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ACC 291 Final Exam Guide (New, 2018, 100% Score) For more course tutorials visit

www.acc291.com 1. The term “receivables� refers to cash to be paid to debtors. merchandise to be collected from individuals or companies. cash to be paid to creditors. amounts due from individuals or companies. 2. Three accounting issues associated with accounts receivable are depreciating, valuing, and collecting. depreciating, returns, and valuing. accrual, bad debts, and accelerating collections. recognizing, valuing, and accelerating collections. 3. When the allowance method is used to account for uncollectible accounts Bad Debts Expense is debited when: management estimates the amount of uncollectibles. a customer’s account becomes past due.


an account becomes bad and is written off. a sale is made. 4. Which one of the following is not a principle of sound accounts receivable management? Determine a payment period. Determine to whom to extend credit. Delay cash receipts from receivables if necessary. Monitor collections. 5. The accounts receivable turnover is used to analyze profitability. long-term solvency. liquidity. risk. 6. The following information is provided for Sunland Company and Marigold Corp.: 7. What is Marigold’s return on assets (rounded) for 2017? 3% 2% 3% 9%


8. Which of the following is not properly classified as property, plant and equipment? A truck held for resale by an automobile dealership. Land improvement, such as parking lots and fences. Building used as a factory. Land used in ordinary business operations. 9. A characteristic of a plant asset is that it is held for sale in the ordinary course of the business. used in the operations of a business. not currently used in the business but held for future use. intangible 10. A current liability is a debt that can reasonably be expected to be paid out of cash currently on hand. within one year, or the operating cycle, whichever is longer. out of currently recognized revenues. between 6 months and 18 months. 11. A current liability is a debt that can reasonably be expected to be paid out of cash currently on hand. within one year, or the operating cycle, whichever is longer. out of currently recognized revenues.


between 6 months and 18 months. 12. The 2017 financial statements of Blossom Company contain the following selected data (in millions). 13. The debt to assets ratio (rounded) is 40%. 7.1 times. 44.4%. 2.25%. 14. In a recent year Monty Corp. had net income of $152000, interest expense of $28700, and income tax expense of $41500. What was Monty Corp.’s times interest earned (rounded) for the year? 7.74 6.30 6.74 5.30 15. If bonds are issued at a discount, it means that the bondholder will receive effectively less interest than the contractual rate of interest. market interest rate is lower than the contractual interest rate. financial strength of the issuer is suspect.


market interest rate is higher than the contractual interest rate. 16. If bonds are issued at a premium, the stated interest rate is higher than the market rate of interest. too low to attract investors. lower than the market rate of interest. adjusted to a higher rate of interest. 17. The chief accounting officer in a company is known as the treasurer. controller. vice-president. president. 18. Which one of the following would not be considered an advantage of the corporate form of organization? Separate legal existence. Continuous life. Limited liability of stockholders. Government regulation. 19. Which of the following would not be true of a privately held corporation? It is usually smaller than a publicly held company. It is sometimes called a closely held corporation.


Its shares are regularly traded on the New York Stock Exchange. It does not offer its shares for sale to the general public. 20. The following information pertains to Sheffield Company. Assume that all balance sheet amounts represent average balance figures 21. What is Sheffield’s payout ratio? 11%. 39%. 19%. 26.05%. 22. Ayayai Corp. had net income of $91875 and paid dividends of $39000 to common stockholders and $16500 to preferred stockholders in 2017. Ayayai Corp. common stockholders’ equity at the beginning and end of 2017s was $440000 and $565000, respectively. Ayayai Corp. return on common stockholders’ equity is 15%. 14%. 10%. 19%. 23. The primary purpose of the statement of cash flows is to facilitate banking relationships.


provide information about the investing and financing activities during a period. prove that revenues exceed expenses if there is a net income. provide information about the cash receipts and cash payments during a period 24. Which one of the following items is not generally used in preparing a statement of cash flows? Current income statement. Additional information. Adjusted trial balance. Comparative balance sheets. 25. The category that is generally considered to be the best measure of a company’s ability to continue as a going concern is cash flows from investing activities. usually different from year to year. cash flows from financing activities. cash flows from operating activities. 26. Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, a stock dividend declared and issued would be classified on the statement of cash flows. Does not represent a cash flow. Investing activities section. Financing activities section.


Operating activities section. 27. Free cash flow provides an indication of a company’s ability to generate cash to invest in capital expenditures. generate cash to pay dividends. generate cash to invest in capital expenditures and to pay dividends. generate net income 28. When using the indirect method to compute cash provided by operating activities increases in accounts receivable are added to net income. income taxes paid may be ignored. amortization expense is added to net income. decreases in inventory are subtracted from net income 29. To determine the net cash provided (used) by operating activities, it is necessary to analyze the current year’s income statement. a comparative balance sheet. additional information. all of these answer choices are correct. 30. Which of these is not a liquidity ratio? Current ratio Accounts receivable turnover


Asset turnover Inventory turnover

The current ratio would be of most interest to long-term creditors. stockholders. customers. short-term creditors ==============================================

ACC 291 Week 1 Apply Connect Assignment (Score 1010) (With Excel File) For more course tutorials visit

www.acc291.com This Tutorial contains an Excel File which can be used for any change in values

ACC 291 Week 1 Apply Connect Assignment 1


Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions: DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $1,600 plus sales tax of $112. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $800 plus sales tax of $56. 7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28. 12 Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3. 15 Recorded cash sales for the period from September 1 to September 15 of $10,000 plus sales tax of $700. 16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49. 17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $1,600 plus sales tax of $112. 18 Received $620 from Candy Cho on account. 20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.


