ACC 560 Week 2 Assignment
E3-7 The Sanding Department of Ortiz Furniture Company has the following production and manufacturing cost data for March 2008, the first month of operation.
Production: 12,000 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.
Manufacturing costs: Materials $33,000; labor $27,000; overhead $36,000.
Prepare a production cost report.
Click here for the solution: The Sanding Department of Ortiz Furniture Company has the following production and manufacturing cost data for March 2008, the first month of operation
Showing posts with label March. Show all posts
Showing posts with label March. Show all posts
Monday, October 26, 2015
Friday, October 9, 2015
Laura Eddy opened Eddy's Carpet Cleaners on March 1
P4-5A Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed.
March 1 Invested $10,000 cash in the business.
1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account.
3 Purchased cleaning supplies for $1,200 on account.
5 Paid $1,200 cash on one-year insurance policy effective March 1.
14 Billed customers $4,800 for cleaning services.
18 Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies.
20 Paid $1,800 cash for employee salaries.
21 Collected $1,400 cash from customers billed on March 14.
28 Billed customers $2,500 for cleaning services.
31 Paid gas and oil for month on truck $200.
31 Withdrew $700 cash for personal use.
Requirements:
1. Journalize and post the March transactions. Use page J1 for the journal and the three-column form of account.
2. Prepare a trial balance at March 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet.
(1) Earned but unbilled revenue at March 31 was $700.
(2) Depreciation on equipment for the month was $250.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $400 of cleaning supplies on hand at March 31.
(5) Accrued but unpaid employee salaries were $500.
3. Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31.
4. Journalize and post adjusting entries. Use page J2 for the journal.
5. Journalize and post closing entries and complete the closing process. Use page J3 for the journal.
6. Prepare a post-closing trial balance at March 31.
Click here for the solution: Laura Eddy opened Eddy's Carpet Cleaners on March 1
March 1 Invested $10,000 cash in the business.
1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account.
3 Purchased cleaning supplies for $1,200 on account.
5 Paid $1,200 cash on one-year insurance policy effective March 1.
14 Billed customers $4,800 for cleaning services.
18 Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies.
20 Paid $1,800 cash for employee salaries.
21 Collected $1,400 cash from customers billed on March 14.
28 Billed customers $2,500 for cleaning services.
31 Paid gas and oil for month on truck $200.
31 Withdrew $700 cash for personal use.
Requirements:
1. Journalize and post the March transactions. Use page J1 for the journal and the three-column form of account.
2. Prepare a trial balance at March 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet.
(1) Earned but unbilled revenue at March 31 was $700.
(2) Depreciation on equipment for the month was $250.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $400 of cleaning supplies on hand at March 31.
(5) Accrued but unpaid employee salaries were $500.
3. Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31.
4. Journalize and post adjusting entries. Use page J2 for the journal.
5. Journalize and post closing entries and complete the closing process. Use page J3 for the journal.
6. Prepare a post-closing trial balance at March 31.
Click here for the solution: Laura Eddy opened Eddy's Carpet Cleaners on March 1
Friday, September 11, 2015
On March 1, 2007, Winter Company entered into a contract to build an apartment building
On March 1, 2007, Winter Company entered into a contract to build an
apartment building. It is estimated that the building will cost
$2,000,000 and will take 3 years to complete. The contract price was
$3,000,000 The information that follows pertains to the construction
period:
2007 2008 2009
Costs to date: $600,000 $1,560,000 $2,100,000
Estimated costs to complete: 1,400,000 390,000 0
Progress billing to date: 1,050,000 2,100,000 3,000,000
Cash collected to date: 950,000 1,950,000 2,750,000
Instructions:
(a) Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used.
(b) Prepare all necessary journal entries for 2009.
(c) Prepare a partial balance sheet for December 31, 2008, showing the balances in the receivables and inventory accounts.
