ACCT220 Full Course Latest All Discussion, Quizzes , Homework and Final

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ACCT220 Full course latest all discussion, quizzes ,
homework and final
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week1

Select a publicly traded U.S. corporation you would like to study this semester and ask the
professor for permission by posting a response here. You may search for the name of your
company and Investor Relations and look for SEC Filings
Your corporation must meet the following criteria:
1.
2.

It must have an SEC 10-K report for the current or most recent prior year.
It must have an Accounts Receivable and Inventory account.

Your corporation may NOT
1.
2.
3.

be the same corporation you used for SEC projects in other courses
be the same corporation a classmate selected
be a bank or any other type of financial institution

Discussion Requirements
1.

Write the name of the corporation, the stock market where it is traded, and its ticker
symbol in the Subject line when you respond to this posting and all other postings
related to this project.
For example:

2.

Under Armour; NYSE: UA
Apple; NASDAQ: APPL
Exxon Mobile; NYSE: XOM
State why you want to study and prepare a financial analysis of your corporation.

o
o
o

Provide a direct link to your corporation's SEC 10-K report for the most recent year. A
direct link is a hyperlink that takes you directly to a website where the SEC 10-K
report is located. For example, this is the direct link to the 2015 SEC 10-K report for
Apple,
Inc.:https://www.sec.gov/Archives/edgar/data/320193/000119312515356351/d1706
2d10k.htm

The most direct route to finding the direct link is to use the SEC EDGAR System and
search by Company name. The following link is a good place to start your search:
http://www.sec.gov/edgar/searchedgar/companysearch.html
3.
4.

State your corporation's position on the Fortune 500 List for the current year.
Provide page numbers for all four required financial statements:
o Income Statement (Hint: It could be listed as the Consolidated Statements of
Income.)
o Balance Sheet (Hint: It could be listed as the Consolidated Balance Sheet or
Statement of Financial Position.)
o Statement of Stockholders Equity (Hint: It could be listed as the Consolidated
Statements of Stockholder's Equity or Consolidated Statements of
Stockholder's Deficit.)
o Statement of Cash Flows

week 2

Read the prompt below and click the title above to respond.
1.

Locate the Income Statement (may have a different heading such as Statement of
Consolidated Operations). Hint: First line should relate to Revenue.
** What is the Description and Dollar Value of the first line on the Income Statement
(it may be net sales)?

2.

3.
4.
5.
6.

Locate the Balance Sheet (it may have a different heading, such as the Statement of
Financial Position).
** What are the names of the assets and their values (if more than five line items,
report only the first five line items and dollar values).
Take care with the concept of $ dollars. Many financial statements are expressed in
millions of $. You would report $895 million for the value $895,000,000. Be a very
careful reader.
Statement of Owners' Equity: Post the line items and dollar values in the "Equity"
section of the balance sheet. You will likely find line items including Common Stock,
Retained Earnings (or Deficit), and Treasury Stock.
Always include the name of your SEC 10-K company in the subject line and the link to
your SEC 10-K financial statement when posting.
What is the Net Income (or Net Loss) for your SEC 10-K company?

week 3

Read the Notes to the Financial Statements (FS) for your SEC 10-K company. These "notes"
are displayed after the financial statements.
1.
2.
3.
4.

Note 1 includes accounting information. What is the fiscal year for your SEC 10-K
Company? This may be June 30 each year, or it may be the Sunday closest to the last
day of January, or some other description.
Inventory: How is Inventory described for your SEC 10-K company? LIFO, FIFO,
and/or average cost? Relate your answer to topics in our course.
Income Statement: Is it a single-step or multi-step income statement?
Calculate the Gross Profit and Gross Profit Percentage for this year and last year,
creating a small table, such as the following:
This Year

Las

Net Sales

$1,200

$1,4

Cost of Goods Sold

800

1,20

Gross Profit

400

200

Gross Profit Percentage

33%

14%

In the example above, sales decreased, gross profit increased, and the gross profit percentage
increased. Therefore, sales are more profitable. We made 33 cents of gross profit on every
dollar of sales this year, but only 14 cents of gross profit on every dollar of sales last year.
Sales decreased, but sales are actually generating more profit overall, both as an absolute
dollar value and as a percentage.
Your description may be different, but these are comments you might make for this posting
and in your SEC 10-K paper and project.

week 5

Read the prompt below and click the title above to respond.
Using the SEC 10-K for your company, answer the following questions:
1.
2.

3.

