets listed in the proper order? Explain your answer. How are the company’s assets classified? What are cash equivalents? What are the company’s total current liabilities at the end of its most recent annual reporting period? What are the company’s total current liabilities at the end of the previous annual reporting period?


Considering all the information you have gathered, why might this information be important to potential creditors, investors, and employees? Summarize the analysis in a 1,050-1,400 word paper in a MicrosoftŽ Word document. Include a copy of the company’s balance sheet and income statement. Format your paper and presentation consistent with APA guidelines.

ACC 290 Week 4 Apply Connect Assignment

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ACC 290 Week 4 Apply Connect Assignment Complete the Week 4 Assignment in Connect. Note: You have only 1 attempt available to complete assignments 1 Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below. End-of-the-month adjustments must account for the following items: a. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,500. b. The prepaid advertising contract was signed on January 1, 2019, and covers a fourmonth period. c.

Rent of $2,000 expired during the month.

d. Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value.


Required: 1.

Complete the worksheet for the month.

2. Prepare an income statement, statement of owner’s equity, and balance sheet. No additional investments were made by the owner during the month. 3.

Journalize and post the adjusting entries.

Analyze If the adjusting entries had not been made for the month, would net income be overstated or understated? 2 The trial balance of Neal Company as of January 31, 2019, after the company completed the first month of operations, is shown in the partial worksheet below. Required: 2. Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $7,000; expired insurance, $6,900; depreciation expense for the period, $3,000.

Analyze: How does the insurance adjustment affect Prepaid Insurance?

ACC 290 Week 4 Chapter 6 Orion WileyPlus Proficiency and Practice Quiz

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ACC 290 Chapter 6 Orion WileyPlus Build your Proficiency

Q 6.1: Where is inventory reported? Q 6.2: ________ are items that will eventually be used in production Q 6.3: How is inventory ready for sale classified in a manufacturing company? Q 6.4: In the perpetual inventory system, which of the following is NOT a reason to take physical inventory? Q 6.5: Which of the following is NOT considered an inventory cost? Q 6.6: What is the beginning inventory plus the cost of goods purchased? Q 6.7: A new company purchased three inventory items at the following costs: first purchase $60; second purchase $40; third purchase $50. If the company sells two units for $200, what would the gross profit for the period be, using FIFO costing? Q 6.8: What does the LIFO inventory method assume about the cost of the latest units purchased? Q 6.9: Which inventory flow assumption should a company choose if it is interested in the lowest amount of income tax expense in a period of increasing prices? Q 6.10: Phantom or paper profits can result in periods of inflation when a company is using the Q 6.11: Based on the net income of the shop, the sales staff at Francesca’s Fashions receive performance bonuses. In periods of declining prices, which inventory costing method would bring the sales staff the most benefit? Q 6.12: When determining the cost of inventory items before lower-of-cost-ormarket is applied, which of the following costing methods can be used? Q 6.13: How is market defined under the lower-of-cost-or-market basis in valuing inventory? Q 6.14: An error was made with the physical count of goods on hand at the end of a period that resulted in a $25,000 overstatement of the ending inventory. What is the effect of this error on cost of goods sold and net income, respectively? Q 6.15: American Supply sold merchandise on account to Decker Plumbing on March 31. The sales price was $2,300, and the cost of goods sold was $1,500. Sales revenue was reported immediately, but the cost of goods sold was not reported until April 3. What happened to the net income for March as a result? Q 6.16: To compute the inventory turnover ratio, cost of goods sold should be divided by which of the following?


Q 6.17: On December 31, 2012, Jameson reported the following numbers: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $700,000; and sales $1,200,000. What was Jameson’s inventory turnover in 2012? Q 6.18: Where should a company report inventory? Q 6.19: If beginning inventory is understated, which of the following will also be understated? Q 6.20: Managers at Birdie’s Branch Removal, Inc. are confused because they maintain lower inventory amounts than the industry average, but they are a highly successful company, outselling even the big box companies in the chain saw market. Which of the following is the best answer to the managers’ confusion? Q 6.21: Simpson’s Sandals, Inc. has five cases of flip-flops that have not been sold and are part of inventory for more than two years. Each case costs $300 and originally retailed for $500. Each case has a current replacement cost of $200. What is the amount of loss that Simpson’s should report for the year?