Click here for the solution: On March 1, 2007, Winter Company entered into a contract to build an apartment building
2007 2008 2009
Costs to date: $600,000 $1,560,000 $2,100,000
Estimated costs to complete: 1,400,000 390,000 0
Progress billing to date: 1,050,000 2,100,000 3,000,000
Cash collected to date: 950,000 1,950,000 2,750,000
Instructions:
(a) Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used.
(b) Prepare all necessary journal entries for 2009.
(c) Prepare a partial balance sheet for December 31, 2008, showing the balances in the receivables and inventory accounts.
Click here for the solution: On March 1, 2007, Winter Company entered into a contract to build an apartment building
Thursday, September 10, 2015
On March 1, 2010, Chance Company entered into a contract to build an apartment building
P18-3 (Recognition of Profit and Entries on Long-Term Contract) On March 1, 2010, Chance Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. The following information pertains to the construction period:
2010 2011 2012
Costs to date: $600,000 $1,560,000 $2,100,000
Estimated costs to complete: 1,400,000 520,000 0
Progress billing to date: 1,050,000 2,000,000 3,000,000
Cash collected to date: 950,000 1,950,000 2,850,000
Instructions
(a) Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used.
(b) Prepare all necessary journal entries for 2012.
(c) Prepare a partial balance sheet for December 31, 2011, showing the balances in the receivables and inventory accounts.
Click here for the solution: On March 1, 2010, Chance Company entered into a contract to build an apartment building
2010 2011 2012
Costs to date: $600,000 $1,560,000 $2,100,000
Estimated costs to complete: 1,400,000 520,000 0
Progress billing to date: 1,050,000 2,000,000 3,000,000
Cash collected to date: 950,000 1,950,000 2,850,000
Instructions
(a) Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used.
(b) Prepare all necessary journal entries for 2012.
(c) Prepare a partial balance sheet for December 31, 2011, showing the balances in the receivables and inventory accounts.
Click here for the solution: On March 1, 2010, Chance Company entered into a contract to build an apartment building
Four Oaks Miniature Golf and Driving Range Inc. was opened on March 1 by Tiger Woodley
P3-4A Four Oaks Miniature Golf and Driving Range Inc. was opened on March 1 by Tiger Woodley. These selected events and transactions occurred during March.
Mar. 1 Stockholders invested $50,000 cash in the business in exchange for common stock of the corporation.
3 Purchased Arnie's Golf Land for $38,000 cash. The price consists of land $23,000, building $9,000, and equipment $6,000. (Record this in a single entry.)
5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,600 cash.
6 Paid cash $2,400 for a 1-year insurance policy.
10 Purchased golf clubs and other equipment for $4,700 From Golden Bear Company, payable in 30 days.
18 Received golf ices of $1,200 in cash from customers for golf fees earned.
19 Sold 100 coupon books for $25 each in cash. Each book contains ten coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls. (Hint: The revenue is not earned until the customers use the coupons.)
25 Paid a $500 cash dividend.
30 Paid salaries of $700.
30 Paid Golden Bear Company in full for equipment purchased on March 10.
31 Received $800 in cash from customers for golf fees earned.
The company uses these accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Golf Revenue, Common Stock, Retained Earnings, Dividends, Golf Revenue, Advertising Expense, and Salaries Expense.
Instructions
Journalize the March transactions, including explanations
Click here for the solution: Four Oaks Miniature Golf and Driving Range Inc. was opened on March 1 by Tiger Woodley
Mar. 1 Stockholders invested $50,000 cash in the business in exchange for common stock of the corporation.
3 Purchased Arnie's Golf Land for $38,000 cash. The price consists of land $23,000, building $9,000, and equipment $6,000. (Record this in a single entry.)
5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,600 cash.
6 Paid cash $2,400 for a 1-year insurance policy.
10 Purchased golf clubs and other equipment for $4,700 From Golden Bear Company, payable in 30 days.
18 Received golf ices of $1,200 in cash from customers for golf fees earned.
19 Sold 100 coupon books for $25 each in cash. Each book contains ten coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls. (Hint: The revenue is not earned until the customers use the coupons.)
