ACCO 230 Study Guide - Midterm Guide: Current Liability, Free Cash Flow, Office Supplies

72 views7 pages

indigotiger946

12 Feb 2015

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Problem 1 -- solution for part a (multiple-choice) a a c a b a a d b d a c c a. Problem 1 -- solution for part b fill-in-the-blanks exercise. Problem 1 (part c) (fill-in-the-blanks) -- 6 marks. Financial information is presented below for strojo ltd. for its most recent year. The information is correct but has been presented in a random order by a mischievous clerk. Show the missing amounts, in the spaces above. The company has a december 31st year end date. Problem 2 - solution: gross profit, sale of november 7 (perpetual, fifo): Units on hand, immediately prior to sale = 150 + 650 -700 + 500 - 100 = 500 (all deemed to be from purchase of sept. 22) Solution -- acco 230. 4 midterm exam -- feb. 13, 2011: cost of inventory and number of units, october 31, (perpetual, average): [,500 - ,000 = ,500; discount period expired]

Related Questions

5. On June 1, 2008, Delbert Inc. reported a cash balance of $12,000. During June, Delbert made deposits of $3,000 and made disbursements totalling $16,000. What is the cash balance at the end of June?

a. $1,000 debit balance

b. $15,000 debit balance

c. $1,000 credit balance

d. $4,000 credit balance

6. At January 1, 2008, Burton Industries reported ownerâs equity of $130,000. During 2008, Burton had a net income of $30,000 and owner drawings of $20,000. At December 31, 2008, the amount of ownerâs equity is

a. $130,000.

b. $140,000.

c. $100,000.

d. $80,000.

7. Able Company pays its employees twice a month, on the 7^th and the 21^st. On June 21, Able Company paid employee salaries of $5,000. This transaction would

a. decrease net income for the month by $5,000.

b. increase ownerâs equity by $4,000.

c. decrease the balance in Salaries Expense by $4,000.

d. be recorded by a $4,000 debit to Salaries Payable and a $4,000 credit to Salaries Expense.

8. In the first month of operations for Pocket Industries, the total of the debit entries to the cash account amounted to $9,000 ($5,000 investment by the owner and revenues of $4,000). The total of the credit entries to the cash account amounted to $5,000 (purchase of equipment $2,000 and payment of expenses $3,000). At the end of the month, the cash account has a(n)

a. $2,000 credit balance.

b. $2,000 debit balance.

c. $3,000 credit balance.

d. $4,000 debit balance.

9. Denton Company showed the following balances at the end of its first year:

Cash $ 7,000

Prepaid insurance 700

Accounts receivable 3,500

Accounts payable 2,800

Notes payable 4,200

Denton, Capital 1,400

Denton, Drawing 700

Revenues 21,000

Expenses 17,500

What did Denton Company show as total credits on its trial balance?

a.$30,100

b.$29,400

c.$28,700

d.$30,800

10. Cerner Company showed the following balances at the end of its first year:

Cash $ 5,000

Prepaid insurance 500

Accounts receivable 2,500

Accounts payable 2,000

Notes payable 3,000

Cerner, Capital 1,000

Cerner, Drawing 500

Revenues 15,000

Expenses 12,500

What did Cerner Company show as total credits on its trial balance?

a. $21,500

b. $21,000

c. $20,500

d. $22,000

11. During February 2008, its first month of operations, the owner of Rutwing Enterprises invested cash of $25,000. Rutwing had cash revenues of $4,000 and paid expenses of $7,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

a. $3,000 credit

b. $22,000 debit

c. $29,000 debit

d. $18,000 credit

12. At January 31, 2008, the balance in Prieto Inc.âs supplies account was $250. During February, Prieto purchased supplies of $300 and used supplies of $400. At the end of February, the balance in the supplies account should be

a. $250 debit.

b. $350 credit.

c. $950 debit.

d. $150 debit.

13. At December 1, 2008, Marco Companyâs accounts receivable balance was $1,200. During December, Marco had credit revenues of $5,000 and collected accounts receivable of $4,000. At December 31, 2008, the accounts receivable balance is

a. $1,200 debit.

b. $2,200 debit.

c. $6,200 debit.

d. $2,200 credit.

14. The following is selected information from J Corporation for the fiscal year ending October 31, 2008.

Cash received from customers $300,000

Revenue earned 380,000

Cash paid for expenses 170,000

Cash paid for computers on November 1, 2007 that will be used

for 3 years (annual depreciation is $16,000) 48,000

Expenses incurred, not including any depreciation 200,000

Proceeds from a bank loan, part of which was used to pay for

the computers 100,000

Based on the accrual basis of accounting, what is J Corporationâs net income for the year ending October 31, 2008?