ACC 290 Chapter 6 Orion • Question 1 When the terms of a sale are FOB destination, legal title to the goods passes to the buyer when the goods reach the buyer's place of business. • Question 2 As a result of a thorough physical inventory, Railway Company determined that it had inventory worth $180,000 at December 31, 2014. This count did not take into consideration the following transactions: • Question 3 Ownership passes to the buyer when the public carrier accepts the goods if the goods are shipped • Question 4 Inventory costing methods place primary reliance on assumptions about the flow of • Question 5 Which of the following statements is true? • Question 6 In a period of inflation, LIFO produces a higher net income than FIFO. • Question 7 In a period of falling prices, which of the following methods will give the largest net income? • Question 8 What is the underlying rationale for the lower-of-cost-or-market rule? • Question 9 The following information came from the income statement of the Wilkens Company at December 31, 2014: sales revenue $1,800,000; beginning inventory $160,000; ending inventory $240,000; and gross profit $600,000. What is Wilkens' inventory turnover ratio for 2014?

lllustration 6-17 • Question 1

If the ending inventory is overstated, what occurs?


ACC 290 Week 4 Discussion Question 1

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How would you calculate cost of goods sold? What items make up cost of goods sold? How does beginning and ending inventory affect cost of goods sold? What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of merchandise? How would these transactions differ with a periodic versus a perpetual inventory system? Why are perpetual inventory systems so much more popular today than back in the early 1960s and earlier? Why would a company employing a perpetual inventory system still take a physical inventory periodically?

ACC 290 Week 4 Discussion Question 2

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What are the three different inventory cost flow assumptions commonly used in commerce today and allowed by generally accepted accounting principles? How does a


company determine what cost flow assumption they should use? How does first in, first out cost flow assumption work? When it is most appropriate to use? How does last in, first out cost flow assumption work? When it is most appropriate to use? How does an average cost flow assumption work? When it is most appropriate to use?

ACC 290 Week 4 LT Reflection Summary

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Reflection and Financial Reporting Problem Part I. Discuss the objectives for ACC 290 Week Three. How do they relate to the practice of accounting and its uses in business? Prepare closing entries, reversing entries, and a post closing trial balance. Prepare a financial statement work sheet. Prepare a classified income statement, retained earnings statement and balance sheet. Write a 350 to 500 word summary of your Learning Team’s discussion.

ACC 290 Week 4 Practice Connect Practice Assignment

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ACC 290 Week 4 Practice Connect Practice Assignment Complete the Week 4 Practice in Connect. Note: You have unlimited attempts available to complete practice assignments. attempt 1 1 On June 1, 2019, Cain Company, a new firm, paid $8,400 rent in advance for a sevenmonth period. The $8,400 was debited to thePrepaid Rent On June 1, 2019, the firm bought supplies for $10,250. The $10,250 was debited to the Supplies An inventory of supplies at the end of June showed that items costing $5,960 were on hand. On June 1, 2019, the firm bought equipment costing $72,900. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation. 2 The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below. CANTU CORPORATION Worksheet Month Ended December 31, 2019 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 39,100 39,100 39,100 Accounts Receivable 6,500 6,500 6,500 Supplies 6,050 3,500 6,050 2,550 Prepaid Advertising 10,200 1,700 10,200 8,500 Equipment 42,500 42,500 42,500 Accumulated Depreciation—Equipment 850 850 850 Accounts Payable 6,500 6,500 6,500 Selena Cantu, Capital 54,500 54,500 54,500 Selena Cantu, Drawing 4,100 4,100 4,100 Fees Income 57,750 57,750 57,750 Supplies Expense 3,500 3,500 3,500 Advertising Expense 1,700 1,700 1,700 Depreciation Expense-Equipment 850 850 850 Salaries Expense 8,900 8,900 8,900 Utilities Expense 1,400 1,400 1,400 Totals 118,750 118,750 6,050 6,050 119,600 119,600 16,350 57,750 103,250 61,850 Net Income 41,400 41,400


57,750 57,750 103,250 103,250 Required: Prepare an income statement. Prepare a statement of owner’s equity. The owner made no additional investments during the month. Prepare a balance sheet. Analyze: If the adjustment to Prepaid Advertising had been $3,400 instead of $1,700, what net income would have resulted?

