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1. A company purchased $4,800 worth of merchandise. Transportation costs were an additional $420. The..A company purchased $4,800 worth of merchandise. Transportation costs were an additional $420. The company later returned $330 worth of merchandise and paid the invoice within the 3% cash discount period. The total amount paid for this merchandise is: $4,578.00. $4,755.90. $4,710.00. $4,890.00. $4,746.00.
2. Ken Jones, an architect, organized Jones Architects on April 1, 2016. During the month, Jones...
Ken Jones, an architect, organized Jones Architects on April 1, 2016. During the month, Jones Architects completed the following transactions:
a. Transferred cash from a personal bank account to an account to be used for the busi- ness in exchange for common stock, $18,000.
b. Purchased used automobile for $19,500, paying $2,500 cash and giving a note payable for the remainder.
c. Paid April rent for office and workroom, $3,150.
d. Paid cash for supplies, $1,450.
e. Purchased office and computer equipment on account, $6,500.
f. Paid cash for annual insurance policies on automobile and equipment, $2,400.
g. Received cash from a client for plans delivered, $12,000.
h. Paid cash to creditors on account, $1,800.
i. Paid cash for miscellaneous expenses, $375.
j. Received invoice for blueprint service, due in May, $2,500.
k. Recorded fees earned on plans delivered, payment to be received in May, $15,650.
l. Paid salary of assistant, $2,800.
m. Paid cash for miscellaneous expenses, $200.
n. Paid installment due on note payable, $300.
o. Paid gas, oil, and repairs on automobile for April, $550.
instructions
1. Record these transactions directly in the following T accounts, without journalizing: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Common Stock, Professional Fees, Rent Expense, Salary Expense, Blue- print Expense, Automobile Expense, Miscellaneous Expense. To the left of each amount entered in the accounts, place the appropriate letter to identify the transaction.
2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.
3. Prepare an unadjusted trial balance for Jones Architects as of April 30, 2016.
4. Determine the net income or net loss for April.
3. Anita Spencer is the founder and manager of Spencer Playhouse. The business needs to obtain a bank..
Anita Spencer is the founder and manager of Spencer Playhouse. The business needs to obtain a bank loan to finance the production of its next play. As part of the loan application, Anita Spencer was asked to prepare a balance sheet for the business. She prepared the following balance sheet, which is arranged correctly but which contains several errors with respect to such concepts as the business entity and the valuation of assets, liabilities, and owner’s equity.
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Anita Spencer is the founder and manager of Spencer Playhouse. The business needs to obtain a bank loan to finance the production of its next play. As part of the loan application, Anita Spencer was asked to prepare a balance sheet for the business. She prepared the following balance sheet, which is arranged correctly but which contains several errors with respect to such concepts as the business entity and the valuation of assets, liabilities, and owner’s equity. SPENCER PLAYHOUSE
Balance Sheet
September 30, 2015 Assets Liabilities & Owner's Equity Cash$21,900 Liabilities: Accounts receivable132,200 Accounts payable$6,000 Props and costumes3,000 Salaries payable29,200 Theater building27,000 Total liabilities$35,200 Lighting equipment9,400 Owner's equity: Automobile15,000 Anita Spencer, capital173,300 Total$208,500 Total$208,500 In discussions with Anita Spencer and by reviewing the accounting records of Spencer Playhouse, you determine the following facts:1.The amount of cash, $21,900, includes $15,000 in the company's bank account, $1,900 on hand in the company's safe, and $5,000 in Anita Spencer’s personal savings account.2.The accounts receivable, listed as $132,200, include $7,200 owed to the business by Artistic Tours. The remaining $125,000 is Anita Spencer’s estimate of future ticket sales from September 30 through the end of the year (December 31).3.Anita Spencer explains to you that the props and costumes were purchased several days ago for $18,000. The business paid $3,000 of this amount in cash and issued a note payable to Actors' Supply Co. for the remainder of the purchase price ($15,000). As this note is not due until January of next year, it was not included among the company's liabilities.4.Spencer Playhouse rents the theater building from Kievits International at a rate of $3,000 a month. The $27,000 shown in the balance...
4. On October 1, Bandor Company sold land (that cost $30,000) on credit for $35,000. The buyer...
On October 1, Bandor Company sold land (that cost $30,000) on credit for $35,000. The buyer issued an 8%, 12-month note for this amount, with the interest to be paid on the maturity date. Prepare journal entries to record the sale of the land and the related year-end adjusting entry.