Reading the notes to the financial statements, as well as the balance sheet, post
information about the Accounts Receivable for your company. Who owes the company
money?
Search for the phrase "Bad Debts" or Allowance (for collectible accounts). When you
read the balance sheet, you may see that the receivables are listed as a net of $x,xxx
to show the Allowance for Bad Debts. Comment about the changes in Accounts
Receivable and the Allowance for Bad Debts. Are they increasing or decreasing? How
does this relate to sales (are sales increasing or decreasing)?
Property, Plants, and Equipment / PPE (Capital Assets; Fixed Assets): Comment about
PPE and accumulated depreciation. How are these values changing from year to year:
PPE, Accumulated Depreciation, and Net PPE?

week 6

Read the guidelines below for peer review and click the title to respond.
Participating in the Peer Review process serves four purposes:
1) Each student has an opportunity to learn about another corporation.
2) Providing detailed and constructive feedback results in higher grades for all students.
3) Seeing how other students approached the project may provide insight for your to improve
your project.
4) At your discretion, you have an opportunity to edit your project before submitting it for a
grade.
To participate in the SEC 10K Peer Review process, post a draft of one or both documents as a
response to this discussion topic.
Ask for and volunteer to provide detailed and constructive to one or more of your classmates.

week 1

There are two problems on this assignment. Page down further after you complete problem 1.
Problem 1
Record the following journal entries below. The first two are done for you as examples.
Date Event
02-01-2016 Amanda Smith invested $20,000 cash in capital stock of newly formed corporation
04-01-2016 Purchased equipment on account for $15,000. Note that when you see on account
it means the customer will pay later.
12-01-2016 Received $30,000 from customers for services rendered. This was not previously
billed to customer.
15-01-2016 Received a bill for construction supplies used in the amount of $4,000.
18-01-2016 Provided $6,400 of services on account.
20-01-2016 Paid employees $4,600 for wages earned.
22-01-2016 Collected the amount due for work provided on January 18.
23-01-2016 Paid the amount due on equipment purchased on January 4.
25-01-2016 Purchased (and used immediately) construction supplies for cash in the amount of
$1,200.
31-01-2016 The company paid Amanda Smith a $3,000 dividend
GENERAL JOURNAL
DATE ACCOUNT DEBIT CREDIT
02-01-2016 Cash 20,000
Capital Stock 20,000

Issued stock to Amanda Smith for cash
04-01-2016 Equipment 15,000
Accounts Payable 15,000
Purchased equipment on account

week 2

Review the unadjusted trial balance below and prepare adjusting journal entries to record
the various described items
below. Record in the space provided at the bottom of this spreadsheet. After completing
journal entries, complete the

adjusted trial balance below. Lastly complete the income statement, balance sheet and
statement of retained earnings.
The balance sheet must balance. The accounting equation is Assets = Liabilities + Equity.
Baltimore Corporation
Unadjusted Trial Balance
January 31, 2016
Debits Credits
Cash $37,500 $Accounts receivable 12,410 Prepaid insurance 2,400 Supplies inventory 7,113 Equipment 35,000 Accumulated depreciation - 10,000
Accounts payable - 7,569
Salaries payable - Interest payable - Unearned revenue - 8,500
Loan payable - 11,500
Capital stock - 25,000
Retained earnings, Jan. 1 - 15,457
Revenues - 43,995
Depreciation expense - Interest expense - Insurance expense - -

Office expense 2,500 Rent expense 13,000 Salary expense 12,098 Supplies expense - Utilities expense - $1,22,021 $1,22,021
1 "Belair Corporation's equipment had an original life of 140 months, and the straightline depreciation method is used.
"
"As of January 1, the equipment was 40 months old. The equipment will be worthless at
the end of its useful life.
"
2 "As of the end of the month, Belair Corporation has provided services to customers for
which the earnings process is complete.
"
"Formal billings are normally sent out on the first day of each month for the prior month's
work. January's unbilled work is $25,000.
"
3 "Utilities used during January, for which bills will soon be forthcoming from providers,
are estimated at $1,500.
"
4 "A review of supplies on hand at the end of the month revealed items costing $3,500.
"
5 "The $2,400 balance in prepaid insurance was for a 6-month policy running from
January 1 to June 30.
"

6 "The unearned revenue was collected in December of 2014. 60% of that amount was
actually earned in January, with the remainder to be earned in February.
"
7 "The loan accrues interest at 1% per month. No interest was paid in January.
"
8 At month end, salaries of $2,120 have been earned but not paid.
JE # ACCOUNT DEBIT CREDIT
1
2
3
4
5
6
7
8
Baltimore Corporation
Adjusted Trial Balance
January 31, 2016
Debits Credits
Cash
Accounts receivable
Prepaid insurance
Supplies inventory
Equipment

Accumulated depreciation
Accounts payable
Salaries payable
Interest payable
Unearned revenue
Loan payable
Capital stock
Retained earnings, Jan. 1
Revenues
Depreciation expense
Insurance expense
Interest expense
Office expense
Rent expense
Salary expense
Supplies expense
Utilities expense
$- $Baltimore Corporation
Income Statement
For the month ended January 31, 2016
Baltimore Corporation
Balance Sheet

January 31, 2016
Baltimore Corporation
Statement of Retained Earnings
As of January 31, 2015

week 3
There are two homework problems this week. The first is below and the second one is on
the second tab at the bottom left of the screen
Below you will see an unadjusted trial balance run at year end followed by information
needed to make adjusting entries.
Baltimore Glass Company

Trial Balance
December 31, 2015
Acct.
No. Account Title Debit Credit
101 Cash 88,450
110 Accounts Receivable 1,95,613
120 Merchandise Inventory 2,56,250
125 Supplies on Hand 3,252
130 Prepaid Insurance 3,500
131 Prepaid Rent 7,500
150 Equipment 1,75,285
160 Accumulated Depreciation 24,260
202 Accounts Payable 72,555
210 Wages Payable 301 Capital Stock 2,20,000
302 Retained Earnings, January 1 2,11,144
401 Sales 9,98,250
405 Sales Returns and Allowances 5,145
410 Interest Income 1,500
500 Purchases 5,60,880
501 Purchases Discounts 4,080
502 Purchases Returns and Allowances 1,200
505 Freight In 4,580