25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $300 plus sales tax of $21. 27 Received payment in full from Bridgette Huffman for the sale of September 7. 29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35. 30 Recorded cash sales for the period from September 16 to September 30 of $10,300 plus sales tax of $721. Required: Record the transactions in a general journal. Analyze: What portion of the sales during September were for entertainment items? Assume the cash sales transactions are for non-entertainment items. (Hint: Do not forget to reduce sales by any sales returns or allowances.)

2


Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions.

DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,200 plus sales tax of $224. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales tax of $70. 7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28. 12 Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3. 15 Recorded cash sales for the period from September 1 to September 15 of $9,000 plus sales tax of $630. 16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49. 17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,200 plus sales tax of $154. 18 Received $780 from Candy Cho on account.


20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12. 25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $100 plus sales tax of $7 27 Received payment in full from Bridgette Huffman for the sale of September 7 29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35. 30 Recorded cash sales for the period from September 16 to September 30 of $11,900 plus sales tax of $833.

GENERAL LEDGER ACCOUNTS

101 Cash 401 Sales 111 Accounts Receivable 421 Sales Returns and Allowances 221 Sales Tax Payable

ACCOUNTS RECEIVABLE LEDGER ACCOUNTS Candy Cho Jim Peterson


Bridgette Huffman Kathy Sundstrand Mark Navalta Required: Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger. Prepare a schedule of accounts receivable. Analyze: What is the amount of sales tax owed at September 30, 2019? ==============================================

ACC 291 Week 1 Assignment Comparative Analysis Problem (2 Papers) For more course tutorials visit

www.acc291.com This Tutorial contains Papers+ Excel Sheet Purpose of Assignment The purpose of this assignment is to help you understand the basics of financial statement analysis using financial ratios on the assets section of


the balance sheet, data interpretation, and how ratios are used to gain insight about the management of receivable. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Develop an 875-word analysis providing conclusions concerning the management of accounts receivable based on the financial statements of Columbia Sportswear Company presented in Appendix B and the financial statements of VF Corporation presented in Appendix C, including the following: Based on the information contained in these financial statement, compute the following 2014 values for each company: What conclusions concerning the management of accounts receivable can be drawn from this data? Accounts receivable turnover (For VF, use “Net sales� and assume all sales were credit sales) Average collection period for accounts receivable Use the Week 1 ExcelŽ spreadsheet to show your work and submit with your analysis. Click the Assignment Files tab to submit your assignment. ==============================================

ACC 291 Week 1 Practice Connect Practice Assignment


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www.acc291.com ACC 291 Week 1 Practice Connect Practice Assignment attempt 1 1 Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa’s Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places): DATE TRANSACTIONS 2019 Feb. 2 Sold merchandise for cash totaling $3,800 to customers using bank credit cards. Record the 2 percent discount on credit card sales at time of sale. 15 Sold merchandise totaling $2,100 to customers using American Express. 20 Received amount due from American Express, less their 3 percent discount, for sales made by customers using American Express on February 15.


2 On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment was received in full from Fronke’s Franks, less discount, on April 10. Required: Record the transactions on April 1 and April 10.

3 Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales. DATE TRANSACTIONS 2019


April 2 Sold merchandise for cash, $2,500 plus sales tax. 3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer. 4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30. 6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was made on Sales Slip 908 of April 4. 30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

4 Main Street Distributors, a wholesale firm, made sales using the following list prices and trade discounts. What amount should be recorded for each sale? List price of $6,000 and trade discounts of 40 percent and 15 percent. List price of $7,300 and trade discounts of 25 percent and 8 percent. List price of $7,100 and trade discounts of 20 percent and 5 percent.


5 The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales: DATE TRANSACTIONS 2019 May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30. 15 Recorded cash sales, $5,800 plus 8 percent sales tax. 31 Received payment on account due from Bill Gomez for the sale on May 1.

attempt 2 1


On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment was received in full from Fronke’s Franks, less discount, on April 10. Required: Record the transactions on April 1 and April 10.

2 Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa’s Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places): DATE TRANSACTIONS 2019 Feb. 2 Sold merchandise for cash totaling $3,800 to customers using bank credit cards. Record the 2 percent discount on credit card sales at time of sale. 15 Sold merchandise totaling $2,100 to customers using American Express.


20 Received amount due from American Express, less their 3 percent discount, for sales made by customers using American Express on February 15.

3 The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales: DATE TRANSACTIONS 2019 May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30. 15 Recorded cash sales, $5,800 plus 8 percent sales tax. 31 Received payment on account due from Bill Gomez for the sale on May 1. 4 Main Street Distributors, a wholesale firm, made sales using the following list prices and trade discounts. What amount should be recorded for each sale?


List price of $6,000 and trade discounts of 40 percent and 15 percent. List price of $7,300 and trade discounts of 25 percent and 8 percent. List price of $7,100 and trade discounts of 20 percent and 5 percent. 5 Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales. DATE TRANSACTIONS 2019 April 2 Sold merchandise for cash, $2,500 plus sales tax. 3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer. 4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30. 6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was made on Sales Slip 908 of April 4. ==============================================

ACC 291 Week 1 Wileyplus Assignment E8-4, E8-11, BYP8-1, and BYP8-2 (New)


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www.acc291.com Wiley Plus Assignment Week 1 ¡E8-4, E8-11, BYP8-1, and BYP8-2 in MS Excel Exercise 8-4 Wainwright Company Exercise 8-11 Fedex Corporation Broadening your Perspective 8-1 Tootsie Roll Broadening your Perspective 8-2 Tootsie Roll and Hershey ==============================================

ACC 291 Week 2 - Fordyce and Atwater (New) For more course tutorials visit

www.acc291.com P10-5A Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2007. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannualinstallment payments, exclusive of real estate taxes and insurance, of $29,433. Payments are due June 30 and December 31.