5. Kwik Pix is a large digital processing center that serves
Kwik Pix is a large digital processing center that serves 130 outlets in grocery stores, service stations, camera and photo shops, and drug stores in 16 nearby towns. Kwik Pix operates 24 hours a day, 6 days a week. Classify each of the following activity costs of Kwik Pix as either unit-level, batch-level, product-level, or facility-level.
(a) Color printing materials.
(b) Photocopy paper.
(c) Depreciation of machinery.
(d) Setups for enlargements.
(e) Supervisor’s salary.
(f) Ordering materials.
(g) Pickup and delivery.
(h) Commission to dealers.
(i) Insurance on building.
(j) Loading developing machines.
6. Expenses, losses, and distributions to owners are all decreases in net assets. What are the...
Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?
7. (Error Correction Entries) The first audit of the books of Bruce Gingrich Company was made for the
(Error Correction Entries) The first audit of the books of Bruce Gingrich Company was made for the year ended December 31, 2015. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These items are:
1. At the beginning of 2013, the company purchased a machine for $510,000 (salvage value of $51,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation, but failed to deduct the salvage value in computing the depreciation base for the 3 years.
2. At the end of 2014, the company failed to acc r ue sales salaries of $45,000.
3. A tax lawsuit that involved the year 2013 was settled late in 2015. It was determined that the com-
pany owed an additional $85,000 in taxes r elated to 2013. The company did not r eco r d a liability in
2013 or 2014 because the possibility of loss was conside r ed r emote, and cha r ged the $85,000 to a loss
account in 2015.
4 . Gingric h Compan y pu r chase d a copyrigh t f r o m anothe r compan y earl y i n 201 3 fo r $45,000 . Gingrich
had not amortized the copyright because its value had not diminished. The copyright has a useful
life at pu r chase of 20 years.
5. In 2015, the company w r ote o f f $87,000 of inventory conside r ed to be obsolete; this loss was cha r ged
di r ectly to Retained Earnings.
Instructions
Prepare the journal entries necessary in 2015 to correct the books, assuming that the books have not been closed. Disregard effects of corrections on income tax.
8. Cost Accounting
The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $950,000. The investment is expected to generate $350,000 in annual cash flows for a period of four years. The required rate of return is 14%. The old machine can be sold for $50,000. The machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. (Points : 3)
$119,550; Yes
$326,750; No
$1,019,550; Yes
$69,550; No
9. Exercise 4-9 The ledger of Howard Rental Agency on March 31 of the current year includes the sele...
Please solve this problem,
Exercise 4-9 The ledger of Howard Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared Debit Credi Supplies $3,000 Prepaid Insurance 3,600 25,000 Equipment $8,400 Accumulated Depreciation-Equipment Notes Payable 20,000 Unearned Rent Revenue 12,400 60,000 Rent Revenue Interest Expense Salaries and Wages Expense 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $280 per month. 2. Half of the unearned rent revenue was earned during the quarter. 3. Interest of $400 is accrued on the notes payable 4. Supplies on hand total $850. 5. Insurance expires at the rate of $400 per month Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Credit No. Date Account Titles and Explanation Debit 1. Mar 31
10. At the close of its first year of operations, December 31, 2007, Linn Company had accounts receiv...
Show transcribed image text At the close of its first year of operations, December 31, 2007, Linn Company had accounts receivable of $540,000, after deducting the related allowance for doubtful accounts. During 2007, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of $40,000. What should the company report on its balance sheet at December 31, 2007, as accounts receivable before the allowance for doubtful accounts? $670,000 $590,000 $490,000 $440,000
12. At the beginning of the year. Quaker Company's liabilities equal $70,000. During the year, assets...
At the beginning of the year. Quaker Company's liabilities equal $70,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $5,000 during the year. What are the beginning and ending amounts of equity?
13. Sage Learning Centers was established on July 20, 2016, to provide educational services. The serv...
Sage Learning Centers was established on July 20, 2016, to provide educational services. The services provided during the remainder of the month are as follows: July 21. Issued invoice No. 1 to J. Dunlop for $115 on account. 22. Issued Invoice No. 2 to K. Tisdale for $350 on account. 24. Issued Invoice No. 3 to T. Quinn for $85 on account. 25. Provided educational services, $300, to K. Tisdale in exchange for educational supplies. 27. Issued Invoice No. 4 to F. Mintz for $225 on account. 30. Issued Invoice No. 5 to D. Chase for $170 on account. 30. Issued Invoice No. 6 to K. Tisdale for $120 on account. 31. Issued Invoice No. 7 to T. Quinn for $105 on account. Journalize the transactions for July, using a single-column revenue journal and a two-column general journal. Post the following customer accounts receivable ledger, and insert the balance immediately after recording each entry: D. Chase: J. Dunlop; F. Mintz: T. Quinn; K. Tisdale. Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings: 12 Accounts Receivable 13 Supplies 41 Fees Earned a. What is the sum of the balances of the customer accounts in the subsidiary ledger at July 31? b. what is the balance of the accounts receivable controlling account at July 31? Assume Sage Learning Centers began using a computerized accounting system to record the sales transactions on August 1. What are some of the benefits of the computerized system over the manual system?