3 Assume that a firm reports net income of $45,000 prior to making adjusting entries for the following items: expired rent, $3,500; depreciation expense, $4,100; and supplies used, $1,800. Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income?

4 Desoto Company must make three adjusting entries on December 31, 2019. Supplies used, $5,500 (supplies totaling $9,000 were purchased on December 1, 2019, and debited to the Suppliesaccount). Expired insurance, $4,100; on December 1, 2019, the firm paid $24,600 for six months’ insurance coverage in advance and debitedPrepaidInsurancefor this amount. Depreciation expense for equipment, $2,900. Required: Prepare the journal entries for these adjustments and post the entries to the general ledger accounts

5 The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s first month of operations, appears below.


Appropriate adjustments have been made for the following items: Supplies used during the month, $2,900. Expired rent for the month, $3,500. Depreciation expense for the month, $950. UNIVERSITY BOOK STORE Adjusted Trial Balance November 30, 2019 Account Name Debit Credit Cash $ 23,075 Accounts Receivable 3,812 Supplies 4,600 Prepaid Rent 21,000 Equipment 27,500 Accumulated Depreciation-Equipment $ 950 Accounts Payable 9,000 Ruby Darbandi, Capital 41,837 Ruby Darbandi, Drawing 4,000 Fees Income 48,550 Depreciation Expense-Equipment 950 Rent Expense 3,500 Salaries Expense 8,500 Supplies Expense 2,900 Utilities Expense 500 Totals $ 100,337 $ 100,337 Required: Record the adjusting entries in the Adjustments columns. Complete the Trial Balance columns of the worksheet prior to making the adjusting entries. Analyze: What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?

6 On January 31, 2019, the general ledger of Palmer Company showed the following account balances. ACCOUNTS


Cash 31,500 Accounts Receivable 11,250 Supplies 4,500 Prepaid Insurance 4,100 Equipment 45,750 Accum. Depr.—Equip. 0 Accounts Payable 8,350 Sadie Palmer, Capital 40,975 Fees Income 58,500 Depreciation Exp.—Equip. 0 Insurance Expense 0 Rent Expense 5,300 Salaries Expense 5,425 Supplies Expense 0 Additional information: Supplies used during January totaled $2,850. Expired insurance totaled $1,025. Depreciation expense for the month was $925. Complete the worksheet through the Adjusted Trial Balance section. Assume that every account has the normal debit or credit balance. The worksheet covers the month of January.

attempt 2 1 On January 31, 2019, the general ledger of Palmer Company showed the following account balances. ACCOUNTS Cash 31,500 Accounts Receivable 11,250 Supplies 4,500 Prepaid Insurance 4,100 Equipment 45,750 Accum. Depr.—Equip. 0 Accounts Payable 8,350 Sadie Palmer, Capital 40,975 Fees Income 58,500 Depreciation Exp.—Equip. 0 Insurance Expense 0 Rent Expense 5,300


Salaries Expense 5,425 Supplies Expense 0 Additional information: Supplies used during January totaled $2,850. Expired insurance totaled $1,025. Depreciation expense for the month was $925. Complete the worksheet through the Adjusted Trial Balance section. Assume that every account has the normal debit or credit balance. The worksheet covers the month of January. 2 Desoto Company must make three adjusting entries on December 31, 2019. Supplies used, $5,500 (supplies totaling $9,000 were purchased on December 1, 2019, and debited to the Suppliesaccount). Expired insurance, $4,100; on December 1, 2019, the firm paid $24,600 for six months’ insurance coverage in advance and debitedPrepaidInsurancefor this amount. Depreciation expense for equipment, $2,900. Required: Prepare the journal entries for these adjustments and post the entries to the general ledger accounts

3 Assume that a firm reports net income of $45,000 prior to making adjusting entries for the following items: expired rent, $3,500; depreciation expense, $4,100; and supplies used, $1,800. Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income? 4 On June 1, 2019, Cain Company, a new firm, paid $8,400 rent in advance for a sevenmonth period. The $8,400 was debited to thePrepaid Rent On June 1, 2019, the firm bought supplies for $10,250. The $10,250 was debited to the Supplies An inventory of supplies at the end of June showed that items costing $5,960 were on hand.


