2023 Pennfoster graded project 06168900 and Financial accounting final exam 061693 exam XXXXX for financial accounting INSTRUCTIONS Use the | Assignments Online

Pennfoster graded project 06168900, and Financial accounting final exam 061693

exam # XXXXX for financial accounting.

 

INSTRUCTIONS

Use the explanation below and the information in the assumption section to omplete the steps in the requirements for this accounting project.

 

Mike Hanson recently left his job at a local pool company to open his own pool and spa maintenance business. XXXXX XXXXXson took all of the money he and his wife had in their personal savings account and used it to open Aqua Elite, Inc., are true and accurate.

 

ASSUMPTIONS

 

*Because Aqua Elite, Inc. is a new start up business, the beginning balances in all the general ledger accounts are zero to start.

 

*The lenght of the accounting periods are three months using a fiscal calendar year.(Afiscal calendar is on a yearly basis other than than a calendar year-January 1st to December 31st. For example, a fiscal calendar year can be May 1, 2009, through April 30, 2010). Therefore, posting are made on a fiscal quarterly basis.

 

*Accounts Receivevable and Accounts Payable subsidiary ledgers aren’t being used. Any reference to invoicing, receipts, or payments “on account” assume changes to the running balance in the Accounts Receivable and Accounts Payable general ledger accounts.

 

*Payroll calculations aren’t neccessary. Assume the salary is the gross pay with no deductions taken. Therefore, the net pay is the same as the gross pay, requiring a simplified journal entry to record the expense.

 

*Use the information in the chart of Accounts that’s provided after Requirements section below. Add general ledger accounts if neccessary.

 

Requirements

 

1.Journalize the transactions. Omit explanations.

 

2.Post the transactions to the general ledger, creating new ledger accounts as neccessary. Calculate the new general ledger account balances.

 

3.Prepare the unadjusted trial balance for Aqua Elite, Inc., at the end of July.

 

4.Journalize and post the adjusting entries for July based on the following adjustment information:

 

a.Record the expired rent.

 

b.Supplies on hand, $350.

 

c.Depreciation: $400 equipment, $210 furniture, $650 vehicles.

 

d.Services performed but unbilled, $1,900.

 

e.Accrued salaries, $675.

 

f.Unearned service revenue earned as of July 31, $800.

 

5.Prepare an adjusted trial balance for Aqua Elite, Inc., at the end of July.

 

6.Prepare the Income Statement, Statement of Retained Earnings, and Balance Sheet for the three-month period May through July 20XX.

 

7.Prepare, Journalize, and post closing entries.

 

8.Prepare a Post-Closing Trial Balance for the end of the period.

 

May

 

1 Mike invested $15,000 cash and used truck worth $13,500 in the business in exchange for company stock.

 

3 Paid $4,700 cash to purchase office equipment.

 

7 Purchased $860 of supplies on account.

 

12 Performed services for cash customers and received $850.

 

15 Paid salaries of $675 to the office receptionist.

 

16 Sold the company truck for $ 13,500.

 

18 Signed a note payable for $31,000 to purchase a new truck.

 

21 Performed $3,200 of services on account for a local hotel chain.

 

27 Paid $500 of the amount owed from the purchase of supplies on May 7.

 

30 Received $2,000 on account from credit customers.

 

31 Received the utility bill for the month of May, $480. The bill is not due untill the 15 of june.

 

31 Piad $1,000 dividends to the shareholders, XXXXX XXXXXson.

 

June

 

1 Paid receptionist’s salary, $675.

 

2 Paid cash to acquire land for a future office site, $15,000.

 

3 Moved into a new location for the business and paid the first month’s rent, $1,800.

 

4 Performed service for a customers and received cash, $1,700.

 

5 Received $500 on account.

 

8 Purchased $750 of supplies on account.

 

11 Billed customers for services performed, $3,800.

 

13 Sold an additional $10,000 of stock to XXXXX XXXXXson.

 

16 Paid receptionist’s salary, $675.

 

17 Received $1,350 cash for services performed.

 

18 Received $1,500 from customers on account.

 

19 Paid $325 to be listed in the yellow pages telephone diretory.

 

21 Paid $1,000 on account.

 

