Description of this paper

ACC - Pruitt Corp & American Eagle Problems




Question;Problem #2 - Pruitt;Corp.;The following data relate to the accounts of Pruitt;Corporation. Prepare the necessary;adjusting journal entries indicated by each item for the year ended December;31, 2013.;A. A four-year insurance policy was;purchased on April 1, 2013. The $96,000;insurance premium was fully paid on that date and a debit to prepaid insurance;was recorded.;B. Unpaid salaries at year-end amount to;$200,550.;C. Pruitt Corp. rents out some of its;office space to Alliance Corp at $2,400 per month. On November 1, 2013, Pruitt Corp. recorded a;credit toRent Revenue for receipt;of a rent payment of $7,200 from Alliance Corp. to cover rent from November 1;2013 to January 31, 2014.;D. Pruitt Corporation holds bonds of;another corporation. The bonds were;purchased by Pruitt on June 30, 2013.;Interest in the amount of $1,100 is received each year every June 30th.;i) Prepare;any necessary adjusting entries on December 31, 2013.;ii) Prepare;the journal entry to record the receipt of interest on June 30, 2014.;Problem #3 American Eagle;Required: Access the American Eagle 2013 Annual;Report/10K (online). Look at the;financial statements and Notes to the financial statements closely and attempt;to infer what kinds of information they report.;Then, answer the following questions based on the Report.;1. On what day of the year does their fiscal year end (their policy in;general, not just for one year)?;2. For how many years do they present complete;a. Balance Sheets;b. Income Statements;c. Cash Flow Statements;3. Are;their financial statements audited by independent CPAs? How do you know?;4. Did their total assets increase or decrease;over the last year?;5. What was the ending balance of inventories?;6. Write;out their basic accounting equation in dollars at year-end.;7. Use the;amounts in the financial statements to write out the retained earnings equation;for the 2013 fiscal year (include effects of stock awards and treasury;reissue).;8. (a) From;the Balance Sheet, compute the change in Cash from fiscal year-end 2012 to;2013.;(b) Briefly;reconcile the change in Cash reported on the Balance Sheet to the three major;categories of the Cash Flow Statement.


Paper#42034 | Written in 18-Jul-2015

Price : $22