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

375 views25 pages

apricotcicada835

21 Oct 2017

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Page 1: in the journal provided, prepare journal entries without explanations for the following transactions. Write no entry if none is needed: received a ,500 invoice for this month"s rent. Payment will not be made right away: paid ,600 in insurance premiums to cover the next six months, a dividend is declared and paid, the rent of a is paid, purchased land for ,000. The company paid half in cash and issued a promissory note for the other half. Page 2: in the journal provided, prepare journal entries (in good form) for the following transactions. Investors opened a dry cleaning service, called same day cleaners, by depositing ,000 into a business bank account and receiving 60,000 shares of par value stock in exchange. Paid ,000 in cash, the remainder to be paid in two weeks. Hired a part-time worker, to be paid per week, starting tomorrow. 17 recorded cash received for services performed during the week, ,000.

Related Questions

PART ONE: The accounts in the ledger of Hickory FurnitureCompany as of December 31, 2016, are listed in alphabetical orderas follows. All accounts have normal balances. The balance of thecash account has been intentionally omitted. I AMMISSING CASH (DEBIT) and Debit TOTAL---only

Accounts Payable $ 42,880

Notes Payable $ 41,000

Accounts Receivable 115,430

Prepaid Insurance 20,400

Cash ?

Rent Expense 45,000

Common Stock 15,000

Retained Earnings 51,000

Dividends 22,500

Supplies 4,940

Fees Earned 746,050

Supplies Expense 6,070

Insurance Expense 3,100

Unearned Rent 13,200

Land 41,000

Utilities Expense 26,840

Miscellaneous Expense 9,900

Wages Expense 572,100

Prepare an unadjusted trial balance and insert the missingfigure for cash.

Hickory FurnitureCompany

UNADJUSTED TRIAL BALANCE

Score: 68/75

December 31,2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable	â
3	Supplies
4	Prepaid insurance	â
5	Land	â
6	Accounts Payable		â
7	Unearned Rent		â
8	Notes Payable		â
9	Common Stock		â
10	Retained Earnings		â
11	Dividends	â
12	Fees Earned		â
13	Wages Expense	â
14	Rent Expense	â
15	Utilities Expense	â
16	Supplies Expense	â
17	Insurance Expense	â
18	Miscellaneous Expense	â
19	Totals		â

PART TWO:

On July 24, it was discovered that the following errors tookplace in journalizing and posting transactions:

a.	Cash of $8,100 received on accountwas recorded as a debit to Fees Earned and a credit to Cash.
b.	A $1,560 purchase of supplies forcash was recorded as a debit to Supplies Expense and a credit toAccounts Payable.

Journalize the entries on July 24 to correct the errors. Use twotransactions to correct the error described in b. (That is, recordan entry to reverse the incorrect entry and a second entry torecord the correct entry.) Refer to the Chart of Accounts for exactwording of account titles.

JOURNAL

	DESCRIPTION	DEBIT
1		XXXX
2
3
4
5	XXXX	XXX
6	XXXX
7	XXXX

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
15	Land
16	Office Equipment
17	Automobiles

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Automobile Expense
53	Insurance Expense
54	Rent Expense
55	Salaries Expense
56	Supplies Expense
57	Utilities Expense
58	Miscellaneous Expense

orangedolphin170

BE23-3 Novak Corporation is preparing its 2014 statement of cashflows, using the indirect method. Pre- sented below is a list ofitems that may affect the statement. Using the code below, indicatehow each item will affect Novakâs 2014 statement of cash flows.Items ____ (a) ____ (b) ____ (c) ____ (d) ____ (e) ____ (f) ____(g) ____ (h) ____ (i) Purchase of land and building. Decrease inaccounts receivable. Issuance of stock. Depreciation expense. Saleof land at book value. Sale of land at a gain. Payment ofdividends. Increase in accounts receivable. Purchase ofavailable-for-sale investment.

