ACCT 200 Final: Final Exam Study Guide

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30 Oct 2014

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The second a200 exam is on tuesday, october 28 from 6:30-8:30pm. Check with your instructor or on blackboard for your room location. The exam consists of 50 multiple choice questions totaling 100 points. You may not use pen on scan forms. Bring a backup pencil, leads, and erasers: a calculator. If you bring an illegal calculator, you will not be allowed to use it: your photo i. d. Your exam will not be graded until we have verified your identity. Be able to properly report accounts receivable and allowance for doubtful accounts on the balance sheet, and know how to compute the net realizable value of accounts receivable. Allowance for doubtful accounts are recorded as contra-assets on the balance sheet, and they are increased when uncollectible accounts expense on the income statement is increased. Net realizable value = accounts receivable allowance for doubtful accounts. Be able to compute the annual estimate of uncollectible accounts expense based on aging of accounts receivable.

Related Questions

You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The previous accountant left abruptly, and an accounting intern has been drafting the journal entries since January.

You are examining the accounting records before finalizing the journal entries for the first quarter. Below are some accounts receivable transactions that you are reviewing

. PAGE 11

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

1 Jan. 17 Sales 9,800.00 2 Bad Debt Expense 9,800.00 3 18 Bad Debt Expense 9,800.00 4 Accounts Receivable-CJâs Sports Corp. 9,800.00 5 21 Cash 10,600.00 6 Bad Debt Expense 2,300.00 7 Accounts Receivable-Four Seasons Sportswear Co. 12,900.00 8 Feb. 15 Accounts Receivable-Healthy Running Inc. 3,000.00 9 Bad Debt Expense 500.00 10 Sales 3,500.00 11 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. 2,300.00 12 Bad Debt Expense 2,300.00 13 4 Cash 2,300.00 14 Bad Debt Expense 2,300.00 15 13 Cash 5,540.00 16 Accounts Receivable-Barbâs Best Gear 5,540.00 17 31 Bad Debt Expense 20,770.00 18 Accounts Receivable-Healthy Running Inc. 5,150.00 19 Accounts Receivable-The Locker Room 4,100.00 20 Accounts Receivable-CJâs Sports Corp. 2,780.00 21 Accounts Receivable-Get Your Gear Inc. 7,050.00 22 Accounts Receivable-Ready-2-Go 1,690.00 Assume that Fan-Tastic Sports Gear Inc. will be using the allowance method this year. Select any items(s) from the list below that should be added to the existing chart of accounts. Check all that apply. Balance of Aging Accounts Estimate for Uncollectible Accounts Allowance for Doubtful Accounts Net Realizable Value of Receivables Total Credit Sales 2. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes. Refer to the Chart of Accounts for the exact wording of account titles. You may also use any items from the list above, if needed. PAGE 11 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 X Final Questions Fan-Tastic Sports Gear Inc. recorded $3,100,000 of sales last year and projects sales to increase by $360,000 in the current year. Last year, 90% of sales were on account, with over 400 customer accounts. Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.65% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubtful accounts on December 31? Round all calculations to the nearest dollar. 2. How much higher (lower) would Fan-Tastic Sports Gear Inc.âs net income have been under the allowance method assumption in (1) above than under the direct write-off method? (Enter â0â if there is no change.) by 3. Using the allowance method, the net realizable value of the receivables would appear on which financial statement? CHART OF ACCOUNTS Fan-Tastic Sports Gear Inc. General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Healthy Running Inc. 122 Accounts Receivable-The Locker Room 123 Accounts Receivable-CJâs Sports Corp. 124 Accounts Receivable-Get Your Gear Inc. 125 Accounts Receivable-Four Seasons Sportswear Co. 126 Accounts Receivable-Ready-2-Go 127 Accounts Receivable-Barbâs Best Gear 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary

emeraldpug407

What are the answers to mini-practice set in McGraw Hill college accounting 15th editon?

