ACG-2021 Lecture Notes - Lecture 1: The Problem Solvers, Accounting Information System, Accounts Payable

136 views6 pages

harlequinchinchilla54

13 Sep 2016

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Given the following accounts, tell whether the normal balance of each account is a debit (dr) or a credit (cr): supplies, insurance expense, income tax expense, salaries payable, retained earnings. Indicate which of the following events would result in recognizing revenue for the year in which the described event takes place; indicate the amount and the account. Usually accounts are collected in advance; but in this case, the customer received the cable services last year but didn"t pay until this year: customers paid ,500 in advance for services to be rendered next year. Determine permanent or temporary accounts for each of the following accounts, tell whether it is a permanent account or a temporary account: merchandise inventory, insurance expense, interest expense, income taxes payable, common stock. Record the following transactions for bradford, inc. , in the. The cost was , paid in cash: on march 1, the company purchased worth of supplies for cash.

Related Questions

Using the following transactions, calculate (A) the endingbalance of Cash, (B) the ending balance of Accounts Receivable, (C)total liabilities, and (D) Stockholdersâ Equity at the end of theperiod. For parts a, b, and d, indicate whether each balance isdebit or credit. (Hint: Use T Accounts)

Began doing business by selling shared of common stock toinvestors for $50,000 in cash.
Billed customers for services rendered, $10,000.
Paid for six monthsâ subscription in advance, $2,500.
Received advertising bill, to be paid next week, $500
Dividends of $4,000 were paid to common stock holders.
Received $7,500 from customers billed in b.
Paid half of advertising bill.
Received $1,000 in advance of performing a service.

Using the alphabetical list of account balances presented below,all of which are normal, prepare a trial balance for Cookies andCream Company at June 30, 20x5, in proper order. Compute thebalance of the Cash account.

Accounts Payable $280
Accounts Receivable 560
Cash ?
Equipment 800
Office Expense 360
Common Stock 880
Service Revenue 600

3. In the journal provided, prepare adjusting entries for thefollowing items. Omit explanations.
a. Depreciation on machinery is $940 for the accountingperiod.
b. Interest incurred on a loan but not paid or recorded is$635.
c. Office supplies of $600 were on hand at the beginning of theperiod. Purchases of office supplies during the period totaled$200. At the end of the period, $80 in office suppliesremained.
d. Commissions amounting to $540 were earned but not recorded orcollected by year end.
e. Prepaid Rent had an $8,000 normal balance prior to adjustment.By year end, 40 percent had expired.

General Journal Page 1
Date Description Post.
Ref. Debit Credit

4. Using the following data, prepare a classified balance sheet forBlanchard Company as of December 31, 20x5.

Cash $ 200 Accumulated Depreciationâ Building
$ 1,000
Investments in Short-Term Government Securities 400 Franchise 1,800
Accounts Receivable 800 Accounts Payable 1,600
Inventory 3,000 RevenuesReceived in Advance 400
Prepaid Rent 100 NotesPayable (in two years) 4,000
Investment in Land Held for future use 2,700 Common Stock 12,000
Land 2,000
Building 8,000

5. Use the information from the following single-stepincome statement to prepare a multi-step income statement in properform.

Midway Industries
Income Statement
For the Year Ended December 31, 20x5
Revenues
Net sales $10,000
Interest income 300
Total revenues $10,300

Costs and expenses
Costs of goods sold $5,000
Selling expenses 3,000
General and administrative expenses 1,800
Interest expense 800
Total costs and expense 10,600
Net income (loss) ($ 300)

coppermole825

I have already answered questions 1 and 2, I don't need help with those. I posted those for the information in case you need it for the other questions.

[The following information applies to the questions displayed below.]

Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. At the start of January 2015, VGCâs income statement accounts had zero balances and its balance sheet account balances were as follows:


Cash	$	2,360,000
Accounts Receivable		152,000
Supplies		19,100
Equipment		948,000
Land		1,920,000
Building		506,000
Accounts Payable		109,000
Unearned Revenue		152,000
Notes Payable (due 2018)		80,000
Common Stock		2,200,000
Retained Earnings		3,364,100

In addition to the above accounts, VGCâs chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense.

