ACC 422 Entire Course Flashcards by Indivi 22

UOP ACC 422 Final Exam Guide (New 2018, With EXCEL FILE,Score 29/30) NEW
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Brief Exercise 7-1

Brief Exercise 7-7

Brief Exercise 7-14

Brief Exercise 7-15

Brief Exercise 8-4 (Part Level Submission)

Brief Exercise 8-5

Brief Exercise 8-6

Multiple Choice Question 21

Question 14

Brief Exercise 9-4

Exercise 9-4

Brief Exercise 10-6

Brief Exercise 10-8

Exercise 10-1

Question 9

Brief Exercise 11-8

Brief Exercise 12-2

Brief Exercise 12-8

Exercise 12-3

Brief Exercise 13-2

Brief Exercise 13-5

Brief Exercise 13-10

Brief Exercise 13-13

Brief Exercise 14-3

Brief Exercise 14-12

Brief Exercise 14-14

Brief Exercise 21-11

Exercise 21-1

Multiple Choice Question 99

Multiple Choice Question 70

Brief Exercise 7-1

Your answer is correct.

Vaughn Enterprises owns the following assets at December 31, 2017.
Cash in bank—savings account 69,000 Checking account balance 17,600
Cash on hand 9,030 Postdated checks 770
Cash refund due from IRS 35,600 Certificates of deposit (180-day) 94,570

What amount should be reported as cash?

Brief Exercise 7-7
Larkspur Family Importers sold goods to Tung Decorators for $40,800 on November 1, 2017, accepting Tung’s $40,800, 6-month, 6% note.

Prepare Larkspur’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest.

Brief Exercise 7-14
Recent financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at the beginning of the year and $953,000,000 at the end of the year.

Brief Exercise 7-15
Indigo Company designated Jill Holland as petty cash custodian and established a petty cash fund of $290. The fund is reimbursed when the cash in the fund is at $26, which it is. Petty cash receipts indicate funds were disbursed for office supplies $92 and miscellaneous expense $169.

Prepare journal entries for the establishment of the fund and the reimbursement.

Brief Exercise 8-4 (Part Level Submission)
Pharoah Company uses a periodic inventory system. For April, when the company sold 500 units, the following information is available.
Units Unit Cost Total Cost
April 1 inventory 290 $32 $ 9,280
April 15 purchase 430 38 16,340
April 23 purchase 280 42 11,760
1,000 $37,380

Brief Exercise 8-6

Your answer is correct.

Sandhill Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available.
		Units		Unit Cost		Total Cost
April 1 inventory		270		$30			$ 8,100	
April 15 purchase		440		36			15,840	
April 23 purchase		290		39			11,310	
		1,000					$35,250

Compute the April 30 inventory and the April cost of goods sold using the LIFO method.

Multiple Choice Question 21
Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer?

Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017 $432,200
Sales revenue to February 10, 2017 1,935,200
Purchases to February 10, 2017 1,104,580
Freight-in to February 10, 2017 59,180
Rate of gross profit on selling price 35%

What is the approximate inventory on February 10, 2017?

Exercise 9-4
Martinez Company began operations in 2017 and determined its ending inventory at cost and at LCNRV at December 31, 2017, and December 31, 2018. This information is presented below.
		Cost		Net Realizable Value
12/31/17		$322,170		$299,520	
12/31/18		409,250		390,440

(a) Prepare the journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method.

Brief Exercise 10-6
Waterway Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $327,600. The estimated fair values of the assets are land $62,400, building $228,800, and equipment $83,200. At what amounts should each of the three assets be recorded?

Brief Exercise 10-8
Pearl Corporation traded a used truck (cost $29,600, accumulated depreciation $26,640) for a small computer with a fair value of $4,884. Pearl also paid $740 in the transaction.

Prepare the journal entry to record the exchange. (The exchange has commercial substance.)

Exercise 10-1
The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.
(a) Money borrowed to pay building contractor (signed a note) $(285,400 )
(b) Payment for construction from note proceeds 285,400
(c) Cost of land fill and clearing 11,790
(d) Delinquent real estate taxes on property assumed by purchaser 7,300
(e) Premium on 6-month insurance policy during construction 8,580
(f) Refund of 1-month insurance premium because construction completed early (1,430 )
(g) Architect’s fee on building 26,200
(h) Cost of real estate purchased as a plant site (land $209,100 and building $52,900) 262,000
(i) Commission fee paid to real estate agency 8,970
(j) Installation of fences around property 3,770
(k) Cost of razing and removing building 11,710
(l) Proceeds from salvage of demolished building (4,550 )
(m) Interest paid during construction on money borrowed for construction 13,150
(n) Cost of parking lots and driveways 20,050
(o) Cost of trees and shrubbery planted (permanent in nature) 14,440
(p) Excavation costs for new building 2,700

Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title.

Question 9
Sage Company purchased machinery for $174,300 on January 1, 2017. It is estimated that the machinery will have a useful life of 20 years, salvage value of $14,700, production of 81,900 units, and working hours of 44,000. During 2017, the company uses the machinery for 11,440 hours, and the machinery produces 9,009 units. Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years’-digits, and double-declining-balance methods.

Brief Exercise 11-8
Carla Company owns equipment that cost $1,008,000 and has accumulated depreciation of $425,600. The expected future net cash flows from the use of the asset are expected to be $560,000. The fair value of the equipment is $448,000.

Prepare the journal entry, if any, to record the impairment loss.

Brief Exercise 12-8
Concord Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $330,000. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $700,000. The fair value of the division is estimated to be $668,000 and the implied goodwill is $298,000.

Prepare Concord journal entry to record impairment of the goodwill.

Exercise 12-3
Joni Marin Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $24,400
Trademarks 16,900
Discount on bonds payable 37,400
Deposits with advertising agency for ads to promote goodwill of company 12,400
Excess of cost over fair value of net identifiable assets of acquired subsidiary 77,400
Cost of equipment acquired for research and development projects; the
equipment has an alternative future use 87,400
Costs of developing a secret formula for a product that is expected to
be marketed for at least 20 years 83,800

(a)

On the basis of this information, compute the total amount to be reported by Marin for intangible assets on its balance sheet at year-end.
Brief Exercise 13-2
Ivanhoe Company borrowed $30,000 on November 1, 2017, by signing a $30,000, 8%, 3-month note. Prepare Ivanhoe’s November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry.

