Accounting 2361 final exam
horizontal analysis % change equation
(New-Old)/Old x 100
Dividends to be paid equation:
(Shares issued- treasury stock)*dividend per share
On October 12, BSS complained that the remaining golf shirts were slightly defective so the supplier grated a $100 allowance. Record the allowance received for the defective inventory purchased.
Accounts Payable 100 Inventory 100
Record the sales on account of $5,000 to Claudio's Chair Company on terms 3/10, n/30.
Accounts Receivable 5000 Sales Rev 5000
Record the inventory returned of $1,100 to Diamond Inc.
Accounts payable 1100 Inventory 1100
JE for recording amortization of intangible asset:
Amortization expense Accumulated amortization
AOLS
Assets-opposite Liabilities-same
Cost of goods available for sale=
BI+ purchases
EI=
BI+ purchases- CGS
At year end 2016, Worst Buy had an Accounts Receivables balance of $100,000 and an Allowance for Bad Debts of $0. Worst Buy estimated that $10,000 of those receivables would never be collected. Prepare the Journal entry to record the AJE for Bad Debt Expense at year end 2016.
Bad Debt Expense 10000 Allowance for doubtful accounts 10000
Ending RE=
Beginning RE + net income - dividends
Record the cost of goods sold of $600.
CGS 600 Inventory 600
Recording the collection of cash for written off bankruptcy
Cash Accounts Receivable- Loser company
Record the receipt by Super Stage Shows of $16,000 on September 30, for season tickets that admit patrons to a theatre event that will be held twice (on October 31 and November 30).
Cash 16000 Unearned Rev. 16000
Schlitterbahn Waterslide Company issued 25,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31. Record the issuance of 25,000 bonds at face value for $100 each.
Cash: 2500000 Bond payable: 2500000
Straight Line depreciation equation=
Cost- residual/ useful life
Record the payment in full for the inventory to Green. (With discount, purchased for 1200, 2/10, n/30.)
DR: Accounts Payable 1200 CR: Inventory 24 CR: cash 1176
Reversing previously written off bankruptcy
DR: Accounts Receivable- Loser company CR: Allowance for doubtful accounts
This entry is made when there is conclusive evidence that a specific accounts receivable will not be collected: bankruptcy proceedings
DR: Allowance for doubtful accounts CR: Accounts receivable- Loser company
Record the retirement of the 6 percent bonds which has a carrying value of $50,000,000. (was issued at 4%, 53,000,000 face value)
DR: Bonds payable 50000000 DR: Loss on bond retirement 3000000 CR: Cash 53000000
Record the sale on a depreciated asset with gain on disposal:
DR: Cash DR: Accumulated depreciation CR: Gain on disposal CR: Equipment
Record the sale on a depreciated asset with loss on disposal:
DR: Cash DR: Accumulated depreciation DR: Loss on disposal CR: Equipment
National Beverage had repurchased its stock at a cost of $25 per share. National Beverage reissues 5,000 shares of this treasury stock for $28 per share; prepare JE
DR: Cash 140000 (5000x28) CR: Additional- Paid in capital (140000-125000) CR: Treasury Stock 125000 (5000x25)
Record the receipt of payment in full from Claudio's Chair Company. (With discount, purchased for 5000, 3/10, n/30.)
DR: Cash 4850 DR: Sales discounts 150 CR: Accounts receivable 5000
Record the issuance of 1,900 shares with a $2 par value for a price of $50 per share.
DR: Cash 95000 CR: Common Stock 3800 (1900x2) CR: Additional-Paid in Capital 91200 (95000-3800)
Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 520,000 shares of stock outstanding.
Dividends 260000 Dividends Payable 260000
Record the entry on the date of payment for the cash dividend.
Dividends Payable Cash
When prices are rising, Income tax is higher in FIFO or LIFO
FIFO
Carrying value= (Premium)
Face value+ Premium
Carrying value= (discount)
Face value- Discount
Income from operations=
Gross profit- operating expenses
Schlitterbahn Waterslide Company issued 25,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31. Record the interest payment on December 31.
Interest expense: 125000 Cash: 125000
Record the inventory purchased of $1,200 on account from Green with terms 2/10, n/30.
Inventory 1200 Accounts payable 1200
Record the reversal of the cost of goods sold for the sales return. (when the cost of goods sold was 400)
Inventory 400 Cost of Goods Sold 400
Record transportation costs of $650 incurred, but not yet paid for the inventory shipment.
Inventory 650 Accounts Payable 650
When prices are rising, CGS is higher in FIFO or LIFO
LIFO
Assets=
Liabilities+ (stockholders equity+ ending RE)
On October 1, BSS placed an order for 100 golf shirts at a unit cost of $20, under terms 2/10, n/30. Record the placement of the order for golf shirts.
NJR
Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 520,000 shares of stock outstanding.
NO ENTRY
Gross Profit=
Net sales- CGS
Record the payment by Risky Ventures of $3,000 on September 30, for insurance coverage for the months of October, November, and December.
Prepaid Rent 3000 Cash 3000
Record the October 31 adjusting entry for the September 30 cash payment of $3,000 for insurance coverage for the months of October, November, and December.
Rent Expense 1000 Prepaid Rent 1000
Record the entry to close the dividend account to retained earnings.
Retained Earnings Dividends
Net Income=
Revenues-expenses
Net Sales=
Sales Rev- discounts
Record the January 31, 2016 adjusting entry for the December 31, 2015 cash payment of $1,200 for supplies. As of January 31, 2016, $200 of these supplies had been used up.
Supplies expense 200 Supplies 200
Record the October 31 adjusting entry for the September 30 receipt of $16,000 for season tickets that admit patrons to a theatre event that will be held twice (on October 31 and November 30).
Unearned Rev. 8000 Service Rev. 8000
