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accrued expense, income and Multi-step Income Statement for DFG company




Question;1. Journalize the following;accrued Expense transactions;a. XYZ Company purchased a one-year insurance policy on August;1, 2012 and paid $280,000 cash to MetLife insurance company. Journalize the;insurance transactions on the following dates;August 1, 2012;December 31, 2012;July 31, 2013;ABC Co. borrowed $420,000 at 6% rate on June 1, 2012 payable in;12 months, and signing a note payable (N/P). Journalize on: Jun 1, 2012;December 31, 2012 and may 31, 2013.;Office Supplies inventory account of VCX Co. had a beginning;balance of $72,000 on January 1, 2013. During 2013 the VCX Company purchased;$450,000 of supplies. The ending supplies inventory of 2013 is $88,000 on;December 31, 2013.;Determine the cost of supplies in 2013 and journalize purchase;and use of supplies transactions on December 31, 2013.;2. Journalize the following accrued revenue transactions;A. PRV Bank extended $400,000 credit at 5% interest to a;customer on April 1, 2012 for one year (N/R). The principal and interest rates;will be collected on March 31, 2013. Journalize the transactions on the;following dates;April 1, 2012;Dec. 31,2012;March 31,2013;ETN Insurance Company sold an insurance policy and collected;$210,000 cash on October 1, 2012 from the customer for one-year coverage.;Please journalize on the following dates;October 1, 2012;December 31, 2012;September 31, 2013;XYZ Co. collected $1,800,000 cash (advances) from a customer on;November 22, 2012 with promise to deliver merchandise on March 1, 2013. Cost or;the merchandise to xyz company: $1,100,000.;Journalize on;November 22, 2012;December 31, 2012;Delivery March 1, 2013;5. Prepare a Multi-step Income Statement for DFG company using;the following data related to the operations of Jan. 1 Dec, 31, 2013 period.;Tax rate 35%.;Sales revenue $3,450,000;Sales Commission expense 245,000;Utilities Expense 90,000;Cost of the Goods sold 1,320,000;Depreciation expense 240,000;Salaries and wages expanses 515,000;Supplies expense 180,000;Loss from extra-ordinary items $260,000;Loss from Discontinued operation 300,000;Report: Gross Margin, Income from operations, Income tax, Net;Income from operations (after tax), Loss from extraordinary items-net of tax.;Loss from discounted operations-net of tax. Net income.;6. Prepare Retained Earning statement of BNM Company for Dec.;31, 2013 from the following information;Retained earnings, Jan 1;2013 $2,340,000;Dividends paid during 2013 550,000;Net Income of 2013 1,234,000


Paper#37595 | Written in 18-Jul-2015

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