Brief Exercise 13-5
Riverbed Corporation made credit sales of $19,800 which are subject to 7% sales tax. The corporation also made cash sales which totaled $28,462 including the 7% sales tax.
Prepare the entry to record Riverbed’s credit sales.

Brief Exercise 13-10
Windsor Inc. is involved in a lawsuit at December 31, 2017.

Prepare the December 31 entry assuming it is probable that Windsor will be liable for $862,200 as a result of this suit.

Brief Exercise 13-13
Martinez Factory provides a 2-year warranty with one of its products which was first sold in 2017. Martinez sold $930,400 of products subject to the warranty. Martinez expects $124,050 of warranty costs over the next 2 years. In that year, Martinez spent $70,460 servicing warranty claims. Prepare Martinez’s journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs.

Brief Exercise 14-3
The Skysong Company issued $260,000 of 10% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds were issued at 98.

Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Skysong Company records straight-line amortization semiannually.

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UOP ACC 422 Intermediate Financial Accounting II
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ACC 422 Week 1 DQ 1
ACC 422 Week 1 DQ 2
ACC 422 Week 1 DQ 3
ACC 422 Week 1 DQ 4
ACC 422 Week 1 DQ 5
ACC 422 Week 1 DQ 6
ACC 422 Week 1 Individual Disclosure Analysis Paper
ACC 422 Week 1 Summary
ACC 422 Week 2 DQ 1
ACC 422 Week 2 DQ 2
ACC 422 Week 2 DQ 3
ACC 422 Week 2 DQ 4
ACC 422 Week 2 Individual Assignments From the Text
ACC 422 Week 2 Learning Team Assignments From the Text
ACC 422 Week 2 Summary
ACC 422 Week 2 WileyPLUS Assignment
ACC 422 Week 3 DQ 1
ACC 422 Week 3 DQ 2
ACC 422 Week 3 DQ 3
ACC 422 Week 3 DQ 4
ACC 422 Week 3 Individual Assignments From the Text
ACC 422 Week 3 Learning Team Assignments From the Text
ACC 422 Week 3 Summary
ACC 422 Week 3 WileyPLUS Assignment
ACC 422 Week 4 DQ 1
ACC 422 Week 4 DQ 2
ACC 422 Week 4 DQ 3
ACC 422 Week 4 Individual Assignments From the Text
ACC 422 Week 4 Learning Team Assignments From the Text
ACC 422 Week 4 Summary
ACC 422 Week 4 WileyPLUS Assignment
ACC 422 Week 5 DQ 1
ACC 422 Week 5 DQ 2
ACC 422 Week 5 DQ 3
ACC 422 Week 5 DQ 4
ACC 422 Week 5 Individual Assignments From the Text
ACC 422 Week 5 Learning Team Assignments From the Text
ACC 422 Week 5 Learning Team Problem Presentation
ACC 422 Week 5 WileyPLUS Assignment

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UOP ACC 422 Week 1 DQ 1
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Consider how an organization must manage cash, receivables, and inventory. Which of the three variables is the most important to manage? Is one more susceptible to fraud and errors than the others? Explain your answer.
How would a misstatement in each affect the organization?

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UOP ACC 422 Week 1 DQ 2
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What is the perpetual method of tracking inventory? How does it differ from the periodic method of tracking inventory? Why would a company choose one method over the other method? Which is the best method? Why?

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UOP ACC 422 Week 1 DQ 3
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What are the different ways to estimate bad debt? How does this affect net income? What does Generally Accepted Accounting Principles (GAAP) require? Why? Should all companies have bad debt? Explain your answer.

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UOP ACC 422 Week 1 DQ 4
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Why is it important to have effective control of cash?

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UOP ACC 422 Week 1 DQ 5
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What are the basic issues involved with the valuation of receivables?

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UOP ACC 422 Week 1 DQ 6
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Which cost flow assumption gives you the highest ending inventory? Why?

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UOP ACC 422 Week 1 Individual Disclosure Analysis Paper
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Select a publicly held company to use as the basis for this assignment.
Research your selected company and acquire the company’s most recent financial statements using the Internet.
Prepare a 700- to 1,050-word paper analyzing the disclosures contained within the notes to the financial statements related to cash and cash equivalents, receivables, and inventories. Include a list identifying the components of the organization’s cash and cash equivalents.
Format your paper consistent with APA guidelines

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UOP ACC 422 Week 1 Summary
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UOP ACC 422 Week 1 Wileyplus BE 7-1, BE 7-7, Ex 7-4, Ex 7-9, Ex 7-22, Ex 7-24, CA 7-2, Pr 7-4 (with Excel File) NEW
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ACC 422 Week 1 Wileyplus BE 7-1, BE 7-7, Ex 7-4, Ex 7-9, Ex 7-22, Ex 7-24, CA 7-2, Pr 7-4 (with Excel File) NEW
“This Tutorial contains Excel File which can be used to solve for any values”
Complete the following assignments in WileyPLUS:
• Brief Exercise 7-1
• Brief Exercise 7-7
• Exercise 7-4
• Exercise 7-9
• Exercise 7-22
• Exercise 7-24 (Part Level Submission)
• Concept for Analysis 7-2 (Essay)
• Problem 7-4 (Part Level Submission)
Brief Exercise 7-1
Marin Enterprises owns the following assets at December 31, 2017.
Cash in bank—savings account 65,800 Checking account balance 23,800
Cash on hand 8,920 Postdated checks 900
Cash refund due from IRS 36,000 Certificates of deposit (180-day) 90,240
What amount should be reported as cash?
Cash to be reported
Brief Exercise 7-7
Blossom Family Importers sold goods to Tung Decorators for $34,200 on November 1, 2017, accepting Tung’s $34,200, 6-month, 5% note.
Prepare Blossom’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Exercise 7-4
Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $3,255 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $177,940 as shown in the ledger.
The following information is available for your first year in business.
(1) Collections from customers $429,660
(2) Merchandise purchased 694,400
(3) Ending merchandise inventory 195,300
(4) Goods are marked to sell at 40% above cost
Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.
Exercise 7-9
The trial balance before adjustment of Buffalo Inc. shows the following balances.
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 5% of gross accounts receivable and (b) 6% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,731 credit balance. Exercise 7-22
Sheridan, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.
1. On April 1, it established a petty cash fund in the amount of $249.
2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows.
Delivery charges paid on merchandise purchased $73
Supplies purchased and used 38
Postage expense 46
I.O.U. from employees 30
Miscellaneous expense 49
The petty cash fund was replenished on April 10. The balance in the fund was $7.
3. The petty cash fund balance was increased by $113 to $362 on April 20.
Prepare the journal entries to record transactions related to petty cash for the month of April.
Exercise 7-24 (Part Level Submission)
Swifty Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records.
Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance. Concept for Analysis 7-2 (Essay)
Kimmel Company uses the net method of accounting for sales discounts. Kimmel also offers trade discounts to various groups of buyers.

