Fin39

Posted on February 13, 2017

Finance Assignment Help 39

 

PROBLEM A – I — MULTIPLE CHOICE

Circle the one best answer.

​1.​A private organization which establishes broad accounting principles as well as specific accounting rules is the

    ​​a.​Securities and Exchange Commission.

    ​​b.​Internal Revenue Service.

    ​​c.​Financial Accounting Standards Board.

​​    d.​Corporate Board of Directors.

 

​2.​An increase in an expense

    ​​a.​increases revenues.

    ​​b.​increases assets.

    ​​c.​decreases liabilities.

    ​​d.​decreases stockholders’ equity.

 

​3.​A company with total stockholders’ equity of $85,000 paid a $10,000 business debt. As a result of this transaction, total stockholders’ equity

​​    a.​did not change.

​​    b.​increased by $10,000.

    ​​c.​decreased by $10,000.

​​    d.​increased to $95,000.

 

​4.​The right side of an account is always

    ​​a.​the debit side.

    ​​b.​the credit side.

​​    c.​the balance of that account.

    ​​d.​carried forward to the next accounting period.

 

​5.​Posting is the process of

    ​​a.​preparing a chart of accounts.

​​    b.​adding a column of figures.

​​   c.​transferring journal entries to ledger accounts.

  ​​d.​recording entries in a journal.

 

​6.​The purpose of recording depreciation on productive assets is to

​​    a.​reflect the decline in the market value of the assets each period.

    ​​b.​reduce income when the company has an exceptionally profitable year.

    ​​c.​be in conformity with the monetary recognition principle.

   ​​d.​allocate the original cost of productive assets to expense over its useful life.

 

​7.​Logan Company debited Prepaid Insurance for $1,080 on July 1, 2013, for a one-year fire insurance policy. If the company prepares monthly financial statements, failure to make an adjusting entry on July 31 for the amount of insurance that has expired would cause

    ​​a.​assets to be overstated by $1,080 and expenses to be understated by $1,080.

    ​​b.​expenses to be overstated by $90 and assets to be understated by $90.

   ​​c.​assets to be overstated by $90 and expenses to be understated by $90.

​​   d.​expenses to be overstated by $1,080 and assets to be understated by $1,080.

 

​8.​Which one of the following accounts is not closed at the end of an accounting period?

​​    a.​Retained Earnings account

​​    b.​Dividends account

​​    c.​Service Revenue account

    ​​d.​Insurance Expense account

 

​9.​The second set of debit and credit columns on a worksheet is generally used for

    ​​a.​closing entries.

    ​​b.​the trial balance.

    ​​c.​the balance sheet figures.

​​    d.​the adjustments.

 

​10.​Gross profit is calculated by subtracting

    ​​a.​total expenses from total revenues.

    ​​b.​cost of goods sold from net sales.

   ​​c.​cost of goods sold from total revenues.

   ​​d.​operating expenses from net sales.

 

PROBLEM A – II — MATCHING (10 POINTS)

Match the items below by entering the appropriate letter in the space.

A.​A liability created when cash is received in advance of performing a service for a customer.
B.​Freight costs incurred by the seller.
C.​Noncurrent resources that do not have a physical substance.
D.​An economic entity which is not a separate legal entity
E.​A contra-revenue account.
F.​The matching of efforts (expenses) with accomplishments (revenues).
G.​Creditors’ claims on total assets.
H.​A temporary account used in closing revenue and expense accounts.
I.​Contains all asset, liability, and stockholders’ equity accounts
J.​Gross increases in stockholders’ equity resulting from business activities entered into for the purpose of earning income.
 
​​1.​Partnershi
​​2.​Liabilitie
​​3.​Revenues
​​4.​General ledger
​​5.​Expense recognition principle
​​6.​Unearned service revenue
​​7.​Income summary
​​8.​Intangible assets
​​9.​Freight-out
​​10.​Sales returns and allowances

 

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
 
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
 
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
 
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
 
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
 
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
 

Features

Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.

 

Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.

 

Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.

 

 

100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services


 
PROBLEM A – III — ADJUSTING ENTRIES

The following information for Wilson Company is available on June 30, 2013, the end of a monthly accounting period. You are to prepare the necessary adjusting journal entries for Wilson Company for the month of June for each situation given. Appropriate adjusting entries had been recorded in previous months. You may omit journal entry explanations.

