ACC 557 Week 1 Assignment
E1-8 An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholders’ equity is explained.
Cash Accounts Office Accounts Stockholders’ _ Receivable _ Supplies _ Equipment _ Payable _ Equity
1. _$15,000 _$15,000 Investment
2. _2,000 _$5,000 _$3,000
3. _750 _$750
4. _4,600 _$3,700 _8,300 Service Revenue
5. _1,500 _1,500
6. _2,000 _2,000 Dividends
7. _650 −650 Rent Expense
8. _450 _450
9. _4,900 _4,900 Salaries Expense
10. _500 −500 Utilities Expense
Instructions
(a) Describe each transaction that occurred for the month.
(b) Determine how much stockholders’ equity increased for the month.
(c) Compute the amount of net income for the month.
Click here for the solution: An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below
Showing posts with label August. Show all posts
Showing posts with label August. Show all posts
Monday, October 26, 2015
Wednesday, October 14, 2015
Moran Company reports the following operating results for the month of August
ACC 560 Week 4 Assignment
E5-15 Moran Company reports the following operating results for the month of August: Sales $350,000 (units 5,000); variable costs $210,000; and fixed costs $90,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 10% with no change in total variable costs.
2. Reduce variable costs to 55% of sales.
Instructions:
Compute the net income to be earned under each alternative. Which course of action will produce the highest net income?
Click here for the solution: Moran Company reports the following operating results for the month of August
E5-15 Moran Company reports the following operating results for the month of August: Sales $350,000 (units 5,000); variable costs $210,000; and fixed costs $90,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 10% with no change in total variable costs.
2. Reduce variable costs to 55% of sales.
Instructions:
Compute the net income to be earned under each alternative. Which course of action will produce the highest net income?
Click here for the solution: Moran Company reports the following operating results for the month of August
Ger Company reports the following operating results for the month of August
E6-3 Ger Company reports the following operating results for the month of August: Sales $300,000 (units 5,000); variable costs $210,000; and fixed costs $70,000. Management is considering three independent courses of action to increase net income.
Compute the net income that would result from each of the independent actions below:
1. Increase selling price by 10% with no change in total variable costs.
2. Reduce variable costs to 58% of sales.
3. Reduce fixed costs by $20,000.
Click here for the solution: Ger Company reports the following operating results for the month of August
Compute the net income that would result from each of the independent actions below:
1. Increase selling price by 10% with no change in total variable costs.
2. Reduce variable costs to 58% of sales.
3. Reduce fixed costs by $20,000.
Click here for the solution: Ger Company reports the following operating results for the month of August
A tabular analysis of the transactions made during August 2012 by Nigel Company during its first month of operations is shown below
E3-4 A tabular analysis of the transactions made during August 2012 by Nigel Company during its first month of operations is shown below. Each increase and decrease in stockholders’ equity is explained.
Instructions
(a) Describe each transaction.
(b) Determine how much stockholders’ equity increased for the month.
(c) Compute the net income for the month.
Click here for the solution: A tabular analysis of the transactions made during August 2012 by Nigel Company during its first month of operations is shown below
Instructions
(a) Describe each transaction.
(b) Determine how much stockholders’ equity increased for the month.
(c) Compute the net income for the month.
Click here for the solution: A tabular analysis of the transactions made during August 2012 by Nigel Company during its first month of operations is shown below
Sunday, August 23, 2015
Martin sells a stock investment for $25,000 on August 2, 2010
Martin sells a stock investment for $25,000 on August 2, 2010. Martin's adjusted basis in the stock is $14,000.
a. If Martin acquired the stock on November 15, 2008, calculate the amount and the nature of the gain or loss.
b. If Martin had acquired the stock on September 11, 2007, calculate the amount and nature of the gain or loss.
Click here for the solution: Martin sells a stock investment for $25,000 on August 2, 2010
a. If Martin acquired the stock on November 15, 2008, calculate the amount and the nature of the gain or loss.
b. If Martin had acquired the stock on September 11, 2007, calculate the amount and nature of the gain or loss.
Click here for the solution: Martin sells a stock investment for $25,000 on August 2, 2010
Wednesday, July 15, 2015
Norton Company reports the following operating results for the month of August
E6-3 Norton Company reports the following operating results for the month of August: sales $310,000 (units 5,000); variable cost $210,000 and fixed cost $75,000. Management is considering the following independent courses of action to increase net income.
1.Increase selling price by 10% with no change in total variable cost or sales volume.
2.Reduce variable costs to 58% of sales.
3.Reduce fixed costs by $20,000
Click here for the solution: Norton Company reports the following operating results for the month of August
1.Increase selling price by 10% with no change in total variable cost or sales volume.
2.Reduce variable costs to 58% of sales.
3.Reduce fixed costs by $20,000
Click here for the solution: Norton Company reports the following operating results for the month of August
Saturday, July 11, 2015
On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000
On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred.
1. Paid $2,900 cash for accounts payable due.
2. Collected $1,300 of accounts receivable.
3. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account.
