Category Archives: ACC 291

UOP ACC 291 Final Exam Guide

UOP ACC 291 Final Exam Guide

Check this A+ tutorial guideline at

http://www.assignmentclick.com/acc-291-uop/acc-291-final-exam-guide

 For more classes visit

http://www.assignmentclick.com

1) Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $300,000 and credit sales are $1,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?

Bad Debts Expense ……………. ……………. $15,000

Allowances for Doubtful Accounts ……………. ……………. $15,000

Bad Debts Expense ……………. ……………. $12,000

Allowances for Doubtful Accounts ……………. ……………. $12,000

Bad Debts Expense ……………. ……………. $12,000

Accounts Receivable ……………. ……………. …………….. $12,000

Bad Debts Expense ……………. ……………. $15,000

Accounts Receivable ……………. ……………. …………….. $15,000

2) Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $3,000 credit before adjustment, what is the amount of bad debts expense for that period?

A. $15,000

B. $12,000

C. $18,000

D. $8,000

3) Intangible assets

A. should be reported under the heading Property, Plant, and Equipment

B. should be reported as a separate classification on the balance sheet

C. should be reported as Current Assets on the balance sheet

D. are not reported on the balance sheet because they lack physical substance

4) Intangible assets are the rights and privileges that result from ownership of long-lived assets that

A. must be generated internally

B. are depletable natural resources

C. do not have physical substance

D. have been exchanged at a gain

5) The book value of an asset is equal to the

A. asset’s market value less its historic cost

B. blue book value relied on by secondary markets

C. replacement cost of the asset

D. asset’s cost less accumulated depreciation

6) Gains on an exchange of plant assets that has commercial substance are

A. deducted from the cost of the latest asset acquired

B. deferred

C. not possible

D. recognized immediately

7) Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as

A. capital expenditures

B. expense expenditures

C. improvements

D. revenue expenditures

8) Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as

A. capital expenditures

B. expense expenditures

C. ordinary repairs

D. revenue expenditures

9) When an interest-bearing note matures, the balance in the Notes Payable account is

A. less than the total amount repaid by the borrower

B. the difference between the maturity value of the note and the face value of the note

C. equal to the total amount repaid by the owner

D. greater than the total amount repaid by the owner

 

10) The interest charged on a $200,000 note payable, at a rate of 6%, on a 2-month note would be

A. $12,000

B. $6,000

C. $3,000

D. $2,000

 

11) If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

A. $3,000,000

B. $90,000

C. $300,000

D. $210,000

12) Hilton Company issued a four-year interest-bearing note payable for $300,000 on January 1, 2011. Each January the company is required to pay $75,000 on the note. How will this note be reported on the December 31, 2012 balance sheet?

A. Long-term debt, $300,000.

B. Long-term debt, $225,000.

C. Long-term debt, $150,000; Long-term debt due within one year, $75,000.

D. Long-term debt, $225,000; Long-term debt due within one year, $75,000.

13) A corporation issued $600,000, 10%, 5-year bonds on January 1, 2011 for 648,666, which reflects an effective-interest rate of 8%. Interest is paid semi-annually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2011, is

A. $30,000

B. $24,000

C. $32,434

D. $25,946

14) When the effective-interest method of bond discount amortization is used

A. the applicable interest rate used to compute interest expense is the prevailing market interest rate on the date of each interest payment date

B. the carrying value of the bonds will decrease each period

C. interest expense will not be a constant dollar amount over the life of the bond

D. interest paid to bondholders will be a function of the effective-interest rate on the date the bonds were issued

15) If a corporation has only one class of stock, it is referred to as

A. classless stock

B. preferred stock

C. solitary stock

D. common stock

16) Capital stock to which the charter has assigned a value per share is called

A. par value stock

B. no-par value stock

C. stated value stock

D. assigned value stock

17) ABC, Inc. has 1,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011. What is the annual dividend on the preferred stock?

A. $50 per share

B. $5,000 in total

C. $500 in total

D. $.50 per share

18) Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2010. The board of directors declares and pays a $45,000 dividend in 2011. What is the amount of dividends received by the common stockholders in 2011?

A. $0

B. $25,000

C. $45,000

D. $20,000

19) When the selling price of treasury stock is greater than its cost, the company credits the difference to

A. Gain on Sale of Treasury Stock

B. Paid-in Capital from Treasury Stock

C. Paid-in Capital in Excess of Par Value

D. Treasury Stock

 

20) The purchase of treasury stock

A. decreases common stock authorized

B. decreases common stock issued

C. decreases common stock outstanding

D. has no effect on common stock outstanding

 

21) Marsh Company has other operating expenses of $240,000. There has been an increase in prepaid expenses of $16,000 during the year, and accrued liabilities are $24,000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Marsh’s cash payments for operating expenses?