On June 1, 2019, the firm bought equipment costing $72,900. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation. Prepare end-of-June adjusting entries for Cain Company. 5 The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below. CANTU CORPORATION Worksheet Month Ended December 31, 2019 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 39,100 39,100 39,100 Accounts Receivable 6,500 6,500 6,500 Supplies 6,050 3,500 6,050 2,550 Prepaid Advertising 10,200 1,700 10,200 8,500 Equipment 42,500 42,500 42,500 Accumulated Depreciation—Equipment 850 850 850 Accounts Payable 6,500 6,500 6,500 Selena Cantu, Capital 54,500 54,500 54,500 Selena Cantu, Drawing 4,100 4,100 4,100 Fees Income 57,750 57,750 57,750 Supplies Expense 3,500 3,500 3,500 Advertising Expense 1,700 1,700 1,700 Depreciation Expense-Equipment 850 850 850 Salaries Expense 8,900 8,900 8,900 Utilities Expense 1,400 1,400 1,400 Totals 118,750 118,750 6,050 6,050 119,600 119,600 16,350 57,750 103,250 61,850 Net Income 41,400 41,400 57,750 57,750 103,250 103,250 Required: Prepare an income statement. Prepare a statement of owner’s equity. The owner made no additional investments during the month. Prepare a balance sheet. Analyze:


If the adjustment to Prepaid Advertising had been $3,400 instead of $1,700, what net income would have resulted?

6 The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s first month of operations, appears below. Appropriate adjustments have been made for the following items: Supplies used during the month, $2,900. Expired rent for the month, $3,500. Depreciation expense for the month, $950. UNIVERSITY BOOK STORE Adjusted Trial Balance November 30, 2019 Account Name Debit Credit Cash $ 23,075 Accounts Receivable 3,812 Supplies 4,600 Prepaid Rent 21,000 Equipment 27,500 Accumulated Depreciation-Equipment $ 950 Accounts Payable 9,000 Ruby Darbandi, Capital 41,837 Ruby Darbandi, Drawing 4,000 Fees Income 48,550 Depreciation Expense-Equipment 950 Rent Expense 3,500 Salaries Expense 8,500 Supplies Expense 2,900 Utilities Expense 500 Totals $ 100,337 $ 100,337 Required: Record the adjusting entries in the Adjustments columns. Complete the Trial Balance columns of the worksheet prior to making the adjusting entries. Analyze:


What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?

ACC 290 Week 4 Practice Quiz (New)

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Question 1 A service company's operating cycle is ordinarily shorter than that of a merchandising company. The operating cycle of a merchandising company is ordinarily shorter than that of a service company. Question 2 Due to the turnover time of inventory, merchandising companies have an operating cycle that is longer than a service company. The operating cycle of a merchandising company is ordinarily ___________________ that of a service firm. Question 3 The cost of having merchandise delivered to the store is part of the cost of getting the inventory ready to sell. All costs incurred to get inventory ready to sell are included as part of Inventory account with a debit. Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for which it must pay the shipping charges. Which of the following is one part of the required journal entry when Jax pays the shipping charges of $200?

Question 4


Sales Discounts is a contra account to Sales Revenue. It is reported on the income statement as a deduction from Sales Revenue. Question 5 Two entries are required. One will record the sale with a debit to cash and a credit to sales revenue. The second entry is to reduce the inventory; debit cost of goods sold and credit inventory. Which statement is true when recording the sale of goods for cash in a perpetual inventory system? Question 6 Sales less cost of goods sold equals gross profit. Subtracting operating expenses from gross profit equals net income. Net income is $15,000, operating expenses are $20,000, and net sales total $75,000. How much is cost of goods sold?

Question 7 Cost of goods sold is subtracted from net sales to calculate gross profit. Which one of the following will result in gross profit?

Question 8 Under the periodic inventory system, cost of goods sold for the period is calculated by adding purchases for the period to the beginning inventory balance and subtracting the ending inventory balance. Under what system is cost of goods sold determined at the end of an accounting period? Question 9 Net income ($15,000) divided by net sales ($75,000) equals profit margin of 20%. Net income is $15,000, operating expenses are $20,000, net sales total $75,000, and sales revenues total $95,000. How much is the profit margin? Question 10


Unlike the perpetual system, companies do not attempt to record the cost of merchandise sold on the date of the sale. At the end of the period, a physical inventory is taken to determine the cost of merchandise sold. In a periodic inventory system, when is the cost of the merchandise sold determined?

