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ACCT 550 Week 2 Assignment
E4-4 (Multiple-Step and
Single-Step) Two
accountants for the firm of Allen and Wright are arguing about the merits of
presenting an income statement in a multiple-step versus a single-step format.
The discussion involves the following 2012 information related to Webster
Company ($000 omitted).
E4-12 (Earnings per Share) At December 31, 2011, Schroeder Corporation had the
following stock outstanding.
P4-1 (Multiple-Step Income,
Retained Earnings) Presented
below is information related to Dickinson Company for 2012.
ACCT 550 Week 4 Assignment
E6-5 (Computation of Present
Value) Using the appropriate
interest table, compute the present values of the periodic amounts, shown on
page 344, due at the end of the designated periods.
E6-12 (Analysis of
Alternatives)
Building A: Purchase for a cash price of $610,000, useful life 25
years.
Building B: Lease for 25 years with annual lease payments of $70,000
being made at the beginning of the year.
E7-2 (Determine Cash Balance) Presented below are a number of independent situations.
Instructions
For each individual situation, determine
the amount that should be reported as cash. If the item(s) is not reported as
cash, explain the rationale.
1.Checking account balance $925,000; certificate of deposit
$1,400,000; cash advance to subsidiary of $980,000; utility deposit paid to gas
company $180.
2.Checking account balance $500,000; an overdraft in
special checking account at same bank as normal checking account of $17,000;
cash held in a bond sinking fund $200,000; petty cash fund $300; coins and
currency on hand $1,350.
3. Checking account balance $590,000;
postdated check from a customer $11,000; cash restricted due to maintaining
compensating balance requirement of $100,000; certified check from customer
$9,800; postage stamps on hand $620
E7-5 (Record Sales Gross and
Net)E7-5 (Record Sales Gross and Net)
E7-7 (Recording Bad Debts)
ACCT 550 Week 4 Midterm
1. (TCO A) Which of the following statements is not an objective of financial reporting?
2. (TCO A) Under Sarbanes Oxley, the new law does not:
3. (TCO A) The cash method of accounting:
4. (TCO A) The characteristic that is demonstrated when a high degree of consensus can be secured among independent measurers using the same measurement methods is
5. (TCO A) The two primary qualities for accounting information are:
6. (TCO A) Which basic element of financial statements arise from peripheral or incidental transactions?
7. (TCO A) Which of the following is not a basic assumption
underlying the financial accounting structure?
8. (TCO A) What is the quality of information that enables users to better forecast future operations?
8. (TCO A) What is the quality of information that enables users to better forecast future operations?
9. (TCO A) Accounting information is considered to be relevant when it
10. (TCO A) Which of the following is not a basic assumption underlying the financial accounting structure?
11. (TCO A) Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy?
12. (TCO A) Which of the following are benefits of providing financial information?
13. (TCO D) The balance sheet is useful for analyzing all of the following except
14. (TCO D) The balance sheet contributes to financial reporting by providing a basis for all of the following except
15. (TCO D) The net assets of a business are equal to
16. (TCO D) Stine Corp.'s trial balance reflected the following account balances at December 31, 2010:
Accounts receivable (net) $24,000
Trading securities 6,000
Accumulated depreciation on equipment and furniture 15,000
Cash 11,000
Inventory 30,000
Equipment 25,000
Patent 4,000
Prepaid expenses 2,000
Land held for future business site 18,000
Trading securities 6,000
Accumulated depreciation on equipment and furniture 15,000
Cash 11,000
Inventory 30,000
Equipment 25,000
Patent 4,000
Prepaid expenses 2,000
Land held for future business site 18,000
In Stine's December 31, 2010 balance
sheet, the current assets total is:
17. (TCO D) Which of the following is not a long-term investment?
18. (TCO D) The presentation of long-term liabilities in the
balance sheet should disclose:
19. (TCO D) Typical contractual situations that are disclosed in the notes to the balance sheet include all of the following except
20. (TCO D) A generally accepted account title is:
21. (TCO D) Equity or debt securities held to finance future construction of additional manufacturing plants should be classified on the balance sheet as: (Points: 5)
22. (TCO D) Working capital is
19. (TCO D) Typical contractual situations that are disclosed in the notes to the balance sheet include all of the following except
20. (TCO D) A generally accepted account title is:
21. (TCO D) Equity or debt securities held to finance future construction of additional manufacturing plants should be classified on the balance sheet as: (Points: 5)
22. (TCO D) Working capital is
1. Unearned rent at 1/1/10 was $7,300 and at 12/31/10 was
$8,000. The records indicate cash receipts from rental sources during 2010
amounted to $40,000, all of which was credited to the Unearned Rent Account.