A.                    $228,000

B.                    $232,000

C.                    $200,000

D.                    $280,000

22) Where would the event purchased land for cash appear, if at all, on the indirect statement of cash flows?

A. Operating activities section

B. Investing activities section

C. Financing activities section

D. Does not represent a cash flow

23) In performing a vertical analysis, the base for cost of goods sold is

A. total selling expenses

B. net sales

C. total revenues

D. total expense

24) Blanco, Inc. has the following income statement (in millions):

BLANCO, INC.

Income Statement

For the Year Ended December 31, 2011

Net Sales         …………………………      $200

Cost of Goods Sold    …………………………      120

Gross Profit     …………………………      80

Operating Expenses    …………………………      44

Net Income     …………………………      $ 36

Using vertical analysis, what percentage is assigned to Net Income?

A. 100%

B. 82%

C. 18%

D. 25%

25) Dawson Company issued 500 shares of no-par common stock for $4,500. acc 291 final exam, Which of the following journal entries would be made if the stock has a stated value of $2 per share?

Cash ………………………………………………….. $4,500

Common Stock 4,500

Cash ……………………………… $4,500

Common Stock 1,000

Paid-In Capital in Excess of Par 3,500

Cash …………………. $4,500

Common Stock 1,000

Paid-In Capital in Excess of Stated Value 3,500

Common Stock ………………………………………………….. $4,500

Cash 4,500

26) Andrews, Inc. paid $45,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a

A. credit to Paid-In Capital from Treasury Stock for $9,000

B.credit to Retained Earnings for $9,000

C. debit to Pain-In Capital from Treasury Stock for $45,000

D. debit to Retained Earnings for $45,000

27) Which of the following is a fundamental factor in having an effective, ethical corporate culture?

A. Efficient oversight by the company’s Board of Directors

B. Workplace ethics

C. Code of conduct

D. Ethics management programs

28) Two individuals at a retail store work the same cash register. You evaluate this situation as

A. a violation of establishment of responsibility

B. a violation of segregation of duties

C. supporting the establishment of responsibility

D. supporting internal independent verification

 

29) The Sarbanes-Oxley Act imposed which latest penalty for executives?

A. Fines

B. Suspension

C. Criminal prosecution for executives

D. Return of ill-gotten gains

 

30) The Sarbanes-Oxley Act requires that all publicly traded companies maintain a system of internal controls. Internal controls can be defined as a plan to

A. safeguard assets

B. monitor balance sheets

C. control liabilities

D. evaluate capital stock

 

UOP ACC 291 Week 5 Exercise E12-3, E12-10 latest

UOP ACC 291 Week 5 Exercise E12-3, E12-10 latest

Check this A+ tutorial guideline at

http://www.assignmentclick.com/acc-291-uop/acc-291-week-5-exercise-latest

For more classes visit

http://www.assignmentclick.com

Prepare the operating activities section—indirect method.

E12-3 Sosa Company reported net income of $190,000 for 2017. Sosa also reported depreciation expense of $35,000 and a loss of $5,000 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 increase in prepaid expenses.
Instructions
Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method.
Compare free cash flow of two companies.
 
 
E12-10 Information for two companies in the same industry, Merrill Corporation and Wingate Corporation, is presented here.
   Merrill Corporation  Wingate Corporation
Net cash provided by operating activities  $ 80,000  $100,000
Average current liabilities   50,000   100,000
Net income   200,000   200,000
Capital expenditures   40,000   70,000
Dividends paid   5,000   10,000
Instructions
Compute free cash flow for both companies and compare.

 

UOP ACC 291 Week 5 Assignment Financial Reporting Problem II latest

UOP ACC 291 Week 5 Assignment Financial Reporting Problem II latest

Check this A+ tutorial guideline at

http://www.assignmentclick.com/acc-291-uop/acc-291-week-5-assignment-financial-reporting-problem-latest

 

 For more classes visit

http://www.assignmentclick.com

Purpose of Assignment 

The purpose of this assignment is to expose you to the basic process involved in the analysis of the cash flow statement. 
Assignment Steps 
Resources: Appendix A of Financial Accounting: Tools for Business Decision Making 
Note: This is a two part assignment. 
Part 1 
Answer questions A-F in problem CT12-1 in Financial Accounting (p. 640). 
Provide an 875-word analysis of your findings. 
Include conclusions concerning the management of the company’s cash.
 