ACC 290 Week 4 Vocabulary Activity (New)

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WileyPLUS Assignment: Week 4 Vocabulary Activity Resource: WileyPLUS Complete the following Week 4 Assignment in WileyPLUS: • Chapter 5 Crossword Puzzle 1

ACC 290 Week 4 Wileyplus Assignment P4-8A, BYP5-1, BYP5-2, BE5-1, BE5-2, IFRS5-2, IFRS5-4, PQ-1, PQ-2, PQ-3 (New)

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Week 4 Assignment Complete the following Week 4 Assignment in          

Problem 4-8A Brief Exercise 5-1 Brief Exercise 5-2 BYP 5-1 BYP 5-2 IFRS 5-2 IFRS 5-4 Practice Question 1 Practice Question 2 Practice Question 3

ACC 290 Week 4Evaluate The Inventory Section Of Two companies Using Basic Comparative Analysis

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The purpose of this assignment is to evaluate the inventory section of two companies using basic comparative analysis, and to interpret the data to gain insight about the company's inventory management. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Write a 1,050-word comparative analysis using the financial statements of Amazon.com, Inc. presented in Appendix D, and the financial statements for Wal-Mart Stores, Inc., presented in Appendix E, including the following: 

Compute these 2014 values for each company based on the information in the financial statements:


Inventory turnover (Use cost of sales and inventories) o Days of inventory Conclusions concerning the management of the inventory can you draw from this data o

ACC 290 Week 5 Apply Connect Assignment

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1 On December 31, after adjustments, Gonzalez Company’s ledger contains the following account balances:

101 Cash $ 30,200 Dr. 111 Accounts Receivable 16,100 Dr. 121 Supplies 2,300 Dr. 131 Prepaid Rent 38,900 Dr. 141 Equipment 47,000 Dr. 142 Accumulated Depreciation—Equip. 1,150 Cr. 202 Accounts Payable 6,800 Cr. 301 Emilio Gonzalez, Capital (12/1/2019) 48,620 Cr. 302 Emilio Gonzalez, Drawing 6,500 Dr. 401 Fees Income 120,080 Cr. 511 Advertising Expense 4,100 Dr. 514 Depreciation Expense—Equip. 830 Dr. 517 Rent Expense 2,900 Dr. 519 Salaries Expense 21,800 Dr. 523 Utilities Expense 6,020 Dr. Required:


Journalize the closing entries in the general journal. Post the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances. Analyze: What is the balance of the Salaries Expense account after closing entries are posted? 2 A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows. Required: Complete the worksheet. Record the adjusting entries in the general journal (transactions 1-3). Record the closing entries in the general journal (transactions 4-7). Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances. Prepare a post-closing trial balance. Analyze: What total debits were posted to the general ledger to complete all closing entries for the month of December?

ACC 290 Week 5 Discussion Question 1

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What is the control environment? How does the control environment affect a company’s internal controls? What are the negative and positive elements of a control


environment? What are two examples of strong and weak internal controls in organizations where you have worked or have first-hand knowledge? How are these different? How would you describe the key internal controls that should be in place to protect cash in a cash rich environment such as a merchandiser? What are the key internal controls that should be in place to protect inventory for a merchandiser that sells highly desirable and very expensive inventory, such as jewelry? Would this be different if the business had a less desirable and less expensive inventory? Explain why or why not.

ACC 290 Week 5 IFRS Paper (New)

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IFRS 2-1: In what ways does the format of a statement of financial of position under IFRS often differ from a balance sheet presented under GAAP? IFRS 2-2: Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain. IFRS 2-3: What terms commonly used under IFRS are synonymous with common stock and balance sheet? IFRS 3-1: Describe some of the issues the SEC must consider in deciding whether the United States should adopt IFRS. IFRS 4-1: Compare and contrast the rules regarding revenue recognition under IFRS versus GAAP. IFRS 4-2: Under IFRS, do the definitions of revenues and expenses include gains and losses? Explain. FRS 7-1: Some people argue that the internal control requirements of the Sarbanes-Oxley Act (SOX) put U.S. companies at a competitive disadvantage to companies outside the United States. Discuss the competitive implications (both pros and cons) of SOX.