Required:

1.	Analyze the effect of the January transactions (shown below) on the accounting equation, and indicate the account, amount, and direction of the effect (+ for increase and â for decrease) of each transaction. (Enter any decreases to account balances with a minus sign.)

a.	Received $52,250 cash from customers for subscriptions that had already been earned in 2014.
b.	Received $235,000 cash from Electronic Arts, Inc. for service revenue earned in January.
c.	Purchased 10 new computer servers for $41,900; paid $12,000 cash and signed a three-year note for the remainder owed.
d.	Paid $15,600 for an Internet advertisement run on Yahoo! in January.
e.	Sold 10,100 monthly subscriptions at $10 each for services provided during January. Half was collected in cash and half was sold on account.
f.	Received an electric and gas utility bill for $5,900 for January utility services. The bill will be paid in February.
g.	Paid $310,000 in wages to employees for work done in January.
h.	Purchased $5,100 of supplies on account.
i.	Paid $5,100 cash to the supplier in (h).

	Assets		=	Liabilities		+	Stockholdersâ Equity
a.	Cash	52,250
	Accounts Receivable	(52,250)
b.	Cash	235,000					Service Revenue	235,000
c.	Equipment	41,900
	Cash	(12,000)		Notes Payable (long-term)	29,900
d.	Cash	(15,600)					Advertising Expense	(15,600)
e.	Cash	50,500					Service Revenue	101,000
	Accounts Receivable	50,500
f.				Accounts Payable	5,900		Utilities Expense	(5,900)
g.	Cash	(310,000)					Salaries and Wages Expense	(310,000)
h.	Supplies	5,100		Accounts Payable	5,100
i.	Cash	(5,100)		Accounts Payable	(5,100)

2.	Prepare journal entries for the January transactions listed in part 1, using the letter of each transaction as a reference. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

No	Transaction	General Journal	Debit	Credit
1	a	Cash	52,250
1		Accounts Receivable		52,250

2	b	Cash	235,000
2		Service Revenue		235,000

3	c	Equipment	41,900
3		Cash		12,000
3		Notes Payable (long-term)		29,900

4	d	Advertising Expense	15,600
4		Cash		15,600

5	e	Cash	50,500
5		Accounts Receivable	50,500
5		Service Revenue		101,000

6	f	Utilities Expense	5,900
6		Accounts Payable		5,900

7	g	Salaries and Wages Expense	310,000
7		Cash		310,000

8	h	Supplies	5,100
8		Accounts Payable		5,100

9	i	Accounts Payable	5,100
9		Cash		5,100

3.	Create T-accounts, enter the beginning balances shown above, post the journal entries to the T-accounts, and show the unadjusted ending balances in the T-accounts.

4.	Prepare an unadjusted trial balance as of January 31, 2015.

VANISHING GAMES CORPORATION
Unadjusted Trial Balance
At January 31, 2015
Account Name	Debit	Credit
Cash
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
Unearned Revenue
Notes Payable (long-term)
Common Stock
Retained Earnings
Service Revenue
Salaries and Wages Expense
Advertising Expense
Utilities Expense
Total	$0	$0

5.	Prepare an Income Statement for the month ended January 31, 2015, using unadjusted balances from part 4.

VANISHING GAMES CORPORATION
Income Statement
For the Month Ended January 31, 2015
Revenues

Service Revenue
Total Revenues
Expenses
Salaries and Wages Expense
Utilities Expense
Advertising Expense

Total Expenses
Net Income

Prepare a Statement of Retained Earnings for the month ended January 31, 2015, using the beginning balance given above and the net income from part 5. Assume VGC has no dividends.

VANISHING GAMES CORPORATION
Statement of Retained Earnings
For the Month Ended January 31, 2015
Retained Earnings, January 1, 2015
Add: Net Income
Less: Dividends
Retained Earnings, January 31, 2015	$0

blackpug639

ACG-2021 Lecture Notes - Lecture 1: The Problem Solvers, Accounting Information System, Accounts Payable

Document Summary

Get access

Related Documents

ACCT 2102 Study Guide - Final Guide: Dry Cleaning, Retained Earnings, Common Stock

MGA 301 Lecture Notes - Lecture 3: Procter & Gamble, Beverly Crusher, Accounts Payable

ACBU 2222 Lecture Notes - Lecture 5: Deferral, Cash Advance, General Ledger

Related Questions