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.
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April
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2
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Invested $30,000 cash and
equipment valued at $14,000 in the business.
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2
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Hired a secretary-receptionist at
a salary of $290 per week payable monthly.
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3
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Purchased supplies on account
$700. (debit an asset account.)
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7
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Paid office rent of $600 for the month.
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11
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Completed a tax assignment and
billed client $1,100 for services rendered. (Use Service Revenue account.)
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12
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Received $3,200 advance on a
management consulting engagement.
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17
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Received cash of $2,300 for
services completed for Ferengi Co.
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21
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Paid insurance expense $110.
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30
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Paid secretary-receptionist $1,160
for the month.
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30
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A count of supplies indicated that
$120 of supplies had been used.
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30
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Purchased a new computer for
$5,100 with personal funds. (The computer will be used exclusively for
business purposes.)
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E3-5 (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the
current year includes the following selected accounts before adjusting entries
have been prepared.
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Debit
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Credit
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Prepaid Insurance
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$ 3,600
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Supplies
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2,800
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Equipment
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25,000
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Accumulated Depreciation—Equipment
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$ 8,400
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Notes Payable
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20,000
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Unearned Rent Revenue
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6,300
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Rent Revenue
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60,000
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Interest Expense
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Salaries and Wages Expense
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14,000
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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.
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Assets
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Distributions to owners
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Expenses
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Liabilities
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Comprehensive income
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Gains
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Equity
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Revenues
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Losses
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Investments by owners
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Identify the element or elements
associated with the 12 items below.
CA1-3 (Financial Reporting and
Accounting Standards) Answer the following
multiple-choice questions.
ACCT 550 Week 2 Homework Assignment
Chapter 4: E4-4
- 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
- B) Webster Company
Single-Step Income Statement
For the Year Ended December 31, 2012
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
For the Year Ended December 31, 2012
ACCT 550 Week 3 Homework Assignment
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.
- 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. Prepaid insurance. 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:
- Operating activity—add to net income.
- Operating activity—deduct from net income.
- Investing activity.
- Financing activity.
- Reported as significant noncash activity
ACCT 550 Week 4 Homework Assignment
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E6-5 (Computation of Present
Value) Using the appropriate interest table, compute the present values
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of the following periodic amounts
due at the end of the designated periods.
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(a) $30,000 receivable at the end
of each period for 8 periods compounded at 12%.
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This is a case of annuity because
the person is receiving the amount at the end of each period.
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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
ACCT 550 Week 5 Homework Assignment
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 in the 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:
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Purchases
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Sales
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April 1 (bal on hand)
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100 @ $5.00
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April 5
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300
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April 4
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400 @ 5.10
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April 12
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200
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April 11
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300 @ 5.30
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April 27
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800
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April 18
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200 @ 5.35
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April 28
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150
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April 26
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600 @ 5.60
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April 30
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200 @ 5.80
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(a)Compute the inventory at April 30
on each of the following bases. Assume that perpetual inventory records are
kept in units only. Carry unit costs to the nearest cent.
First-in, first-out (FIFO)
- 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
ACCT 550 Week 6 Homework Assignment
Chapter 10 – E10-1, Chapter 10
– E10-3, Chapter 10 – E10-7,Chapter 10 – P10-8,
ACCT 550 Week 7 Homework Assignment
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 1 Case Discussion
Week 2 DQ 2 The Income Statement
Week 3 DQ 1 Case Discussion
Week 3 DQ 2 Balance Sheet
Week 4 DQ 1 Problem Discussion
Week 4 DQ 2 Time Value of Money
Week 5 DQ 1 Problem Discussion
Week 5 DQ 2 Inventory Cost
Week 6 DQ 1 Problem Discussion
Week 6 DQ 2 Asset Valuation
Week 7 DQ 1 Case Discussion
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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