Description of this paper

accounting problems




Question;The following infcrmationwasmadeavailable;from the income statement and balance sheet of Meranda;Company;Item;12/31/10;12/31/09;AccountsReceivable;$;42,000;$45,100;AccountsPayable;27,900;24,500;MerchandiseInventory;68,000;63,000;Sales(2010);170,000;Interest Revenue(2010);3,200;Dividend Revenue(2010);1,800;TaxExpense;(2010);11,600;SalariesExpense;(2010);22,400;COGS(2010);57,000;InterestExpense(2010);2,200;OperatingExpenes;19,400;Completethecashflo;usingthe directmetho;fromoperating;activitiessectionforMeranda Companyfortheyearended;December31,2010.;2. GiventhefollowiComputethepercentage;balantothe;cesheet,completeahorizontalanalysis.nearesttenthof;apercent.;Jessica?sJewelryStoreComparativeBalanceSheetForYearsEndedDecember 31;2011;and2010;(inthousands);2011;2010;Difference;Percentage;Assets;CurrentAssets;Cashand;Equivalents;$319;$288;AccountsReceivable,net;166;173;Inventory;437;400;TotalCurrentAssets;922;861;Property,PlantandEquipment;TotalAssets;$1,299;$1,273;Liabilities;CurrentLiabilities;AccountsPayable;132;144;AccruedLiabilities;90;84;TotalCurrentLiabilities;222;228;Long-TermLiabilities;84;96;TotalLiabilities;306;324;Stockholders?Equity;CommonStock;288;255;RetainedEarnings;705;694;TotalStockholders?Equity;993;949;TotalLiabilitiesand;Stockholders?Equity;1,299;$1,273;ng;Part;B: Answer each of the following 15 questions. Each answer is worth;4;points.;1. Given the following;information, show the increase or decrease in the;accounting equation;A. Deanne invests $45,000;and $10,000 of office equipment into the;business.;B. Furniture is purchased;for $8,000 cash.;C. Supplies are purchased;on credit for $2,300.;D. The month?s electric;bill of $775 was paid.;E. The month?s cash sales;were $5,000.;2. Journalize the;following transactions and include the explanations.;A. Tammy invested $40,000;into her corporation on June 11.;B. Tammy purchased;inventory for $95,000, of which $70,000 was on;account on June 14.;C. Tammy paid one month?s;rent of $2,400 on June 16.;D. Tammy had sales of;$15,000 on account on June 19.;E. Tammy had paid $2,500 on her payables;account on June 21.;3. Prepare a trial;balance from the following information for Computer;Systems, Inc. for;December 31, 2012;Accounts payable $4,298;Common stock $4,073;Sales $8,302;Cash $1,902;Notes payable $888;Wages expense $777;Supplies expense $1,028;Equipment $5,183;Accounts receivable;$1,733;Inventory $6,938;4. Compute the missing;information from this post-closing trial balance;Cash;$38,502;Accounts Receivable 14,372;Prepaid Rent 18,229;Prepaid Insurance 4,583;Supplies (A);Accounts Payable;(B);Wages Payable 29,428;Common Stock;30,049;Retained Earnings;18,423;Total;$80,436 $80,436;5;5. Journalize the;following transactions using the perpetual inventory;method;Nov. 1 Purchased $3,600;of merchandise from Hilltop, terms 2/10, n/30.;Nov. 5 Purchased $1,750;of merchandise for cash from Owen?s Supply.;Nov. 7 Purchased $3,400;of merchandise from Seaside, terms 1/15, n/30.;Nov. 10 Returned $500 of;merchandise to Seaside. Credit Memo #131.;Nov. 11 Paid the invoice;from Hilltop.;6. Given the following;information, prepare a balance sheet for Brandon?s;Campstore for the year ending December 31;2012;Cash;$38,745;Retained Earnings;$171,309;Common Stock;$43,500;Equipment;$37,200;Accounts Receivable;$14,109;Accounts Payable;$26,351;Land;$35,000;Inventory;$81,311;Prepaid Supplies;$9,003;Income Taxes Payable;$5,284;Office Computers;$16,399;Other PPE;$26,550;Accum. Depr. (all);$21,013;Prepaid Insurance;$9,140;6;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;Unit Price;Total Cost;January 1?Beginning;18;$24;432;inventory;March 12?Sold;13;April 11?Purchase;45;$29;$1,305;June 20?Sold;33;Aug 16?Purchase;35;$27;$945;Sept 11?Sold;29;Total Cost of Inventory;Ending inventory is 23 units.;$2,682;What;is the ending inventory of Rick Company for 2012 using FIFO?;7;8. Assume that in Year 1;the ending merchandise inventory is overstated;by $30,000. If this is;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;Gross Profit;Net Income;Ending Retained;Earnings;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. The use of LIFO is;allowed.;B. Both research and;development costs are expensed as incurred.;C. Market is defined as current;replacement cost.;10. Record the necessary journal;entries from the following bank;reconciliation;information for July 31, 2011;Bank Balance, July;31, 2011;$28,542;Checkbook Balance;July 31, 2011;29,344;Bank collection of;note receivable;1,545 +;210;interest;Bank service charge;75;Deposits in transit;3,145;Outstanding checks;2,685;NSF check from;customer;770;Correction of book;error (check #456 written;for $280, recorded at $28)?maintenance;expense;11. Journalize the;following transactions for Ryan Company;July 1 Sold $5,300 of merchandise;to Rick on account.;Nov. 1 Exchanged Rick?s;account receivable for an eight-month, 6% note for;$5,300.;Dec. 31 Recorded accrued interest on Jim?s;note (round to nearest dollar).;July 1 Rick paid off his;note with interest (round to nearest dollar).;12. A computer system was purchased on July 1 at;a cost of $125,000. It?s;expected to be used for four years and;to have a residual value of $5,000 after;8,000 hours of service.;The system was used for 1,750 hours the first year and;2,100 hours 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;10;13. Prepare journal;entries for the following transactions for Ryan Company;in the general journal;Feb. 28 Machinery that;cost $57,000 and had accumulated depreciation of;$46,000 was sold for;$2,500.;April 10 A van that cost;$23,700 and had accumulated depreciation of;$21,000 was sold for;$1,250.;July 16 Equipment that;cost $120,000 and had accumulated depreciation;of $112,000 was traded in;for new equipment with a fair-market value of;$140,000. The old;equipment and $135,000 in cash were given for the new;equipment.;14. Journalize the;following treasury stock transactions;May 1 Reacquired 800;shares of $15 par common stock for $13 per share.;May 7 Sold 400 shares at;$11 per share.;May;9 Sold 250 shares at $17 per share;15. The following;information was taken from the financial statements of;Brandon Company for;12/31/10 and12/31/09;Net income for 2010;$313,000;Depreciation expense for;2010: $28,400;Loss on sale of;equipment: $7,300;Balance;Sheet;12/31/10 12/31/09;Accounts Receivable $46,000 $50,000;Merchandise;Inventory;35,000;28,000;Accounts Payable 27,000 24,000;Interest Payable;6,000;8,000;Prepare the operating;activities section of the statement of cash flows under the;indirect;method for the year ended December 31, 2010.


Paper#44737 | Written in 18-Jul-2015

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