520 Advertising Expense 1,000
530 Sales Salaries Expense 88,600
532 Supplies Expense 540 Office Salaries Expense 1,24,500
550 Utilities Expense 8,594
555 Insurance Expense 560 Professional Fees Expense 3,000
570 Depreciation Expense 580 Interest Expense 6,840
15,32,989 15,32,989
Adjusting items:
1. The remaining prepaid insurance at year end is $3,000
2. A physical inventory shows supplies on hand of $2,000 at year end
3. The prepaid rent of $7,500 covers January 2015 rent
4. Depreciation on equipment is $12,000 for the year
5. At year end sales salaries of $3,000 were earned but unpaid
6. At year end office salaries of $4,000 were earned but unpaid
7. Inventory items with a cost of $35,400 were received on the last day of the year but no
invoice was received yet.
8. A physical count of inventory shows a value of $219,100. The periodic inventory
method is used.
Do the following requirements below. Create proper headings for each statement.
1. Record adjusting journal entries from information above. It is possible that an item
may not require an entry
2. Prepare an adjusted trial balance including the adjusting entries made

3. Prepare a classified income statement. Supplies is a sales expense. January 1 inventory
was $219,115.
4. Prepare a statement of retained earnings
5. Prepare a classified balance sheet
6. Prepare closing journal entries
Account # Account Title debit credit
`
Baltimore Glass Company
Trial Balance
42369
Acct.
No. Account Title Debit Credit
101 Cash
110 Accounts Receivable
120 Merchandise Inventory
125 Supplies on Hand
130 Prepaid Insurance
131 Prepaid Rent
150 Equipment
160 Accumulated Depreciation
202 Accounts Payable
210 Wages Payable
301 Capital Stock
302 Retained Earnings, January 1

401 Sales
405 Sales Returns and Allowances
410 Interest Income
500 Purchases
501 Purchases Discounts
502 Purchases Returns and Allowances
505 Freight In
520 Advertising Expense
530 Sales Salaries Expense
532 Supplies Expense
540 Office Salaries Expense
550 Utilities Expense
555 Insurance Expense
560 Professional Fees Expense
570 Depreciation Expense
580 Interest Expense
00
Baltimore Glass Company
Income Statement
For the Year Ended 12/31/2015
Note on utilities, insurance, professional fees - I did not indicate where these expenses
belonged so you may have put some in selling expense also.
Note on depreciation - I did note indicate where this went so some of it could have gone
to selling expense or even to cost of goods sold

You would have needed more information to determine that
Note on interest - you could have combined as I did or shown them as separate items.
Baltimore Glass Company
Statement of Retained Earnings
For the Year Ended 12/31/2014
You could have skipped the line for dividends and had just three lines on the statement
since it was zero.
Baltimore Glass Company
Balance Sheet
42369
Closing Entries zero out income statement accounts for new year

There are two problems this week. Click on the tab at the bottom of the spreadsheet to see
problem 2.

Compute the ending inventory using the FIFO and the weighted average method below.
These are the same transactions used in week 3 homework:
units price
01-Jan Beginning inventory 3,500 $3.00
14-Jan Bought 1,500 $3.15
05-Feb Sold 1,000
22-Feb Bought 2,000 $3.20
07-Mar Sold 1,500
15-Mar Sold 2,000
05-Apr Bought 1,000 $3.25
10-Apr Sold 800
12-Apr Sold 800
22-Apr Sold 500
04-May Sold 600
10-May Bought 2,000 $3.30
25-May Sold 500
FIFO method (scroll down for Weighted Average entry area)
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.00 $10,500.00
Weighted Average Method
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.000 $10,500.00

week 4
There are two problems this week. Click on the tab at the bottom of the spreadsheet to see
problem 2.
Compute the ending inventory using the FIFO and the weighted average method below.
These are the same transactions used in week 3 homework:
units price
01-Jan Beginning inventory 3,500 $3.00
14-Jan Bought 1,500 $3.15
05-Feb Sold 1,000
22-Feb Bought 2,000 $3.20
07-Mar Sold 1,500
15-Mar Sold 2,000
05-Apr Bought 1,000 $3.25
10-Apr Sold 800
12-Apr Sold 800
22-Apr Sold 500
04-May Sold 600
10-May Bought 2,000 $3.30
25-May Sold 500

FIFO method (scroll down for Weighted Average entry area)
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.00 $10,500.00
Weighted Average Method
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.000 $10,500.00

There are two problems this week. Click on the tab at the bottom of the spreadsheet to see
problem 2.