Part 2 
Complete a 1,050-word summary of findings and recommendations from the following questions: 
• What is the par or stated value per share of Apple’s common stock?
• What percentage of Apple’s authorized common stock was issued at September 27, 2014?
• How many shares of common stock were outstanding at September 28, 2013, and at September 27, 2014?
• Calculate the payout ratio, earnings per share, and return on common stockholders’ equity for 2014. 
Use the Week 5 Excel® spreadsheet and submit with your analysis and summary.

 

Uop ACC 291 Week 5 Apply Connect Assignment latest (With Excel File)

 Uop ACC 291 Week 5 Apply Connect Assignment latest (With Excel File)

 Check this A+ tutorial guideline at

 http://www.assignmentclick.com/acc-291-uop/acc-291-week-5-apply-connect-assignment-latest

 For more classes visit

www.assignmentclick.com  

 ACC 291 Week 5 Apply Connect Assignment latest (With Excel File)

                  This Tutorial contains an Excel File which can be used for any change in values

1

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.

Required:

Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.
Prepare a classified balance sheet as of December 31, 2019. 

Analyze:
What is the inventory turnover for Artisan Wines?

2

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2019.

Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.

Analyze:
What is the current ratio for this business?

 

 

 

 

 

 

 

 

 

 

 

UOP ACC 291 Week 4 Wileyplus Assignment

UOP ACC 291 Week 4 Wileyplus Assignment

Check this A+ tutorial guideline at

http://www.assignmentclick.com/acc-291-uop/acc-291-week-4-wileyplus-assignment-do-it-11-1,e11-5,e11-7,byp11-1,byp11-2,-p11-5a,p11-8a

 For more classes visit

http://www.assignmentclick.com

Do It! 11-1

Exercise 11-5 Garcia Corporation

Exercise 11-7 Pele Company

Broadening Your Perspective 11-1 Tootsie Roll

Broadening Your Perspective 11-2 Tootsie Roll & Hershey

Problem 11-5A Pringle Corporation

Problem 11-8A Everett Corporation

 

UOP ACC 291 WEEK 4 Stockholders’ Equity Section of the Balance Sheet (Lachlin Corporation Balance Sheet) latest

UOP ACC 291 WEEK 4 Stockholders’ Equity Section of the Balance Sheet (Lachlin Corporation Balance Sheet) latest

Check this A+ tutorial guideline at

http://www.assignmentclick.com/acc-291-uop/acc-291-week-4-stockholders-equity-section-of-the-balance-sheet-latest

For more classes visit

http://www.assignmentclick.com

Purpose of Assignment 

The purpose of this assignment is to help you become familiar with examining the stockholders’ equity section of the balance sheet. 
Assignment Steps 
 
Resources: Financial Accounting: Tools for Business Decision Making
Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet (partial) below: 
·         How many shares of common stock are outstanding?
·         Assuming there is a stated value, what is the stated value of the common stock?
·         What is the par value of the preferred stock?
·         If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
·         If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

 

Uop ACC 291 Week 4 Practice Connect Assignment latest

 Uop ACC 291 Week 4 Practice Connect Assignment latest

Check this A+ tutorial guideline at

http://www.assignmentclick.com/acc-291-uop/acc-291-week-4-practice-connect-assignment-latest

 For more classes visit

www.assignmentclick.com  

 

ACC 291 Week 4 Practice Connect Assignment

attempt 1

1

During the year 2019, Sampson Company had net credit sales of $1,950,000. Past experience shows that 1.5 percent of the firm’s net credit sales result in uncollectible accounts.
Equipment purchased by Park Consultancy for $38,220 on January 2, 2019, has an estimated useful life of 10 years and an estimated salvage value of $2,700. What adjustment for depreciation should be recorded on the firm’s worksheet for the year ended December 31, 2019?
On December 31, 2019, Giant Plumbing Supply owed wages of $11,400 to its factory employees, who are paid weekly.
On December 31, 2019, Giant Plumbing Supply owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $11,400 of accrued wages for its factory employees.
On December 31, 2019, Giant Plumbing Supply owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $11,400 of accrued wages for its factory employees.

2

On December 1, 2019, Jim’s Java Joint borrowed $50,000 from its bank in order to expand its operations. The firm issued a four-month, 6 percent note for $50,000 to the bank and received $49,000 in cash because the bank deducted the interest for the entire period in advance.

In general journal form, show the entry that would be made to record this transaction and the adjustment for prepaid interest that should be recorded on the firm’s worksheet for the year ended December 31, 2019.

