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devry acct212 midterm exam

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Question;Question 1.1.(TCO 1) The Accounting Equation is used to;develop the organization's financial reports. (1) Describe what owners' equity;values would be if Assets are $100,000 and Liabilities are $27,000 by showing;the Accounting Equation (10 points) and (2) provide an explanation of what;accounts could be found in owners' equity. (10 points) (Points: 20);Question 2.2.(TCO 1) The financial statements present a;company to the public in financial terms. (1) Which financial statement;identifies where cash was generated and where it was spent during the year (10;points), and (2) identify the three major parts of this statement. (10 points);(Points: 20);Question 3.3.(TCO 1) The accounting profession follows a set;of guidelines for measurement and disclosure of financial information called;the Generally Accepted Accounting Principles (GAAP). (1) Explain what the;Stable-Monetary-Unit Assumption is (10 points) and (2) provide an example of;its application. (10 points) (Points: 20);Question 4.4.(TCO 2) Transaction analysis results in the;development of a journal entry. In the start-up of a business, the owner contributes;$750,000 of cash. (1) Name the accounts impacted and how to use the format;account name/debit or credit/dollar amount (10 points), and (2) explain how the;Accounting Equation is impacted. (10 points) (Points: 20);Question 5.5.(TCO 3) Adjusting Entries are required at the;end of the period to ensure that accrual accounting principles are applied. The;building that houses the business is depreciated at an annual rate of $14,000.;Develop the adjusting entry for year end. (1) Name the accounts impacted and;how to use the format account name/debit or credit/dollar amount (10 points);and (2) explain how the Accounting Equation is impacted. (10 points) (Points;20);Question 1.1.(TCO 5) Internal Controls are required to;safeguard assets and to ensure ethical business practices. (1) Identify and;explain the reason for any two of the seven internal control procedures (10;points) and (2) provide examples of how your two selected internal control;procedures will meet the goal of safeguarding assets and promoting ethical;business practices. (15 points) (Points: 25);Question 2.2.(TCO 5) The bank account as a control device;helps to protect cash. One of the requirements is to conduct periodic bank;statement reconciliations. Using the following data, complete the bank;statement reconciliation. (Use the format shown on page 251 of your textbook.);(25 points);Use the information below to prepare the bank reconciliation;for Collier Cleaners for the month of September.;? The bank statement indicated bank service charges of $63.;? Outstanding checks as of September 30 amounted to $1,405.;? Deposits in transit as of September 30 amounted to $2,769.;? The ending balance per the September bank statement is;$40,753.;? Collier Cleaners bookkeeper mistakenly recorded a $1,610;cash disbursement as $1,160 for Office Supplies on check #2402.;? The bank mistakenly recorded a deposit of $2,800 as $280;on February 17.;? The bank made an EFT payment on behalf of the company for;Insurance for $3,200.;? Bank collected rent of $3,000 and a note, for $16,450;including interest of $450.;? The ending cash balance per the books for September before;any adjustments was 28,900. (Points: 25)

 

Paper#39965 | Written in 18-Jul-2015

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