25 Paid a $500 cash dividend.
30 Paid salaries of $700.
30 Paid Golden Bear Company in full for equipment purchased on March 10.
31 Received $800 in cash from customers for golf fees earned.
The company uses these accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Golf Revenue, Common Stock, Retained Earnings, Dividends, Golf Revenue, Advertising Expense, and Salaries Expense.
Instructions
Journalize the March transactions, including explanations
Click here for the solution: Four Oaks Miniature Golf and Driving Range Inc. was opened on March 1 by Tiger Woodley
Tuesday, September 8, 2015
RPM Music Center had the following petty cash transactions in March of the current year
ACC 225 Week 8
Problems 8-3B
RPM Music Center had the following petty cash transactions in March of the current year:
March 5 Wrote a $200 check, cashed it, and gave the proceeds and the petty cashbox to Liz Buck, the petty cashier.
6 Paid $14.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. RPM uses the perpetual system to account for merchandise inventory.
11 Paid $8.75 delivery charges on merchandise sold to a customer, terms FOB destination.
12 Purchased file folders for $12.13 that are immediately used.
14 Reimbursed Will Nelson, the manager, $9.65 for office supplies purchased and used.
18 Purchased printer paper for $22.54 that is immediately used.
27 Paid $47.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
28 Paid postage expenses of $16.
30 Reimbursed Nelson $58.80 for business car mileage.
31 Cash of $11.53 remained in the fund. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. The fund amount is also increased to $250.
Required
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for March with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenses in each category.
3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount.
Check (2) Total expenses $189.47
(3a & 3b) Cr. Cash $238.47
Click here for the solution: RPM Music Center had the following petty cash transactions in March of the current year
Problems 8-3B
RPM Music Center had the following petty cash transactions in March of the current year:
March 5 Wrote a $200 check, cashed it, and gave the proceeds and the petty cashbox to Liz Buck, the petty cashier.
6 Paid $14.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. RPM uses the perpetual system to account for merchandise inventory.
11 Paid $8.75 delivery charges on merchandise sold to a customer, terms FOB destination.
12 Purchased file folders for $12.13 that are immediately used.
14 Reimbursed Will Nelson, the manager, $9.65 for office supplies purchased and used.
18 Purchased printer paper for $22.54 that is immediately used.
27 Paid $47.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
28 Paid postage expenses of $16.
30 Reimbursed Nelson $58.80 for business car mileage.
31 Cash of $11.53 remained in the fund. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. The fund amount is also increased to $250.
Required
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for March with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenses in each category.
3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount.
Check (2) Total expenses $189.47
(3a & 3b) Cr. Cash $238.47
Click here for the solution: RPM Music Center had the following petty cash transactions in March of the current year
Tuesday, August 18, 2015
On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest
On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest. The bonds were dated January 1, 2007. Interest is paid semiannually on January 1 and July 1. On April 1, 2011, Hanson purchased 1/2 of the bonds on the open market at 99 plus accrued interest and canceled them. Hanson uses the straight-line method for amortization of bond premiums and discounts.
(a) What was the amount of the gain or loss on retirement of the bonds?
(b) Prepare the journal entry needed at April 1, 2011 to record retirement of the bonds. Assume that interest and premium or discount amortization have been recorded through January 1, 2011. Record interest and amortization on only the bonds retired.
(c) Prepare the journal entry needed at July 1, 2011 to record interest and premium or discount amortization.
Click here for the solution: On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest
(a) What was the amount of the gain or loss on retirement of the bonds?
(b) Prepare the journal entry needed at April 1, 2011 to record retirement of the bonds. Assume that interest and premium or discount amortization have been recorded through January 1, 2011. Record interest and amortization on only the bonds retired.
(c) Prepare the journal entry needed at July 1, 2011 to record interest and premium or discount amortization.
Click here for the solution: On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest
Crane Mechanics acquired 75 percent of Downey Enterprises on March 31, 2005, for $3,645,000
Exercise 3-14 Crane Mechanics acquired 75 percent of Downey Enterprises on March 31, 2005, for $3,645,000.