3

On December 31, 2019, the Notes Payableaccount at Northwood Manufacturing Company had a balance of $16,000. This balance represented a three-month, 7.5 percent note issued on November 1.
On January 2, 2019, Hitech Computer Consultants purchased flash drives, paper, and other supplies for $5,230 in cash. On December 31, 2019, an inventory of supplies showed that items costing $1,590 were on hand. The Suppliesaccount has a balance of $5,230.
On September 1, 2019, North Dakota Manufacturing paid a premium of $14,640 in cash for a one-year insurance policy. On December 31, 2019, an examination of the insurance records showed that coverage for a period of four months had expired.
On May 1, 2019, Headcase Beauty Salon signed a one-year advertising contract with a local radio station and issued a check for $10,800 to pay the total amount owed. On December 31, 2019, the Prepaid Advertisingaccount has a balance of $10,800.
For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 2019, worksheet assuming no previous adjusting entries have been made during the year.

4

The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019, has $199,000 recorded in the Debit column and $215,345 in the Credit column on the line for the Income Summary account.

What were the beginning and ending balances for Merchandise Inventory?

5

On December 31, 2019, the Notes Payable account at Vanessa’s Boutique Shop had a balance of $90,000. This amount represented funds borrowed on a six-month, 8 percent note from the firm’s bank on December 1.

Record the journal entry for interest expense on this note that should be recorded on the firm’s worksheet for the year ended December 31, 2019.

 

 

 

 

 

 

 

 

 

 

UOP ACC 291 Week 4 Exercise E11-2, E11-5, E11-7, E11-13 latest

UOP ACC 291 Week 4 Exercise E11-2, E11-5, E11-7, E11-13 latest

Check this A+ tutorial guideline at

http://www.assignmentclick.com/acc-291-uop/acc-291-week-4-exercise-latest

 For more classes visit

http://www.assignmentclick.com

Journalize issuance of common stock and preferred stock and purchase of treasury stock.

E11-2 Sagan Co. had these transactions during the current period.
June 12  Issued 80,000 shares of $1 par value common stock for cash of $300,000.
July 11  Issued 3,000 shares of $100 par value preferred stock for cash at $106 per share.
Nov. 28  Purchased 2,000 shares of treasury stock for $9,000.
 
Prepare correct entries for capital stock transactions.
E11-5 Mesa Corporation recently hired a latest accountant with extensive experience in accounting for partnerships. Because of the pressure of the latest job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock.
 
 
Compare effects of a stock dividend and a stock split.
E11-7 On October 31, the stockholders’ equity section of Manolo Company’s balance sheet consists of common stock $648,000 and retained earnings $400,000. Manolo is considering the following two courses of action: (1) declaring a 5% stock dividend on the 81,000 $8 par value shares outstanding or (2) effecting a 2
for1 stock split that will reduce par value to $4 per share. The current market price is $17 per share.
Instructions
Prepare a tabular summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares. Use these column headings: Before Action, After Stock Dividend, and After Stock Split.
Calculate ratios to evaluate profitability and solvency.
E11-13 Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its outstanding bonds on January 1, 2017. The following information is available for the company for 2017 and 2016.
 (a) Compute the return on common stockholders’ equity for both years.
(b) Explain how it is possible that net income increased but the return on common stockholders’ equity decreased.
(c) Compute the debt to assets ratio for both years, and comment on the implications of this change in the company’s solvency.

 

Uop ACC 291 Week 4 Apply Connect Assignment latest (With Excel file)

 Uop ACC 291 Week 4 Apply Connect Assignment latest (With Excel file)

 Check this A+ tutorial guideline at

 http://www.assignmentclick.com/acc-291-uop/acc-291-week-4-apply-connect-assignment-latest

 For more classes visit

www.assignmentclick.com  

 ACC 291 Week 4 Apply Connect Assignment latest (With Excel file) 
This Tutorial contains an Excel File which can be used for any change in values (CONTAINS ALL QUESTIONS, SCROLL DOWN TO CHECK)

Assignment 1

a.-b. Merchandise Inventory, before adjustment, has a balance of $6,600. The latestly counted inventory balance is $7,100.

1.      Unearned Seminar Fees has a balance of $5,100, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019. Two seminars had been conducted by June 30, 2019.

2.      Prepaid Insurance has a balance of $6,600 for six months’ insurance paid in advance on May 1, 2019.

3.      Store equipment costing $12,890 was purchased on March 31, 2019. It has a salvage value of $410 and a useful life of four years.