Complete the installment payments schedule for the first 2 years. (Round answers to 0 decimal places, e.g. 125. Use rounded amounts for future calculations.) Prepare the entries for (1) the loan and (2) the first two installment payments. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Show how the total mortgage liability should be reported on the balance sheet at December 31, 2008. P10-6A On July 1, 2011, Atwater Corporation issued $2,098,000 face value, 12%, 10-year bonds at $2,507,354. This price resulted in an effectiveinterest rate of 9% on the bonds. Atwater uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Prepare an amortization table through December 31, 2012 (3 interest periods) for this bond issue. Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2011 Prepare the journal entry to record the payment of interest and the amortization of the premium on July 1, 2012, assuming no accrual of interest on June 30 ==============================================

ACC 291 Week 2 Apply Connect Assignment (Score 10/10) (with Excel File)


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www.acc291.com This Tutorial contains an Excel File which can be used for any change in values

ACC 291 Week 2 Apply Connect Assignment

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:

DATE

TRANSACTIONS

2019


Sept.

2

Purchased ski boots for $5,200 plus a freight charge of $250 from Colorado Ski Shop, Invoice 6672, terms n/30.

3

Purchased skis for $10,800 from Alaska Supply Company, Invoice 5916; terms 2/10, n/30.

7

Received Credit Memorandum 165 for $860 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.


11

Purchased ski jackets for $3,600 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.

12

Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.

22

Purchased ski poles for $3,360 plus a freight charge of $190 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.


23

Purchased ski pants for $1,850 from Swenson Ski Goods, Invoice 528, terms n/30.

25

Received Credit Memorandum 245 for $260 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.

27

Purchased ski sweaters for $4,000 plus a freight charge of $170 from Colorado Ski Shop, Invoice 6722, terms n/30.


30

Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.

Required:

Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of September 1, 2019.

Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.

Prepare a schedule of accounts payable.

GENERAL LEDGER ACCOUNTS


101

Cash, $25,000 Dr.

201

Accounts Payable

501

Purchases

502

Freight In


503

Purchases Returns and Allowances

504

Purchases Discounts

ACCOUNTS PAYABLE LEDGER ACCOUNTS

Alaska Supply Company

Cold Mountain Clothing Company


Colorado Ski Shop

Swenson Ski Goods

Analyze:

What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.

NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019,


NewTech Medical Devices engaged in the following purchasing and cash payment activities:

DATE

TRANSACTIONS

2019

June

1

Issued Check 101 to purchase merchandise, $3,800.

3


Purchased merchandise for $1,350 from BioCenter Inc., Invoice 606; terms 2/10, n/30.

5

Purchased merchandise for $5,150, plus a freight charge of $100, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.

9

Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.

10


Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $350 that was returned; the goods were purchased on Invoice 1011, dated June 5.

11

Purchased merchandise for $1,610 from BioCenter Inc., Invoice 612; terms 2/10, n/30.

14

Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.

15


Purchased merchandise with a list price of $8,500 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.

20

Issued Check 104 to purchase merchandise, $2,300.

25

Returned merchandise purchased on June 20 as defective, receiving a cash refund of $210.

30

Purchased merchandise for $2,500, plus a freight charge of $78, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.


Required: Journalize the transactions in a general journal. ==============================================

ACC 291 Week 2 Assignment Financial Reporting Problem, Apple Inc For more course tutorials visit

www.acc291.com Purpose of Assignment The purpose of this assignment is to help you understand the basics of financial statement analysis related to the assets section of the balance sheet, data interpretation, and how financial information is obtained to understand how a company accounts for its long-lived assets. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Note: The financial statements of Apple, Inc. are presented in Appendix A of Financial Accounting. Instructions for accessing and using the company's complete annual report, including the notes to the financial statements, are also provided in Appendix A.


Complete a 1,050-word summary of findings and recommendations from the following questions: · What were the total cost and book value of property, plant, and equipment at September 27, 2014? · Using the notes to find financial statements, what method or methods of depreciation are used by Apple for financial reporting purposes? · What was the amount of depreciation and amortization expense for each of the three years 2012-2014? (Hint: Use the statement of cash flows). · Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased in 2014 and 2013? · Using the notes to the financial statements, explain in the summary how Apple accounted for its intangible assets in 2014. Use the Week 2 Excel® spreadsheet to show your work and submit with your summary. Click the Assignment Files tab to submit your assignment. ==============================================

ACC 291 Week 2 Practice Connect Practice Assignment (Score 10/10) For more course tutorials visit

www.acc291.com


Question 1 Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow: DATE TRANSACTIONS 2019 Sept. 2 Purchased ski boots for $6,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.

3

Purchased skis for $12,200 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.

7


Received Credit Memorandum 165 for $1,000 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.

11

Purchased ski jackets for $5,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.

12

Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.

22


Purchased ski poles for $4,760 plus a freight charge of $170 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.

23

Purchased ski pants for $3,250 from Swenson Ski Goods, Invoice 528, terms n/30.

25

Received Credit Memorandum 245 for $400 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.

27


Purchased ski sweaters for $3,600 plus a freight charge of $150 from Colorado Ski Shop, Invoice 6722, terms n/30.

30

Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.

Required: Record the transactions in a general journal.

Analyze: What was the amount of the cash discount on September 12?

Question 2


NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:

DATE

TRANSACTIONS

2019

June

1

Issued Check 101 to purchase merchandise, $4,500.


3

Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.

5

Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.

9

Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.


10

Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5.

11

Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.

14

Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.

15


Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.

