Questions 1 â 4: Use the following information to answer the next 4 questions:
Dr. Kaplan, M.D., maintains the accounting records of Kaplan Klinic on an accrual basis. In 2017, Kaplan Klinic reported Net Income of $186,388. The following information relates to the beginning and ending balances of Dr. Kaplanâs accrual accounts:
January 1, 2017
December 31, 2017
Accounts Receivable
$16,758
$ 31,374
Unearned Service Revenue
5,152
8,812
Accrued Expenses Payable
6,354
4,068
Prepaid Expenses
4,214
7,094
Below is a partially completed schedule that converts Dr. Kaplanâs Net Income (accrual basis) to âExcess of Cash Collected over Cash Disbursedâ for the year 2017. For each item, select the correct number to complete the schedule.
Net Income (accrual) $186,388
1.Change in Accounts Receivable ________
A -$16,758
B $14,616
C -$14,616
D $31,374
E None of the above
2.Prepaid Expenses ________
A $4,214
B $7,094
C $2,880
D -$2,880
E None of the above
Questions 1 â 4: Use the following information to answer the next 4 questions:
Dr. Kaplan, M.D., maintains the accounting records of Kaplan Klinic on an accrual basis. In 2017, Kaplan Klinic reported Net Income of $186,388. The following information relates to the beginning and ending balances of Dr. Kaplanâs accrual accounts:
| January 1, 2017 | December 31, 2017 | |||
| Accounts Receivable | $16,758 | $ 31,374 | ||
| Unearned Service Revenue | 5,152 | 8,812 | ||
| Accrued Expenses Payable | 6,354 | 4,068 | ||
| Prepaid Expenses | 4,214 | 7,094 | ||
Below is a partially completed schedule that converts Dr. Kaplanâs Net Income (accrual basis) to âExcess of Cash Collected over Cash Disbursedâ for the year 2017. For each item, select the correct number to complete the schedule.
Net Income (accrual) $186,388
1.Change in Accounts Receivable ________
| A -$16,758 | |||||||||||||||||
| B $14,616 | |||||||||||||||||
| C -$14,616 | |||||||||||||||||
| D $31,374 | |||||||||||||||||
| E None of the above 2.Prepaid Expenses ________
|
Related questions
1. On the âAJEâ worksheet, prepare the adjusting journal entriesin good form for the following items. Identify each entry by letterin Column B. Round all answers to the nearest dollar. You may omitexplanations. Leave a blank row between each journal entry. All theaccounts you need are given on the worksheet. Use only theseaccounts. Prepare journal entries and financial statements for theyear ended December 31, 2017. No adjusting entries have been madesince December 31, 2016. Do not use "Cash" account only onebalance sheet account and one income statementaccount.
d. Store supplies totaling $14,800 were purchased during theyear and were immediately expensed. A physical count of the storesupplies on hand December 31, 2017, indicates a balance of$2,100.
The entry im asking you to make IS the adjustingentry.
This is the only other information i have!
| Grizzlies,Inc. | ||||||||||||
| Worksheet | ||||||||||||
| For the Year Ended December31, 2017 | ||||||||||||
| Unadjusted | Adjusted | |||||||||||
| Trial Balance | Adjustments | Trial Balance | Income Stmt | Balance Sheet | ||||||||
| Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||
| Cash | 36,000 | |||||||||||
| Accounts Receivable | 277,000 | |||||||||||
| Inventory | 242,500 | |||||||||||
| Prepaid Insurance | 11,200 | |||||||||||
| Prepaid Rent | 3,000 | |||||||||||
| Store Supplies | - | |||||||||||
| Shop Supplies | 7,500 | |||||||||||
| Store Equipment | 120,000 | |||||||||||
| Accumulated Depreciation - StoreEquipment | 13,200 | |||||||||||
| Office Equipment | 32,000 | |||||||||||
| Accumulated Depreciation - OfficeEquipment | 2,550 | |||||||||||
| Accounts Payable | 49,000 | |||||||||||
| Salaries Payable | ||||||||||||
| Interest Payable | ||||||||||||
| Utilities Payable | ||||||||||||
| Unearned Consulting Revenue | 14,000 | |||||||||||
| Unearned Rent Revenue | 16,800 | |||||||||||
| Note Payable | 18,000 | |||||||||||
| Common Stock | 300,000 | |||||||||||
| Retained Earnings | 189,350 | |||||||||||
| Dividends | 12,800 | |||||||||||
| Sales Revenue | 1,576,150 | |||||||||||
| Consulting Revenue | ||||||||||||
| Rent Revenue | ||||||||||||
| Interest Revenue | ||||||||||||
| Cost of Goods Sold | 975,000 | |||||||||||
| Sales Salaries Expense | 275,000 | |||||||||||
| Office Salaries Expense | 150,000 | |||||||||||
| Miscellaneous Administrative Expense | 5,650 | |||||||||||
| Miscellaneous Selling Expense | 13,900 | |||||||||||
| Depreciation Expense - StoreEquipment | ||||||||||||
| Depreciation Expense - OfficeEquipment | ||||||||||||
| Store Supplies Expense | 17,500 | |||||||||||
| Shop Supplies Expense | ||||||||||||
| Rent Expense | ||||||||||||
| Insurance Expense | ||||||||||||
| Interest Expense | ||||||||||||
| Utilities Expense-Store | ||||||||||||
| Utilities Expense-Office | ||||||||||||
| 2,179,050 | 2,179,050 | |||||||||||
Problem 23-4
Blossom Company had the following information available at theend of 2017.
