acct 550 intermediate accounting complete...

ACCT 550 Intermediate Accounting Complete Class

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ACCT 550 Intermediate Accounting Complete Class

ACCT 550 Week 1 Homework Assignment

E3-1 (Transaction Analysis—Service Company) Christine Ewing is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.

April 2 Invested $30,000 cash and equipment valued at $14,000 in the business.2 Hired a secretary-receptionist at a salary of $290 per week payable monthly.3 Purchased supplies on account $700. (debit an asset account.)7 Paid office rent of $600 for the month.

11Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.)

12 Received $3,200 advance on a management consulting engagement.17 Received cash of $2,300 for services completed for Ferengi Co.21 Paid insurance expense $110.30 Paid secretary-receptionist $1,160 for the month.30 A count of supplies indicated that $120 of supplies had been used.

30Purchased a new computer for $5,100 with personal funds. (The computer will be used exclusively for business purposes.)

E3-5 (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

Debit CreditPrepaid Insurance $ 3,600Supplies 2,800Equipment 25,000

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Accumulated Depreciation—Equipment $ 8,400Notes Payable 20,000Unearned Rent Revenue 6,300Rent Revenue 60,000Interest ExpenseSalaries and Wages Expense 14,000

An analysis of the accounts shows the following.

The equipment depreciates $250 per month.

One-third of the unearned rent was earned during the quarter.

Interest of $500 is accrued on the notes payable.

Supplies on hand total $650.

Insurance expires at the rate of $300 per month.

most directly related to measuring the performance and financial status of an enterprise are provided below.

Assets Distributions to owners ExpensesLiabilities Comprehensive income GainsEquity Revenues LossesInvestments by owners

Identify the element or elements associated with the 12 items below.

CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choice questions.


Chapter 4: E4-4

1. A) Webster Company

Multiple-Step Income statement

For the Year Ended December 31, 2012

Sales $96,500

Cost of Goods Sold 63,570

Gross Profit on Sales 32,930

1. B) Webster Company

Single-Step Income Statement


Revenue

Sales 96,500

Rent Revenue

Chapter 4: E4-12

Net Income:

Income from continuing operations

Before income tax 21,650,000

Income tax (21,650,000 x 35%) 7,577,500

Income from continuing operations 14,072,500

Chapter 4: P4-1

Dickinson Company

Income Statement



E5-2 (Classification of Balance Sheet Accounts) Presented below are the captions of Faulk Company’s balance sheet

(a) Current assets. (b) Investments. (c) Property, plant, and equipment. (d) Intangible assets. (e) Other assets. Instructions (f) Current liabilities. (g) Noncurrent liabilities. (h) Capital stock. (i) Additional paid-in capital. (j) Retained earnings. Indicate by letter where each of the following items would be classified.

1. Preferred stock. 2. Goodwill. 3. Salaries and wages payable. 4. Accounts payable. 5. Buildings. 6. Equity investments (trading). 7. Current maturity of long-term debt. 8. Premium on bonds payable. 9. Allowance for doubtful accounts. 10. Accounts receivable.11. Cash surrender value of life insurance. 12. Notes payable (due next year). 13. Supplies. 14. Common stock. 15. Land. 16. Bond sinking fund. 17. Inventory. 18. Prepaidinsurance. 19. Bonds payable. 20. Income taxes payable

E 5-4, E 5-12, E 5-13, P 5-2

E5-13

E5-13 (Statement of Cash Flows—Classifications) The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as:

1. Operating activity—add to net income.

2. Operating activity—deduct from net income.

3. Investing activity.

4. Financing activity.

5. Reported as significant noncash activity


E6-5 (Computation of Present Value) Using the appropriate interest table, compute the present valuesof the following periodic amounts due at the end of the designated periods.(a) $30,000 receivable at the end of each period for 8 periods compounded at 12%.This is a case of annuity because the person is receiving the amount at the end of each period.

E6-12 (Analysis of Alternatives) The Black Knights Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Black Knights has decided to locate a new factory in the Panama City area. Black Knights will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three buildings. Building A: Purchase for a cash price of $600,000, useful life 25 years. Building B: Lease for 25 years with annual lease payments of $69,000 being made at the beginning of the year. Building C: Purchase for $650,000 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $7,000. Rental payments will be received at the end of each year. The Black Knights Inc. has no aversion to being a landlord. Instructions In which building would you recommend that The Black Knights Inc. locate, assuming a 12% cost of funds?

E7-5 (Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.

Instructions (a) Prepare journal entries on the Arnold Company books to record all the events noted above under each of the following bases. (1) Sales and receivables are entered at gross selling price.

(2) Sales and receivables are entered at net of cash discounts. (b) Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29

E7-7 (Recording Bad Debts) Duncan Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable$100,000 Allowance for Doubtful Accounts$2,000 Sales (all on credit) 900,000 Sales Returns and Allowances 50,000


E8-3 (Inventoriable Costs) Assume that in an annual audit of Harlowe Inc. at December 31, 2014, you find the following transactions near the closing date.

A special machine, fabricated to order for a customer, was finished and specifically segregated inthe back part of the shipping room on December 31, 2014. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2015.

Merchandise costing $2,800 was received on January 3, 2015, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2014, f.o.b. destination.

A packing case containing a product costing $3,400 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked “Hold for shipping instructions.” Your investigation revealed that the customer’s order was dated December 18, 2014, but that the case was shipped and the customer billed on January 10, 2015. The product was a stock item of your

Merchandise received on January 6, 2015, costing $680 was entered in the purchase journal on January 7, 2015. The invoice showed shipment was made f.o.b. supplier’s warehouse on December 31, 2014. Because it was not on hand at December 31, it was not included in inventory. 5. Merchandise costing $720 was received on December 28, 2014, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment

Merchandise costing $720 was received on December 28, 2014, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment

P8-4 Hull Company’s record of transactions concerning part X for the month of April was as follows:

Purchases SalesApril 1 (bal on hand) 100 @ $5.00 April 5 300April 4 400 @ 5.10 April 12 200April 11 300 @ 5.30 April 27 800April 18 200 @ 5.35 April 28 150April 26 600 @ 5.60April 30 200 @ 5.80

(a)Compute the inventory at April 30 on each of the following bases. Assume that perpetualinventory records are kept in units only. Carry unit costs to the nearest cent.

First-in, first-out (FIFO)

1. b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory in (1), (2), and (3) above? Carry average unit costs to four decimal places

E9-1 The inventory of Oheto Company on December 31, 2013, consists of the following


Chapter 10 – E10-1, Chapter 10 – E10-3, Chapter 10 – E10-7,Chapter 10 – P10-8,


Chapter 11: E11-4, E11-9, E11-11, E11-17

ACCT 550 All Weeks 1-7 Discussions

Week 1 DQ 1 Case Discussion

Week 1 DQ 2 General Topic of Information


Week 2 DQ 2 The Income Statement


Week 3 DQ 2 Balance Sheet

Week 4 DQ 1 Problem Discussion

Week 4 DQ 2 Time Value of Money


Week 5 DQ 2 Inventory Cost


Week 6 DQ 2 Asset Valuation


Week 7 DQ 2 Asset Valuation

ACCT 550 Week 8 Course Project

Course Project, Inc.

Balance Sheet

Single Step Income Statement

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