4.      Employees have earned $160 that has not been paid at June 30, 2019.

5.      The employer owes the following taxes on wages not paid at June 30, 2019: SUTA, $4.80; FUTA, $0.96; Medicare, $2.32; and social security, $9.92.

6.      Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were $1,100,000.

7.      Prepaid Rent has a balance of $5,250 for six months’ rent paid in advance on March 1, 2019.

8.      The Supplies account in the general ledger has a balance of $310. A count of supplies on hand at June 30, 2019, indicated $105 of supplies remain.

9.      The company borrowed $13,700 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 12 percent.

Required:

Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019. The company has a June 30 fiscal year-end.

Analyze:

After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?

Assignment 1

The Green Thumb Gardener                                                                                                              

Merchandise inventory on December 31, 2019, is $11,521.

During 2019, the firm had net credit sales of $27,000; the firm estimates that 0.6 percent of these sales will result in uncollectible accounts.

On December 31, 2019, an inventory of the supplies showed that items costing $235 were on hand.

On October 1, 2019, the firm signed a six-month advertising contract for $960 with a local latestspaper and paid the full amount in advance.

On January 2, 2018, the firm purchased store equipment for $7,620. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $520.

On January 2, 2018, the firm purchased office equipment for $1,120. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $120.

On December 31, 2019, the firm owed salaries of $1,750 that will not be paid until 2020.

On December 31, 2019, the firm owed the employer’s social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,750 of accrued wages.

On December 31, 2019, the firm owed federal unemployment tax (assume 0.6 percent) and state unemployment tax (assume 5.4 percent) on the entire $1,750 of accrued wages.

Assignment 2

TRANSACTIONS

Signed a lease for an office and issued Check 101 for $14,100 to pay the rent in advance for six months.

Borrowed money from Second National Bank by issuing a four-month, 12 percent note for $32,800; received $31,488 because the bank deducted the interest in advance.

Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $6,600 per month; received the entire fee of $79,200 in advance.

Purchased office equipment for $26,400 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of six years and a $1,920 salvage value. The equipment will be depreciated using the straight-line method.

Purchased a one-year insurance policy and issued Check 102 for $1,692 to pay the entire premium.

Purchased office furniture for $18,400 from Furniture Warehouse; issued Check 103 for $10,400 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of five years and a $1,000 salvage value. The office furniture will be depreciated using the straight-line method.

Purchased office supplies for $1,930 with Check 104. Assume $860 of supplies are on hand July 31, 2019.

 

 

 

 

 

 

 

 

 

 

Uop ACC 291 Week 5 Practice Connect Practice Assignment latest

 Uop ACC 291 Week 5 Practice Connect Practice Assignment latest

 Check this A+ tutorial guideline at

 http://www.assignmentclick.com/acc-291-uop/acc-291-week-5-practice-connect-practice-assignment-latest

For more classes visit

www.assignmentclick.com   

ACC 291 Week 5 Practice Connect Practice Assignment latest

Coffee Bean

Artisan wines

Good to Go Auto Products

Superior Hardware

Healthy Eating Foods Company

The data below concerns adjustments to be made at Coffee Bean Importers.

Adjustments

On November 1, 2019, the firm signed a lease for a warehouse and paid rent of $21,000 in advance for a six-month period.
On December 31, 2019, an inventory of supplies showed that items costing $1,940 were on hand. The balance of the Supplies account was $11,880.
A depreciation schedule for the firm’s equipment shows that a total of $10,750 should be charged off as depreciation in 2019.
On December 31, 2019, the firm owed salaries of $6,100 that will not be paid until January 2020.
On December 31, 2019, the firm owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on all accrued salaries.
On October 1, 2019, the firm received a five-month, 8 percent note for $6,500 from a customer with an overdue balance.

Required:

Record the adjusting entries in the general journal as of December 31, 2019.
Record reversing entries in the general journal as of January 1, 2020.

Analyze:
After the adjusting entries have been posted, what is the balance of the Prepaid Rent account on January 1, 2020?

2

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.

Required:

Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.
Prepare a classified balance sheet as of December 31, 2019. 

Analyze:
What is the inventory turnover for Artisan Wines?

3

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firm’s worksheet for the year ended December 31, 2019

Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.

Analyze:
What percentage of total operating expenses is attributable to warehouse expenses?

4

Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm’s general ledger contained the accounts and balances that follow.

Required:

Record adjusting entries in the general journal as of December 31, 2019.
Record closing entries in the general journal as of December 31, 2019.
Record reversing entries in the general journal as of January 1, 2020.

Analyze:
Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,000 are paid on January 3?

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2019.

Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.

Analyze:
What is the current ratio for this business?