On August 1, 2017, Kimmel sold some accounts receivable on a without recourse basis. Kimmel incurred a finance charge.
Kimmel also has some notes receivable bearing an appropriate rate of interest. The principal and total interest are due at maturity. The notes were received on October 1, 2017, and mature on September 30, 2019. Kimmel’s operating cycle is less than one year.
Using the net method, how should Kimmel account for the sales discounts at the date of sale? What is the rationale for the amount recorded as sales under the net method?
Using the net method, what is the effect on Kimmel’s sales revenues and net income when customers do not take the sales discounts?
What is the effect of trade discounts on sales revenues and accounts receivable? Why?
How should Kimmel account for the accounts receivable factored on August 1, 2017? Why?
How should Kimmel account for the note receivable and the related interest on December 31, 2017? Why?
Problem 7-4 (Part Level Submission) (2 parts)
From inception of operations to December 31, 2017, Vaughn Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Vaughn’s usual credit terms are net 30 days.
The balance in Allowance for Doubtful Accounts was $147,500 at January 1, 2017. During 2017, credit sales totaled $9,175,300, the provision for doubtful accounts was determined to be $183,506, $91,753 of bad debts were written off, and recoveries of accounts previously written off amounted to $19,230. Vaughn installed a computer system in November 2017, and an aging of accounts receivable was prepared for the first time as of December 31, 2017. A summary of the aging is as follows.
Based on the review of collectibility of the account balances in the “prior to 1/1/17” aging category, additional receivables totaling $63,700 were written off as of December 31, 2017. The 81% uncollectible estimate applies to the remaining $97,700 in the category. Effective with the year ended December 31, 2017, Vaughn adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable.

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UOP ACC 422 Week 2 DQ 1
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Under what circumstances would a company need to estimate its inventory? What are the differences between using the gross profit method and retail inventory method for estimating inventory? Which method of estimation, gross profit or retail inventory, is best? Explain your answer.

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UOP ACC 422 Week 2 DQ 2
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What are the criteria for capitalization of fixed assets? What items are included in the cost of a fixed asset? Should interest be included in the cost of a fixed asset? Explain why or why not.

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UOP ACC 422 Week 2 DQ 3
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How do we account for the disposition of fixed assets? What are the differences in how the exchanges of assets are handled, pending on whether they are similar or dissimilar? What is the rationale for these differences? What is the impact to the companies’ financial statements?

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UOP ACC 422 Week 2 DQ 4
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Why is it necessary to value inventories using the lower of cost or market concept?

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UOP ACC 422 Week 2 Individual Assignments From the Text
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Resource: Intermediate Accounting
Prepare written responses to the following assignments from the text:
Ch. 7: Exercises E7-2 & E7-8
Ch. 8: Question 13 and Exercises E8-5 & E8-14

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UOP ACC 422 Week 2 Learning Team Assignments From the Text
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Resource: Intermediate Accounting
Prepare written responses to the following assignments from the text:
• Ch. 7: Problem P7-10
• Ch. 8: Exercise E8-25

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UOP ACC 422 Week 2 Summary
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UOP ACC 422 Week 2 WileyPLUS Assignment
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Exercise 7-2
Presented below are a number of independent situations.

For each individual situation, determine the amount that should be reported as cash.

Checking account balance $929,070; certificate of deposit $1,417,000; cash advance to subsidiary of $992,770; utility deposit paid to gas company $198.
Checking account balance $503,630; an overdraft in special checking account at same bank as normal checking account of $20,900; cash held in a bond sinking fund $235,120; petty cash fund $332; coins and currency on hand $1,460.
Checking account balance $606,360; postdated check from a customer $11,450; cash restricted due to maintaining compensating balance requirement of $119,770; certified check from customer $9,610; postage stamps on hand $642.
Checking account balance at bank $46,660; money market balance at mutual fund (has checking privileges) $49,520; NSF check received from customer $845.
Checking account balance $703,110; cash restricted for future plant expansion $516,120; short-term Treasury bills $187,700; cash advance received from customer $986 (not included in checking account balance); cash advance of $7,540 to company executive, payable on demand; refundable deposit of $29,900 paid to federal government to guarantee performance on construction contract.

Exercise 7-8
At the end of 2012, Sorter Company has accounts receivable of $854,470 and an allowance for doubtful accounts of $47,360. On January 16, 2013, Sorter Company determined that its receivable from Ordonez Company of $6,240 will not be collected, and management authorized its write-off.

(a) Prepare the journal entry for Sorter Company to write off the Ordonez receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
(b) What is the net realizable value of Sorter Company’s accounts receivable before the write-off of the Ordonez receivable?
(c) What is the net realizable value of Sorter Company’s accounts receivable after the write-off of the Ordonez receivable?

Exercise 8-5

Werth Company asks you to review its December 31, 2012, inventory values and prepare the necessary adjustments to the books. The following information is given to you.

Werth uses the periodic method of recording inventory. A physical count reveals $348,107 of inventory on hand at December 31, 2012.
Not included in the physical count of inventory is $15,442 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31.
Included in inventory is merchandise sold to Bubbey on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $18,970 on December 31. The merchandise cost $10,893, and Bubbey received it on January 3.
Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $23,164. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded.
Not included in inventory is $12,656 of merchandise purchased from Minsky Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30.
Included in inventory was $15,469 of inventory held by Werth on consignment from Jackel Industries.
Included in inventory is merchandise sold to Sims f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $28,010 on December 31. The cost of this merchandise was $17,073, and Sims received the merchandise on January 5.
Excluded from inventory was a carton labeled “Please accept for credit.” This carton contains merchandise costing $2,223 which had been sold to a customer for $3,853. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.

(a) Determine the proper inventory balance for Werth Company at December 31, 2012.
(b) Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2012. Assume the books have not been closed. (If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Exercise 8-14

LoBianco Company’s record of transactions for the month of April was as follows.
Purchases Sales
April 1 (balance on hand) 774 @ $5.0 April 3 645 @ $8
4 1,935 @ 5.2 9 1,677 @ 8
8 1,032 @ 5.5 11 774 @ 10
13 1,548 @ 5.8 23 1,548 @ 10
21 903 @ 5.9 27 1,161 @ 13
29 645 @ 6.2 5,805
6,837

Calculate average cost per unit. (Round average cost per unit to 2 decimal places, e.g. $2.76.)

