E7-2 Presented below are some business transactions that occurred during 2008 for Vicki Prowitz Company.
(a) Merchandise inventory with a cost of $208,000 is reported at its market value of $260,000.The following entry was made.
Merchandise Inventory 52,000
Gain 52,000
(b) Equipment worth $62,000 was acquired at a cost of $41,000 from a
company that had water damage in a flood.The following entry was made.
Equipment 62,000
Cash 41,000
Gain on Purchase of Equipment 21,000
(c) The president of Vicki Prowitz Company, Mark Nabke, purchased a
truck for personal use and charged it to his expense account.The
following entry was made.
Travel Expense 18,000
Cash 18,000
(d) An electric pencil sharpener costing $50 is being depreciated over 5 years. The following entry was made.
Depreciation Expense—Pencil Sharpener 10
Accumulated Depreciation—Pencil Sharpener 10
Instructions
In each of the situations above, identify the assumption, principle, or
constraint that has been violated, if any. Discuss the appropriateness
of the journal entries, and give the correct journal entry, if
necessary.
Click here for the solution: Presented below are some business transactions that occurred during 2008 for Vicki Prowitz Company
Showing posts with label occurred. Show all posts
Showing posts with label occurred. Show all posts
Friday, September 25, 2015
Sunday, September 20, 2015
The following gives the number of accidents that occurred on Florida State Highway 101 during the last 4 months
Problem 4.25 The following gives the number of accidents that occurred on Florida State Highway 101 during the last 4 months:
Month Number of Accidents
January 30
February 40
March 60
April 90
Forecast the number of accidents that will occur in May, using least squares regression to derive a trend equation.
Click here for the solution: The following gives the number of accidents that occurred on Florida State Highway 101 during the last 4 months
Month Number of Accidents
January 30
February 40
March 60
April 90
Forecast the number of accidents that will occur in May, using least squares regression to derive a trend equation.
Click here for the solution: The following gives the number of accidents that occurred on Florida State Highway 101 during the last 4 months
Tuesday, August 4, 2015
Appendix L : During the first month of operation of Shelby Oaks Dentistry the following transactions occurred
Appendix L
Journalizing, Posting, and Preparing a Trial Balance
Shelby Oaks Dentistry
Use this template to complete the assignment per the instructions below
Shelby Oaks Dentistry Chart of Accounts:
No. 101 Cash
No. 112 Accounts Receivable
No. 126 Supplies
No. 201 Accounts Payable
No. 205 Unearned Revenue
No. 311 Common Stock
No. 400 Service Revenue
No. 726 Rent Expense
No. 729 Salaries Expense
During the first month of operation of Shelby Oaks Dentistry the following transactions occurred:
June 1 Stockholders invested $40,000 cash in exchange for common stock
1 Paid Rent for the month $1,000
7 Purchased supplies on account for $4,000
10 Received $2,100 cash for dental services completed
13 Provided dental services on account for $5,100
25 Received a $500 cash advance for services not yet rendered
30 Paid $1,600 of the amount due on account for supplies
30 Received payment of $1,500 for dental services on account
30 Paid dental assistant for the month $2,400
Instructions
(a) Journalize the transactions on the tab labeled General Journal
(b) Post the transactions to the ledger accounts tab labeled Ledger Accounts
---------Be sure to calculate the balance in the account after each posted transaction
(c) Prepare a trial balance at June 30, 2010 on the tab labeled Trial Balance
Click here for the solution: Appendix L : During the first month of operation of Shelby Oaks Dentistry the following transactions occurred
Journalizing, Posting, and Preparing a Trial Balance
Shelby Oaks Dentistry
Use this template to complete the assignment per the instructions below
Shelby Oaks Dentistry Chart of Accounts:
No. 101 Cash
No. 112 Accounts Receivable
No. 126 Supplies
No. 201 Accounts Payable
No. 205 Unearned Revenue
No. 311 Common Stock
No. 400 Service Revenue
No. 726 Rent Expense
No. 729 Salaries Expense
During the first month of operation of Shelby Oaks Dentistry the following transactions occurred:
June 1 Stockholders invested $40,000 cash in exchange for common stock
1 Paid Rent for the month $1,000
7 Purchased supplies on account for $4,000
10 Received $2,100 cash for dental services completed
13 Provided dental services on account for $5,100
25 Received a $500 cash advance for services not yet rendered
30 Paid $1,600 of the amount due on account for supplies
30 Received payment of $1,500 for dental services on account
30 Paid dental assistant for the month $2,400
Instructions
(a) Journalize the transactions on the tab labeled General Journal
(b) Post the transactions to the ledger accounts tab labeled Ledger Accounts
---------Be sure to calculate the balance in the account after each posted transaction
(c) Prepare a trial balance at June 30, 2010 on the tab labeled Trial Balance
Click here for the solution: Appendix L : During the first month of operation of Shelby Oaks Dentistry the following transactions occurred
Monday, August 3, 2015
The following transactions occurred for London Engineering
E2-16 Analyzing and journalizing transactions
The following transactions occurred for London Engineering:
July:
