I need this test done Please can any one help Journalize the following transactions: John Roberts contributed $70,000 cash into his business. Paid rent for month, $5,000Purchased equipment on accoun
Accounting 120-Final Exam
Journalize the following transactions:
John Roberts contributed $70,000 cash into his business.
Paid rent for month, $5,000
Purchased equipment on account, $7,000.
Paid $900 cash for supplies.
Performed services and billed client $8,500.
Paid for equipment purchased in C.
Performed services and received $4,000
Collected amount billed in transaction
Withdrew $3,400 cash.
Prepare journal entries for the following transactions using the gross and net methods of recording purchases and the gross method of recording sales. Then calculate the cost of goods purchased for the buyer and net income for the seller assuming operating expenses of $230:
Seller sold Buyer $5,000 of merchandise originally costing $3,400 on credit, terms 2/10 n/30.
Buyer returns merchandise, $1,500 of merchandise. Original cost to Seller was $900.
Buyer pays within the discount period
Buyer pays after the discount period
Transportation-In is paid, $90 cash.
Beginning inventory 20 $30
Mar 1 purchase 25 32
May 1 purchase 30 34
July 1 purchase 55 36
Dec 1 purchase 20 38
If ending inventory was 25 units, determine the cost of ending inventory and cost of merchandise sold under FIFO, LIFO and average cost methods of valuing inventory
Firestone, Inc. lost its inventory in a fire in December just before the year-end physical inventory was taken. Determine the amount of the loss using the gross profit method. Corporate records disclose the following:
Beginning Inventory $220,000 Net Sales $791,000
Net Purchases 478,000 Gross Profit 40%
Compute the estimated cost of ending inventory under the retail method given the following information: Cost Retail
Beginning inventory $81,000 $135,000
Purchases 324,000 540,000
Net Sales 564,000
Given the following information calculate inventory at lower of cost or market and journalize the market decline:
Product Units Cost Market
A 25 $18 $23
B 40 $40 $36
C 50 $25 $21
D 65 $27 $30
Journalize the following:
A. Establish petty cash for $250
B. Replenish petty cash fund containing $78 and the following receipts:
Postage Expense $85
Office Expenses $65
Miscellaneous Expenses $18
Decrease petty cash fund by $40
Prepare a bank reconciliation and any adjusting entries. For extra credit show a T-account for cash to prove your adjusting entries are correct.
A. Bank balance, $14,926
B. Book balance, $14,400
C. Bank service charge, $60
D. Deposits in transit, $3,500
E. Outstanding checks, $1,644
F. Note for $2,400 and interest of $72 was collected by the bank on our behalf and they charged us a $30 collection fee
Journalize the following transactions under both methods of recording bad debts expense.
We make a $3,500 credit sale
After repeated attempts we determine that the customer will not pay us so we write off his account.
We unexpectedly receive his payment in the mail so we reinstate his account and record the collection.
Assume accounts receivable had a $140,000 debit balance and the allowance account had a $10,000 credit balance.
Calculate the net realizable value of the accounts receivable
Assume we wrote off a $2,000 account, calculate the net realizable value of the accounts receivable after the write off.
Assume net sales this year is $850,000 and the allowance account has a $1,200 credit balance. Journalize the entries to record bad debt expense under the allowance method using both approaches below.
Two per cent of net sales
The following aged accounts receivable:
Class Balance Uncollectible
Current $135,000 2%
1-30 days $ 25,000 5%
31-60 days $ 8,000 15%
61-90 days $ 2,000 20%
Over 90 days $ 800 30%
Journalize the following:
$70,000 credit sale
Accepted a 90-day 12% notes in payment of the account
Note was honored
Note was dishonored
Calculate the cost of land, building and land improvements given the following
Cost of land ($350,000) and building ($150,000) to be used as a plant site
Broker’s commission, $15,000
Back taxes on land, $25,000
Raze building, $30,000
Sell salvaged building materials, $5,000
Cost paid to building contractor, $700,000
Pave parking lot, $40,000
Lighting in parking lot, $10,000.