20

Issued Check 104 to purchase merchandise, $3,000.

25

Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.

30


Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.

Required: Journalize the transactions in a general journal.

Analyze: What was the amount of trade discounts received on the June 15 purchase from Park Research?

Question 3

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s


purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:

DATE

TRANSACTIONS

2019

Sept.

2

Purchased ski boots for $6,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.


3

Purchased skis for $12,200 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.

7

Received Credit Memorandum 165 for $1,000 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.

11

Purchased ski jackets for $5,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.

12


Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.

22

Purchased ski poles for $4,760 plus a freight charge of $170 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.

23

Purchased ski pants for $3,250 from Swenson Ski Goods, Invoice 528, terms n/30.

25


Received Credit Memorandum 245 for $400 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.

27

Purchased ski sweaters for $3,600 plus a freight charge of $150 from Colorado Ski Shop, Invoice 6722, terms n/30.

30

Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.

Required:


Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.

Prepare a schedule of accounts payable.

GENERAL LEDGER ACCOUNTS

101

Cash, $27,000 Dr.

201


Accounts Payable

501

Purchases

502

Freight In

503

Purchases Returns and Allowances

504

Purchases Discounts


ACCOUNTS PAYABLE LEDGER ACCOUNTS

Alaska Supply Company

Cold Mountain Clothing Company

Colorado Ski Shop

Swenson Ski Goods

Analyze:

What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.


Question 4

NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:

DATE

TRANSACTIONS

2019


June

1

Issued Check 101 to purchase merchandise, $4,500.

3

Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.

5

Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.


9

Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.

10

Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5.

11

Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.


14

Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.

15

Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.

20

Issued Check 104 to purchase merchandise, $3,000.


25

Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.

30

Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.

Required:

Post the transactions in to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger. Prepare a schedule of accounts payable at June 30, 2019.

GENERAL LEDGER ACCOUNTS


101

Cash, $37,400 Dr.

201

Accounts Payable

501

Purchases

502

Purchases Returns and Allowances

503


Purchases Discounts

504

Freight In

ACCOUNTS PAYABLE LEDGER ACCOUNTS

BioCenter Inc. New Concepts Corporation Park Research

Analyze: What was the amount of merchandise returned to vendors by NewTech Medical Devices in June?


Question 5

Bowden Company (buyer) and Song, Inc. (seller), engaged in the following transactions during January 2019:

Bowden Company

DATE

TRANSACTIONS

2019


Jan.

8

Issued Check 2101 for $2,940 on account to Song, Inc., in payment of Invoice 1885 dated December 30, 2018, less cash discount of $60.

10

Purchased merchandise for $3,500 from Song, Inc., Invoice 1920; terms 2/10, n/30.

15

Received Credit Memorandum 320 from Song, Inc., for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.


19

Paid amount due to Song, Inc., for Invoice 1920 of January 10, less the return of January 15 and less the cash discount, Check 2130.

30

Purchased merchandise for $4,400 from Song, Inc., Invoice 1950; terms 2/10, n/30.

GENERAL LEDGER ACCOUNTS—BOWDEN COMPANY

201 Accounts Payable, $3,000 Cr.


ACCOUNTS PAYABLE LEDGER ACCOUNT—BOWDEN COMPANY

Song, Inc., $3,000

Song, Inc.

DATE

TRANSACTIONS

2019


Jan.

8

Received payment of $2,940 on account from Bowden Company in payment of Invoice 1885 dated December 30, 2018, less cash discount of $60.

10

Sold merchandise for $3,500 on account to Bowden Company, Invoice 1920, terms 2/10, n/30.

15

Issued Credit Memorandum 320 to Bowden Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.


19

Received payment from Bowden Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount.

30

Sold merchandise for $4,400 to Bowden Company, Invoice 1950; terms 2/10, n/30.

GENERAL LEDGER ACCOUNTS—SONG, INC.

111 Accounts Receivable, $3,000 Dr.


ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SONG, INC.

Bowden Company, $3,000

Required:

Journalize the transactions above in a general journal for both Bowden Company and Song, Inc.

Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Bowden Company.

Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Song, Inc.

Analyze:


What is the balance of the accounts payable for Song, Inc., in the Bowden Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Bowden Company in the Song, Inc., accounts receivable subsidiary ledger?

==============================================

ACC 291 Week 2 Textbook Exercise BE 8-8, E8-4, E814, E9-4 For more course tutorials visit

www.acc291.com ACC 291 Week 2 Textbook Exercise BE 8-8, E8-4, E8-14, E9-4 Chapter 8: BE8-8 Determine maturity dates and compute interest and rates on notes. E8-4 The ledger of Macarty Company at the end of the current year shows Accounts Receivable $78,000, Credit Sales $810,000, and Sales Returns and Allowances $40,000. Instructions (a) If Macarty uses the direct write�off method to account for uncollectible accounts, journalize the adjusting entry at December 31,


assuming Macarty determines that Matisse's $900 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. Determine bad debt expense, and prepare the adjusting entry. Chapter 8: E8-14 Compute ratios to evaluate a company's receivables balance. (LO 4), AN E8-14 Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) 017 2016 Accounts receivable (gross) $ 3,587 $ 4,517 Accounts receivable (net) 3,391 4,359 Allowance for doubtful accounts 196 158 Sales revenue 35,497 37,953 Total current assets 7,116 7,244 Instructions


Answer each of the following questions. (a) Calculate the accounts receivable turnover and the average collection period for 2017 for FedEx. (b) Is accounts receivable a material component of the company's total current assets? (c) Evaluate the balance in FedEx's allowance for doubtful accounts.