Downey’s book value at that date totaled $4,000,000. Appraisal values were greater than book values for identifiable assets in the following amounts: Inventory ($300,000) and Plant and Equipment ($700,000). The purchase differential for Inventory is to be amortized over five months and Plant and Equipment over ten years. For the remainder of 2005 Downey reports $635,000 of income and pays $100,000 in dividends. The following balances exist for Crane at December 31, 2005, and Downey at March 31 and December 31, 2005.
Crain Downey_______
12/31 3/31 12/31
Cash $730,000 $175,000 $180,000
Inventory 1,950,000 260,000 340,000
Plant and Equipment 17,650,000 5,150,000 5,765,000
Accumulated Depreciation (4,655,000) (935,000) (1,250,000)
Investment in Downey 3,886,875
Expenses 6,400,000 1,000,000 4,265,000
Dividends 1,275,000 150,000 250,000
Total Debits $27,236,875 $5,800,000 $9,550,000
Liabilities $3,550,000 650,000 $500,000
Common Stock 350,000 100,000 100,000
Additional Paid-In Capital 2,650,000 850,000 850,000
Retained Earnings 9,720,000 2,800,000 2,800,000
Sales 10,650,000 1,400,000 5,300,000
Extraordinary Gain From
Acquisition of Downey 105,000
Investment Income 211,875
Total Credits $27,236,875 $5,800,000 $9,550,000
Required: Prepare the consolidation worksheet for Crain and Downey at December 31, 2005.
Click here for the solution: Crane Mechanics acquired 75 percent of Downey Enterprises on March 31, 2005, for $3,645,000
Downey’s book value at that date totaled $4,000,000. Appraisal values were greater than book values for identifiable assets in the following amounts: Inventory ($300,000) and Plant and Equipment ($700,000). The purchase differential for Inventory is to be amortized over five months and Plant and Equipment over ten years. For the remainder of 2005 Downey reports $635,000 of income and pays $100,000 in dividends. The following balances exist for Crane at December 31, 2005, and Downey at March 31 and December 31, 2005.
Crain Downey_______
12/31 3/31 12/31
Cash $730,000 $175,000 $180,000
Inventory 1,950,000 260,000 340,000
Plant and Equipment 17,650,000 5,150,000 5,765,000
Accumulated Depreciation (4,655,000) (935,000) (1,250,000)
Investment in Downey 3,886,875
Expenses 6,400,000 1,000,000 4,265,000
Dividends 1,275,000 150,000 250,000
Total Debits $27,236,875 $5,800,000 $9,550,000
Liabilities $3,550,000 650,000 $500,000
Common Stock 350,000 100,000 100,000
Additional Paid-In Capital 2,650,000 850,000 850,000
Retained Earnings 9,720,000 2,800,000 2,800,000
Sales 10,650,000 1,400,000 5,300,000
Extraordinary Gain From
Acquisition of Downey 105,000
Investment Income 211,875
Total Credits $27,236,875 $5,800,000 $9,550,000
Required: Prepare the consolidation worksheet for Crain and Downey at December 31, 2005.
Click here for the solution: Crane Mechanics acquired 75 percent of Downey Enterprises on March 31, 2005, for $3,645,000
Monday, August 17, 2015
On March 1, 2011, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000
E 14-12 Bonds; straight-line method; adjusting entry
On March 1, 2011, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000. The bonds sold for $294,000 and mature on February 28, 2031 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight-line method and its fiscal year ends December 31.
Required:
1. Prepare the journal entry to record the issuance of the bonds by Stratford Lighting on March 1, 2011.
2. Prepare the journal entry to record interest on August 31, 2011.
3. Prepare the journal entry to accrue interest on December 31, 2011.
4. Prepare the journal entry to record interest on February 28, 2012.
Click here for the solution: On March 1, 2011, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000
On March 1, 2011, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000. The bonds sold for $294,000 and mature on February 28, 2031 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight-line method and its fiscal year ends December 31.