Compute the ending inventory using the FIFO and the weighted average method below.
These are the same transactions used in week 3 homework:
units price
01-Jan Beginning inventory 3,500 $3.00
14-Jan Bought 1,500 $3.15
05-Feb Sold 1,000
22-Feb Bought 2,000 $3.20
07-Mar Sold 1,500
15-Mar Sold 2,000
05-Apr Bought 1,000 $3.25
10-Apr Sold 800
12-Apr Sold 800
22-Apr Sold 500
04-May Sold 600
10-May Bought 2,000 $3.30
25-May Sold 500
FIFO method (scroll down for Weighted Average entry area)
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.00 $10,500.00
Weighted Average Method
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.000 $10,500.00

week 5

There are two problems this week. Click on the tab at the bottom of the spreadsheet to see
problem 2.
Compute the ending inventory using the FIFO and the weighted average method below.
These are the same transactions used in week 3 homework:
units price
01-Jan Beginning inventory 3,500 $3.00
14-Jan Bought 1,500 $3.15
05-Feb Sold 1,000
22-Feb Bought 2,000 $3.20
07-Mar Sold 1,500
15-Mar Sold 2,000
05-Apr Bought 1,000 $3.25
10-Apr Sold 800
12-Apr Sold 800
22-Apr Sold 500
04-May Sold 600
10-May Bought 2,000 $3.30
25-May Sold 500

FIFO method (scroll down for Weighted Average entry area)
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.00 $10,500.00
Weighted Average Method
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.000 $10,500.00
For each of the items below, state if the lease is an operating lease or a capital lease
Reminder: Lessor is the party that owns the item, Lessee is the party using the item
The lessee reports the leased asset on its balance sheet
Payments are reported fully as rent expense
Ownership of the property passes to the lessee by the end of the lease term
The lease term is at least 75% of the remaining life of the property
Interest expense is measured and reported by the lessee
Depreciation of the leased asset is not reported by the lessee
At the inception of the lease, the lessee records both an asset and liability
The lessee reports a liability for the present value of all future payments anticipated under
the lease agreement
The lessor continues to report the tangible asset covered by the lease on its balance sheet
Listed below are nine fixed asset transactions. Record the journal entries. Dates and
descriptions are not required. The only account titles you will need are listed:
Account titles:
Cash

Land
Land Improvements
Building
Equipment
Expense (determine expense account title)
Prepaid account (determine full account title)
Paid $2,500 for one year insurance coverage on equipment
Paid $7,500 for trees and shrubs
Paid $500 attorney's fees for document preparation related to land purchase
Paid $150,000 for land and building. The land was separately valued at $40,000, and the
building at $120,000. Hint - the cash is only $150,000 and the entry must balance.
Paid $1,000 freight costs on purchase of new furniture
Paid $300 for staplers, trash cans, and desktop mats
Ordered new $50,000 truck, to be delivered and paid for in the future
Paid $10,000 of interest costs on loan on active building construction project
Paid $25,000 to expand parking lot paving
Depreciation
Ace Specialties bought a delivery truck for $40,000 cash. The expected useful life is 5
years and the salvage value is $5,000.
Ace uses a calendar year and the truck was purchased on July 1, 2015.
Calculate the depreciation for each year using the straight line method and the double
declining balance method.
Show the journal entry for year one for the double declining balance method.
Straight line method
year depreciation remaining book value

2015
2016
2017
2018
2019
2020
2021
Double declining balance method
year depreciation remaining book value
2015
2016
2017
2018
2019
2020
2021
Journal Entry
date account debit credit
31-12-2015

week 6

There are two problems this week. Click on the tab at the bottom of the spreadsheet to see
problem 2.
Compute the ending inventory using the FIFO and the weighted average method below.
These are the same transactions used in week 3 homework:
units price
01-Jan Beginning inventory 3,500 $3.00
14-Jan Bought 1,500 $3.15
05-Feb Sold 1,000
22-Feb Bought 2,000 $3.20
07-Mar Sold 1,500
15-Mar Sold 2,000
05-Apr Bought 1,000 $3.25

10-Apr Sold 800
12-Apr Sold 800
22-Apr Sold 500
04-May Sold 600
10-May Bought 2,000 $3.30
25-May Sold 500
FIFO method (scroll down for Weighted Average entry area)
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.00 $10,500.00
Weighted Average Method
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.000 $10,500.00
For each of the items below, state if the lease is an operating lease or a capital lease
Reminder: Lessor is the party that owns the item, Lessee is the party using the item
The lessee reports the leased asset on its balance sheet
Payments are reported fully as rent expense
Ownership of the property passes to the lessee by the end of the lease term
The lease term is at least 75% of the remaining life of the property
Interest expense is measured and reported by the lessee
Depreciation of the leased asset is not reported by the lessee
At the inception of the lease, the lessee records both an asset and liability

The lessee reports a liability for the present value of all future payments anticipated under
the lease agreement
The lessor continues to report the tangible asset covered by the lease on its balance sheet
Listed below are nine fixed asset transactions. Record the journal entries. Dates and
descriptions are not required. The only account titles you will need are listed:
Account titles:
Cash
Land
Land Improvements
Building
Equipment
Expense (determine expense account title)
Prepaid account (determine full account title)
Paid $2,500 for one year insurance coverage on equipment
Paid $7,500 for trees and shrubs
Paid $500 attorney's fees for document preparation related to land purchase
Paid $150,000 for land and building. The land was separately valued at $40,000, and the
building at $120,000. Hint - the cash is only $150,000 and the entry must balance.
Paid $1,000 freight costs on purchase of new furniture
Paid $300 for staplers, trash cans, and desktop mats
Ordered new $50,000 truck, to be delivered and paid for in the future
Paid $10,000 of interest costs on loan on active building construction project
Paid $25,000 to expand parking lot paving
Depreciation