 
1.​Wilson Company purchased a 2-year insurance policy on February 1, 2013 and debited Prepaid Insurance for $4,800.
 
2.​On January 1, 2013, a tenant in an apartment building owned by Wilson Company paid $4,200 which represents six months’ rent in advance. The amount received was credited to the Unearned Rent account.
 
3.​On June 1, 2013, the balance in the Supplies account was $200. During June, office supplies costing $580 were purchased. A physical count of office supplies at June 30 revealed that there was $140 still on hand.
 
4.​On March 31, 2013, Wilson Company purchased a truck for $54,000. It is estimated that the annual depreciation will be $9,000.
 
5.​Wilson Company has two employees who earn $100 and $120 per day, respectively. They are paid each Friday for a five-day workweek that begins each Monday. Assume June 30 is a Wednesday in 2013.

 

PROBLEM A – IV — CLOSING ENTRIES

The end of the period account balances after adjustments of Dixon Cleaners and Laundry are as follows:

 
​Account Balances

​(After Adjustments)

 

Cash​$ 9,000

Supplies​3,500

Prepaid Rent​3,600

Equipment​128,000

Accumulated Depreciation—Equipment​20,000

Accounts Payable​8,500

Common Stock​60,000

Retained Earnings​46,400

Dividends​7,000

Service Revenue​26,000

Supplies Expense​5,000

Depreciation Expense​3,000

Rent Expense​900

Salaries and Wages Expense​3,400

Utilities Expense​500
Instructions

Prepare the end of the period closing entries for Dixon Cleaners and Laundry. You may omit journal entry explanations.

 

PROBLEM A – V — JOURNAL ENTRIES

Prepare the necessary general journal entries for the month of October for Rolen Company for each situation given below. Rolen uses a perpetual inventory system. 

Oct.​5​Paid cash of $12,000 for operating expenses that were incurred and properly recorded in the previous period.
 
Oct.​8​Purchased merchandise for $25,000 on account. Credit terms: 2/10, n/30; Freight term: FOB Shipping Point.
 
Oct.​10​Paid freight bill of $470 for merchandise purchased on October 8.
 
Oct.​12​Borrowed $10,000 from Admire Bank signing an 8%, 3-month note.
 
Oct.​15​Paid for merchandise purchased on October 8. The company takes all discounts to which it is entitled.
 
Oct.​20​Sold merchandise for $16,000 to Tom Green on account. The cost of the merchandise sold was $10,000. Credit terms: 2/10, n/30.
 
Oct.​22​Purchased a 2-year insurance policy for $2,400 cash.
 
Oct.​25​Credited Tom Green’s account for $1,000 for merchandise returned by him from the sale on October 20. The cost of the merchandise returned was $625.
 
Oct.​29​Purchased equipment for $18,000 paying $5,000 in cash and signing a 3-month, 9% note for the remainder.

 
PROBLEM A – VI — MULTIPLE-STEP INCOME STATEMENT
 
Below is a partial listing of the adjusted account balances of Larson Department Store at year-end on December 31, 2013

Accounts Receivable​$ 19,000

Cost of Goods Sold​245,000

Selling Expenses (includes depreciation)​35,000

Interest Expense​1,000

Accumulated Depreciation—Buildings​10,000

Sales Discounts​22,000

Inventory​45,000

Administrative Expenses (includes depreciation)​30,000

Sales Revenue​350,000

Accounts Payable​14,000

Interest Revenue ​800

Instructions

Using whatever data you believe appropriate, prepare a multiple-step income statement for Larson Department Store for the year ended December 31, 2013.

 

PROBLEM A – VII — CORRECTING ENTRIES

The following errors were made in journalizing and posting transactions in May in the Silas Company.

1.​A $600 payment for repairs incurred on account and properly recorded in April was debited to Maintenance and Repairs Expense $600 and credited to Cash $600.
 
2.​A collection of $6,000 on account from a customer was recorded as a debit to Cash $600 and a credit to Accounts Receivable $600.
 
3.​A bill for $930 for new office equipment was debited to Supplies $390 and credited to Accounts Payable $390.
 
4.​The receipt of $800 from a customer for future service was recorded as a debit to Accounts Receivable $800 and a credit to Service Revenue $800.
 
Instructions

Prepare the correcting entries at May 31 assuming the incorrect entry is not reversed. (Omit explanations.)
 

Product Code :Fin39

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

Summary
User Rating
5 based on 1 votes
URL