ACC 290 Week 5 Learning Team Reflection Summary (New)


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Reflection and Financial Reporting Problem Part II. Discuss the objectives for ACC 290 Week Four. In the wake of accounting scandals over the past several years, how has the Sarbanes-Oxley Act (SOX) of 2002 affected the practice of accounting? What is the role of internal controls in complying with SOX (2002)? Write a 350 to 500 word summary of your Learning Team’s discussion.

ACC 290 Week 5 Practice Connect Practice Assignment

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ACC 290 Week 5 Practice Connect Practice Assignment Complete the Week 5 Practice in Connect. Note: You have unlimited attempts available to complete practice assignments. attempt 1 1


Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below: REVENUE AND EXPENSE ACCOUNTS 401 Fees Income $ 200,000 Cr. 511 Depr. Expense—Office Equipment 9,160 Dr. 514 Rent Expense 26,000 Dr. 517 Salaries Expense 99,000 Dr. 520 Supplies Expense 4,680 Dr. 523 Telephone Expense 2,700 Dr. 526 Travel Expense 20,780 Dr. 529 Utilities Expense 2,500 Dr.

DRAWING ACCOUNT 302 Gloria Johnson, Drawing 22,000 Dr. Required: Record the adjusting entries in the general journal (transactions 1-3). Record the closing entries in the general journal (transactions 4-7).

2 A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows. Required: Complete the worksheet. Record the adjusting entries in the general journal (transactions 1-3). Record the closing entries in the general journal (transactions 4-7). Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances. Prepare a post-closing trial balance. Analyze: What total debits were posted to the general ledger to complete all closing entries for the month of December?


3 On December 31, 2019, the ledger of Lopez Company contained the following account balances:

Cash $ 66,000 Maria Lopez, Drawing $ 52,000 Accounts Receivable 5,800 Fees Income 107,500 Supplies 4,200 Depreciation Expense 5,500 Equipment 52,000 Salaries Expense 34,000 Accumulated Depreciation 5,000 Supplies Expense 6,000 Accounts Payable 6,000 Telephone Expense 5,200 Maria Lopez, Capital 121,500 Utilities Expense 9,300

4 The ledger accounts of AXX Internet Company appear as follows on March 31, 2019: ACCOUNT NO. ACCOUNT BALANCE 101 Cash $ 40,000 111 Accounts Receivable 29,910 121 Supplies 5,300 131 Prepaid Insurance 12,500 141 Equipment 59,000 142 Accumulated Depreciation—Equipment 20,660 202 Accounts Payable 7,000 301 Aretha Hinkle, Capital 65,000 302 Aretha Hinkle, Drawing 6,500 401 Fees Income 187,230 510 Depreciation Expense—Equipment 10,580 511 Insurance Expense 5,700 514 Rent Expense 16,500 517 Salaries Expense 83,000 518 Supplies Expense 2,800 519 Telephone Expense 3,400 523 Utilities Expense 4,700 All accounts have normal balances. Required: Prepare the closing entries.


Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.

5 The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow. Income Summary Account No. 399 Balance Date Description Debit Credit Debit Credit 2019 Dec. 31 Closing 134,000 134,000 31 Closing 71,800 62,200 31 Closing 62,200 0

Linda Carter, Capital Account No. 301 Balance Date Description Debit Credit Debit Credit 2019 Dec. 1 240,000 240,000 31 Closing 62,200 302,200 31 Closing 22,000 280,200 6 On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000. Required: Record the journal entries necessary to complete closing the accounts. What is the new balance of Madison Wells, Capital?

attempt 2 1 The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:


ACCOUNT NO. ACCOUNT BALANCE 101 Cash $ 40,000 111 Accounts Receivable 29,910 121 Supplies 5,300 131 Prepaid Insurance 12,500 141 Equipment 59,000 142 Accumulated Depreciation—Equipment 20,660 202 Accounts Payable 7,000 301 Aretha Hinkle, Capital 65,000 302 Aretha Hinkle, Drawing 6,500 401 Fees Income 187,230 510 Depreciation Expense—Equipment 10,580 511 Insurance Expense 5,700 514 Rent Expense 16,500 517 Salaries Expense 83,000 518 Supplies Expense 2,800 519 Telephone Expense 3,400 523 Utilities Expense 4,700 All accounts have normal balances. Required: Prepare the closing entries. Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.