____ (j) ____ (k) ____ (l) ____ (m) ____ (n) ____ (o) ____ (p)____ (q) ____ (r) Increase in accounts payable. Decrease inaccounts payable. Loan from bank by signing note. Purchase ofequipment using a note. Increase in inventory. Issuance of bonds.Redemption of bonds payable. Sale of equipment at a loss. Purchaseof treasury stock.

beigeyak805

The comparative balance sheet of Whitman Co. at December 31,20Y2 and 20Y1, is as follows:

1		Dec. 31, 20Y2	Dec. 31, 20Y1
2	Assets
3	Cash	$918,000.00	$964,800.00
4	Accounts receivable (net)	ââ828,900.00	761,940.00
5	Inventories	1,268,460.00	1,162,980.00
6	Prepaid expenses	29,340.00	35,100.00
7	Land	315,900.00	479,700.00
8	Buildings	1,462,500.00	900,900.00
9	Accumulated depreciation-buildings	(408,600.00)	(382,320.00)
10	Equipment	512,280.00	454,680.00
11	Accumulated depreciation-equipment	(141,300.00)	(158,760.00)
12	Total assets	$4,785,480.00	$4,219,020.00
13	Liabilities and Stockholdersâ Equity
14	Accounts payable (merchandise creditors)	$922,500.00	$958,320.00
15	Bonds payable	270,000.00	0.00
16	Common stock, $25 par	â317,000.00	117,000.00
17	Paid-in capital: Excess of issue price over parâcommon stock	758,000.00	558,000.00
18	Retained earnings	2,517,980.00	2,585,700.00
19	Total liabilities and stockholdersâ equity	$4,785,480.00	$4,219,020.00

The noncurrent asset, noncurrent liability, and stockholdersâequity accounts for 20Y2 are as follows:

ACCOUNT Land

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance			479,700
Apr.	20	Realized $151,200 cash fromsale		163,800	315,900

ACCOUNT Buildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance			900,900
Apr.	20	Acquired for cash	561,600		1,462,500

ACCOUNT Accumulated DepreciationââBuildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				382,320
Dec.	31	Depreciation for year		26,280		408,600

ACCOUNT Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance			454,680
	26	Discarded, no salvage		46,800	407,880
Aug.	11	Purchased for cash	104,400		512,280

ACCOUNT Accumulated Depreciation ââEquipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				158,760
	26	Equipment discarded	46,800			111,960
Dec.	31	Depreciation for year		29,340		141,300

ACCOUNT Bonds Payable

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
May	1	Issued 20-year bonds		270,000		270,000

ACCOUNT Common Stock $25 par

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				117,000
Dec.	7	Issued 8,000 shares of commonstock for $50 per share		200,000		317,000

ACCOUNT Paid-In Capital in Excess of ParââCommonStock

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				558,000
Dec.	7	Issued 8,000 shares of commonstock for $50 per share		200,000		758,000

ACCOUNT Retained Earnings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				2,585,700
Dec.	31	Net loss	35,320			2,550,380
	31	Cash dividends	32,400			2,517,980

Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. Use the minus sign to indicate net loss,cash outflows, cash payments, decreases in cash, or any negativeadjustments.

Labels and AmountDescriptions
Cash paid for acquisition ofbuilding
Cash paid for dividends
Cash paid formerchandise
Cash paid for purchase ofequipment
Cash received fromcustomers
Cash received from issuanceof bonds payable
Cash received from issuanceof common stock
Cash received from landsold
Change in cash
December 31, 20Y2
Decrease in accountspayable
Decrease in accountsreceivable
Decrease in inventories
Decrease in prepaidexpenses
Decrease in salariespayable
Depreciation
For the Year Ended December31, 20Y2
Gain on sale ofinvestments
Gain on sale of land
Increase in accountspayable
Increase in accountsreceivable
Increase in inventories
Increase in prepaidexpenses
Increase in salariespayable
Issuance of common stock foracquisition of building
Issuance of common stock forpurchase of equipment
Issuance of common stock toretire bonds
Loss on sale ofinvestments
Loss on sale of land
Net cash flow from financingactivities
Net cash flow from investingactivities
Net cash flow from operatingactivities
Net cash flow used forfinancing activities
Net cash flow used forinvesting activities
Net cash flow used foroperating activities
Net income
Net loss

skysnake640

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

Document Summary

Get access

Related Documents

RSM219H1 Lecture Notes - Lecture 3: Accounts Payable, Current Asset, Financial Statement

ACCT 2101 Lecture Notes - Lecture 2: Deferral, Accounts Payable, Accounts Receivable

ADMS 2500 Study Guide - Deferral, Accounts Payable, Retained Earnings

Related Questions