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UOP ACC 422 Week 2 Wileyplus Ex 8-2, Ex 8-9, Ex 8-12, Ex 9-2, Ex 9-7, Ex 9-17, Ex 9-18, Ex 9-20, Ex 9-22 (with Excel File) NEW
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This Tutorial contains Excel File which can be used to solve for any values

Complete the following assignments
• Exercise 8-2
• Exercise 8-9 (Part Level Submission)
• Exercise 8-12 (Part Level Submission)
• Exercise 9-2
• Exercise 9-7
• Exercise 9-17
• Exercise 9-18
• Exercise 9-20
• Exercise 9-22

Exercise 8-2
In your audit of Leon Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $400,500 was on hand at that date. You also discover the following items were all excluded from the $400,500.
Based on the above information, calculate the amount that should appear on Leon’s balance sheet at December 31, 2017, for inventory.
Exercise 8-9 (Part Level Submission)
Cullumber Company sells one product. Presented below is information for January for Cullumber Company.Cullumber uses the FIFO cost flow assumption. All purchases and sales are on account.
(a) – (this has 4 parts)
Assume Cullumber uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 107 units.
Exercise 8-12 (Part Level Submission)
Marigold Company was formed on December 1, 2016. The following information is available from Marigold’s inventory records for Product BAP.A physical inventory on March 31, 2017, shows 1,808 units on hand.Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method.
Exercise 9-2
Coronado Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above.

Exercise 9-7

Blue Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.From the information above, determine the amount of Blue Company inventory.
Exercise 9-17
You are called by Tim Duncan of Ivanhoe Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.Your client reports that the goods on hand on July 16 cost $32,800, but you determine that this figure includes goods of $6,000 received on a consignment basis. Your past records show that sales are made at approximately 25% over cost. Duncan’s insurance covers only goods owned.
Compute the claim against the insurance company.
Exercise 9-18
Marigold Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost.On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction.Submit your estimate of the inventory amounts immediately preceding the fire.
Exercise 9-22
The records of Grouper’s Boutique report the following data for the month of April.Compute the ending inventory by the conventional retail inventory method.

Exercise 9-20
Presented below is information related to Marigold Company.
Compute the ending inventory at retail.
Which of the methods in (b) above does the following?
Compute ending inventory at lower-of-cost-or-market
Compute cost of goods sold based on (d).
Compute gross margin based on (d).

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UOP ACC 422 Week 3 DQ 1
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What is the purpose of depreciation? Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Explain why or why not. Should the financial statements reflect the value of fixed assets? Explain why or why not.

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UOP ACC 422 Week 3 DQ 2
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What are the different methods used to calculate depreciation? How does a company decide which method it should utilize? How does its choice affect the financial statements? Should companies standardize the method of depreciation to enhance comparability? Explain your answer.

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UOP ACC 422 Week 3 DQ 3
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What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or why not. Why are some intangible assets not amortized? What is the implication to the financial statements?

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UOP ACC 422 Week 3 DQ 4
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Why are research and development costs expensed? Is this consistent with how other similar costs are handled? Explain why or why not. Should research and development costs be expensed? Explain why or why not.

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UOP ACC 422 Week 3 Individual Assignments From the Text Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-3-individual-assignments-from-the-text-new For more classes visit http:// www.acc422entirecourse.com Resource: Intermediate Accounting Prepare written responses to the following assignments from the text: • Ch. 9: Exorcices E9-1, E9-12, & E9-19 • Ch. 10: Exercises E10-5 & E10-12

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ACC 422 Week 4 WileyPlus Ex 13-2, Ex 13-7, Ex 13-16, Ex 14-4, Ex 14-6, Ex 14-9, Problem 14-2 (With Excel File) NEW To purchase this material link http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-4-wileyplus-problem-14-2-with-excel-file-new For more courses visit our website http://www.acc422entirecourse.com ACC 422 Week 4 WileyPlus Ex 13-2, Ex 13-7, Ex 13-16, Ex 14-4, Ex 14-6, Ex 14-9, Problem 14-2 (With Excel File) NEW ``` Complete the following assignments in WileyPLUS: • Exercise 13-2 (Part Level Submission) • Exercise 13-7 (Part Level Submission) • Exercise 13-16 • Exercise 14-4 • Exercise 14-6 • Exercise 14-9 (Part Level Submission) • Problem 14-2 (Part Level submission) ``` Exercise 13-2 (Part Level Submission) The following are selected 2017 transactions of Riverbed Corporation. Sept. 1 Purchased inventory from Encino Company on account for $43,600. Riverbed records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $43,600, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $43,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $48,600 note. Prepare journal entries for the selected transactions above. Prepare adjusting entries at December 31. Compute the total net liability to be reported on the December 31 balance sheet for: Exercise 13-7 (Part Level Submission) Pharoah Hardware Company’s payroll for November 2017 is summarized below. At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $118,500 and 1.45% in excess of $118,500. Of the $194,300 wages subject to FICA tax, $21,300 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,800 for factory, $7,700 for sales, and $6,800 for administrative. Exercise 13-16 Presented below is a list of possible transactions. Analyze the effect of the 18 transactions on the financial statement categories indicated. 1. Purchased inventory for $80,000 on account (assume perpetual system is used). 2. Issued an $80,000 note payable in payment on account (see item 1 above). 3. Recorded accrued interest on the note from item 2 above. 4. Borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. Recognized 4 months’ interest expense on the note from item 4 above. 6. Recorded cash sales of $75,260, which includes 6% sales tax. 7. Recorded wage expense of $35,000. The cash paid was $25,000; the difference was due to various amounts withheld. 8. Recorded employer’s payroll taxes. 9. Accrued accumulated vacation pay. 10. Recorded an asset retirement obligation. 11. Recorded bonuses due to employees. 12. Recorded a contingent loss on a lawsuit that the company will probably lose. 13. Accrued warranty expense (assume expense warranty approach). 14. Paid warranty costs that were accrued in item 13 above. 15. Recorded sales of product and related service-type warranties. 16. Paid warranty costs under contracts from item 15 above. 17. Recognized warranty revenue (see item 15 above). 18. Recorded estimated liability for premium claims outstanding. Exercise 14-4 Ivanhoe Company issued $444,000 of 10%, 20-year bonds on January 1, 2017, at 104. Interest is payable semiannually on July 1 and January 1. Ivanhoe Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2017. (c) The accrual of interest and the related amortization on December 31, 2017. Exercise 14-6 Culver Company sells 9% bonds having a maturity value of $2,050,000 for $1,828,314. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal Exercise 14-9 (Part Level Submission) On June 30, 2017, Monty Company issued $3,200,000 face value of 13%, 20-year bonds at $3,440,734, a yield of 12%. Monty uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2017. (2) The payment of interest and the amortization of the premium on December 31, 2017. (3) The payment of interest and the amortization of the premium on June 30, 2018. (4) The payment of interest and the amortization of the premium on December 31, 2018. Set up a schedule of interest expense and discount amortization under the straight-line method. (b) Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2018, balance sheet. (1) What amount of interest expense is reported for 2018? (Round answer to 0 decimal places, e.g. 38,548.) Interest expense reported for 2018 (2) Will the bond interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2018 will be (3) Determine the total cost of borrowing over the life of the bond. (Round answer to 0 decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond (4) Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used? The total bond interest expense for the life of the bond will be Problem 14-2 (Part Level Submission) Swifty Co. is building a new hockey arena at a cost of $2,310,000. It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $1,820,000 to complete the project. It therefore decides to issue $1,820,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%. (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2016