Ace Specialties bought a delivery truck for $40,000 cash. The expected useful life is 5
years and the salvage value is $5,000.
Ace uses a calendar year and the truck was purchased on July 1, 2015.
Calculate the depreciation for each year using the straight line method and the double
declining balance method.
Show the journal entry for year one for the double declining balance method.
Straight line method
year depreciation remaining book value
2015
2016
2017
2018
2019
2020
2021
Double declining balance method
year depreciation remaining book value
2015
2016
2017
2018
2019
2020
2021

Journal Entry
date account debit credit
31-12-2015

There are two pThere are two problems this week. Click on the tab at the bottom of the
spreadsheet to see problem 2.
Compute the ending inventory using the FIFO and the weighted average method below. These
are the same transactions used in week 3 homework:
units price
01-Jan Beginning inventory 3,500 $3.00
14-Jan Bought 1,500 $3.15
05-Feb Sold 1,000
22-Feb Bought 2,000 $3.20
07-Mar Sold 1,500
15-Mar Sold 2,000
05-Apr Bought 1,000 $3.25
10-Apr Sold 800

12-Apr Sold 800
22-Apr Sold 500
04-May Sold 600
10-May Bought 2,000 $3.30
25-May Sold 500
FIFO method (scroll down for Weighted Average entry area)
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.00 $10,500.00
Weighted Average Method
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.000 $10,500.00
For each of the items below, state if the lease is an operating lease or a capital lease
Reminder: Lessor is the party that owns the item, Lessee is the party using the item
The lessee reports the leased asset on its balance sheet
Payments are reported fully as rent expense
Ownership of the property passes to the lessee by the end of the lease term
The lease term is at least 75% of the remaining life of the property
Interest expense is measured and reported by the lessee
Depreciation of the leased asset is not reported by the lessee
At the inception of the lease, the lessee records both an asset and liability
The lessee reports a liability for the present value of all future payments anticipated under the
lease agreement
The lessor continues to report the tangible asset covered by the lease on its balance sheet
Listed below are nine fixed asset transactions. Record the journal entries. Dates and
descriptions are not required. The only account titles you will need are listed:

Account titles:
Cash
Land
Land Improvements
Building
Equipment
Expense (determine expense account title)
Prepaid account (determine full account title)
Paid $2,500 for one year insurance coverage on equipment
Paid $7,500 for trees and shrubs
Paid $500 attorney's fees for document preparation related to land purchase
Paid $150,000 for land and building. The land was separately valued at $40,000, and the
building at $120,000. Hint - the cash is only $150,000 and the entry must balance.
Paid $1,000 freight costs on purchase of new furniture
Paid $300 for staplers, trash cans, and desktop mats
Ordered new $50,000 truck, to be delivered and paid for in the future
Paid $10,000 of interest costs on loan on active building construction project
Paid $25,000 to expand parking lot paving
Depreciation
Ace Specialties bought a delivery truck for $40,000 cash. The expected useful life is 5 years
and the salvage value is $5,000.
Ace uses a calendar year and the truck was purchased on July 1, 2015.
Calculate the depreciation for each year using the straight line method and the double
declining balance method.
Show the journal entry for year one for the double declining balance method.
Straight line method
year depreciation remaining book value
2015

2016
2017
2018
2019
2020
2021
Double declining balance method
year depreciation remaining book value
2015
2016
2017
2018
2019
2020
2021
Journal Entry
date account debit credit
31-12-2015
There are two problems this week. Click on the tab at the bottom of the spreadsheet to see
problem 2.
Compute the ending inventory using the FIFO and the weighted average method below. These
are the same transactions used in week 3 homework:
units price
01-Jan Beginning inventory 3,500 $3.00
14-Jan Bought 1,500 $3.15
05-Feb Sold 1,000
22-Feb Bought 2,000 $3.20

07-Mar Sold 1,500
15-Mar Sold 2,000
05-Apr Bought 1,000 $3.25
10-Apr Sold 800
12-Apr Sold 800
22-Apr Sold 500
04-May Sold 600
10-May Bought 2,000 $3.30
25-May Sold 500
FIFO method (scroll down for Weighted Average entry area)
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.00 $10,500.00
Weighted Average Method
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.000 $10,500.00
For each of the items below, state if the lease is an operating lease or a capital lease
Reminder: Lessor is the party that owns the item, Lessee is the party using the item
The lessee reports the leased asset on its balance sheet
Payments are reported fully as rent expense
Ownership of the property passes to the lessee by the end of the lease term
The lease term is at least 75% of the remaining life of the property
Interest expense is measured and reported by the lessee
Depreciation of the leased asset is not reported by the lessee
At the inception of the lease, the lessee records both an asset and liability

