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

ACCT 220 Full Course – All Discussion ,Quizzes , Homework and Final

FEBRUARY -2016

DISCUSSIONS

 

WEEK 1

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. It must have an SEC 10-K report for the current or
most recent prior year.

2. It must have an Accounts Receivable and Inventory
account.

Your corporation may NOT

1. be the same corporation you used for SEC projects
in other courses

2. be the same corporation a classmate selected

3. 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:

o Under Armour; NYSE: UA

o Apple; NASDAQ: APPL

o Exxon Mobile; NYSE: XOM

2. State why you want to study and prepare a financial
analysis of your corporation.

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/d17062d10k.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. State your corporation’s position on the Fortune
500 List for the current year.

4. 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. 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).

3. 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.

4. 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.

5. 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.

6. 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. 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.

2. 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.

3. Income Statement: Is it a single-step or multi-step
income statement?

4. Calculate the Gross Profit and Gross Profit Percentage
for this year and last year, creating a small table, such as the following:

This Year Last Year
Net Sales $1,200 $1,400
Cost of Goods Sold 800 1,200
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. 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?

2. 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)?

3. 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.

 

 

 

 

ASSIGNMENTS

 

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 straight-line 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

0 0

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

 

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

 

Weighted
Average Method

Purchased
Sold Balance

Date units
cost total units cost total units cost total

01-Jan
3500 $3.000 $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

 

 

https://learn..edu/d2l/img/0/Shared.Main.actHide.png?v=10.5.6.1498-164Hide
Folder Information
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 topics listed
below. Always include your name and a descriptive title in the file name.

Essay Topics for You to Prepare

1. Fraud Detection and Deterrence (www.acfe.com)

2. Internal Control (COSA: see www.theiia.org)

3. 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 (one for
each of the topics above). 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 writing
business reports, not 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.
Fewer than three pages is not 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
business proposal, but it is not a casual reflective essay. The goal is to
research, consider, and report what you know about these topics. The concept
of COBIT is related to each topic.

ISACA’s “A COBIT 5 Overview” (http://www.isaca.org/COBIT/Documents/A-COBIT-5-Overview.pdf)
is a key resource for your overall comments and “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. The
management of risk is everyone’s responsibility.

We are building your vocabulary. You can use the
above concepts—especially the paragraph on “Why audit?”—without
reference. A good item for your works cited list: ACCT 220 Course Materials.

Ask questions. Spell check. Write, read, and
edit. Take care with word selection and sentence structure, For all
submissions in our class, use your own words. Show what you know!

 

 

 

 

 

 

 

QUIZZES

 

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

 

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

 

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

 

Question
4 4 / 4 points

The
current ratio is cash divided by current liabilities.

Question
options:

True

False

 

Question
5 4 / 4 points

Materiality
is subjective. One company may consider $1,000 material and another company may
not.

Question
options:

True

False

 

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

 

Question
7 4 / 4 points

Which of
the following is NOT a liability?

Question
options:

unearned
revenue

long-term
debt

accumulated
depreciation

accounts
payable

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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.

 

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.

 

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

 

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

 

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

 

Question
4 0 / 4 points

When
performing a bank reconciliation, checks outstanding are added back to the bank
balance.

Question
options:

True

False

 

Question
5 4 / 4 points

Usually
the quick ratio will be a lower number than the current ratio.

Question
options:

True

False

 

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

 

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

 

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

 

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

 

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

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

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

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

 

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

 

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

 

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?