Use the following information for questions 15â16.

Sheepskin Company had the following transactions during 2008.

Sales of $5,500 on account

Collected $2,225 for services to be performed in 2009

Paid $600 cash in salaries

Purchased airline tickets for $255 in December for a trip to take place in 2009

15. What is Sheepskinâs 2008 net income using accrual accounting?

a. $3,875

b. $5,875

c. $4,900

d. $3,625

16. What is Sheepskinâs 2008 net income using cash basis accounting?

Data Table

Outdoor Adventure Company
Comparative Balance Sheet
December 31, 2019 and 2018
		2019	2018
Assets
Current Assets:
	Cash	$1,398,330	$14,790
	Short-term Investments, net	29,000	0
	Accounts Receivable, net	1,600	6,300
	Merchandise Inventory	400	0
	Office Supplies	70	300
	Prepaid Rent	0	2,000
Property, Plant, and Equipment:
	Land	615,000	75,000
	Building	944,000	94,000
	Canoes	13,920	13,920
	Office Furniture and Equipment	140,000	0
	Accumulated DepreciationâPP&E	(31,920)	(1,740)
Total Assets		$3,110,400	$204,570
Liabilities
Current Liabilities:
	Accounts Payable	$6,420	$4,400
	Utilities Payable	550	250
	Telephone Payable	640	290
	Wages Payable	3,700	1,200
	Notes Payable	18,000	0
	Interest Payable	630	30
	Unearned Revenue	650	450
Long-Term Liabilities:
	Notes Payable	6,720	6,720
	Mortgage Payable	725,000	0
	Bonds Payable	1,000,000	0
	Discount on Bonds Payable	(1,140)	0
Total Liabilities		1,761,170	13,340
Stockholders' Equity
Paid-In Capital:
	Preferred Stock	60,000	0
	Paid-In Capital in Excess of ParâPreferred	480,000	0
	Common Stock	229,000	189,000
	Paid-In Capital in Excess of ParâCommon	240,000	0
Retained Earnings		340,230	2,230
Total Stockholders' Equity		1,349,230	191,230
Total Liabilities and Stockholders' Equity		$3,110,400	$204,570

1.	Theincome statement for 20192019 included the following items:
	a.	Net income, $ 435 comma 000$435,000
	b.	Depreciation expense for the year, $ 30 comma 180$30,180.
	c.	Amortization on the bonds payable, $ 380$380.
2.	There were no disposals of property, plant and equipment duringthe year. All acquisitions of PP&E were for cash except theland, which was acquired by issuing preferred stock.
3.	Thecompany issued bonds payable with a face value of $ 1 comma 000 comma 000$1,000,000 , receiving cash of $ 998 comma 480$998,480.
4.	Thecompany distributed 8 comma 0008,000 shares of common stock in a stock dividend when the market valuewas $ 9.00$9.00 per share. All other dividends were paid in cash.
5.	The common stock, except for the stock dividend, was issued forcash.
6.	Thecash receipt from the notes payable in 20192019 is considered a financing activity because it does not relate tooperations.

Net Cash Provided by (Used for) Investing Activities

(990,000)

Cash Flows From Financing Activities:
Cash Receipt from Issuance of Common Stock
Cash Receipt from Issuance of Notes Payable
Cash Receipt from Issuance of Mortgage Payable
Cash Receipt from Issuance of Bonds Payable
Cash Payment of Dividends
Net Cash Provided by (Used for) Financing Activities

Choose from any list or enter any number in the input fields andthen click Check Answer.

Need help solving how to find the solution

orangejellyfish98

Help needed with Great Adventures Problem 3-1 Part 4, 5, 6, 7,and 8.

I have worked on preparing the adjusted trial balance but cannotget my debits and credits to equal. Any information you can provideis appreciated.

Great Adventures Problem 3-1

[The following information applies to the questionsdisplayed below.]

The followingtransactions occur over the remainder of the year.