2 Paid utilities expense of $400.
5 Purchased equipment on account, $2,100.
10 Performed service for a client on account, $2,000
12 Borrowed $7,000 cash, signing a note payable.
19 Sold for $29,000 land that had cost this same amount.
21 Purchased supplies for $800 and paid cash.
27 Paid the liability from July 5.
Requirement
1. Identify and perform the three steps to record the previously described transactions.
Click here for the solution: The following transactions occurred for London Engineering
The following transactions occurred for London Engineering:
July:
2 Paid utilities expense of $400.
5 Purchased equipment on account, $2,100.
10 Performed service for a client on account, $2,000
12 Borrowed $7,000 cash, signing a note payable.
19 Sold for $29,000 land that had cost this same amount.
21 Purchased supplies for $800 and paid cash.
27 Paid the liability from July 5.
Requirement
1. Identify and perform the three steps to record the previously described transactions.
Click here for the solution: The following transactions occurred for London Engineering
Saturday, August 1, 2015
Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc
E2-7 (Accounting Principles—Comprehensive) Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc.
Instructions
In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted accounting principles.
(a) The president of Gonzales, Inc. used his expense account to purchase a new Suburban solely for personal use. The following journal entry was made.
Miscellaneous Expense 29,000
Cash 29,000
(b) Merchandise inventory that cost $620,000 is reported on the balance sheet at $690,000, the expected selling price less estimated selling costs. The following entry was made to record this increase in value.
Merchandise Inventory 70,000
Revenue 70,000
(c) The company is being sued for $500,000 by a customer who claims damages for personal injury apparently caused by a defective product. Company attorneys feel extremely confident that the company will have no liability for damages resulting from the situation. Nevertheless, the company decides to make the following entry.
Loss from Lawsuit 500,000
Liability for Lawsuit 500,000
(d) Because the general level of prices increased during the current year, Gonzales, Inc. determined that there was a $16,000 understatement of depreciation expense on its equipment and decided to record it in its accounts. The following entry was made.
Depreciation Expense 16,000
Accumulated Depreciation 16,000
(e) Gonzales, Inc. has been concerned about whether intangible assets could generate cash in case of liquidation. As a consequence, goodwill arising from a purchase transaction during the current year and recorded at $800,000 was written off as follows.
Retained Earnings 800,000
Goodwill 800,000
(f) Because of a "fire sale", equipment obviously worth $200,000 was acquired at a cost of $155,000. The following entry was made.
Equipment 200,000
Cash 155,000
Revenue 45,000
Click here for the solution: Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc
Instructions
In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted accounting principles.
(a) The president of Gonzales, Inc. used his expense account to purchase a new Suburban solely for personal use. The following journal entry was made.
Miscellaneous Expense 29,000
Cash 29,000
(b) Merchandise inventory that cost $620,000 is reported on the balance sheet at $690,000, the expected selling price less estimated selling costs. The following entry was made to record this increase in value.
Merchandise Inventory 70,000
Revenue 70,000
(c) The company is being sued for $500,000 by a customer who claims damages for personal injury apparently caused by a defective product. Company attorneys feel extremely confident that the company will have no liability for damages resulting from the situation. Nevertheless, the company decides to make the following entry.
Loss from Lawsuit 500,000
Liability for Lawsuit 500,000
(d) Because the general level of prices increased during the current year, Gonzales, Inc. determined that there was a $16,000 understatement of depreciation expense on its equipment and decided to record it in its accounts. The following entry was made.