You are to prepare the missing adjusting entry.
2. Allowance for doubtful accounts on 1/1/10 was $75,000.
The balance in the allowance account on 12/31/10 after making the annual
adjusting entry was $60,000, and during 2010 bad debts written off amounted to
$30,000. You are to provide the missing adjusting entry.
3. Prepaid rent at 1/1/10 was $20,000. During 2010 rent payments of $123,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $122,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made.
4. Retained earnings at 1/1/10 was $100,000 and at 12/31/10
it was $210,000. During 2010, cash dividends of $50,000 were paid and a stock
dividend of $40,000 was issued. Both dividends were properly charged to
retained earnings. You are to provide the missing closing entry.
5. For the year ended December 31, 2010, Transformers Inc.
reported the following:
Net income $ 60,000
Preferred dividends declared, $10,000
Common dividend declared, $2,000
Unrealized holding loss, net of tax;
$1,000
Retained earnings $80,000
Common stock, $40,000
Accumulated Other Comprehensive Income,
Beginning Balance 5,000
What would Transformers report as its
ending balance of Accumulated Other Comprehensive Income? (Points: 15)
6. (TCO C) Presented below is certain information pertaining
to Edson Company.
Assets, January 1 $240,000
Assets, December 31 $230,000
Liabilities, January 1 $150,000
Common stock, December 31 $80,000
Retained earnings, December 31 $31,000
Common stock sold during the year $10,000
Dividends declared during the year
$13,000
Compute the net income for the year.
(Points: 20)
7. (TCO C) At Ruth Company, events and transactions during 2010 included the following. The tax rate for all items is 30%.
(1) Depreciation for 2008 was found to be
understated by $30,000.
(2) A strike by the employees of a
supplier resulted in a loss of $25,000.
(3) The inventory at December 31, 2008
was overstated by $40,000.
(4) A flood destroyed a building that had
a book value of $500,000. Floods are very uncommon in that area.
The effect of these events
and transactions on 2010 income from continuing operations net of tax would be:
8. What is FASB Codification? Explain in detail.
ACCT 550 Week 7 Assignment
E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery
for $279,000 on May 1, 2012. It is estimated that it will have a useful life of
10 years, salvage value of $15,000, production of 240,000 units, and working
hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours,
and the machinery produces 25,500 units.
E11-9 (Composite Depreciation) Presented below is information related to Morrow
Manufacturing Corporation.
Machine
|
Cost
|
Estimated Salvage Value
|
Estimated Life (in years)
|
A
|
$40,500
|
$5,500
|
10
|
B
|
33,600
|
4,800
|
9
|
C
|
36,000
|
3,600
|
8
|
D
|
19,000
|
1,500
|
7
|
E
|
23,500
|
2,500
|
6
|
(a) Compute the rate
of depreciation per year to be applied to the machines under the composite
method.
(b) Prepare the
adjusting entry necessary at the end of the year to record depreciation for the
year.
(c) Prepare the
entry to record the sale of Machine D for cash of $5,000. It was used for 6
years, and depreciation was entered under the composite method.
E11-11 (Depreciation—Change in Estimate) Machinery purchased for $52,000 by
Carver Co. in 2008 was originally estimated to have a life of 8 years with a
salvage value of $4,000 at the end of that time. Depreciation has been entered
for 5 years on this basis. In 2013, it is determined that the total estimated
life should be 10 years with a salvage value of $4,500 at the end of that time.
Assume straight-line depreciation.
Instructions
(a) Prepare the
entry to correct the prior years’ depreciation, if necessary.
(b) Prepare the
entry to record depreciation for 2013.
E11-17 (Impairment) Assume the same information as E11-16, except that Pujols intends to dispose of the
equipment in the coming year. It is expected that the cost of disposal will be
$20,000.
Instructions
(a) Prepare the
journal entry (if any) to record the impairment of the asset at December 31,
2012.