Mini-Practice Set 1 Service Business Accounting Cycle Eliâs Consulting Services This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Eliâs Consulting Services for the month of January 2020. INTRODUCTION Assume that you are the chief accountant for Eliâs Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Eliâs Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January. Eliâs Consulting Services Chart of Accounts Assets 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Prepaid Rent 141 Equipment 142 Accumulated DepreciationâEquipment Liabilities 202 Accounts Payable Ownerâs Equity 301 Trayton Eli, Capital 302 Trayton Eli, Drawing 309 Income Summary Revenue 401 Fees Income Expenses 511 Salaries Expense 514 Utilities Expense 517 Supplies Expense 520 Rent Expense 523 Depreciation ExpenseâEquipment 526 Advertising Expense 529 Maintenance Expense 532 Telephone Expense 535 Insurance Expense INSTRUCTIONS Open the general ledger accounts and enter the balances for January 1, 2020. Obtain the necessary figures from the postclosing trial balance prepared on December 31, 2019, which appears in Figure 6.3. Analyze each transaction and record it in the general journal. Use page 3 to begin Januaryâs transactions. Post the transactions to the general ledger accounts. Prepare the Trial Balance section of the worksheet. Prepare the Adjustments section of the worksheet. Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on hand. Compute and record the adjustment for expired insurance for the month. Record the adjustment for one month of expired rent of $4,000. Record the adjustment for depreciation of $183 on the old equipment for the month. The first adjustment for depreciation for the new equipment will be recorded in February. Complete the worksheet. Prepare an income statement for the month. Prepare a statement of ownerâs equity. Prepare a balance sheet using the report form.page 193 Journalize and post the adjusting entries. Journalize and post the closing entries. Prepare a postclosing trial balance. Analyze: Compare the January 31 balance sheet you prepared with the December 31 balance sheet shown in Figure 6.4. What changes occurred in total assets, liabilities, and the ownerâs ending capital? What changes occurred in the Cash and Accounts Receivable accounts? Has there been an improvement in the firmâs financial position? Why or why not? DATE TRANSACTIONS Jan. 2 Purchased supplies for $7,000; issued Check 1015. 2 Purchased a one-year insurance policy for $8,400; issued Check 1016. 7 Sold services for $20,000 in cash and $5,000 on credit during the first week of January. 12 Collected a total of $4,000 on account from credit customers during the first week of January. 12 Issued Check 1017 for $3,600 to pay for special promotional advertising to new businesses on the local radio station during the month. 13 Collected a total of $4,500 on account from credit customers during the second week of January. 14 Returned supplies that were damaged for a cash refund of $750. 15 Sold services for $20,700 in cash and $2,300 on credit during the second week of January. 20 Purchased supplies for $5,000 from Whiteâs, Inc.; received Invoice 2384 payable in 30 days. 20 Sold services for $12,500 in cash and $3,500 on credit during the third week of January. 20 Collected a total of $5,600 on account from credit customers during the third week of January. 21 Issued Check 1018 for $7,065 to pay for maintenance work on the office equipment. 22 Issued Check 1019 for $3,600 to pay for special promotional advertising to new businesses in the local newspaper. 23 Received the monthly telephone bill for $1,025 and paid it with Check 1020. 26 Collected a total of $1,600 on account from credit customers during the fourth week of January. 27 Issued Check 1021 for $3,000 to Office Plus as payment on account for Invoice 2223. 28 Sent Check 1022 for $2,675 in payment of the monthly bill for utilities. 29 Sold services for $19,000 in cash and $2,750 on credit during the fourth week of January. 31 Issued Checks 1023â1027 for $32,800 to pay the monthly salaries of the regular employees and three part-time workers. 31 Issued Check 1028 for $12,000 for personal use. 31 Issued Check 1029 for $4,150 to pay for maintenance services for the month. 31 Purchased additional equipment for $15,000 from Contemporary Equipment Company; issued Check 1030 for $10,000 and bought the rest on credit. The equipment has a five-year life and no salvage value. 31 Sold services for $7,600 in cash and $1,620 on credit on January 31.