BLOSSOMCOMPANY | ||||||
2017 | 2016 | |||||
| Cash | $9,930 | $4,010 | ||||
| Accounts receivable | 20,450 | 12,910 | ||||
| Short-term investments | 22,070 | 30,030 | ||||
| Inventory | 42,300 | 35,310 | ||||
| Prepaid rent | 3,020 | 12,090 | ||||
| Prepaid insurance | 2,090 | 90 | ||||
| Supplies | 1,010 | 75 | ||||
| Land | 124,270 | 175,470 | ||||
| Buildings | 353,500 | 353,500 | ||||
| Accumulated depreciationâbuildings | (105,150 | ) | (87,890 | ) | ||
| Equipment | 526,140 | 396,090 | ||||
| Accumulated depreciationâequipment | (129,450 | ) | (111,310 | ) | ||
| Patents | 45,390 | 49,550 | ||||
| Total assets | $915,570 | $869,925 | ||||
| Accounts payable | $21,800 | $32,080 | ||||
| Income taxes payable | 5,020 | 3,970 | ||||
| Salaries and wages payable | 4,950 | 3,000 | ||||
| Short-term notes payable | 10,060 | 10,060 | ||||
| Long-term notes payable | 60,060 | 69,370 | ||||
| Bonds payable | 397,380 | 397,380 | ||||
| Premium on bonds payable | 30,200 | 32,145 | ||||
| Common stock | 239,140 | 221,530 | ||||
| Paid-in capital in excess of parâcommon stock | 24,850 | 17,400 | ||||
| Retained earnings | 122,110 | 82,990 | ||||
| Total liabilities and stockholdersâequity | $915,570 | $869,925 | ||||
BLOSSOM COMPANY | ||||||
| Sales revenue | $1,157,060 | |||||
| Cost of goods sold | 748,200 | |||||
408,860 | ||||||
| Gross margin | ||||||
| Operating expenses | ||||||
| Selling expenses | $78,550 | |||||
| Administrative expenses | 156,290 | |||||
| Depreciation/Amortization expense | 39,560 | |||||
| Total operating expenses | 274,400 | |||||
| Income from operations | 134,460 | |||||
| Other revenues/expenses | ||||||
| Gain on sale of land | 7,950 | |||||
| Gain on sale of short-term investment | 3,980 | |||||
| Dividend revenue | 2,380 | |||||
| Interest expense | (51,810 | ) | (37,500 | ) | ||
| Income before taxes | 96,960 | |||||
| Income tax expense | 39,460 | |||||
| Net income | 57,500 | |||||
| Dividends to common stockholders | (18,380 | ) | ||||
| To retained earnings | $39,120 | |||||
1 - Prepare a statement of cash flows for Blossom Company using thedirect method accompanied by a reconciliation schedule. Assume theshort-term investments are debt securities, classified asavailable-for-sale. (Show amounts in the investing andfinancing sections that decrease cash flow with either a - signe.g. -15,000 or in parenthesis e.g. (15,000).)
2- Reconciliation Schedule