22 Purchased office furniture on account, $3,300.

 

24 Paid miscellaneous expenses, $275.

 

26 Billed customers for services provided, $1,000.

 

28 Received $300 from customers on account.

 

30 Paid utility bill, $745.

 

30 Paid receptionist’s salary, $675.

 

30 Paid $1,800 of dividends.

 

July

 

1 Paid three months’ rent, $4,500.

 

4 Performed service for a customers and received cash, $2,100.

 

9 Received $3,600 from customers for services to be performed later.

 

12 Purchased $750 of supplies on account.

 

15 Billed customers for services performed, $2,800.

 

16 Paid receptionists’ salary, $675.

 

22 Received $3,100 on account.

 

25 Paid $2,800 on account.

 

28 Received $1,200 cash for services performed.

 

30 Paid $600 of dividends.

 

 

 

 

exam # XXXXX It is due on Monday as well, pls let me know if you can help me out both of my exam…thanks.

 

1.The following information was made available from the income statement and balance sheet of Lauren Company.

Item 12/31/10 12/31/09

Accounts Receivable $53,400 $58,600

Accounts Payable $35,600 $32,700

Merchandise Inventory $85,000 $79,000

Sales (2010) $243,000

Interest Revenue (2010) $5,600

Dividend Revenue (2010) $1,200

Tax Expense (2010) $12,300

Salaries Expense (2010) $28,000

COGS (2010) $65,000

Interest Expense (2010) $3,600

Operating Expenses (2010) $28,500

Complete the cash flow from operating activities section for Lauren Company using the direct method for the year ended December 31, 2010.

2.Given the following balance sheet, complete a horizontal analysis.Compute the percentage to the nearest tenth of a percent.

Jill’s Bikes

Comparative Balance Sheet

For Years Ended December 31, 2011 and 2010

(in thousands) 2011 2010 Difference Percentage

Assets

Current Assets

Cash and Equivalents $72 $94

Accounts Receivable, net 122 104

Inventory 288 232

Total Current Assets 482 430

Property, Plant and Equipment 638 358

Total Assets $1,120 $788

Liabilities

Current Liabilities

Accounts Payable $242 $148

Accrued Liabilities 48 66

Total Current Liabilities 290 214

Long-Term Liabilities 346 208

Total Liabilities 636 422

Stockholders’ Equity

Common Stock 70 60

Retained Earnings 414 306

Total Stockholders’ Equity 484 366

Total Liabilities and

Stockholders’ Equity $1,120 $788

Part B:

1.Record the following transactions using the accounting equation.

Example:

Assets = Liabilities + Equity

XXXX(CASH) XXXX(accounts payable)

A: Amanda invests $17,000 cash into her merchandising business.

B: She buys $6,500 of office equipment and o$3,000 of office supplies with cash from Office Depot.

C: Additional purchases were supplies for $35,000 on account from various suppliers.

2. Journalize the following transactions and omit the explanations.

A: ABC Corporation purchased $15,000 of office furniture by putting $7,000 down in cash and the rest on account on April 8.

B: The corporation paid $60,000 for a two-year lease on April 19.

C: The corporation had sales of $45,000, of which $35,000 were on account on April 20.

D: The corporation borrowed $25,000 by signing a note payable on April 22.

E: The corporation paid $1,250 on one of its accounts payable on April 26.

3. Prepare a trial balance from the following information for Learn a New Language, inc. for December 31, 2012.

Accounts payable $5,012

Common stock $9,692

Cash $3,928

Notes payable $1,439

Wages expense $777

Marketing expense $493

Equipment $8,345

Accounts receivable $1,142

Inventory $8,074

Sales $6,616

4. Compute the missing information from this post-closing trial balance.

Cash $34,689

Accounts Receivable $9,467

Prepaid Rent $5,000

Prepaid Insurance (A)

Supplies $944

Accounts Payable $5,389

Wages Payable (B)

Common Stock $37,049

Retained Earnings $8,234

Total $52,356 $52,356

5. Journalize the following transactions using the perpetual inventory method.

Aug. 6 Purchased $830 of inventory on account from Johnston with terms of 2/10, n/30.