Depreciation Expense 16,000
Accumulated Depreciation 16,000
(e) Gonzales, Inc. has been concerned about whether intangible assets could generate cash in case of liquidation. As a consequence, goodwill arising from a purchase transaction during the current year and recorded at $800,000 was written off as follows.
Retained Earnings 800,000
Goodwill 800,000
(f) Because of a "fire sale", equipment obviously worth $200,000 was acquired at a cost of $155,000. The following entry was made.
Equipment 200,000
Cash 155,000
Revenue 45,000
Click here for the solution: Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc
Tuesday, June 23, 2015
(Accounting Principles-Comprehensive) Presented below are a number of business transactions that occurred during the current year for Fresh Horses, Inc
Exercise 2-7 (E2-7) Accounting Principles-Comprehensive. Presented below
are a number of business transactions that occurred during the current
year for Fresh Horses, Inc.
Instructions
In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted accounting principles.
(a) The president of Fresh Horses, Inc. used his expense account to purchase a new Suburban solely for personal use. The following journal entry was made.
Miscellaneous Expense 29,000
Cash 29,000
(b) Merchandise inventory that cost $620,000 is reported on the balance sheet at $690,000, the expected selling price less estimated selling costs. The following entry was made to record this increase in value.
Merchandise Inventory 70,000
Revenue 70,000
(c) The company is being sued for $500,000 by a customer who claims damages for personal injury apparently caused by a defective product. Company attorneys feel extremely confident that the company will have no liability for damages resulting from the situation. Nevertheless, the company decides to make the following entry.
Loss from Lawsuit 500,000
Liability for Lawsuit 500,000
(d) Because the general level of prices increased during the current year, Fresh Horses, Inc. determined that there was a $16,000 understatement of depreciation expense on its equipment and decided to record it in its accounts. The following entry was made.
Depreciation Expense 16,000
Accumulated Depreciation 16,000
(e) Fresh Horses, Inc. has been concerned about whether intangible assets could generate cash in case of liquidation. As a consequence, goodwill arising from a purchase transaction during the current year and recorded at $800,000 was written off as follows.
Retained Earnings 800,000
Goodwill 800,000
(f) Because of a “fire sale,” equipment obviously worth $200,000 was acquired at a cost of $155,000. The following entry was made.
Equipment 200,000
Cash 155,000
Revenue 45,000
Click here for the solution: (Accounting Principles-Comprehensive) Presented below are a number of business transactions that occurred during the current year for Fresh Horses, Inc
Instructions
In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted accounting principles.
(a) The president of Fresh Horses, Inc. used his expense account to purchase a new Suburban solely for personal use. The following journal entry was made.
Miscellaneous Expense 29,000
Cash 29,000
(b) Merchandise inventory that cost $620,000 is reported on the balance sheet at $690,000, the expected selling price less estimated selling costs. The following entry was made to record this increase in value.
Merchandise Inventory 70,000
Revenue 70,000
(c) The company is being sued for $500,000 by a customer who claims damages for personal injury apparently caused by a defective product. Company attorneys feel extremely confident that the company will have no liability for damages resulting from the situation. Nevertheless, the company decides to make the following entry.
Loss from Lawsuit 500,000
Liability for Lawsuit 500,000
(d) Because the general level of prices increased during the current year, Fresh Horses, Inc. determined that there was a $16,000 understatement of depreciation expense on its equipment and decided to record it in its accounts. The following entry was made.
Depreciation Expense 16,000
Accumulated Depreciation 16,000
(e) Fresh Horses, Inc. has been concerned about whether intangible assets could generate cash in case of liquidation. As a consequence, goodwill arising from a purchase transaction during the current year and recorded at $800,000 was written off as follows.
Retained Earnings 800,000
Goodwill 800,000
(f) Because of a “fire sale,” equipment obviously worth $200,000 was acquired at a cost of $155,000. The following entry was made.
Equipment 200,000
Cash 155,000
Revenue 45,000
Click here for the solution: (Accounting Principles-Comprehensive) Presented below are a number of business transactions that occurred during the current year for Fresh Horses, Inc
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