14. Rawlco Communications operates 15 radio stations. The following events occurred during September. a.
Rawlco Communications operates 15 radio stations. The following events occurred during September. a. Placed an order for office supplies costing $ 2,000. Supplier intends to deliver later in the month. b. Purchased equipment that cost $ 30,000; paid $ 10,000 cash and signed a promissory note to pay $ 20,000 in one month. c. Negotiated and signed a one- year bank loan, and then deposited $ 5,000 cash in the company’s checking account. d. Hired a new finance manager on the last day of the month. e. Received an investment of $ 10,000 cash from the company’s owners in exchange for issuing common shares. f. Supplies [ordered in (a)] were received, along with a bill for $ 2,000. Required: 1. Indicate the specific account, amount, and direction of effects for each transaction on the radio station’s accounting equation. If an event is not considered a transaction, explain why. 2. Prepare journal entries to record each transaction. 3. Rawlco began the month with $ 220,000 in total assets. What total assets would be reported on the balance sheet after events (a)–(f) ?
15. 120.Dazzle, Inc. produces beads for jewelry making use. The following information summarizes...
120.Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for overhead allocation is:
Direct materials used$87,000
Direct labor used160,000
Predetermined overhead rate (based on direct labor)155%
Goods transferred to finished goods432,000
Cost of goods sold444,000
Credit sales810,000
A. Debit Factory Overhead $248,000; credit Cash $248,000.
B. Debit Work in Process Inventory $160,000; credit Factory Payroll $160,000.
C. Debit Work in Process Inventory $248,000; credit Factory Overhead $248,000.
D. Debit Work in Process Inventory $160,000; credit Factory Overhead $160,000.
E. Debit Work in Process Inventory $160,000; credit Cash $160,000.
121.Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for goods transferred from production to finished goods is:
Direct materials used$87,000
Direct labor used160,000
Predetermined overhead rate (based on direct labor)155%
Goods transferred to finished goods432,000
Cost of goods sold444,000
Credit sales810,000
A. Debit Finished Goods Inventory $432,000; credit Work in Process Inventory $432,000.
B. Debit Work in Process Inventory $444,000; credit Finished Goods Inventory $444,000.
C. Debit Work in Process Inventory $432,000; credit Finished Goods Inventory $432,000.
D. Debit Finished Goods Inventory $444,000; credit Work in Process Inventory $444,000.
E. Debit Work in Process Inventory $432,000; credit Cash $432,000.
122.Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:
Direct materials used$87,000
Direct labor used160,000
Predetermined overhead rate (based on direct labor)155%
Goods transferred to finished goods432,000
Cost of goods sold444,000
Credit sales810,000
A. Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.
B. Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.
C. Debit Cost of Goods Sold $444,000; credit Sales $444,000.
D. Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.
E. Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.
123.Andrews Corporation uses a process costing system for manufacturing. The following information is available for the February in its Polishing Department:
Equivalent units of production—direct materials110,000 EUP
Equivalent units of production—conversion95,000 EUP
Costs in beginning Work in Process—direct materials$49,000
Costs in beginning Work in Process—conversion$36,000
Costs incurred in February—direct materials$414,000
Costs incurred in February—conversion520,000
The cost per equivalent unit of production for conversion is:
A. $9.26
B. $4.21
C. $5.85
D. $5.05
E. $4.97
124.Andrews Corporation uses a process costing system for manufacturing. The following information is available for the February in its Polishing Department:
Equivalent units of production—direct materials110,000 EUP
Equivalent units of production—conversion95,000 EUP
Costs in beginning Work in Process—direct materials$49,000
Costs in beginning Work in Process—conversion$36,000
Costs incurred in February—direct materials$414,000
Costs incurred in February—conversion520,000
The cost per equivalent unit of production for direct materials is:
A. $9.26
B. $4.21
C. $4.97
D. $5.05
E. $5.85
125.During March, the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion. Compute the number of physical units transferred to finished goods.
A. 110,000.
B. 135,000.
C. 105,000.
D. 165,000.
E. 144,000.