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UOP ACC 422 Intermediate Financial Accounting II Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-complete-class-new For more classes visit http:// www.acc422entirecourse.com ACC 422 Week 1 DQ 1 ACC 422 Week 1 DQ 2 ACC 422 Week 1 DQ 3 ACC 422 Week 1 DQ 4 ACC 422 Week 1 DQ 5 ACC 422 Week 1 DQ 6 ACC 422 Week 1 Individual Disclosure Analysis Paper ACC 422 Week 1 Summary ACC 422 Week 2 DQ 1 ACC 422 Week 2 DQ 2 ACC 422 Week 2 DQ 3 ACC 422 Week 2 DQ 4 ACC 422 Week 2 Individual Assignments From the Text ACC 422 Week 2 Learning Team Assignments From the Text ACC 422 Week 2 Summary ACC 422 Week 2 WileyPLUS Assignment ACC 422 Week 3 DQ 1 ACC 422 Week 3 DQ 2 ACC 422 Week 3 DQ 3 ACC 422 Week 3 DQ 4 ACC 422 Week 3 Individual Assignments From the Text ACC 422 Week 3 Learning Team Assignments From the Text ACC 422 Week 3 Summary ACC 422 Week 3 WileyPLUS Assignment ACC 422 Week 4 DQ 1 ACC 422 Week 4 DQ 2 ACC 422 Week 4 DQ 3 ACC 422 Week 4 Individual Assignments From the Text ACC 422 Week 4 Learning Team Assignments From the Text ACC 422 Week 4 Summary ACC 422 Week 4 WileyPLUS Assignment ACC 422 Week 5 DQ 1 ACC 422 Week 5 DQ 2 ACC 422 Week 5 DQ 3 ACC 422 Week 5 DQ 4 ACC 422 Week 5 Individual Assignments From the Text ACC 422 Week 5 Learning Team Assignments From the Text ACC 422 Week 5 Learning Team Problem Presentation ACC 422 Week 5 WileyPLUS Assignment

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UOP ACC 422 Week 3 DQ 4 Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-3-dq-4-new For more classes visit http:// www.acc422entirecourse.com Why are research and development costs expensed? Is this consistent with how other similar costs are handled? Explain why or why not. Should research and development costs be expensed? Explain why or why not.

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UOP ACC 422 Week 3 Summary Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-3-summary-new For more classes visit http:// www.acc422entirecourse.com

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UOP ACC 422 Week 3 WileyPLUS Assignment Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-3-wileyplus-assignment For more classes visit http:// www.acc422entirecourse.com ``` Exercise 9-1 The inventory of Oheto Company on December 31, 2013, consists of the following items. Part No. Quantity Cost per Unit Cost to Replace per Unit 110 620 $126 $133 111 1,140 80 69 112 580 106 101 113 230 226 239 120 450 273 277 121 1,650 21 19 122 330 319 313 ``` Part No. 121 is obsolete and has a realizable value of $0.7 each as scrap. (a) Determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item. (b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory. Exercise 9-12 ``` Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 171,000 Purchases (gross) 655,400 Freight-in 31,400 Sales 1,057,500 Sales returns 82,500 Purchase discounts 12,990 ``` (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. (b) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. Exercise 10-5 Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company’s fee for title search $1,752 Architect’s fees 10,683 Cash paid for land and dilapidated building thereon 310,040 Removal of old building $67,400 Less: Salvage 18,535 48,865 Interest on short-term loans during construction 24,938 Excavation before construction for basement 64,030 Machinery purchased (subject to 2% cash discount, which was not taken) 219,050 Freight on machinery purchased 4,516 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 7,347 New building constructed (building construction took 6 months from date of purchase of land and old building) 1,634,450 Assessment by city for drainage project 5,392 Hauling charges for delivery of machinery from storage to new building 2,089 Installation of machinery 6,740 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 18,198 Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Exercise 10-12 Below are transactions related to Impala Company. (a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be $90,900. (b) 14,000 shares of common stock with a par value of $52 per share are issued in exchange for land and buildings. The property has been appraised at a fair value of $909,000, of which $186,500 has been allocated to land and $722,500 to buildings. The stock of Impala Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago at $68 per share, and a block of 200 shares was sold by another stockholder 18 months ago at $60 per share. (c) No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year. The following information is given relative to costs of the machinery constructed. Materials used $12,880 Factory supplies used 970 Direct labor incurred 17,030 Additional overhead (over regular) caused by construction of machinery, excluding factory supplies used 2,570 Fixed overhead rate applied to regular manufacturing operations 60% of direct labor cost Cost of similar machinery if it had been purchased from outside suppliers 45,020 Prepare journal entries on the books of Impala Company to record these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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UOP ACC 422 Week 4 DQ 1 Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-4-dq-1-new For more classes visit http:// www.acc422entirecourse.com What are the criteria for classifying an item as a current liability? What are some examples of current liabilities? Why is it important to classify a portion of long-term debt on a yearly basis as a current liability? What is the implication of misclassifying a liability as current or long-term?

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UOP ACC 422 Week 4 DQ 2 Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-4-dq-2-new For more classes visit http:// www.acc422entirecourse.com What is a contingency? Why are contingencies important to users of financial statements? What are the criteria for recording contingencies? Should companies record a liability for threatened litigation? Explain why or why not.