Chapter 9: E9-4 Understand depreciation concepts. (LO 2), C E9-4 Alysha Monet has prepared the following list of statements about depreciation. Depreciation is a process of asset valuation, not cost allocation. Depreciation provides for the proper matching of expenses with revenues. The book value of a plant asset should approximate its fair value. Depreciation applies to three classes of plant assets: land, buildings, and equipment. Depreciation does not apply to a building because its usefulness and revenue�producing ability generally remain intact over time. The revenue�producing ability of a depreciable asset will decline due to wear and tear and to obsolescence.


Recognizing depreciation on an asset results in an accumulation of cash for replacement of the asset. The balance in accumulated depreciation represents the total cost that has been charged to expense since placing the asset in service. Depreciation expense and accumulated depreciation are reported on the income statement. Three factors affect the computation of depreciation: cost, useful life, and salvage value. Instructions Identify each statement as true or false. If false, indicate how to correct the statement. ==============================================

ACC 291 Week 2 Wileyplus Assignment P8-3A, BE911, DI9-5, E9-7, E9-8, BYP9, P9-2A (New) For more course tutorials visit

www.acc291.com ¡P8-3A, BE9-11, DI9-5, E9-7, E9-8, BYP9, P9-2A. Problem 8-3A: Bosworth Company Brief Exercise 9-11: Nike, Inc. Do It! 9-5


Exercise 9-7: Wang, Co. Exercise 9-8: Cleand Company Broadening Your Perspective 9-1: Tootsie Roll Broadening Your Perspective 9-2: Tootsie& Hershey Problem 9-2A: Navaro Corporation ==============================================

ACC 291 Week 3 Apply Connect Assignment (Score 10/10) (With Excel File) For more course tutorials visit

www.acc291.com This Tutorial contains an Excel File which can be used for any change in values

ACC 291 Week 3 Apply Connect Assignment

1.

On August 1, 2019, the accountant for Western Imports downloaded the company's July 31, 2019, bank statement from the bank's Website. The


balance shown on the bank statement was $28,710. The July 31, 2019, balance in the Cash account in the general ledger was $14,537. Jenny Irvine, the accountant for Western Imports, noted the following differences between the bank's records and the company's Cash account in the general ledger:

An electronic funds transfer for $13,900 from FoncierRicard, a customer located in France, was received by the bank on July 31. Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,270. The accounting records indicate that Check 1425 was issued for $60 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $90. A deposit of $750 made after banking hours on July 31 did not appear on the July 31 bank statement. The following checks were outstanding: Check 1429 for $1,244, and Check 1430 for $136. An automatic debit of $257 on July 31 from CentralComm for telephone service appeared on the bank statement but had not been recorded in the company's accounting records.

Required:


Prepare a bank reconciliation for the firm as of July 31. Record general journal entries for the items on the bank reconiliation that must be journalized.

Analyze: What effect on total expenses occurred as a result of the general journal entries recorded?

2.

On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,362. The balance shown on the bank statement on the same date was $13,242.


Notes

The firm’s records indicate that a $1,540 deposit dated August 30 and a $710 deposit dated August 31 do not appear on the bank statement. A service charge of $8 and a debit memorandum of $365 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.) The following checks were issued but have not yet been paid by the bank:

Check 712,

$

119

Check 713,


$

134

Check 716,

$

247

Check 736,

$

586


Check 739,

$

87

Check 741,

$

129


A credit memorandum shows that the bank collected a $2,129 note receivable and interest of $72 for the firm. These amounts have not yet been entered in the firm’s records. Required:

Prepare a bank reconciliation statement for the firm as of August 31. Record general journal entries for items on the bank reconciliation statement that must be journalized.

Analyze: What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?


Royal Jewels, a retail business, started business on June 25, 2019. It keeps a $300 change fund in its cash register. The cash receipts for the period from June 25 to June 30, 2019 are below.

DATE TRANSACTIONS

June

25

Cash sales per the cash register tape, $1,226.

Cash count, $1,518.

26

Cash sales per the cash register tape, $1,336.


Cash count, $1,629.

27

Cash sales per the cash register tape, $1,347.

Cash count, $1,650.

28

Cash sales per the cash register tape, $1,278.

Cash count, $1,571.

29

Cash sales per the cash register tape, $1,123.

Cash count, $1,428.

30

Cash sales per the cash register tape, $1,364.

Cash count, $1,657.

Required:


Record the cash receipts from June 25 to June 30, 2019, in a general journal.

Post the amounts for Cash Short or Over in the journal entries to the general ledger.

Analyze:

How will the balance in Cash Short or Over on June 30 be reported in the financial statements?

==============================================

==============================================

==============================================

ACC 291 Week 3 Assignment The Liabilities Section of O’Brian’s Balance Sheet


For more course tutorials visit

www.acc291.com Purpose of Assignment The purpose of this assignment is to help you understand the balance sheet presentation for the liabilities of a company. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Prepare the liabilities section of O’Brian’s balance sheet using the following information: ·

Accounts payable $157,000

·

Notes payable (due May 1, 2018) $20,000

·

Bonds payable (due 2021) $900,000

·

Unearned rent revenue $240,000

·

Discount on bonds payable $41,000

·

FICA taxes payable $7,800

·

Interest payable (due 2019) $80,000

·

Income taxes payable $3,500

·

Sales taxes payable $1,700


The Liabilities Section of O’Brian’s balance sheet must be 525 words. Show work on the Week 3 Excel® spreadsheet. Note: This assignment requires that you only submit an Excel® Workbook file. There are no written or APA guideline requirements. Click the Assignment Files tab to submit your assignment. ==============================================

ACC 291 Week 3 Exercise BE 1-2, BE 10-3, BE 10-4, BE 10-5, BE 10-14 For more course tutorials visit

www.acc291.com BE 1-2, BE 10-3, BE 10-4, BE 10-5, BE 10-14 BRIEF EXERCISES Prepare entries for an interest‐bearing note payable. BE10-2 Hive Company borrows $90,000 on July 1 from the bank by signing a $90,000, 7%, 1‐year note payable. Prepare the journal entries to record (a) the proceeds of the note and (b) accrued interest at December 31, assuming adjusting entries are made only at the end of the year.