Aug.	1	Great Adventures obtains a $38,000 low-interest loan for thecompany from the city council, which has recently passed aninitiative encouraging business development related to outdooractivities. The loan is due in three years, and 6% annual interestis due each year on July 31.
Aug.	4	The companypurchases 14 kayaks, costing $15,400.
Aug.	10	Twenty additional kayakers pay $3,200 ($160 each), in additionto the $6,600 that was paid in advance on July 30, on the day ofthe clinic. Tony conducts the first kayak clinic.
Aug.	17	Tony conducts asecond kayak clinic, and the company receives $11,800 cash.
Aug.	24	Office suppliesof $1,800 purchased on July 4 are paid in full.
Sep.	1	To provide better storage of mountain bikes and kayaks when notin use, the company rents a storage shed, purchasing a one-yearrental policy for $2,400 ($200 per month).
Sep.	21	Tony conducts arock-climbing clinic. The company receives $13,300 cash.
Oct.	17	Tony conducts an orienteering clinic. Participants practice howto understand a topographical map, read an altimeter, use acompass, and orient through heavily wooded areas. Clinic fees total$19,700.
Dec.	1	Tony decides to hold the companyâs first adventure race onDecember 15. Four-person teams will race from checkpoint tocheckpoint using a combination of mountain biking, kayaking,orienteering, trail running, and rock-climbing skills. The firstteam in each category to complete all checkpoints in order wins.The entry fee for each team is $650.
Dec.	5	To help organize and promote the race, Tony hires his collegeroommate, Victor. Victor will be paid $70 in salary for each teamthat competes in the race. His salary will be paid after therace.
Dec.	8	The company pays$1,800 to purchase a permit from a state park where the race willbe held. The amount is recorded as a miscellaneous expense.
Dec.	12	The company purchases racing supplies for $2,300 on account duein 30 days. Supplies include trophies for the top-finishing teamsin each category, promotional shirts, snack foods and drinks forparticipants, and field markers to prepare the racecourse.
Dec.	15	Forty teams paya total of $26,000 to race. The race is held.
Dec.	16	The company paysVictorâs salary of $2,800.
Dec.	31	The company paysa dividend of $4,100 ($2,050 to Tony and $2,050 to Suzie).
Dec.	31	Using his personal money, Tony purchases a diamond ring for$4,300. Tony surprises Suzie by proposing that they get married.Suzie accepts!

The followinginformation relates to year-end adjusting entries as of December31, 2015.

a.	Depreciation of the mountain bikes purchased on July 8 andkayaks purchased on August 4 totals $7,400.
b.	Six monthsâworth of insurance has expired.
c.	Four monthsâworth of rent has expired.
d.	Of the $1,800 ofoffice supplies purchased on July 4, $380 remains.
e.	Interest expenseon the $38,000 loan obtained from the city council on August 1should be recorded.
f.	Of the $2,300 ofracing supplies purchased on December 12, $100 remains.
g.	Suzie calculatesthat the company owes $13,500 in income taxes.

Assume thefollowing ending balances for the month of July.

	Balance
Cash	$	19,390
Prepaid insurance		4,320
Supplies (Office)		1,800
Equipment (Bikes)		15,600
Accounts payable		1,800
Unearned revenue		6,600
Common stock		30,000
Service revenue (Clinic)		5,200
Advertising expense		1,190
Legal fees expense		1,300

Great Adventures Problem 3-1 Part 4

4.	Prepare an adjusted trial balance as of December 31, 2015.(The items in the Trial Balance should be grouped asfollows: Assets, Liabilities, Equity, Dividends, Revenues, andExpenses.)

Great Adventures Problem 3-1 Part 5

5-a.	For the period July 1 to December 31, 2015, prepare an incomestatement.

5-b.	For the period July 1 to December 31, 2015, prepare an statementof stockholdersâ equity. All account balances on July 1 were zero.(Amounts to be deducted should be indicated with minussign.)

5-c.	Prepare a classified balance sheet as of December 31, 2015.

Great Adventures Problem 3-1 Part 6

6.	Record closingentries as of December 31, 2015.

Great Adventures Problem 3-1 Part 7

7.	Post the closing entries of retained earnings to theT-accounts.

Great Adventures Problem 3-1 Part 8

8.	Prepare a post-closing trial balance as of December 31, 2015.(The items in the Trial Balance should be grouped asfollows: Assets, Liabilities, Equity.)

amethystpig599

ACCO 230 Study Guide - Midterm Guide: Current Liability, Free Cash Flow, Office Supplies

Document Summary

Get access

Related Documents

ACCO 230 Study Guide - Midterm Guide: Gross Profit, Retained Earnings, Net Income

ACCT 1220 Midterm: Midterm 1 - Solution - Students

BUS-A 100 Study Guide - Midterm Guide: Big Four Accounting Firms, Morgan Stanley Wealth Management, Accounts Payable

Related Questions