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UOP ACC 422 Week 4 DQ 3 Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-4-dq-3-new For more classes visit http:// www.acc422entirecourse.com What is a bond? What are some features of a bond? How do you value bonds? What factors can affect that value?

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UOP ACC 422 Week 4 Individual Assignments From the Text Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-4-individual-assignments-from-the-text-new For more classes visit http:// www.acc422entirecourse.com Resource: Intermediate Accounting Prepare written responses to the following assignments from the text: • Ch. 11: Exercises E11-4 & E11-11 • Ch. 12: Exercises E12-6 & E12-16 Prepare a response to the following questions: • What are at least four depreciation methods that are available to a company? • What are the similarities and differences? • Why does a company select one method over another?

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UOP ACC 422 Week 4 Learning Team Assignments From the Text Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-4-learning-team-assignments-from-the-text-new For more classes visit http:// www.acc422entirecourse.com Resource: Intermediate Accounting Prepare written responses to the following assignments from the text: • Ch. 11: Exercise E11-18 & Problem P11-10 • Ch. 12: Problem P12-3

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UOP ACC 422 Week 4 Summary Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-4-summary-new For more classes visit http:// www.acc422entirecourse.com

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UOP ACC 422 Week 4 WileyPLUS Assignment Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-4-wileyplus-assignment-new For more classes visit http:// www.acc422entirecourse.com Exercise 11-4 Wenner Furnace Corp. purchased machinery for $650,070 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $34,950, production of 559,200 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 59,415 units. From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892.) Problem 11-6 Conan O’Brien Logging and Lumber Company owns 3,200 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $640 per acre. In 2012, O’Brien began selectively logging this timber tract. In May of 2012, Mount Leno erupted, burying the timberland of O’Brien under a foot of ash. All of the timber on the O’Brien tract was downed. In addition, the logging roads, built at a cost of $159,000, were destroyed, as well as the logging equipment, with a net book value of $323,200. At the time of the eruption, O’Brien had logged 20% of the estimated 550,000 board feet of timber. Prior to the eruption, O’Brien estimated the land to have a value of $260 per acre after the timber was harvested. O’Brien includes the logging roads in the depletion base. O’Brien estimates it will take 3 years to salvage the downed timber at a cost of $707,400. The timber can be sold for pulp wood at an estimated price of $3 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties. (a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount Leno. (Round per unit answer to 2 decimal places, e.g. 0.45.) (b) Prepare the journal entry to record the depletion prior to the eruption. (Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answer to 0 decimal places, e.g. $45,892. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (c) If this tract represents approximately half of the timber holdings of O’Brien, determine the amount of the extraordinary loss due to the eruption of Mount Leno for the year ended December 31, 2012. Exercise 12-16 Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2011, the company expends $339,820 on a research project, but by the end of 2011 it is impossible to determine whether any benefit will be derived from it. (a) The project is completed in 2012, and a successful patent is obtained. The R&D costs to complete the project are $132,070. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2012 total $35,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2012. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) In 2013, the company successfully defends the patent in extended litigation at a cost of $52,000, thereby extending the patent life to December 31, 2020. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Problem 12-1 Reichenbach Co., organized in 2011, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2012 and 2013. Intangible Assets 7/1/12 8-year franchise; expiration date 6/30/19 $57,520 10/1/12 Advance payment on laboratory space (2-year lease) 25,320 12/31/12 Net loss for 2011 including state incorporation fee, $1,560, and related legal fees of organizing, $4,700 (all fees incurred in 2011) 15,170 1/2/13 Patent purchased (10-year life) 88,020 3/1/13 Cost of developing a secret formula (indefinite life) 71,390 4/1/13 Goodwill purchased (indefinite life) 279,860 6/1/13 Legal fee for successful defense of patent purchased above 13,340 9/1/13 Research and development costs 154,400 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2013, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore income tax effects.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round all answers to 0 decimal places, e.g. 8,564.)

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UOP ACC 422 Week 5 DQ 1 Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-dq-1-new For more classes visit http:// www.acc422entirecourse.com What are the differences between a direct-financing and a sales-type lease for a lessor? Why would a lessor provide direct-financing to a lessee? What types of organizations provide direct-financing leases?

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UOP ACC 422 Week 5 DQ 2 Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-dq-2-new For more classes visit http:// www.acc422entirecourse.com What are the criteria for classifying a lease as operating or capital? Why is there a difference between the two? What are the implications of an operating lease versus a capital lease on an entity’s financial statements?

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UOP ACC 422 Week 5 DQ 3 Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-dq-3-new For more classes visit http:// www.acc422entirecourse.com What is residual value? What is the implication to the lessee if the residual value is guaranteed or unguaranteed? What is the implication to the lessor?

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UOP ACC 422 Week 5 DQ 4 Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-dq-4-new For more classes visit http:// www.acc422entirecourse.com What are the advantages of operating and capital leases? What are the disadvantages? Why would a company pick one over the other?

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UOP ACC 422 Week 5 Individual Assignments From the Text Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-individual-assignments-from-the-text-new For more classes visit http:// www.acc422entirecourse.com Resource: Intermediate Accounting Prepare written responses to the following assignments listed at the end of each chapter: • Ch. 13: Exorcices E13-1, E13-7, E13-11, & E13-13 • Ch. 21: Question 3

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UOP ACC 422 Week 5 Learning Team Assignments From the Text Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-learning-team-assignments-from-the-text-new For more classes visit http:// www.acc422entirecourse.com ``` Resource: Intermediate Accounting Prepare written responses to the following assignments from the text: • Ch. 13: Problem P13-4 • Ch. 14: Exercise E14-21 • Ch. 21: Exercise E21-7 ```

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UOP ACC 422 Week 5 Learning Team Problem Presentation Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-learning-team-problem-presentation-new For more classes visit http:// www.acc422entirecourse.com P13 - 4 Prepare a 5- to 10-minute oral presentation accompanied by a 7- to 9-slide Microsoft® PowerPoint® presentation illustrating your team’s solution to the assigned problem.