The lessee reports a liability for the present value of all future payments anticipated under the
lease agreement
The lessor continues to report the tangible asset covered by the lease on its balance sheet
Listed below are nine fixed asset transactions. Record the journal entries. Dates and
descriptions are not required. The only account titles you will need are listed:
Account titles:
Cash
Land
Land Improvements
Building
Equipment
Expense (determine expense account title)
Prepaid account (determine full account title)
Paid $2,500 for one year insurance coverage on equipment
Paid $7,500 for trees and shrubs
Paid $500 attorney's fees for document preparation related to land purchase
Paid $150,000 for land and building. The land was separately valued at $40,000, and the
building at $120,000. Hint - the cash is only $150,000 and the entry must balance.
Paid $1,000 freight costs on purchase of new furniture
Paid $300 for staplers, trash cans, and desktop mats
Ordered new $50,000 truck, to be delivered and paid for in the future
Paid $10,000 of interest costs on loan on active building construction project
Paid $25,000 to expand parking lot paving
Depreciation
Ace Specialties bought a delivery truck for $40,000 cash. The expected useful life is 5 years
and the salvage value is $5,000.
Ace uses a calendar year and the truck was purchased on July 1, 2015.
Calculate the depreciation for each year using the straight line method and the double
declining balance method.

Show the journal entry for year one for the double declining balance method.
Straight line method
year depreciation remaining book value
2015
2016
2017
2018
2019
2020
2021
Double declining balance method
year depreciation remaining book value
2015
2016
2017
2018
2019
2020
2021
Journal Entry
date account debit credit
31-12-2015

rowblems this week. Clickweeek 7 on the tab at the bottom of the spreadsheet to see
problem 2.
Compute the ending inventory using the FIFO and the weighted average method below.
These are the same transactions used in week 3 homework:
units price

01-Jan Beginning inventory 3,500 $3.00
14-Jan Bought 1,500 $3.15
05-Feb Sold 1,000
22-Feb Bought 2,000 $3.20
07-Mar Sold 1,500
15-Mar Sold 2,000
05-Apr Bought 1,000 $3.25
10-Apr Sold 800
12-Apr Sold 800
22-Apr Sold 500
04-May Sold 600
10-May Bought 2,000 $3.30
25-May Sold 500
FIFO method (scroll down for Weighted Average entry area)
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.00 $10,500.00
Weighted Average Method
Purchased Sold Balance
Date units cost total units cost total units cost total
01-Jan 3500 $3.000 $10,500.00
For each of the items below, state if the lease is an operating lease or a capital lease
Reminder: Lessor is the party that owns the item, Lessee is the party using the item

The lessee reports the leased asset on its balance sheet
Payments are reported fully as rent expense
Ownership of the property passes to the lessee by the end of the lease term
The lease term is at least 75% of the remaining life of the property
Interest expense is measured and reported by the lessee
Depreciation of the leased asset is not reported by the lessee
At the inception of the lease, the lessee records both an asset and liability
The lessee reports a liability for the present value of all future payments anticipated under
the lease agreement
The lessor continues to report the tangible asset covered by the lease on its balance sheet
Listed below are nine fixed asset transactions. Record the journal entries. Dates and
descriptions are not required. The only account titles you will need are listed:
Account titles:
Cash
Land
Land Improvements
Building
Equipment
Expense (determine expense account title)
Prepaid account (determine full account title)
Paid $2,500 for one year insurance coverage on equipment
Paid $7,500 for trees and shrubs
Paid $500 attorney's fees for document preparation related to land purchase
Paid $150,000 for land and building. The land was separately valued at $40,000, and the
building at $120,000. Hint - the cash is only $150,000 and the entry must balance.

Paid $1,000 freight costs on purchase of new furniture
Paid $300 for staplers, trash cans, and desktop mats
Ordered new $50,000 truck, to be delivered and paid for in the future
Paid $10,000 of interest costs on loan on active building construction project
Paid $25,000 to expand parking lot paving
Depreciation
Ace Specialties bought a delivery truck for $40,000 cash. The expected useful life is 5
years and the salvage value is $5,000.
Ace uses a calendar year and the truck was purchased on July 1, 2015.
Calculate the depreciation for each year using the straight line method and the double
declining balance method.
Show the journal entry for year one for the double declining balance method.
Straight line method
year depreciation remaining book value
2015
2016
2017
2018
2019
2020
2021
Double declining balance method
year depreciation remaining book value
2015

2016
2017
2018
2019
2020
2021
Journal Entry
date account debit credit
31-12-2015

week 8

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Folder
Week 8 Homework Assignment
Instructions

For the Week 8 homework assignment, you will create, save, and submit a Microsoft Word document that covers the topic
your name and a descriptive title in the file name.
Essay Topics for You to Prepare
1.
2.
3.

Fraud Detection and Deterrence (www.acfe.com)
Internal Control (COSA: see www.theiia.org)
Certification: CFE, CIA, and CISA (return to www.isaca.org)

Following your review of course materials this week, using the websites above, create an essay of at least three pages (on
Relate these topics to our course material for Principles of Accounting I.

Your essay should be single-spaced, with double spacing between paragraphs. Use headers within the document. We are w
double-spaced academic papers.

Tell a story. Explain the concepts. Use APA style for citations and create a works cited list. Your paper should be adequate.
long enough; seven pages is too long.