Aug. 8 Purchased $2,611 of inventory for cash from Pillner Company.

Aug. 15 Paid for August 6 purchase from Johnston.

Aug. 17 Purchased $1,743 of merchandise on account from Luis Company with terms of 3/15, n/45.

6. Given the following information, prepare a balance sheet for Isaiahs Tool Shed for the year ending December 31, 2012.

Cash $65,750 Retained Earnings $179,319

Common Stock $35,000 Equipment $27,500

Accounts Receivable $11,478 Accounts Payable $29,450

Land $30,000 Inventory $78,311

Prepaid Supplies $7,357 Income Taxes Payable $4,209

Office Computers $11,345 Other PPE $31,446

Accum. Depr. (all) $23,459 Prepaid Insurance $8,250

7. Rick Company’s beginning inventory and purchases during the fiscal year ended December 31, 2012, were as follows: (note: The company uses a perpetual system of inventory.)

Units Units Price Total Cost

January 1-Beginning inventory 18 $24 $432

March 12-Sold 13

April 11-Purchase 45 $29 $1,305

June 20-Sold 33

Aug 16-Purchase 35 $27 $645

Sept 11-Sold 29

Total Cost of Inventory

Ending inventory is 23 units $2,682

What is the cost of goods sold for Rick Company for 2012 using LIFO?

8. Assume that in year 1, the ending merchandise inventory is overstated by $30,000. If this the only error in Years 1 and 2, fill in the items below, indicating which items will be understated, overstated, or correctly stated for Years 1 and 2.

Item Year 1 Year 2

Endinig inventory ________ ________

Beginning inventory _________ __________

Cost of goods sold ___________ _____________

9. Below is a list of treatments of accounting topics. Place GAAP on the line if the treatment is GAAP-based and place IFRS on the line if the treatment is IFRS-based.

A. Interest and dividend income are reported in the investing section of the cash flow statement. ______

B. Interest expense is reported in the financing section of the cash flow statement. _______

C. The use of LIFO is prohibited. ________

10. Record the neccessary journal entries from the following bank reconcialition information for July 31, 2011:

Bank Balance, July 31, 2011 $36,739

Cheekbook Balance, July 31, 2011 36,444

Bank collection of note receivable 1,200+165 interest

Bank service charge 35

Deposits in transit 2,400

Outstanding checks 1,245

NSF checks from customers 330

Correction of book error (check # XXXXX written for

$160, recorded at $610)-gas expense

11. Journalize the following transactions for Tammy Company:

Sept. 1 Sold $3,500 of merchandise to Jim on account

Oct. 1 Exchanged Jim’s account receivable for a four-month, 8% note for $3,500

Dec. 31 Recorded accrued interest on Jim’s note

Feb. 1 Jim paid off his note with interest (round to the nearest dollar)

12. A truck was purchased on January 2 at cost of $60,000. It’s expected to be used for five years and to have a residual value of $5,000 after 120,000 miles of service. The truck was driven for 23,000 miles the first year and 25,000 miles the second year. Calculate the depreciation expense to the nearest dollar for the first and second years

Method Year 1 Year 2

Straight-line _______ _______

Double-declining-balance _________ _________

Units-of-production ___________ ___________

13. Prepare the general journal entries for the following transactions:

Jan. 2, 2011 Purchased land with a building on it for $750,000. The land is worth $300,000. Paid

$150,000 cash down and signed a mortgage payable for the balance.

Dec. 31, 2011 Depreciation is computed using the straight-line method. The estimated savage value

of the building is $75,000 and has an estimated life of 20 years.

July 1, 2012 The building and land are sold for $825,000 cash.

14. Journalize the following treasury stock transactions:

June 3 Reacquired 350 shares of $12 par common stock at $10 per share.

June 7 Sold 180 shares of treasury stock for $16 share.

June 8 Sold 150 shares of treasury stock for $19 per share.

15. Lowry Landscapes had net income of $50,000 for 2010. Land was sold for $40,000, of

which $3,000 was a gain. The beginning cash balance was $53,000, and the ending cash balance

was $151,000. Depreciation expense were $11,000. Prepare

a statement of cash flows for the year ended December 31, 2010, for Lowry Landscapes using the indirect method