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ACC 422 Complete Class
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ACC 422 Intermediate Financial Accounting II
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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CC 422Final Exam UOP ACC 422 Final Exam TO purchase this material click http://www.assignmentcloud.com/ACC-422/ACC-422-Final-Exam-Guide For more classes visit www.assignmentcloud.com
1) Which of the following is NOT considered cash for financial reporting purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers, employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. By means of footnotes only.
C. As offsets to capital.
D. As trade notes and accounts receivable if they otherwise qualify as current assets.
3) Which of the following items should NOT be included in the Cash caption on the balance sheet?
A. Amounts on deposit in checking account at the bank
B. Checks from other parties presently in the cash register
C. Coins and currency in the cash register
D. Postage stamps on hand
4) Which of the following is a generally accepted method of determining the amount of the adjustment to bad debt expense?
A. A percentage of accounts receivable NOT adjusted for the balance in the allowance
B. A percentage of sales NOT adjusted for the balance in the allowance
C. A percentage of sales adjusted for the balance in the allowance
D. An amount derived from aging accounts receivable and NOT adjusted for the balance in the allowance
5) Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does NOT make the balance sheet misleading because
A. the amount of the discount is NOT material.
B. the allowance for uncollectible accounts includes a discount element.
C. most short-term receivables are NOT interest-bearing.
D. most receivables can be sold to a bank or factor.
6) Which of the following methods of determining bad debt expense does NOT properly match expense and revenue?
A. Charging bad debts with an amount derived from aging accounts receivable under the allowance method.
B. Charging bad debts with an amount derived from a percentage of accounts receivable under the allowance method.
C. Charging bad debts with a percentage of sales under the allowance method.
D. Charging bad debts as accounts are written off as uncollectible.
7) The accountant for the Orion Sales Company is preparing the income statement for 2007 and the balance sheet at December 31, 2007. Orion uses the periodic inventory system. The January 1, 2007 merchandise inventory balance will appear
A. as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet.
B. only as an asset on the balance sheet.
C. only in the cost of goods sold section of the income statement.
D. as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet.
8) Belle Co. received merchandise on consignment. As of March 31, Belle had recorded the transaction as a purchase and included the goods in inventory. The effect of this on its financial statements for March 31 would be
A. net income was correct and current assets and current liabilities were overstated.
B. net income and current liabilities were overstated.
C. no effect.
D. net income, current assets, and current liabilities were overstated.
9) The failure to record a purchase of mer¬chandise on account even though the goods are properly included in the physical inven¬tory results in
A. an understatement of assets and net income.
B. an understatement of liabilities and an overstatement of owners’ equity.
C. an overstatement of assets and net income.
D. an understatement of cost of goods sold and liabilities and an overstatement of assets.
10) The use of a Purchase Discounts account implies that the recorded cost of a purchased inventory item is its
A. invoice price plus any purchase discount lost.
B. invoice price less the purchase discount allowable whether taken or not.
C. invoice price.
D. invoice price less the purchase discount taken.
11) All of the following costs should be charged against revenue in the period in which costs are incurred EXCEPT for
A. costs which will NOT benefit any future period.
B. costs of normal shrinkage and scrap incurred for the manufacture of a product in ending inventory.
C. manufacturing overhead costs for a product manufactured and sold in the same accounting period.
D. costs from idle manufacturing capacity resulting from an unexpected plant shutdown.
12) Which method of inventory pricing best approximates specific identification of the actual flow of costs and units in most manufacturing situations?
A. First-in, first-out
B. Base stock
C. Average cost
D. Last-in, first-out
13) In no case can “market” in the lower-of-cost-or-market rule be more than
A. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal.
B. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal, an allowance for an approximately normal profit margin, and an adequate reserve for possible future losses.
C. estimated selling price in the ordinary course of business.
D. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal and an allowance for an approximately normal profit margin.
14) An item of inventory purchased this period for $15.00 has been incorrectly written down to its current replacement cost of $10.00. It sells during the following period for $30.00, its normal selling price, with disposal costs of $3.00 and normal profit of $12.00. Which of the following statements is NOT true?
A. The current year’s income is understated.
B. Income of the following year will be understated.
C. The cost of sales of the following year will be understated.
D. The closing inventory of the current year is understated.
15) When valuing raw materials inventory at lower-of-cost-or-market, what is the meaning of the term “market”?