2 A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows. Required: Complete the worksheet. Record the adjusting entries in the general journal (transactions 1-3). Record the closing entries in the general journal (transactions 4-7). Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances. Prepare a post-closing trial balance. Analyze:


What total debits were posted to the general ledger to complete all closing entries for the month of December?

3 The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow. Income Summary Account No. 399 Balance Date Description Debit Credit Debit Credit 2019 Dec. 31 Closing 134,000 134,000 31 Closing 71,800 62,200 31 Closing 62,200 0

Linda Carter, Capital Account No. 301 Balance Date Description Debit Credit Debit Credit 2019 Dec. 1 240,000 240,000 31 Closing 62,200 302,200 31 Closing 22,000 280,200 4 On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000. Required: Record the journal entries necessary to complete closing the accounts. What is the new balance of Madison Wells, Capital?

5 Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue


and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below: REVENUE AND EXPENSE ACCOUNTS 401 Fees Income $ 200,000 Cr. 511 Depr. Expense—Office Equipment 9,160 Dr. 514 Rent Expense 26,000 Dr. 517 Salaries Expense 99,000 Dr. 520 Supplies Expense 4,680 Dr. 523 Telephone Expense 2,700 Dr. 526 Travel Expense 20,780 Dr. 529 Utilities Expense 2,500 Dr.

DRAWING ACCOUNT 302 Gloria Johnson, Drawing 22,000 Dr. Required: Record the adjusting entries in the general journal (transactions 1-3). Record the closing entries in the general journal (transactions 4-7). 6 On December 31, 2019, the ledger of Lopez Company contained the following account balances:

Cash $ 66,000 Maria Lopez, Drawing $ 52,000 Accounts Receivable 5,800 Fees Income 107,500 Supplies 4,200 Depreciation Expense 5,500 Equipment 52,000 Salaries Expense 34,000 Accumulated Depreciation 5,000 Supplies Expense 6,000 Accounts Payable 6,000 Telephone Expense 5,200 Maria Lopez, Capital 121,500 Utilities Expense 9,300

ACC 290 Week 5 Preparing Comprehensive Bank Reconciliation (Daisey Company)

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Purpose of Assignment Reconciling bank accounts is a good way to help maintain internal controls over cash. With time lags and posting errors it is easy for cash transactions to be omitted, recorded in a different accounting period, or reflect incorrect amounts. This assignment with give you practical experience in reconciling the cash balance as noted on the company books to the bank's records. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Scenario: Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31, 2017, was $18,380. Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28. Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25. This memorandum has not been recorded by Daisey. The company's ledger showed one Cash account with a balance of $21,877.72. The balance included undepositied cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash: Cash balance per books, October 31 $21,877.72 Add: Outstanding checks No. 862 $190.71 No. 863 226.80 No. 864 165.28 482.79 22,360.51 Less: Undeposited receipts 3,795.51 Unadjusted balance per bank, October 31 18,565.00 Less: Bank credit memorandum 185.00 Cash balance per bank statement, October 31 $18,380.00 Prepare a 1,050-word bank reconciliation report (hint: deduct the amount of the theft from the adjusted balance per books) including the following: Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method. What principles of internal control were violated in this case? Show all work in the ExcelÂŽ spreadsheet and submit with the reconciliation report.


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ACC 290 Week 5 WileyPlus Assignment BE6-5, BE6-7, BYP6-1, BYP6-2, BE7-4, BE76, IFRS PQ-1, PFRS PQ-2(New)

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Assignment: Week 5 Assignment Complete the following Week 5 Assignment        

IFRS Practice Question 1 IFRS Practice Question 2 Brief Exercise 6-5 Brief Exercise 6-7 BYP 6-1 BYP 6-2 Brief Exercise 7-4 Brief Exercise 7-6

Acc 290 (new)  

For more course tutorials visit Uophelp is now newtonhelp.com www.newtonhelp.com Question 1 The best definition of assets is the col...

Acc 290 (new)  

For more course tutorials visit Uophelp is now newtonhelp.com www.newtonhelp.com Question 1 The best definition of assets is the col...

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