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UOP ACC 422 Week 5 WileyPLUS Assignment Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-wileyplus-assignment For more classes visit http:// www.acc422entirecourse.com Problem 13-9 Sycamore Candy Company offers a CD single as a premium for every 5 candy bar wrappers presented by customers together with $3.35. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each CD to the company is $3.10; in addition, it costs 50 cents to mail each CD. The results of the premium plan for the years 2012 and 2013 are as follows. (All purchases and sales are for cash.) 2012 2013 CDs purchased 257,500 339,900 Candy bars sold 2,970,900 2,801,800 Wrappers redeemed 1,236,000 1,545,000 2012 wrappers expected to be redeemed in 2013 298,700 2013 wrappers expected to be redeemed in 2014 360,500 (a) Prepare the journal entries that should be made in 2012 and 2013 to record the transactions related to the premium plan of the Sycamore Candy Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2012 and 2013. Exercise 13-13 (Essay) Presented below are three independent situations. Answer the question at the end of each situation. 1. During 2012, Maverick Inc. became involved in a tax dispute with the IRS. Maverick’s attorneys have indicated that they believe it is probable that Maverick will lose this dispute. They also believe that Maverick will have to pay the IRS between $800,000 and $1,400,000. After the 2012 financial statements were issued, the case was settled with the IRS for $1,200,000. What amount, if any, should be reported as a liability for this contingency as of December 31, 2012? 2. On October 1, 2012, Holmgren Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Holmgren’s management along with its counsel have concluded that it is probable that Holmgren will be responsible for damages, and a reasonable estimate of these damages is $6,000,000. Holmgren’s insurance policy of $9,000,000 has a deductible clause of $500,000. How should Holmgren Chemical report this information in its financial statements at December 31, 2012? 3. Shinobi Inc. had a manufacturing plant in Darfur, which was destroyed in the civil war. It is not certain who will compensate Shinobi for this destruction, but Shinobi has been assured by governmental officials that it will receive a definite amount for this plant. The amount of the compensation will be less than the fair value of the plant but more than its book value. How should the contingency be reported in the financial statements of Shinobi Inc.? Exercise 14-22 On December 31, 2012, the American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 14%, issued at par, $3,167,000 note receivable by the following modifications: 1. Reducing the principal obligation from $3,167,000 to $2,533,600. 2. Extending the maturity date from December 31, 2012, to January 1, 2016. 3. Reducing the interest rate from 14% to 10%. Barkley pays interest at the end of each year. On January 1, 2016, Barkley Company pays $2,533,600 in cash to Firstar Bank. (a) Will the gain recorded by Barkley be equal to the loss recorded by American Bank under the debt restructuring? (b) Can Barkley Company record a gain under the term modification mentioned above? (c) Assuming that the interest rate Barkley should use to compute interest expense in future periods is 1.4276%, prepare the interest payment schedule of the note for Barkley Company after the debt restructuring. (Round answers to 0 decimal places, e.g. $38,548.) (d) Prepare the interest payment entry for Barkley Company on December 31, 2014. (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (e) What entry should Barkley make on January 1, 2016? (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Exercise 21-7 On January 1, 2012, Palmer Company leased equipment to Woods Corporation. The following information pertains to this lease. 1. The term of the noncancelable lease is 6 years, with no renewal option. The equipment reverts to the lessor at the termination of the lease. 2. Equal rental payments are due on January 1 of each year, beginning in 2012. 3. The fair value of the equipment on January 1, 2012, is $235,200, and its cost is $199,920. 4. The equipment has an economic life of 8 years, with an unguaranteed residual value of $11,510. Woods depreciates all of its equipment on a straight-line basis. 5. Palmer sets the annual rental to ensure an 10% rate of return. Woods’s incremental borrowing rate is 11%, and the implicit rate of the lessor is unknown. 6. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by the lessor. (Both the lessor and the lessee’s accounting period ends on December 31.) B.) Calculate the amount of the annual rental payment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) C.) Prepare all the necessary journal entries for Woods for 2012. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) D.) Prepare all the necessary journal entries for Palmer for 2012. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

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UOP ACC 422 Week 5 WileyPLUS Assignment Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-5-wileyplus-assignment-new For more classes visit http:// www.acc422entirecourse.com Problem 13-9 Sycamore Candy Company offers a CD single as a premium for every 5 candy bar wrappers presented by customers together with $3.35. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each CD to the company is $3.10; in addition, it costs 50 cents to mail each CD. The results of the premium plan for the years 2012 and 2013 are as follows. (All purchases and sales are for cash.) 2012 2013 CDs purchased 257,500 339,900 Candy bars sold 2,970,900 2,801,800 Wrappers redeemed 1,236,000 1,545,000 2012 wrappers expected to be redeemed in 2013 298,700 2013 wrappers expected to be redeemed in 2014 360,500 (a) Prepare the journal entries that should be made in 2012 and 2013 to record the transactions related to the premium plan of the Sycamore Candy Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2012 and 2013. Exercise 13-13 (Essay) Presented below are three independent situations. Answer the question at the end of each situation. 1. During 2012, Maverick Inc. became involved in a tax dispute with the IRS. Maverick’s attorneys have indicated that they believe it is probable that Maverick will lose this dispute. They also believe that Maverick will have to pay the IRS between $800,000 and $1,400,000. After the 2012 financial statements were issued, the case was settled with the IRS for $1,200,000. What amount, if any, should be reported as a liability for this contingency as of December 31, 2012? 2. On October 1, 2012, Holmgren Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Holmgren’s management along with its counsel have concluded that it is probable that Holmgren will be responsible for damages, and a reasonable estimate of these damages is $6,000,000. Holmgren’s insurance policy of $9,000,000 has a deductible clause of $500,000. How should Holmgren Chemical report this information in its financial statements at December 31, 2012? 3. Shinobi Inc. had a manufacturing plant in Darfur, which was destroyed in the civil war. It is not certain who will compensate Shinobi for this destruction, but Shinobi has been assured by governmental officials that it will receive a definite amount for this plant. The amount of the compensation will be less than the fair value of the plant but more than its book value. How should the contingency be reported in the financial statements of Shinobi Inc.? Exercise 14-22 On December 31, 2012, the American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 14%, issued at par, $3,167,000 note receivable by the following modifications: 1. Reducing the principal obligation from $3,167,000 to $2,533,600. 2. Extending the maturity date from December 31, 2012, to January 1, 2016. 3. Reducing the interest rate from 14% to 10%. Barkley pays interest at the end of each year. On January 1, 2016, Barkley Company pays $2,533,600 in cash to Firstar Bank. (a) Will the gain recorded by Barkley be equal to the loss recorded by American Bank under the debt restructuring? (b) Can Barkley Company record a gain under the term modification mentioned above? (c) Assuming that the interest rate Barkley should use to compute interest expense in future periods is 1.4276%, prepare the interest payment schedule of the note for Barkley Company after the debt restructuring. (Round answers to 0 decimal places, e.g. $38,548.) (d) Prepare the interest payment entry for Barkley Company on December 31, 2014. (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (e) What entry should Barkley make on January 1, 2016? (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Exercise 21-7 On January 1, 2012, Palmer Company leased equipment to Woods Corporation. The following information pertains to this lease. 1. The term of the noncancelable lease is 6 years, with no renewal option. The equipment reverts to the lessor at the termination of the lease. 2. Equal rental payments are due on January 1 of each year, beginning in 2012. 3. The fair value of the equipment on January 1, 2012, is $235,200, and its cost is $199,920. 4. The equipment has an economic life of 8 years, with an unguaranteed residual value of $11,510. Woods depreciates all of its equipment on a straight-line basis. 5. Palmer sets the annual rental to ensure an 10% rate of return. Woods’s incremental borrowing rate is 11%, and the implicit rate of the lessor is unknown. 6. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by the lessor. (Both the lessor and the lessee’s accounting period ends on December 31.) B.) Calculate the amount of the annual rental payment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) C.) Prepare all the necessary journal entries for Woods for 2012. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) D.) Prepare all the necessary journal entries for Palmer for 2012. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