Compute and record sales taxes payable. BE10-3 Greenspan Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $10,388. All sales are subject to a 6% sales tax. Compute sales taxes payable and make the entry to record sales taxes payable and sales. Prepare entries for unearned revenues. BE10-4 Bramble University sells 3,500 season basketball tickets at $80 each for its 10�game home schedule. Give the entry to record (a) the sale of the season tickets and (b) the revenue recognized after playing the first home game. Compute gross earnings and net pay. BE10-5 Betsy Strand's regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Betsy works 47 hours. Betsy's federal income tax withholding is $95, and she has no voluntary deductions. Compute Betsy Strand's gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%. Analyze solvency. BE10-14 Suppose the 2017 Adidas financial statements contain the following selected data (in millions). Current assets $4,485 Interest expense $169 Total assets 8,875 Income taxes 113


Current liabilities 2,836 Net income 245 Total liabilities 5,099 Cash 775 Compute the following values and provide a brief interpretation of each. (a) Working capital. (b) Current ratio. (c) Debt to assets ratio. (d) Times interest earned. ==============================================

ACC 291 Week 3 Practice Connect Practice Assignment (100% Score) For more course tutorials visit

www.acc291.com ACC 291 Week 3 Practice Connect Practice Assignment

attempt 1


1

Florence Company received a bank statement showing a balance of $13,550 on November 30, 2019. During the bank reconciliation process, Florence’s accountant noted the following bank errors:

A check for $265 issued by Florentine, Inc., was mistakenly charged to Florence Company’s account.

Check 2782 was written for $200 but was paid by the bank as $1,200.

Check 2920 for $85 was paid by the bank twice.


A deposit for $580 on November 22 was credited by the bank for $850.

Assuming outstanding checks total $2,450, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation.

2

On January 2, The Public Legal Clinic issued Check 2108 for $450 to establish a petty cash fund. Indicate how this transaction would be recorded in a general journal.


3

Di Stefano Office Supply Company received a bank statement showing a balance of $70,005 as of March 31, 2019. The firm’s records showed a book balance of $71,487 on March 31. The difference between the two balances was caused by the following items.

A debit memorandum for $40, which covers the bank’s collection fee for the note (item 6).

A deposit in transit of $4,700.


A check for $348 issued by another firm that was mistakenly charged to Di Stefano’s account.

A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.

Outstanding checks: Check 3782 for $2,200; Check 3840 for $251.

A credit memorandum for a $7,300 noninterest-bearing note receivable that the bank collected for the firm.

Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.

4


After returning from a three-day business trip, the accountant for Southeast Sales, Johanna Estrada, checked bank activity in the company’s checking account online. The activity for the last three days follows.

Business Checking

Date Type

Account #123456-987

Description

Additions

Payments

Balance

09/24/2019 Loan Payment Online Transfer to CM XXXX $ 3,500.00 $ 15,675.06

09/24/2019 2,269.60

Deposit

DEPOSIT ID NUMBER 8888 $ 19,175.06

$


09/23/2019 Check CHECK #1554 (view) $ 3,500.00 $ 16,905.46

09/23/2019 Bill Payment Online Payment $ 36.05 $ 20,405.46

09/22/2019 Check CHECK #1553 (view) $ 240.00 $ 20,441.51

09/22/2019 Check CHECK #1551 (view) $ 1,750.00 $ 20,681.51

09/22/2019 8,900.00

ACH Credit Edwards UK AP PAYMENT $ 22,431.51

09/22/2019 ATM ATM WITHDRAWAL $ 240.00 $ 13,531.51

$


After matching these transactions to the company’s Cash account in the general ledger, Johanna noted the following unrecorded transactions:

The ATM withdrawal on 9/22/2019 was for personal use by the owner, Robert Savage.

The ACH credit on 9/22/2019 was an electronic funds payment received on account from Edwards UK, a credit customer located in Great Britain.

The bill payment made 9/23/2019 was to Waste Control Trash Services (utilities).

The loan payment on 9/24/2019 was an automatic debit by Central Motors for the company’s monthly payment on a loan for its automobiles. The loan does not bear interest.


Prepare the journal entries in a general journal to record the four transactions above. (Round your answers to 2 decimal places.)

5

Teng Corporation received a bank statement showing a balance of $15,700 as of October 31, 2019. The firm’s records showed a book balance of $15,262 on October 31. The difference between the two balances was caused by the following items.

A debit memorandum for an NSF check from Richard Wolf for $332.


Three outstanding checks: Check 7017 for $124, Check 7098 for $55, and Check 7107 for $1,560.

A bank service charge of $12.

A deposit in transit of $957.

Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement. Prepare the necessary journal entries for the year 2019.

==============================================

ACC 291 Week 3 Wileyplus Assignment P9-7A, E10-5, E10-8, E10-13, E10-22, E10-24, BYP10, P10-9A, P1013A, IFRS10-4 (New) For more course tutorials visit

www.acc291.com ¡P9-7A, E10-5, E10-8, E10-13, E10-22, E10-24, BYP10, P10-9A, P1013A, IFRS10-4.