A. Net realizable value less a normal profit margin
B. Discounted present value
C. Net realizable value
D. Current replacement cost
16) The retail inventory method is based on the assumption that the
A. ratio of gross margin to sales is approximately the same each period.
B. ratio of cost to retail changes at a constant rate.
C. final inventory and the total of goods available for sale contain the same proportion of high-cost and low-cost ratio goods.
D. proportions of markups and markdowns to selling price are the same.
17) In 2006, Lucas Manufacturing signed a contract with a supplier to purchase raw materials in 2007 for $700,000. Before the December 31, 2006 balance sheet date, the market price for these materials dropped to $510,000. The journal entry to record this situation at December 31, 2006 will result in a credit that should be reported
A. as a current liability.
B. as an appropriation of retained earnings.
C. as a valuation account to Inventory on the balance sheet.
D. on the income statement.
18) When the conventional retail inventory method is used, markdowns are commonly ignored in the computation of the cost to retail ratio because
A. this tends to give a better approximation of the lower of cost or market.
B. markups are also ignored.
C. there may be no markdowns in a given year.
D. this tends to result in the showing of a normal profit margin in a period when no markdown goods have been sold.
19) Which of the following is NOT a major characteristic of a plant asset?
A. Acquired for resale
B. Acquired for use
C. Possesses physical substance
D. Yields services over a number of years
20) If a corporation purchases a lot and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on
A. the length of time for which the building was held prior to its demolition.
B. the contemplated future use of the parking lot.
C. the significance of the cost allocated to the building in relation to the combined cost of the lot and building.
D. the intention of management for the property when the building was acquired.
21) The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to
A. a separate deferred charge account.
B. miscellaneous tax expense (which includes all taxes other than those on income).
C. the machinery account.
D. accumulated depreciation–machinery.
22) The period of time during which interest must be capitalized ends when
A. no further interest cost is being incurred.
B. the asset is abandoned, sold, or fully depreciated.
C. the asset is substantially complete and ready for its intended use.
D. the activities that are necessary to get the asset ready for its intended use have begun.
23) Which of the following costs are capitalized for self-constructed assets?
A. Labor and overhead only
B. Materials and overhead only
C. Materials and labor only
D. Materials, labor, and overhead
24) When computing the amount of interest cost to be capitalized, the concept of “avoidable interest” refers to
A. a cost of capital charge for stockholders’ equity.
B. that portion of total interest cost which would NOT have been incurred if expenditures for asset construction had NOT been made.
C. the total interest cost actually incurred.
D. that portion of average accumulated expenditures on which no interest cost was incurred.
25) When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the
A. stated value of the stock.
B. par value of the stock.
C. market value of the stock.
D. book value of the stock.
26) When funds are borrowed to pay for construction of assets that qualify for capitalization of interest, the excess funds NOT needed to pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be
A. used to reduce the cost of assets being constructed.
B. offset against interest cost incurred during construction.
C. recognized as revenue of the period.
D. multiplied by an appropriate interest rate to determine the amount of interest to be capitalized.
27) Construction of a qualifying asset is started on April 1 and finished on December 1. The fraction used to multiply an expenditure made on April 1 to find weighted-average accumulated expenditures is
A. 8/12.
B. 8/8.
C. 11/12.
D. 9/12.
28) Which of the following most accurately reflects the concept of depreciation as used in accounting?
A. The process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset.
B. The process of charging the decline in value of an economic resource to income in the period in which the benefit occurred.
C. An accounting concept that allocates the portion of an asset used up during the year to the contra asset account for the purpose of properly recording the fair market value of tangible assets.
D. A method of allocating asset cost to an expense account in a manner which closely matches the physical deterioration of the tangible asset involved.
29) Which of the following principles best describes the conceptual rationale for the methods of matching depreciation expense with revenues?