Consider the question and decide: what would you want to know? Include website references in your essay. This is not a b
casual reflective essay. The goal is to research, consider, and report what you know about these topics. The concept of CO

ISACA's "A COBIT 5 Overview" (http://www.isaca.org/COBIT/Documents/A-COBIT-5-Overview.pdf) is a key resource for y
"framing" of the three topics.
Why audit? We will either be the auditor or be audited. We must understand internal control and the management of risk.
everyone's responsibility.

We are building your vocabulary. You can use the above concepts—especially the paragraph on "Why audit?"—without refe
works cited list: UMUC ACCT 220 Course Materials.

Ask questions. Spell check. Write, read, and edit. Take care with word selection and sentence structure, For all submission
words. Show what you know!

quizes

Question 1 4 / 4 points
Generally Accepted Accounting Principles (GAAP) allow companies to issue financial
statements, using either the cash basis or the accrual basis of accounting, depending on
their needs.
Question options:
True
False
View Feedback
Question 2 4 / 4 points
Adjusting entries are done to make sure that expenses and revenues are recorded in the
proper accounting period.
Question options:
True
False
View Feedback

Question 3 0 / 4 points
A single journal entry must debit only one account and credit only one account for the
same amount so that the entry is in balance.
Question options:
True
False
View Feedback
Question 4 4 / 4 points
The current ratio is cash divided by current liabilities.
Question options:
True
False
View Feedback
Question 5 4 / 4 points
Materiality is subjective. One company may consider $1,000 material and another
company may not.
Question options:
True
False
View Feedback
Multiple Choice
Select the best answer for each of the following questions.
Question 6 4 / 4 points
Revenues are recorded when _______________.

Question options:
goods or services are delivered to the customer
the check has cleared and the money is available for use
a check is received from a customer
a contract is signed
View Feedback
Question 7 4 / 4 points
Which of the following is NOT a liability?
Question options:
unearned revenue
long-term debt
accumulated depreciation
accounts payable
View Feedback
Question 8 4 / 4 points
Management failing to reveal a default on a loan agreement will have violated what
principle?
Question options:
cost principle
ethics principle
matching principle
full-disclosure principle
View Feedback
Question 9 4 / 4 points

Expenses are recorded in the same period that related revenue is recorded, according to
the _______________.
Question options:
revenue-recognition principle
matching principle
accounting equation
cost principle
View Feedback
Question 10 4 / 4 points
The percentage-of-completion method recognizes revenue _______________.
Question options:
at the end of the entire project for a multi-year contract
at 10% per month
based on an estimate of the portion of work complete
when the contracted work has begun
View Feedback
Question 11 0 / 4 points
An asset cost $14,400 and is expected to last 8 years, at which time it will be sold for a
scrap value of $2,400. Using straight-line depreciation, the monthly depreciation journal
entry would be _______________.
Question options:
debit depreciation expense and credit accumulated depreciation for $150
debit depreciation expense and credit accumulated depreciation for $125
debit accumulated depreciation and credit depreciation expense for $125
debit accumulated depreciation and credit depreciation expense for $150

View Feedback
Question 12 4 / 4 points
When money is collected from a customer previously billed, we _______________.
Question options:
credit cash and debit accounts receivable
credit accounts payable and debit cash
credit cash and debit accounts payable
debit cash and credit accounts receivable
View Feedback
Question 13 4 / 4 points
Which event will have the effect of increasing retained earnings?
Question options:
a customer pays us for a bill we sent last month
revenue is recognized
an expense is paid
a dividend is declared
View Feedback
Question 14 0 / 4 points
The income summary account is used to _______________.
Question options:
set aside earned money available to owners
zero out expense and revenue accounts at the end of the period
record a history of income items

calculate net income
View Feedback
Question 15 4 / 4 points
The dividends payable account belongs on which statement?
Question options:
Balance sheet
Income statement
Statement of retained earnings
Statement of cash flows
View Feedback
Journal Entries
Prepare the following journal entries. Dates and descriptions are not required.
Question 16 0 / 4 points
Paid $20,000 for stock in a newly formed corporation.
Prepare the journal entry to document this transaction. Dates and descriptions are not
required
View Feedback
Question 17 4 / 4 points
Purchased photocopier for $5000 on account.
Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
View Feedback
Question 18 4 / 4 points
Bought office supplies for immediate consumption for $200 cash.

Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
Question 19 4 / 4 points
Billed customer $3500 for services performed
Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
Question 20 4 / 4 points
Customer paid $2,000 on account.
Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
View Feedback
Question 21 4 / 4 points
Prepaid insurance account has a $2,400 balance for a twelve-month premium. Month one
has ended.
Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
Question 22 4 / 4 points
Office supplies on hand account has a balance of $1,955, and a physical count reveals
that there are $715 worth of supplies remaining at month end.
Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
Question 23 4 / 4 points
A customer had previously paid $500 in advance on an order. The order has now been
shipped FOB destination.
Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
Question 24 4 / 4 points
Sales tax of $100 is collected from a customer to be remitted to the state at a later date.

Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
Question 25 4 / 4 points
At month end, $2,300 of wages are due to employees but not yet paid.
Prepare the journal entry to document this transaction. Dates and descriptions are not
required.
________________________________________

Question 1 4 / 4 points
One advantage to using a perpetual inventory system is that the company never has to
physically count the inventory.
Question options:
True
False
View Feedback
Question 2 4 / 4 points

The weighted-average inventory method will likely result in neither the highest nor the
lowest ending inventory.
Question options:
True
False
View Feedback
Question 3 4 / 4 points
When calculating accounts receivable turnover, a company would prefer a higher number
rather than a lower number (within reason).
Question options:
True
False
View Feedback
Question 4 0 / 4 points
When performing a bank reconciliation, checks outstanding are added back to the bank
balance.
Question options:
True
False
View Feedback
Question 5 4 / 4 points
Usually the quick ratio will be a lower number than the current ratio.
Question options:
True
False

View Feedback
Multiple Choice
Select the best answer for each of the following questions.
Question 6 4 / 4 points
The bad-debt method that uses the accounts receivable aging report is _______________.
Question options:
the percentage-of-sales method
the bad-debt expense method
the direct write-off method
the percentage-of-receivables method
View Feedback
Question 7 0 / 4 points
When it is determined that too much money has been set aside for uncollectible accounts,
we will _______________.
Question options:
credit reserve for uncollectible accounts
debit reserve for uncollectible accounts
credit cash
debit accounts receivable
View Feedback
Question 8 4 / 4 points
A customer whose account was previously written off unexpectedly pays us. If we are
using the allowance method we would _______________.
Question options:

debit bad-debt expense and credit cash
debit cash and credit bad-debt expense
debit reserve for uncollectible accounts and credit cash
debit accounts receivable and credit allowance for uncollectible accounts AND debit cash
and credit accounts receivable
View Feedback
Question 9 4 / 4 points
When a retailer accepts a bank card (VISA or MasterCard), they will make what entry for
the day’s receipts?
Question options:
debit accounts receivable and credit sales
debit accounts receivable; credit sales, and credit “credit card expense”
debit cash and credit sales
debit cash and debit “credit card expense”; credit sales
View Feedback
Question 10 0 / 4 points
The company prepares, but does not yet pay, its first payroll of the new year. Salaries
total $10,000 and 7.65% is withheld from paychecks for FICA tax. Ignore all other
payroll deductions. The journal entries will be _______________.
Question options:
debit wage expense $10,000 and credit wages payable 10,000; debit payroll tax expense
for $1,530 and credit FICA tax payable $1,530
debit wage expense $10,000 and credit wages payable $10,000; debit payroll tax expense
for $765 and credit FICA tax payable $765
debit wage expense $10,000 and debit payroll tax expense $765; credit wages payable
$9,235 and credit FICA tax payable $1,530
debit wage expense $10,000; credit wages payable $8,470 and FICA tax payable $1,530

View Feedback
Question 11 4 / 4 points
A company buys a $10,000 bond at 102 as an investment. The correct entry is
_______________.
Question options:
debit investment in bonds and credit cash for $9,800
credit investment in bonds and debit cash for $10,200
debit investment in bonds and credit cash for $10,200
credit investment in bonds and debit cash for $9,800
View Feedback
Question 12 0 / 4 points
A company issues bonds having a stated value of $100,000 for $102,500. At maturity, the
company will _______________.
Question options:
debit bonds payable for $100,000
credit bonds payable for $102,500
credit bonds payable for $100,000
debit bonds payable for $102,500
View Feedback
Question 13 4 / 4 points
A company uses the percentage-of-receivables method for establishing the bad-debt
reserve. They want the reserve balance to equal 0.5% of debts 30 days old or less, 2% of
debts aged 31 to 60 days, and 4% of debts aged over 60 days. An aging report shows
$780,000 relating to the past month, $232,600 relating to the prior month, and $89,200
relating to more than two months ago. The balance in the reserve account before
adjustment is $10,175. What is the adjusting journal entry?
Question options:

debit bad-debt expense, credit allowance for bad debts $1,945
debit bad-debt expense, credit accounts receivable $1,945
debit allowance for bad debts, credit bad-debt expense $1,945
debit bad-debt expense, credit allowance for bad debts $12,120
View Feedback
Question 14 4 / 4 points
A company is closing out the accounting period. The inventory balance at the beginning
of the period was $222,750, and at the end of the period it was $215,600. Purchases of
goods for resale during the period equaled $682,500. What was the cost of goods sold
total?
Question options:
$905,250
$682,500
$689,650
$675,350
View Feedback
Question 15 4 / 4 points
The following transactions during the month of January: 1/5 bought 10 units at $11.00
each; 1/8 bought 15 units at $11.25 each; 1/15 sold 8 units for $16 each; 1/22 bought 10
units at $11.50 each and sold 12 units for $16.50 each. The ending inventory is $693.75.
What inventory costing method is the company using?
Question options:
LIFO – periodic
LIFO – perpetual
FIFO
weighted average

View Feedback
Short Answer
Prepare the following journal entries. Dates and descriptions are not required.
Question 16 4 / 4 points
What is the difference between the periodic-inventory and perpetual-inventory methods?

View Feedback
Questio

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