Exercise 10-5: Olinger Company Exercise 10-8: Ortega Company Exercise 10-13: Romine Company Exercise 10-22: Cole Corporation Exercise 10-24: Nance, Co. Broadening Your Perspective 10-1: Tootsie Roll Broadening Your Perspective 10-2: Tootsie& Hershey Problem 9-7A: Farr Company Problem 10-9A: Wempe, Co. Problem 10-13A: Grace Herron IFRS10-4: Ratzlaff ==============================================

ACC 291 Week 4 Apply Connect Assignment (With Excel file) For more course tutorials visit

www.acc291.com This Tutorial contains an Excel File which can be used for any change in values (CONTAINS ALL QUESTIONS, SCROLL DOWN TO CHECK) Assignment 1


a.-b. Merchandise Inventory, before adjustment, has a balance of $6,600. The newly counted inventory balance is $7,100. 1. Unearned Seminar Fees has a balance of $5,100, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019. Two seminars had been conducted by June 30, 2019. 2. Prepaid Insurance has a balance of $6,600 for six months’ insurance paid in advance on May 1, 2019. 3. Store equipment costing $12,890 was purchased on March 31, 2019. It has a salvage value of $410 and a useful life of four years. 4. Employees have earned $160 that has not been paid at June 30, 2019. 5. The employer owes the following taxes on wages not paid at June 30, 2019: SUTA, $4.80; FUTA, $0.96; Medicare, $2.32; and social security, $9.92. 6. Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were $1,100,000. 7. Prepaid Rent has a balance of $5,250 for six months’ rent paid in advance on March 1, 2019. 8. The Supplies account in the general ledger has a balance of $310. A count of supplies on hand at June 30, 2019, indicated $105 of supplies remain. 9. The company borrowed $13,700 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 12 percent. Required:


Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019. The company has a June 30 fiscal year-end. Analyze: After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?

Assignment 1

The Green Thumb Gardener

Merchandise inventory on December 31, 2019, is $11,521.


During 2019, the firm had net credit sales of $27,000; the firm estimates that 0.6 percent of these sales will result in uncollectible accounts.

On December 31, 2019, an inventory of the supplies showed that items costing $235 were on hand.

On October 1, 2019, the firm signed a six-month advertising contract for $960 with a local newspaper and paid the full amount in advance.

On January 2, 2018, the firm purchased store equipment for $7,620. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $520.


On January 2, 2018, the firm purchased office equipment for $1,120. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $120.

On December 31, 2019, the firm owed salaries of $1,750 that will not be paid until 2020.

On December 31, 2019, the firm owed the employer’s social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,750 of accrued wages.

On December 31, 2019, the firm owed federal unemployment tax (assume 0.6 percent) and state unemployment tax (assume 5.4 percent) on the entire $1,750 of accrued wages.


Assignment 2

TRANSACTIONS

Signed a lease for an office and issued Check 101 for $14,100 to pay the rent in advance for six months.

Borrowed money from Second National Bank by issuing a four-month, 12 percent note for $32,800; received $31,488 because the bank deducted the interest in advance.


Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $6,600 per month; received the entire fee of $79,200 in advance.

Purchased office equipment for $26,400 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of six years and a $1,920 salvage value. The equipment will be depreciated using the straight-line method.

Purchased a one-year insurance policy and issued Check 102 for $1,692 to pay the entire premium.


Purchased office furniture for $18,400 from Furniture Warehouse; issued Check 103 for $10,400 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of five years and a $1,000 salvage value. The office furniture will be depreciated using the straight-line method.

Purchased office supplies for $1,930 with Check 104. Assume $860 of supplies are on hand July 31, 2019. ==============================================

ACC 291 Week 4 Exercise E11-2, E11-5, E11-7, E11-13 For more course tutorials visit

www.acc291.com


Journalize issuance of common stock and preferred stock and purchase of treasury stock. E11-2 Sagan Co. had these transactions during the current period. June 12 Issued 80,000 shares of $1 par value common stock for cash of $300,000. July  11 Issued 3,000 shares of $100 par value preferred stock for cash at $106 per share. Nov. 28 Purchased 2,000 shares of treasury stock for $9,000. Prepare correct entries for capital stock transactions. E11-5 Mesa Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's capital stock.

Compare effects of a stock dividend and a stock split. E11-7 On October 31, the stockholders' equity section of Manolo Company's balance sheet consists of common stock $648,000 and retained earnings $400,000. Manolo is considering the following two courses of action: (1) declaring a 5% stock dividend on the 81,000 $8 par value shares outstanding or (2) effecting a 2‐for‐1 stock split that will reduce par value to $4 per share. The current market price is $17 per share.


Instructions Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Use these column headings: Before Action, After Stock Dividend, and After Stock Split. Calculate ratios to evaluate profitability and solvency. E11-13 Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its outstanding bonds on January 1, 2017. The following information is available for the company for 2017 and 2016. (a) Compute the return on common stockholders' equity for both years. (b) Explain how it is possible that net income increased but the return on common stockholders' equity decreased. (c) Compute the debt to assets ratio for both years, and comment on the implications of this change in the company's solvency. ==============================================

ACC 291 Week 4 Practice Connect Assignment (100% Score) For more course tutorials visit

www.acc291.com ACC 291 Week 4 Practice Connect Practice Assignment


attempt 1

1

During the year 2019, Sampson Company had net credit sales of $1,950,000. Past experience shows that 1.5 percent of the firm’s net credit sales result in uncollectible accounts. Equipment purchased by Park Consultancy for $38,220 on January 2, 2019, has an estimated useful life of 10 years and an estimated salvage value of $2,700. What adjustment for depreciation should be recorded on the firm’s worksheet for the year ended December 31, 2019? On December 31, 2019, Giant Plumbing Supply owed wages of $11,400 to its factory employees, who are paid weekly. On December 31, 2019, Giant Plumbing Supply owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $11,400 of accrued wages for its factory employees. On December 31, 2019, Giant Plumbing Supply owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $11,400 of accrued wages for its factory employees.