A. Systematic and rational allocation
B. Associating cause and effect
C. Partial recognition
D. Immediate recognition
30) The term “depreciable cost,” or “depreciable base,” as it is used in accounting, refers to
A. the cost of the asset less the related depreciation recorded to date.
B. the total amount to be charged (debited) to expense over an asset’s useful life.
C. the acquisition cost of the asset.
D. the estimated market value of the asset at the end of its useful life.
Explanation: depreciable cost is total acquisition cost less salvage value
31) Lennon Company purchased a depreciable asset for $200,000. The estimated salvage value is $10,000, and the estimated useful life is 10,000 hours. Lennon used the asset for 1,100 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset?
A. $20,900
B. $190,000
C. $22,000
D. $19,000
Calculation: $200,000 - $10,000 = $190,000/10,000 hours = $19/hour x 1,100 hours = $20,900
32) Prentice Company purchased a depreciable asset for $200,000. The estimated salvage value is $20,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset?
A. $20,000
B. $180,000
C. $200,000
D. $18,000
Calculation: $200,000 - $20,000 = $180,000
33) Pine Company purchased a depreciable asset for $360,000. The estimated salvage value is $24,000, and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset?
A. $63,000
B. $67,500
C. $90,000
D. $42,000
Calculation: DDB rate = 1/8 x 2 = 25% x $360,000 =
1st year dep $90,000; 2nd year dep = $360,000 – 90,000 x 25% = $67,500
34) Under current accounting practice, intangible assets are classified as
A. limited-life or indefinite-life.
B. specifically identifiable or goodwill-type.
C. legally restricted or goodwill-type.
D. amortizable or unamortizable.
35) Factors considered in determining an intangible asset’s useful life include all of the following EXCEPT
A. any legal or contractual provisions that may limit the useful life.
B. any provisions for renewal or extension of the asset’s legal life
C. the amortization method used.
D. the expected use of the asset.
36) Which of the following methods of amortization is normally used for intangible assets?
A. Straight-line
B. Units of production
C. Double-declining-balance
D. Sum-of-the-years'-digits
37) Mining Company acquired a patent on an oil extraction technique on January 1, 2006 for $5,000,000. It was expected to have a 10 year life and no residual value. Mining uses straight-line amortization for patents. On December 31, 2007, the expected future cash flows expected from the patent were expected to be $600,000 per year for the next eight years. The present value of these cash flows, discounted at Mining’s market interest rate, is $2,800,000. At what amount should the patent be carried on the December 31, 2007 balance sheet?
A. $4,800,000
B. $4,000,000
C. $2,800,000
D. $5,000,000
Calculation: $5,000,000/10 years = $500,000/year x 2 years = $1,000,000; $5,000,000 – 1,000,000 = $4,000,000
38) Twilight Corporation acquired End-of-the-World Products on January 1, 2008 for $2,000,000, and recorded goodwill of $375,000 as a result of that purchase. At December 31, 2008, the End-of-the-World Products Division had a fair value of $1,700,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $1,450,000 at that time. What amount of loss on impairment of goodwill should Twilight record in 2008?
A. $125,000
B. $175,000
C. $300,000
D. $ -0-
Calculation: $375,000 – ($1,700,000 - $1,450,000) = $125,000
39) General Products Company bought Special Products Division in 2006 and appropriately booked $250,000 of goodwill related to the purchase. On December 31, 2007, the fair value of Special Products Division is $2,000,000 and it is carried on General Product’s books for a total of $1,700,000, including the goodwill. An analysis of Special Products Division’s assets indicates that goodwill of $200,000 exists on December 31, 2007. What goodwill impairment should be recognized by General Products in 2007?
A. $200,000.
B. $50,000.
C. $300,000.
D. $0.
40) Easton Company and Lofton Company were combined in a purchase transaction. Easton was able to acquire Lofton at a bargain price. The sum of the market or appraised values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Easton. After revaluing noncurrent assets to zero, there was still some “negative goodwill.” Proper accounting treatment by Easton is to report the amount as
A. part of current income in the year of combination.
B. a deferred credit and amortize it.
C. paid-in capital.
D. an extraordinary gain.
41) Goodwill
A. generated internally should NOT be capitalized unless it is measured by an individual independent of the enterprise involved.
B. is easily computed by assigning a value to the individual attributes that comprise its existence.
C. exists in any company that has earnings that differ from those of a competitor.
D. represents a unique asset in that its value can be identified only with the business as a whole.
42) The reason goodwill is sometimes referred to as a master valuation account is because
A. it represents the purchase price of a business that is about to be sold.
B. it is the difference between the fair market value of the net tangible and identifiable intangible assets as compared with the purchase price of the acquired business.
