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Intermediate Accounting_Quiz 5th Sept




l.;Intermediate Accounting I;Quiz L, Part2;This part of the exam is not timed. You must submit your answers in your Leo assignment folder by;Sunday, September 7 (midnight). Question #3 asks you to prepare an Income Statement. This must be in;good form, so you may want to create it in Excel and attach it as a PDF file. (You can submit all of your;answers as one uploaded document.) AN ATTACHMENT MUST FIRST BE SAVED AS A PDF OR I WILL NOT;OPEN IT AND YOU WILL NOT GET CREDIT FOR IT.;You may use your textbook to answer the questions. You may not use any other;written material. You may not discuss the questions or your answers with your;classmates or any other person;Note: Part 1 of the exam is in WileyPlus. (Part 1 is a timed exam.);Identify the basic assumption or broad accounting principle that was violated;in each of the following situations. Evplail y our ansu)cr.;1. Don Sherwood, a shareholder of the Brady Construction Corporation, has;not received a financial statement from the company for over two years.;2. The Diatonics Corporation reported equipment on its balance sheet at fair;market value.;3. Holyoke Corporation paid $20,000 for a three-year insurance policy and;recorded the entire expenditure as insurance expense.;4. The Acme Appliance Company is involved in a major lawsuit. The company;is being sued for $10 million dollars for alleged patent infringement. The;company believes the suit is without merit and has not disclosed its existence;in its financial statements.;5. The Ravel Company's balance sheet includes assets owned by the company;as well as assets of its principal shareholder, Jim Thomas.;6. The Marine Chemical Company recorded revenue for a $50,000 advance;payment received from a customer. The customer's order will be shipped;next month.;prepare the necessary adjusting entries at December 3 l, lnB;for the Jasper;Company for each of the following situations. Assume that no financial;statements were prepared during the year and no adjusting entries were;recorded.;1. A two-year fire insurance policy was purchased on August l, Jatl, for;$12,000. The cornpany debited prepaid insurance for the entire amount.;2. Depreciation on equipment totaled $20,000 for the year.;3. Employee salaries- oi $27,000 for the month of December will be paid in;early January, &ot{.;4. On Octobei 1, nora, the company lent $50,000 to a customer. The;customer signed a note that requires principal and interest al 8oh to be paid;on September 30, aot,l.;5. In July, the company purchased supplies for $4,500. The entry was recorded;as a debit to supplies expense. Supplies on hand at the end of the year;totaled $2,200. No supplies had been previously purchased.;J,3. Presented below is information rtffiffif to Ur 6ttav y Co ryo ratto n;Retained earnings, December 31, Jott.;Sales;Selling and administrative expenses;Hurricane loss (pre-tax) on plant (extraordinary item);Cash dividends declared on common stock;Cost of goods sold;Gain resulting from;Other revenue;Other expenses;Instructlons;computation error on depreciation charge ln ton (pre-tax);$ 650,000;1,400,000;240,000;250,000;33,600;820,000;520,000;60,000;50,000;prepare in good form a multiple-step income statement for the yrer,|arr, hrne a30oh tax rate;and that ooloog shares of common stock were outstanding durirq thi ynr.


Paper#79172 | Written in 18-Jul-2015

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