4. Earned revenue of $7,300, of which $2,500 is paid in cash and the balance is due in October.
5. Declared and paid a $400 cash dividend
6. Paid salaries $1,700, rent for September $900, and advertising expense $200.
7. Incurred utilities expense for month on account $170.
8. Received $10,000 from Capital Bank on a 6-month note payable.
(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)
(b) Prepare an income statement for September, a retained earnings statement for September, and a balance sheet at September 30.
Click here for the solution: On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000
1. Paid $2,900 cash for accounts payable due.
2. Collected $1,300 of accounts receivable.
3. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account.
4. Earned revenue of $7,300, of which $2,500 is paid in cash and the balance is due in October.
5. Declared and paid a $400 cash dividend
6. Paid salaries $1,700, rent for September $900, and advertising expense $200.
7. Incurred utilities expense for month on account $170.
8. Received $10,000 from Capital Bank on a 6-month note payable.
(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)
(b) Prepare an income statement for September, a retained earnings statement for September, and a balance sheet at September 30.
Click here for the solution: On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000
Tuesday, July 7, 2015
Picasso Restoration Company completed the following selected transactions during August 2012
PR 8-2A Transactions for petty cash, cash short and over
Picasso Restoration Company completed the following selected transactions during August 2012:
Aug. 1. Established a petty cash fund of $750.
10. The cash sales for the day, according to the cash register records, totaled $9,780. The actual cash received from cash sales was $9,800.
31. Petty cash on hand was $240. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt:
Aug. 3. Store supplies, $251.
7. Express charges on merchandise sold, $60 (Delivery Expense).
9. Office supplies, $20.
13. Office supplies, $30.
19. Postage stamps, $11 (Office Supplies).
21. Repair to office file cabinet lock, $40 (Miscellaneous Administrative Expense).
Aug. 22. Postage due on special delivery letter, $18 (Miscellaneous Administrative Expense).
24. Express charges on merchandise sold, $50 (Delivery Expense).
30. Office supplies, $15.
31. The cash sales for the day, according to the cash register records, totaled $11,200. The actual cash received from cash sales was $11,130.
31. Decreased the petty cash fund by $100.
Instructions
Journalize the transactions.
Click here for the solution: Picasso Restoration Company completed the following selected transactions during August 2012
Picasso Restoration Company completed the following selected transactions during August 2012:
Aug. 1. Established a petty cash fund of $750.
10. The cash sales for the day, according to the cash register records, totaled $9,780. The actual cash received from cash sales was $9,800.
31. Petty cash on hand was $240. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt:
Aug. 3. Store supplies, $251.
7. Express charges on merchandise sold, $60 (Delivery Expense).
9. Office supplies, $20.
13. Office supplies, $30.
19. Postage stamps, $11 (Office Supplies).
21. Repair to office file cabinet lock, $40 (Miscellaneous Administrative Expense).
Aug. 22. Postage due on special delivery letter, $18 (Miscellaneous Administrative Expense).
24. Express charges on merchandise sold, $50 (Delivery Expense).
30. Office supplies, $15.
31. The cash sales for the day, according to the cash register records, totaled $11,200. The actual cash received from cash sales was $11,130.
31. Decreased the petty cash fund by $100.
Instructions
Journalize the transactions.
Click here for the solution: Picasso Restoration Company completed the following selected transactions during August 2012
Monday, July 6, 2015
A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operation
E3-4 A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operation.
Assets = Liabilities + Stockholders' Equity
Office Accounts Common Retained Earnings
Cash + A/R + Supp. + Equip. = Payable + Stock + Rev. - Exp. - Div.
1. +$20,000 +$20,000 Com. Stock
2. -1,000 +$5,000 +$4,000
3. -750 +$750
4. +4,400 +$5,400 +$9,800 Serv. Rev.
5. -1,500 -1,500
6. -2,000 -$2,000 Div.
7. -800 -$ 800 Rent Exp.
8. +450 -450
9. -3,000 -3,000 Sal. Exp.
10. +500 -500 Util. Exp.
Hint: Analyze transaction and compare net income (SO 1)
Instructions
(a) describe each transaction
(b) Determine how much stockholder's equity increased for the month
(c) Compute the net income for the month
Click here for the solution: A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operation
Assets = Liabilities + Stockholders' Equity
Office Accounts Common Retained Earnings
Cash + A/R + Supp. + Equip. = Payable + Stock + Rev. - Exp. - Div.
1. +$20,000 +$20,000 Com. Stock
2. -1,000 +$5,000 +$4,000
3. -750 +$750
4. +4,400 +$5,400 +$9,800 Serv. Rev.
5. -1,500 -1,500
6. -2,000 -$2,000 Div.
7. -800 -$ 800 Rent Exp.
8. +450 -450
9. -3,000 -3,000 Sal. Exp.
10. +500 -500 Util. Exp.
Hint: Analyze transaction and compare net income (SO 1)
Instructions
(a) describe each transaction
(b) Determine how much stockholder's equity increased for the month
(c) Compute the net income for the month
Click here for the solution: A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operation
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