C. it is the only account in the financial statements that is based on value, all other accounts are recorded at an amount other than their value.
D. the value of a business is computed without consideration of goodwill and then goodwill is added to arrive at a master valuation.
43) Which of the following items is a current liability?
A. Bonds (for which there is an adequate sinking fund properly classified as a long-term investment) due in three months.
B. Bonds due in three years.
C. Bonds to be refunded when due in eight months, there being no doubt about the marketability of the refunding issue.
D. Bonds (for which there is an adequate appropriation of retained earnings) due in eleven months.
44) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT
A. a general description of the financing arrangement.
B. the terms of the new obligation incurred or to be incurred.
C. the number of financing institutions that refused to refinance the debt, if any.
D. the terms of any equity security issued or to be issued.
45) Stock dividends distributable should be classified on the
A. income statement as an expense.
B. balance sheet as an asset.
C. balance sheet as an item of stockholders’ equity.
D. balance sheet as a liability.
46) A company offers a cash rebate of $1 on each $4 package of light bulbs sold during 2007. Historically, 10% of customers mail in the rebate form. During 2007, 4,000,000 packages of light bulbs are sold, and 140,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2007 financial statements dated December 31?
A. $400,000; $400,000
B. $400,000; $260,000
C. $140,000; $260,000
D. $260,000; $260,000
Calculation: 4,000,000 x $1 = $4,000,000 x 10% = $400,000 ; $400,000 – (140,000 x $1) = $260,000
47) A company offers a cash rebate of $1 on each $4 package of batteries sold during 2007. Historically, 10% of customers mail in the rebate form. During 2007, 6,000,000 packages of batteries are sold, and 210,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2007 financial statements dated December 31?
A. $600,000; $600,000
B. $600,000; $390,000
C. $210,000; $390,000
D. $390,000; $390,000
Calculation: 4,000,000 x $1 = $6,000,000 x 10% = $600,000 ; $600,000 – (210,000 x $1) = $390,000
48) Wellman Company self insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $1,000,000 per year. The company estimates that on average it will incur losses of $800,000 per year. During 2007, $350,000 worth of losses were sustained. How much total expense and/or loss should be recognized by Wellman Company for 2007?
A. $350,000 in losses and no insurance expense
B. $350,000 in losses and $450,000 in insurance expense
C. $0 in losses and $1,000,000 in insurance expense
D. $0 in losses and $800,000 in insurance expense
49) A contingency can be accrued when
A. it is certain that funds are available to settle the disputed amount.
B. an asset may have been impaired.
C. it is probable that an asset has been impaired or a liability incurred even though the amount of the loss cannot be reasonably estimated.
D. the amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability incurred.
50) Which of the following contingencies need NOT be disclosed in the financial statements or the notes thereto?
A. Probable losses NOT reasonably estimable
B. All of these must be disclosed.
C. Environmental liabilities that cannot be reasonably estimated
D. Guarantees of indebtedness of others
51) Mark Ward is a farmer who owns land which borders on the right-of-way of the Northern Railroad. On August 10, 2007, due to the admitted negligence of the Railroad, hay on the farm was set on fire and burned. Ward had had a dispute with the Railroad for several years concerning the ownership of a small parcel of land. The representative of the Railroad has offered to assign any rights which the Railroad may have in the land to Ward in exchange for a release of his right to reimbursement for the loss he has sustained from the fire. Ward appears inclined to accept the Railroad’s offer. The Railroad’s 2007 financial statements should include the following related to the incident:
A. recognition of a loss and creation of a liability for the value of the land.
B. disclosure in note form only.
C. recognition of a loss only.
D. creation of a liability only.
52) If bonds are issued initially at a premium and the effective-interest method of amortization is used, interest expense in the earlier years will be
A. greater than if the straight-line method were used.
B. less than if the straight-line method were used.
C. greater than the amount of the interest payments.
D. the same as if the straight-line method were used.
53) An example of an item which is NOT a liability is
A. dividends payable in stock.
B. the portion of long-term debt due within one year.
C. advances from customers on contracts.
D. accrued estimated warranty costs.
54) Bonds for which the owners' names are NOT registered with the issuing corporation are called
A. bearer bonds.
B. secured bonds.
C. term bonds.
D. debenture bonds.
55) Which of the following best describes current practice in accounting for leases?