Required:
1. Prepare the journal entry to record the issuance of the bonds by Stratford Lighting on March 1, 2011.
2. Prepare the journal entry to record interest on August 31, 2011.
3. Prepare the journal entry to accrue interest on December 31, 2011.
4. Prepare the journal entry to record interest on February 28, 2012.
Click here for the solution: On March 1, 2011, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000
Sunday, July 12, 2015
Riviera Theater Inc. was recently formed. All facilities were completed on March 31
P3-8B Riviera Theater Inc. was recently formed. All facilities were completed on March 31. On April 1, the ledger showed: Cash $6,300; Land $10,000; Buildings (concession stand, projection room, ticket booth, and screen) $8,000; Equipment $6,000; Accounts Payable $2,300; Mortgage Payable $8,000; and Common Stock $20,000. During April, the following events and transactions occurred.
Apr. 2 Paid film rental fee of $800 on first movie.
3 Ordered two additional films at $750 each.
9 Received $4,700 cash from admissions.
10 Paid $2,000 of mortgage payable and $1,200 of accounts payable.
11 Hired M. Gavin to operate the concession stand. Gavin agrees to pay Riviera Theater 17% of gross receipts, payable monthly.
12 Paid advertising expenses $410.
20 Received one of the films ordered on April 3 and was billed $750. The film will be shown in April.
25 Received $3,000 cash from customers for admissions.
29 Paid salaries $1,900.
30 Received statement from M. Gavin showing gross receipts of $2,000 and the balance due to Riviera Theater of $340 for April. Gavin paid half of the balance due and will remit the remainder on May 5.
30 Prepaid $1,200 rental fee on special film to be run in May.
In addition to the accounts identified above, the chart of accounts shows: Accounts Receivable, Prepaid Rent, Service Revenue, Sales Revenue, Advertising Expense, Rent Expense, Salaries and Wages Expense.
Instructions
(a) Enter the beginning balances in the ledger T accounts as of April 1.
(b) Journalize the April transactions, including explanations. (Note: Riviera records admission revenue as service revenue, concession revenue as sales revenue, and film rental expense as rent expense.)
(c) Post the April journal entries to the ledger T accounts.
(d) Prepare a trial balance on April 30, 2012.
Click here for the solution: Riviera Theater Inc. was recently formed. All facilities were completed on March 31
Apr. 2 Paid film rental fee of $800 on first movie.
3 Ordered two additional films at $750 each.
9 Received $4,700 cash from admissions.
10 Paid $2,000 of mortgage payable and $1,200 of accounts payable.
11 Hired M. Gavin to operate the concession stand. Gavin agrees to pay Riviera Theater 17% of gross receipts, payable monthly.
12 Paid advertising expenses $410.
20 Received one of the films ordered on April 3 and was billed $750. The film will be shown in April.
25 Received $3,000 cash from customers for admissions.
29 Paid salaries $1,900.
30 Received statement from M. Gavin showing gross receipts of $2,000 and the balance due to Riviera Theater of $340 for April. Gavin paid half of the balance due and will remit the remainder on May 5.
30 Prepaid $1,200 rental fee on special film to be run in May.
In addition to the accounts identified above, the chart of accounts shows: Accounts Receivable, Prepaid Rent, Service Revenue, Sales Revenue, Advertising Expense, Rent Expense, Salaries and Wages Expense.
Instructions
(a) Enter the beginning balances in the ledger T accounts as of April 1.
(b) Journalize the April transactions, including explanations. (Note: Riviera records admission revenue as service revenue, concession revenue as sales revenue, and film rental expense as rent expense.)
(c) Post the April journal entries to the ledger T accounts.
(d) Prepare a trial balance on April 30, 2012.
Click here for the solution: Riviera Theater Inc. was recently formed. All facilities were completed on March 31
Monday, June 29, 2015
For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools
For the quarter ended March 31, 2012, Maris Company accumulates the
following sales data for its product, Garden-Tools: $321,700 budget;
$333,100 actual.
Prepare a static budget report for the quarter.
Click here for the solution: For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools
Subscribe to:
Posts (Atom)