(b) Prepare the
journal entry (if any) to record depreciation expense for 2013.
(c) The asset was
not sold by December 31, 2013. The fair value of the equipment on that date is
$5,100,000. Prepare the journal entry (if any) necessary to record this
increase in fair value. It is expected that the cost of disposal is still
$20,000.
ACCT 550 Final Exam
1.
|
Question :
|
(TCO A) Listed below are several information, characteristics,
and accounting principles and assumptions. Match the letter of each with the
appropriate phrase that states its application.
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2.
|
Question :
|
(TCO B) Adjusting Entries: Unearned rent at 1/1/10 was $5,300
and at 12/31/10 was $6,000. The records indicate cash receipts from rental
sources during 2010 amounted to $60,000, all of which was credited to the
Unearned Rent Account. You are to prepare the missing adjusting entry. For
each journal entry write Dr. for debit and Cr. for credit.
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3.
|
Question :
|
(TCO B) Adjusting Entries: Data relating to the balances of
various accounts affected by adjusting or closing entries appear below. (The
entries which caused the changes in the balances are not given.) You are
asked to supply the missing journal entries which would logically account for
the changes in the account balances. Interest receivable at 1/1/10 was
$1,000. During 2010 cash received from debtors for interest on outstanding
notes receivable amounted to $1,000. The 2010 income statement showed
interest revenue in the amount of $2,900. You are to provide the missing
adjusting entry that must have been made, assuming reversing entries are not
made. For each journal entry write Dr. for debit and Cr. for credit.
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5.
|
Question :
|
(TCO B) Adjusting Entries: Allowance for doubtful accounts on
1/1/10 was $70,000. The balance in the allowance account on 12/31/10 after
making the annual adjusting entry was $70,000 and during 2010 bad debts
written off amounted to $40,000. You are to provide the missing adjusting
entry. For each journal entry write Dr. for debit and Cr. for credit.
|
1.
|
Question :
|
(TCO B) Adjusting Entries: Prepaid rent at 1/1/10 was $30,000.
During 2010 rent payments of $100,000 were made and charged to "rent
expense." The 2010 income statement shows as a general expense the item
"rent expense" in the amount of $130,000. You are to prepare the
missing adjusting entry that must have been made, assuming reversing entries
are not made. For each journal entry write Dr. for debit and Cr. for credit.
|
2.
|
Question :
|
(TCO B) Adjusting Entries: Retained earnings at 1/1/10 were
$100,000 and at 12/31/10 it was $300,000. During 2010, cash dividends of
$40,000 were paid and a stock dividend of $40,000 was issued. Both dividends
were properly charged to retained earnings. You are to provide the missing
closing entry. For each journal entry write Dr. for debit and Cr. for credit.
|
3.
|
Question :
|
(TCO C) Presented below is information related to Bruce Van
Company.
Instructions: Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Show EPS computations as well. |
4.
|
Question :
|
(TCO D) The following balance sheet was prepared by the
bookkeeper for Purple Company as of December 31, 2011 Purple Company Balance
Sheet as of December 31, 2011
The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $12,000, and a bank overdraft of $2,500 has been deducted. (2) The net accounts receivable balance includes: (a) accounts receivable debit balances $60,000; (b) accounts receivable 0; (c) allowance for doubtful accounts $3,800. (3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods. (4) Investments include investments in common stock, trading $13,000, available-for-sale $48,300, and franchises $15,000. (5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000. (6) An unrecorded liability was not recorded on the balance sheet of $2000. Instructions Prepare a balance sheet in good form (stockholders' equity details can be omitted.) |
5.
|
Question :
|
(TCO E) Jack Sawyer is presently leasing a copier from John
Office Equipment Company. The lease requires 11 annual payments of $2,500 at
the end of each year and provides the leaser (John) with an 8% return on its
investment. You may use the following 8% interest factors:
(a) Assuming the computer has an eleven-year life and will
have no salvage value at the expiration of the lease, what was the original
cost of the copier to John?
(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period? |
6.
|
Question :
|
(TCO F) Daniels Company deposits all receipts and makes all
payments by check. The following information is available from the cash
records:
MARCH 31 BANK RECONCILIATION
Instructions
Calculate the amount of the April 30: (1) Deposits in transit (2) Outstanding checks Show all your work for potential partial credit. |
7.
|
Question :
|
(TCO G) Rye Company was formed on December 1, 2010. The
following information is available from Rye's inventory record for Product
Bread.