A. Leases are NOT capitalized.
B. All leases are capitalized.
C. Leases similar to installment purchases are capitalized.
D. All long-term leases are capitalized.
56) Minimum lease payments may include a
A. penalty for failure to renew.
B. any of these.
C. bargain purchase option.
D. guaranteed residual value.
57) Which of the following is a correct statement of one of the capitalization criteria?
A. The lease transfers ownership of the property to the lessor.
B. The lease term is equal to or more than 75% of the estimated economic life of the leased property.
C. The lease contains a purchase option.
D. The minimum lease payments (excluding executory costs) equal or exceed 90% of the fair value of the leased property.
58) In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned income
A. should be amortized over the period of the lease using the interest method.
B. does NOT arise.
C. should be amortized over the period of the lease using the straight-line method.
D. should be recognized at the lease’s expiration.
59) In order to properly record a direct-financing lease, the lessor needs to know how to calculate the lease receivable. The lease receivable in a direct-financing lease is best defined as
A. the amount of funds the lessor has tied up in the asset which is the subject of the direct-financing lease.
B. the present value of minimum lease payments.
C. the difference between the lease payments receivable and the fair market value of the leased property.
D. the total book value of the asset less any accumulated depreciation recorded by the lessor prior to the lease agreement.
60) The amount to be recorded as the cost of an asset under capital lease is equal to the
A. present value of the minimum lease payments.
B. present value of the minimum lease payments plus the present value of any unguaranteed residual value.
C. present value of the minimum lease payments or the fair value of the asset, whichever is lower.
D. carrying value of the asset on the lessor’s books
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ACC 422 Week 1 DQ 4
Why is it important to have effective control of cash?
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ACC 422 Week 1 DQ 6
Which cost flow assumption gives you the highest ending inventory? Why?
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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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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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ACC 422 Week 1 DQ 2 To purchase this material click http://www.assignmentcloud.com/ACC-422/ACC-422-Week-1-DQ-2 For more classes visit www.assignmentcloud.com
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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ACC 422 Week 1 DQ 5
What are the basic issues involved with the valuation of receivables?
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ACC 422 Week 1 DQ 1 To purchase this material click http://www.assignmentcloud.com/ACC-422/ACC-422-Week-1-DQ-1 For more classes visit www.assignmentcloud.com
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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ACC 422 Week 2 DQ 1 To purchase this material click http://www.assignmentcloud.com/ACC-422/ACC-422-Week-2-DQ-1 For more classes visit www.assignmentcloud.com
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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ACC 422 Week 1 Summary ACC 422 Week 1 Summary To purchase this material click http://www.assignmentcloud.com/ACC-422/ACC-422-Week-1-Summary For more classes visit www.assignmentcloud.com
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CC 422Final Exam
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.
Brief Exercise 14-12
Vaughn Corporation issued a 4-year, $55,000, 5% note to Greenbush Company on January 1, 2017, and received a computer that normally sells for $44,762. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 11%.
Prepare Vaughn’s journal entries for (a) the January 1 issuance and (b) the December 31 interest.
Multiple Choice Question 99
On June 30, 2018, Sheridan Co. sold equipment to an unaffiliated company for $2250000. The equipment had a book value of $1205000 and a remaining useful life of 10 years. That same day, Sheridan leased back the equipment at $12500 per month for 5 years with no option to renew the lease or repurchase the equipment. Sheridan’s rent expense for this equipment for the year ended December 31, 2018, should be
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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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“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.
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ACC 422 Week 3 Summary ACC 422 Week 3 Summary To purchase this material click http://www.assignmentcloud.com/ACC-422/ACC-422-Week-3-Summary For more classes visit www.assignmentcloud.com
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ACC 422 Week 5 Individual Assignments From the Text
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ACC 422 Week 5 Individual Assignments From the Text
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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ACC 422 Week 5 DQ 4
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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ACC 422 Week 4 Individual Assignments From the Text
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CC 422 Week 4 Individual Assignments From the Text
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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ACC 422 Week 5 DQ 3
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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