Journalize the following transactions:
Changed oil in auto, $35
Added air conditioning to our auto, $650
Overhauled our engine to extend its useful life, $3,500
Calculate depreciation expense, accumulated depreciation and book value for each year using the straight line, units of production and double-declining balance methods of calculating depreciation given the following information:
Cost $250,000 Miles driven in years 1-4 1 10,000
Salvage Value 25,000 2 30,000
Useful life 4 years 3 40,000
Expected use 100,000 miles 4 20,000
Given the following information journalize the exchange of similar assets for both Alpha and Bravo Companies:
Alpha Bravo
Cost of Old Asset 80,000 80,000
Accumulated Depreciation 60,000 60,000
Trade-In 7,500 25,500
Cost of New Asset 90,000 90,000
Sidney Lowe is an employee subject to the Fair Labor Standards Act, earns $25/hour and has worked 60 hours this week. Given the following payroll tax rates calculate gross pay, net pay and employer payroll taxes
Social Security 6.20% Medicare 1.45%
Federal Withholding 10.00% State Withholding 2.00%
FUTA 00.6% SUTA 1.20%
JJ Hickson purchased mineral rights for $360,000 on land in which he estimates contains 80,000 tons of ore. He mines 20,000 tons this year. Calculate and journalize the entry to record depletion.
Gavin Grant incurred the following costs related to a patent that is estimated to have a 12 year useful life. Purchase price $88,000, filing fees $22,000, successful legal defense fees $40,000 and research and development $220,000. Calculate and journalize the entry to record amortization.
Courtney Fells sold $160,000 worth of widgets this year and offers a one-year warranty to repair defective widgets. Past experience shows repair costs run 3% of sales price. Journalize the entry to record the warranty expense and paying $3,000 to honor warranties.
Brandon Costner purchased a company for $700,000. The fair market value of the assets was $750,000 and the fair market value of the liabilities was $200,000. What was the value of the goodwill purchased?
Assume that Alpha Corporation has 20,000 shares of $100 par value 7% cumulative preferred stock and 100,000 shares of common stock outstanding. For the first four years it paid the following dividends 1) nothing, 2) $130,000, 3) 300,000, 4) $400,000. Show the allocation of dividends to both classes of stock as well as the dividend per share for each class.
Assume that Bravo Corporation issues 25,000 shares of common stock for $10 per share. Journalize the stock issue under each assumption
$6 par value
No par value
No par value, $8 stated value
Charlie Corporation purchased 3,000 shares of its own common stock for $12 per share. It later sold 1,000 shares for $14 per share and sold the remaining shares for $8 per share. Journalize the purchase and both sales
Delta Corporation’s board of directors declared a $65,000 cash dividend on April 1 to stockholders of record on April 15 to be paid on April 30. Journalize all required entries
Echo Corporation has 20,000 shares of common stock outstanding. Its board of directors is considering declaring a stock dividend. The stock has a $20 par value and $25 market value. Journalize all necessary entries to declare and distribute the stock dividend assuming it is a 15% stock dividend and then assuming it is a 40% stock dividend.
Calculate earnings per share of a company that has $600,000 net income, $50,000 preferred dividends and 200,000 shares of common stock outstanding.
To what amount will $250,000 grow after five years if invested at 12% interest?
To what amount will contributing $7,000 per year grow to if invested at 13% interest for 40 years
The following information relates to bonds issued by Yankee Corporation:
Face value $700,000
Stated interest rate 14%
Market interest rate 18%
Life of bonds 5 years
Semi-annual interest payments
Calculate the cash proceeds of the bond issue, journalize the bond issue and show the balance sheet presentation on the date of issue.
Journalize the first two interest payments and show the balance sheet presentation after each interest payment using both the straight-line and effective interest methods of amortizing a bond discount or premium.
Journalize the bond retirement at maturity and assuming we retire it at 103 after the second straight-line interest payment.