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PROBLEM 1:

The 2018 and 2019 comparative balance sheets and 2019 income statement for Edmond & Edmond Company appear below:

EDMOND & EDMOND COMPANY

Comparative Balance Sheet

December 31

2019 2018

Assets

Cash $ 26,000 $ 23,000

Accounts receivable 25,000 34,000

Merchandise inventory 32,000 15,000

Property, plant, and equipment 60,000 78,000

Accumulated depreciation (21,000) (24,000)

Total $122,000 $126,000

Liabilities and Stockholders' Equity

Accounts payable $ 18,000 $ 23,000

Income taxes payable 9,000 8,000

Notes payable (long-term) 8,000 33,000

Common stock 28,000 24,000

Retained earnings 59,000 38,000

Total $122,000 $126,000

EDMOND & EDMOND COMPANY

Income Statement

For the Year Ended December 31, 2019

Sales $400,000

Cost of goods sold 270,000

Gross profit 130,000

Operating expenses 45,000

Income from operations 85,000

Interest expense 5,000

Income before income taxes 80,000

Income tax expense 24,000

Net income $ 56,000

The following additional data were provided:

1. Dividends declared and paid were $35,000.

2. During the year, equipment was sold for $17,000 cash. This equipment cost $28,000 originally and had a book value of $17,000 at the time of sale.

3. Purchased a used delivery truck for $10,000

4. All depreciation expense is included the operating expenses.

5. All sales and purchases are on account.

6. Accounts payable pertain to merchandise suppliers.

REQUIREMENTS: Prepare 1 WORD document (WD1) and 1 EXCEL document (ED1):

1. (WD1)>>Write a brief, yet clear, paragraph about the purpose of a statement of cash flow .

Be specific.

2. (ED1)>>Prepare a statement of cash flows for Edmond & Edmond Company using the indirect

method. Be sure your statement is complete in form, includes all needed line-items, and is
accurate.

3. (WD1)>>Write a brief, yet thorough, email to Cisslee Williams (the Controller for Edmond and
Edmond) stating the overall conclusion you have drawn from the completed statement of cash
flows.

PROBLEM 2:

Find the official website for ONE of the following companies:

Coca-cola

Walmart

Tyson Foods

Once you find an official website for the company you select, perform the following tasks:

Find the âInvestor Relationsâ link and click. Once in âinvestor relations,â

Find the 2017 annual report OR 10-K Report to the SEC

After locating one of the documents, locate the financial statements included in the document.

Copy and paste the (1) comparative balance sheet, (2) income statement, and (3) statement of cash flows and include ALL three (3) in a separate file. Do not be concerned with the formatting once you have pasted. Just be sure the name of the company, name of the statement, and the years are clearly shown as proof that you have provided the required statements.

Now that you have access to the financial statements, compute the following ratios FOR TWO YEARS. Be sure to show ALL computations, equations, formulas, etc.:

Any two liquidity ratios

One solvency ratio

Any two profitability ratios

REQUIRED1: Write and submit a 1^st document that:

>>>Identifies the name of the company on which you performed research

>>> Presents the ratios (e.g., a table) you have computed. Keep computations separate from final ratio answers. Be sure to clearly classify and identify all ratios. Show the computations. Neatness, order, and clarity are a MUST. Be sure your presentation is neat, orderly, and can be clearly followed.

>>>States YOUR conclusion about each of the three groups of ratios. Hint: A cover page is expected.

REQUIRED2: Write and submit a 2^nd document that includes the financial statements you copied and pasted (as required in âdâ above. IF you can easily include your financial statements as pages in the 1^st document, that will absolutely acceptable, and preferred.

ACCT 200 Final: Final Exam Study Guide

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