AFM102 Study Guide - Final Guide: Fixed Cost, Earnings Before Interest And Taxes, Interest Expense

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apricottoad869

15 Oct 2015

School

University of Waterloo

Department

Accounting & Financial Management

Course

AFM102

Professor

Peter Blake

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Document Summary

Accounts receivable cash sales: credit sales, bad debts expense 10% of sales. Unearned revenue : 10% of 1,000 is 100, abc receives 5,000$ on december 31st for goods to be delivered in january. What"s the effect on accounting equation: cash goes up by 5,000 (assets, current liability of ,000 going up (liabilities, revenues are not recorded until january. Interest expense: abc borrows ,200,000 on november 16th for 5 years at 10% per annum. Assume a 30 day month and december 31st year- end. Example: buy asset on april 1st: ,000 will last 10 years no salvage value s. l (straight line) depreciation. Yr 1 depreciation expense 9 months = 10,000 0 / 10 years x 9/12 = 750. Appraisal comes in land worth 300,000 and building worth 900,000 1,200,000. April 1, 2015: building recorded at 900,000/ 1,200,000 x 1,000,000 = 750,000. Depreciation 750,000-0 / 30 years = 25,000/ year.

Related Questions

On December 31 adjusting entries for the following transactions.1. Fees accrued but not billed, $6,300. 2. The Supplies accountbalance on December 31, $4,750; Supplies on hand, $960. 3. Wagesaccrued but not paid, $2,700. 4. Depreciation of office equipment,$1,650. 5. Rent expired during year, $10,800.

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
16	Office Equipment
17	Accumulated Depreciation

	LIABILITIES
21	Accounts Payable
22	Notes Payable
23	Unearned Revenues
24	Wages Payable
25	Interest Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Interest Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
58	Rent Expense
59	Miscellaneous Expense

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
16	Office Equipment
17	Accumulated Depreciation

	LIABILITIES
21	Accounts Payable
22	Notes Payable
23	Unearned Revenues
24	Wages Payable
25	Interest Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Interest Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
58	Rent Expense
59	Miscellaneous Expense

General Journal

Prepare the December 31 adjusting entries for each transactions.Refer to the Chart of Accounts for exact wording of accounttitles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST.REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10					need help with a general journal

magentaweasel639

Glenn Corporation had the following list of account balances for the year ended December 31,2016. Net Sales $1,650,000 Cash $300,000 Accounts Receivable 140,000 Operating Expenses 840,000 Equipment 420,000 Common Stock 170,000 Accounts Payable 120,000 Interest Income 32,000 Accumulated Depreciation 40,000 Gross Profit 1,140,000 Inventories 20,000 Prepaid Rent 20,000 Unearned Revenue 50,000 incomeTaxes Expense 99,000 Notes Payable Dividends Interest Expense 200,000 5,000 2,000vRetained Earnings, January 1, 2016 94,000 Required: 1. Calculate the cost of goods sold for the year ended December 31, 2016. 2. Calculate ending retained earnings for the year ended December 31, 2016. 3. Calculate current assets on December 31, 2016. 4. Calculate total liabilities on December 31, 2016. 5. Calculate net income for the year ended December 31, 2016.

limehedgehog555

Use the information below for ABC Co. to answer thefollowing questions.

BalanceSheet December31

2005 2004

Assets

Cash $ 20,000 $ 10,000

Accountsreceivable 160,000 110,000

Inventories80,000 50,000

PrepaidRent 15,00010,000

Investments 100,000 75,000

Plantassets 210,000 250,000

Accumulated depreciation(65,000) (60,000)

Total$520,000 $445,000

Liabilities and Stockholders' Equity

Accountspayable $ 50,000 $ 40,000

Interest payable20,000 5,000

Income taxpayable 5,000 10,000

Notepayable 130,000 140,000

Commonstock 155,000 100,000

Retained earnings160,000 150,000

Total$520,000 $445,000

Income Statement

For the Year Ended December 31, 2005

Sales $800,000

Cost of goodssold 480,000

GrossProfit 320,000

Operating expenses (including Depreciation Expense) 120,000

Interest expense 20,000

Income tax expense 25,000

Total165,000

Income before Gains andLosses 155,000

Gain on sale of plantassets 5,000

Net income $ 160,000

Additional information:

Accounts payable pertain to the purchase of inventory.

Plant assets were sold for $40,000. The cost of the plant assetswas $40,000.

All dividends are cash.

For the year 2005:

1. Cash received/collected from customers is:

2. Purchases for the year is:

3. Cash paid to suppliers is:

4. Depreciation expense is:

5. Cash paid for operating expenses is:

6, Cash paid for interest is:

plumsnake868

AFM102 Study Guide - Final Guide: Fixed Cost, Earnings Before Interest And Taxes, Interest Expense

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