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UOP ACC 422 Week 3 WileyPlus Assignment Check this A+ tutorial guideline at http://www.acc422entirecourse.com/acc-422-uop/acc-422-week-3-wileyplus-assignment-new For more classes visit http:// www.acc422entirecourse.com This Tutorial contains Excel File which can be used to solve for any values ``` Complete the following assignments in WileyPLUS: • Brief Exercise 10-10 • Exercise 10-3 • Exercise 10-13 • Exercise 11-6 • Exercise 11-15 • Exercise 11-15 (Essay) • Exercise 11-24 • Exercise 12-1 • Exercise 12-4 • Exercise 12-14 (Part Level Submission) Brief Exercise 10-10 Larkspur Company traded a used welding machine (cost $10,620, accumulated depreciation $3,540) for office equipment with an estimated fair value of $5,900. Larkspur also paid $3,540 cash in the transaction. ``` Prepare the journal entry to record the exchange. (The exchange has commercial substance.) Exercise 10-3 Whispering Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2017. The terms of acquisition for each truck are described below. 1. Truck #1 has a list price of $31,350 and is acquired for a cash payment of $29,051. 2. Truck #2 has a list price of $33,440 and is acquired for a down payment of $4,180 cash and a zero-interest-bearing note with a face amount of $29,260. The note is due April 1, 2018. Whispering would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. 3. Truck #3 has a list price of $33,440. It is acquired in exchange for a computer system that Whispering carries in inventory. The computer system cost $25,080 and is normally sold by Whispering for $31,768. Whispering uses a perpetual inventory system. 4. Truck #4 has a list price of $29,260. It is acquired in exchange for 1,030 shares of common stock in Whispering Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Prepare the appropriate journal entries for the above transactions for Whispering Corporation. Exercise 10-13 Presented below is information related to Pronghorn Company. ``` 1. On July 6, Pronghorn Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land $419,000 Buildings 1,257,000 Equipment 838,000 Total $2,514,000 ``` Pronghorn Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $205 per share on the date of the purchase of the property. 2. Pronghorn Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) Repairs to building $114,890 Construction of bases for equipment to be installed later 141,980 Driveways and parking lots 124,400 Remodeling of office space in building, including new partitions and walls 147,440 Special assessment by city on land 17,540 3. On December 20, the company paid cash for equipment, $305,900, subject to a 2% cash discount, and freight on equipment of $10,100. Exercise 11-6 Sage Company purchased equipment for $231,080 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,080. Estimated production is 40,000 units and estimated working hours are 20,300. During 2017, Sage uses the equipment for 520 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Sage is on a calendar-year basis ending December 31. Exercise 11-15 Compute the depreciation charge on this equipment for 2012, for 2019, and the total charge for the period from 2013 to 2018, inclusive, under each of the six following assumptions with respect to partial periods. Your answer has been saved and sent to the instructor. See Gradebook for score details. On March 10, 2019, Lost World Company sells equipment that it purchased for $192,000 on August 20, 2012. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $16,800 at the end of that time, and depreciation has been computed on that basis. The company uses the straightline method of depreciation. Following are the assumptions with respect to partial periods: (1) Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for the base and record depreciation through March 9, 2019.) (2) Depreciation is computed for the full year on the January 1 balance in the asset account. (3) Depreciation is computed for the full year on the December 31 balance in the asset account. (4) Depreciation for one-half year is charged on plant assets acquired or disposed of during the year. (5) Depreciation is computed on additions from the beginning of the month following acquisition and on disposals to the beginning of the month following disposal. (6) Depreciation is computed for a full period on all assets in use for over one-half year, and no depreciation is charged on assets in use for less than one-half year. (Use 365 days for base.) Briefly evaluate the methods above, considering them from the point of view of basic accounting theory as well as simplicity of application. Exercise 11-24 The 2014 Annual Report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2014 December 31, 2013 Total assets $910.4 $888.4 Total liabilities 219.3 208.1 Net sales 539.9 539.6 Net income 63.2 60.8 Compute the following ratios for Tootsie Roll for 2014. Exercise 12-4 Presented below is selected information for Cullumber Company. Answer the questions asked about each of the factual situations. 1. Cullumber purchased a patent from Vania Co. for $1,230,000 on January 1, 2015. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2025. During 2017, Cullumber determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2017? 2. Cullumber bought a franchise from Alexander Co. on January 1, 2016, for $365,000. The carrying amount of the franchise on Alexander’s books on January 1, 2016, was $515,000. The franchise agreement had an estimated useful life of 30 years. Because Cullumber must enter a competitive bidding at the end of 2018, it is unlikely that the franchise will be retained beyond 2025. What amount should be amortized for the year ended December 31, 2017? 3. On January 1, 2017, Cullumber incurred organization costs of $282,500. What amount of organization expense should be reported in 2017? 4. Cullumber purchased the license for distribution of a popular consumer product on January 1, 2017, for $153,000. It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Cullumber can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2017? Exercise 12-14 (Part Level Submission) Presented below is net asset information related to the Skysong Division of Santana, Inc. The purpose of the Skysong Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $425 million. Management has also received an offer to purchase the division for $330 million. All identifiable assets’ and liabilities’ book and fair value amounts are the same.

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