A physical inventory on March 31, 2011, shows 3,000 units on hand. Instructions Prepare schedules to compute the ending inventory at March 31, 2011, under each of the following inventory methods: (a) FIFO. (b) LIFO. (c) Weighted-average. Show supporting computations in good form. |
8.
|
Question :
|
(TCO H) A machine cost $500,000 on April 1, 2010. Its
estimated salvage value is $50,000 and its expected life is eight years.
Instructions Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used. (a) Straight-line for 2010 (b) Double-declining balance for 2011 (c) Sum-of-the-years'-digits for 2011 |
ACCT 550 Week 8 Final Exam Set 2
1. Which of the following
steps in the acquisition of goods and services by an activity accounted for by
the General Fund generally occurs first?
2. During January 2011 General Fund
supplies ordered in the previous fiscal year and encumbered at an estimated
amount of $2,000 were received at an actual cost of $2,200. The entry to record
this transaction will require a debit to
3. When materials that were ordered for a
capital projects fund for use on a construction project are received but the
invoice has not yet paid, what account is debited?
4. Which of the following is true for
debt service funds?
5. Which of the following is not a
typical means of dissolving an internal service fund that a city no longer
needs or wants?
6. Which of the following account
balances would only be reported if a city-owned utility followed regulatory
accounting principles?
7. Customers' meter deposits, which
cannot be spent for normal operating purposes, would be classified as
restricted cash in the balance sheet of which fund type?
8. A local golfer contributed $100,000 to
the city stipulating that the money be invested and that the earnings thereon
be used for maintenance of the city golf course. The $100,000 would most
appropriately be recorded in a(an)
9. A private-purpose trust fund sold
investments in securities having a carrying value of $23,000 for $26,000,
resulting in a $3,000 gain on the change in value. If there are no trust
provisions to the contrary, the gain is generally
10. A statement of cash flows should be
prepared for which of the following fiduciary fund types?
11. What is the minimum level of detail
required for expenditures presented in the governmental fund statement of
revenues, expenditures, and changes in fund balance?
12. Which of the following is one of the
three sections of a comprehensive annual financial report?
13. Government-wide financial statements
present the government's financial position using
14. A measure of the extent to which the
government's business-type activities depend on subsidies from taxpayer or
other general revenues rather than having the full cost of the activities'
operations funded by charges to the users of the service is
15. A measure of whether the government lived
within its means in the measurement year, or was required to use prior year
resources to fund a portion of current year costs, or shifted the funding of
some current year costs to future periods, is
16. A measure of the adequacy of the
amount of the government's total unrestricted net assets or deficit at the
measurement date is
17. One of the most important reasons to
evaluate the financial performance of a government is to
19. A term that describes a government's
ongoing ability and willingness to raise revenues, incur debt, and meet its
financial obligations as they become due is
20. One of the purposes of the Federal
Financial Management Improvement Act of 1996 was to
21. Which of the following officials has
shared responsibility under federal law for establishing and maintaining a
sound financial structure for the federal government?
22. The Comptroller General of the United
States is the head of the:
23. An auditor would not render an
opinion on a(an)
24. A single audit conducted pursuant to
the Single Audit Act Amendments of 1996 requires which of the following types
of audits?
25. All of the following reports are
included in the reporting package resulting from the single audit except
26. Which of the following is not an
element of a typical governmental total quality management (TQM) structure?
27. Which of the following might
appropriately be termed an outcome indicator for a police department that
reports service efforts and accomplishments (SEA) indicators?
28. Which basis of accounting best contributes
to measuring the cost of services for rational budgeting purposes?
29. Which of the following statements is
correct regarding reporting of special events and related direct costs under
current FASB standards?
30. Public disclosure rules require that
a tax-exempt not-for-profit organization
31. Tuition scholarships for which there
is no intention of collection from the student should be classified by a
private university as
32. Which of the following statements
usually will not be included in the annual financial report of a governmentally
owned public university engaged only in business-type activities?
33. Which of the following would usually
be considered as temporarily restricted net assets in a nongovernmental
not-for-profit hospital?
ACCT 550 COMPLETE
COURSE ACCT550 COMPLETE COURSE
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