1. Adjusting Entries: Unearned rent at 1/1/1X was $10,300 and at 12/31/1X was $10,000. The records indicate cash receipts from rental sources during 201X amounted to $50,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.
- Adjusting Entries: Data relating to the balances of various accounts affected by adjusting or closing entries appear below. (The entries which caused the changes in the balances are not given.) You are asked to supply the missing journal entries which would logically account for the changes in the account balances. Interest receivable at 1/1/1X was $5,000. During 201X cash received from debtors for interest on outstanding notes receivable amounted to $8,000. The 201X income statement showed interest revenue in the amount of $10,900. You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit.
- Adjusting Entries: Accumulated depreciation-equipment at 1/1/1X was $230,000. At 12/31/1X the balance of the account was $480,000. During 201X, one piece of equipment was sold. The equipment had an original cost of $40,000 and was 3/4 depreciated when sold. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit
- Adjusting Entries: Allowance for Doubtful accounts made on 1/1/1X was $40,000. The balance in the allowance account on 12/31/1X after making the annual adjusting entry was $50,000 and during 201X bad debts written off amounted to $30,000. You are to provide the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.
- Adjusting Entries: Prepaid rent at 1/1/1X was $50,000. During 201X rent payments of $110,000 were made and charged to "rent expense." The 201X income statement shows as a general expense the item "rent expense" in the amount of $140,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit.
- Adjusting Entries: Retained earnings at 1/1/1X were $100,000 and at 12/31/1X it was $350,000. During 201X, cash dividends of $40,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. For each journal entry write Dr. for debit and Cr. for credit
Presented below is information related to Square Company.
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Retained earnings, December 31, 20X2
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$2,750,000
|
|
Sales
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2,000,000
|
|
Selling and administrative expenses
|
240,000
|
|
Hurricane loss (pre-tax) on plant (extraordinary item)
|
250,000
|
|
Cash dividends declared on common stock
|
33,600
|
|
Cost of goods sold
|
960,000
|
|
Gain resulting from computation error on depreciation charge in 20X1 (pre-tax)
|
2,000,000
|
|
Other revenue
|
80,000
|
|
Other expenses
|
50,000
|
- Instructions: Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year.
The following balance sheet was prepared by the bookkeeper for Diamone Company as of December 31, 201x Diamond Company.
Balance Sheet as of December 31, 201X is as follows .
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8) Cash
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9) $90,000
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10) Accounts payable
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11) $75,000
|
|
12) Accounts receivable (net)
|
13) 42,200
|
14) Long-term liabilities
|
15) 100,000
|
|
16) Inventories
|
17) 57,000
|
18) Stockholders' equity
|
19) 218,500
|
|
20) Investments
|
21) 76,300
|
22)
|
23)
|
|
24) Equipment (net)
|
25) 96,000
|
26)
|
27)
|
|
28) Patents
|
29) 32,000
|
30)
|
31)
|
|
32)
|
33) $393,500
|
34)
|
35) $393,500
|
The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $5,000 and a bank overdraft of $4,000 has been deducted.
(2)The net accounts receivable balance includes:
(a) accounts receivable debit balances $50,000;
(b) accounts receivable credit balances $0; and
(c) allowance for doubtful accounts $3,800.
(3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
(4) Investments include investments in common stock, trading $13,000, available-for-sale $46,300, and franchises $17,000.
(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
Instructions:
Prepare a balance sheet in good form (stockholders' equity details can be omitted).
Do not worry about balancing the statement but rather use your time to compute the account balances properly for presentation purposes.
Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $2,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors.
|
|
9 Periods
|
10 Periods
|
11 Periods
|
|
Future Value of 1
|
1.99900
|
2.15892
|
2.33164
|
|
Present Value of 1
|
.50025
|
.46319
|
.42888
|
|
Future Value of
|
|
12.48756
|
14.48656
|
|
Ordinary Annuity of 1
|
|
|
|
|
Present Value of
|
6.24689
|
6.71008
|
7.13896
|
|
Ordinary Annuity of 1
|
|
|
|
|
Present Value of
|
6.74664
|
7.24689
|
7.71008
|
|
Annuity Due of 1
|
|
|
|
(a) Assuming the computer has an 11-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?
(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?
Question- Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $2,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors.
|
|
9 Periods
|
10 Periods
|
11 Periods
|
|
Future Value of 1
|
1.99900
|
2.15892
|
2.33164
|
|
Present Value of 1
|
.50025
|
.46319
|
.42888
|
|
Future Value of
|
|
12.48756
|
14.48656
|
|
Ordinary Annuity of 1
|
|
|
|
|
Present Value of
|
6.24689
|
6.71008
|
7.13896
|
|
Ordinary Annuity of 1
|
|
|
|
|
Present Value of
|
6.74664
|
7.24689
|
7.71008
|
|
Annuity Due of 1
|
|
|
|
|
(a) Assuming the computer has an 11-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?
(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?
David deposits all receipts and makes all payments by check. The following information is available from the cash records.
MARCH 31 BANK RECONCILIATION
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Balance per bank
|
$26,746
|
|
|
Add: Deposits in transit
|
2,100
|
|
|
Deduct: Outstanding checks
|
(3,800)
|
|
|
Balance per books
|
$25,046
|
|
|
Month of April Results
|
Per Bank
|
Per Book
|
|
Balance April 30
|
$27,995
|
$24,355
|
|
April deposits
|
8,864
|
14,889
|
|
April checks
|
12,200
|
16,080
|
|
April note collected
|
3,000
|
-0-
|
|
(not included in April deposits)
|
|
|
|
April bank service charge
|
35
|
-0-
|
|
April NSF check of a customer
|
900
|
-0-
|
|
returned by the bank
|
|
|
|
(recorded by bank as a charge)
|
|
|
Instructions
Calculate the amount of the April 30
(1) deposits in transit; and
(2) outstanding checks.
Show all your work for potential partial credit.
Steve Company was formed on December 1, 2010. The following information is available from Steve's inventory record for Product X.
|
|
Units
|
Unit Cost
|
|
January 1, 2011 (beginning inventory)
|
1,500
|
$19.00
|
|
Purchases:
|
|
|
|
January 5, 2011
|
2,600
|
$20.00
|
|
January 25, 2011
|
2,400
|
$21.00
|
|
February 16, 2011
|
1,000
|
$22.00
|
|
March 15, 2011
|
2,300
|
$24.00
|
A physical inventory on March 31, 2011, shows 2,800 units on hand.
Instructions:
Prepare schedules to compute the ending inventory at March 31, 2011, under each of the following inventory methods.
(a) FIFO
(b) LIFO
(c) Weighted-average
Show supporting computations in good form.
On January 2, Year 1, Logan Co. purchased a manufacturing machine for $864,000. The machine has an 8year estimated life and a $144,000 estimated salvage value. Logan expects to manufacture 1,800,000 units over the life of the machine. During Year 2, Logan manufactured 300,000 units.