2


On December 1, 2019, Jim’s Java Joint borrowed $50,000 from its bank in order to expand its operations. The firm issued a four-month, 6 percent note for $50,000 to the bank and received $49,000 in cash because the bank deducted the interest for the entire period in advance.

In general journal form, show the entry that would be made to record this transaction and the adjustment for prepaid interest that should be recorded on the firm’s worksheet for the year ended December 31, 2019.

3

On December 31, 2019, the Notes Payableaccount at Northwood Manufacturing Company had a balance of $16,000. This balance represented a three-month, 7.5 percent note issued on November 1. On January 2, 2019, Hitech Computer Consultants purchased flash drives, paper, and other supplies for $5,230 in cash. On December 31, 2019, an inventory of supplies showed that items costing $1,590 were on hand. The Suppliesaccount has a balance of $5,230. On September 1, 2019, North Dakota Manufacturing paid a premium of $14,640 in cash for a one-year insurance policy. On December 31, 2019, an examination of the insurance records showed that coverage for a period of four months had expired.


On May 1, 2019, Headcase Beauty Salon signed a one-year advertising contract with a local radio station and issued a check for $10,800 to pay the total amount owed. On December 31, 2019, the Prepaid Advertisingaccount has a balance of $10,800. For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 2019, worksheet assuming no previous adjusting entries have been made during the year.

4

The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019, has $199,000 recorded in the Debit column and $215,345 in the Credit column on the line for the Income Summary account.

What were the beginning and ending balances for Merchandise Inventory?

5


On December 31, 2019, the Notes Payable account at Vanessa’s Boutique Shop had a balance of $90,000. This amount represented funds borrowed on a six-month, 8 percent note from the firm’s bank on December 1.

Record the journal entry for interest expense on this note that should be recorded on the firm’s worksheet for the year ended December 31, 2019. ==============================================

ACC 291 WEEK 4 Stockholders’ Equity Section of the Balance Sheet (Lachlin Corporation Balance Sheet) For more course tutorials visit

www.acc291.com Purpose of Assignment The purpose of this assignment is to help you become familiar with examining the stockholders' equity section of the balance sheet. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet (partial) below: ·

How many shares of common stock are outstanding?


· Assuming there is a stated value, what is the stated value of the common stock? ·

What is the par value of the preferred stock?

· If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock? · If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? ==============================================

ACC 291 Week 4 Wileyplus Assignment Do It! 11-1, E11-5, E11-7, BYP11-1, BYP11-2, P11-5A, P11-8A (New) For more course tutorials visit

www.acc291.com ·Do It! 11-1, E11-5, E11-7, BYP11-1, BYP11-2, P11-5A, P11-8A. Do It! 11-1 Exercise 11-5 Garcia Corporation Exercise 11-7 Pele Company Broadening Your Perspective 11-1 Tootsie Roll Broadening Your Perspective 11-2 Tootsie Roll & Hershey Problem 11-5A Pringle Corporation


Problem 11-8A Everett Corporation ==============================================

ACC 291 Week 5 Assignment Financial Reporting Problem II For more course tutorials visit

www.acc291.com Purpose of Assignment The purpose of this assignment is to expose you to the basic process involved in the analysis of the cash flow statement. Assignment Steps Resources: Appendix A of Financial Accounting: Tools for Business Decision Making Note: This is a two part assignment. Part 1 Answer questions A-F in problem CT12-1 in Financial Accounting (p. 640). Provide an 875-word analysis of your findings. Include conclusions concerning the management of the company's cash. Part 2


Complete a 1,050-word summary of findings and recommendations from the following questions: • What is the par or stated value per share of Apple's common stock? • What percentage of Apple's authorized common stock was issued at September 27, 2014? • How many shares of common stock were outstanding at September 28, 2013, and at September 27, 2014? • Calculate the payout ratio, earnings per share, and return on common stockholders' equity for 2014. Use the Week 5 Excel® spreadsheet and submit with your analysis and summary. ==============================================

ACC 291 Week 5 Exercise E12-3, E12-10 For more course tutorials visit

www.acc291.com Prepare the operating activities section—indirect method. E12-3 Sosa Company reported net income of $190,000 for 2017. Sosa also reported depreciation expense of $35,000 and a loss of $5,000 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 increase in prepaid expenses.


Instructions Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method. Compare free cash flow of two companies.

E12-10 Information for two companies in the same industry, Merrill Corporation and Wingate Corporation, is presented here. Merrill Corporation Wingate Corporation Net cash provided by operating activities $ 80,000 $100,000 Average current liabilities   50,000  100,000 Net income   200,000  200,000 Capital expenditures    40,000    70,000 Dividends paid     5,000    10,000 Instructions Compute free cash flow for both companies and compare. ==============================================

ACC 291 Week 5 Wileyplus Assignment E7-3, E12-1, E12-8, P12-9A, P12-10A, E13-3, E13-4, IFRS13-1, P132A (New)


For more course tutorials visit

www.acc291.com ¡ E7-3, E12-1, E12-8, P12-9A, P12-10A, E13-3, E13-4, IFRS13-1, P132A. Exercise 7-3 Exercise 12-1 Exercise 12-8 Problem 12-9A Problem 12-10A Exercise 13-3 Exercise 13-4 International Financial Reporting Standards 13-1 Problem 13-2A ==============================================

ACC 291 New Education Your Life--- acc291.com  
ACC 291 New Education Your Life--- acc291.com  
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