Question description<\/p>\n
Week Two Exercise AssignmentRevenue and Expenses1.\u00a0Recognition of concepts. Jim Armstrong operates a small company that books enter\u00adtainers for theaters, parties, conventions, and so forth. The company\u2019s fiscal year ends on June 30. Consider the following items and classify each as either (1) pre\u00adpaid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing.a\u00a0 Interest owed on the company’s bank loan, to be paid in early July\u00a0b\u00a0 Professional fees earned but not billed as of June 30\u00a0c\u00a0 Office supplies on hand at year-end\u00a0d\u00a0 An advance payment from a client for a performance next month at a convention\u00a0e\u00a0 The payment in part (d) from the client’s point of view\u00a0f\u00a0 Amounts paid on June 30 for a 1-year insurance policy\u00a0g\u00a0 The bank loan payable in part (a)\u00a0h\u00a0 Repairs to the firm’s copy machine, incurred and paid in June\u00a02.\u00a0Understanding the closing process. Examine the following list of accounts:Note PayableAccumulated Depreciation: BuildingAlex Kenzy, DrawingAccounts PayableProduct RevenueCashAccounts ReceivableSupplies ExpenseUtility ExpenseWhich of the preceding accountsa. appear on a post-closing trial balance?b. are commonly known as temporary, or nominal, accounts?c. generate a debit to Income Summary in the closing process?d. are closed to the capital account in the closing process?3.\u00a0Adjusting entries and financial statements. The following information pertains to Sally Corporation:\u00b7\u00a0The company previously collected $1,500 as an advance payment for services to be rendered in the future. By the end of December, one half of this amount had been earned.\u00b7\u00a0Sally Corporation provided $1,500 of services to Artech Corporation; no billing had been made by December 31.\u00b7\u00a0Salaries owed to employees at year-end amounted to $1,000.\u00b7\u00a0The Supplies account revealed a balance of $8,800, yet only $3,300 of supplies were actually on hand at the end of the period.\u00b7\u00a0The company paid $18,000 on October 1 of the current year to Vantage Property Management. The payment was for 6 months\u2019 rent of Sally Corporation\u2019s headquarters, beginning on November 1.Sally Corporation\u2019s accounting year ends on December 31.InstructionsAnalyze the five preceding cases individually and determine the following:a. The\u00a0type\u00a0of adjusting entry needed at year-end (Use the following codes: A, adjust\u00adment of a prepaid expense; B, adjustment of an unearned revenue; C, adjustment to record an accrued expense; or D, adjustment to record an accrued revenue.)b. The year-end journal entry to adjust the accountsc. The income statement impact of each adjustment (e.g., increases total revenues by $500)4.\u00a0Adjusting entries. You have been retained to examine the records of Mary\u2019s Day Care Center as of December 31, 20X3, the close of the current reporting period. In the course of your examination, you discover the following:\u00b7\u00a0On January 1, 20X3, the Supplies account had a balance of $1,350. During the year, $5,520 worth of supplies was purchased, and a balance of $1,620 remained unused on December 31.\u00b7\u00a0Unrecorded interest owed to the center totaled $275 as of December 31.\u00b7\u00a0All clients pay tuition in advance, and their payments are credited to the Unearned Tuition Revenue account. The account was credited for $65,500 on August 31. With the exception of $15,500 all amounts were for the current semester ending on December 31.\u00b7\u00a0Depreciation on the school\u2019s van was $3,000 for the year.\u00b7\u00a0On August 1, the center began to pay rent in 6-month installments of $24,000. Mary wrote a check to the owner of the building and recorded the check in Pre\u00adpaid Rent, a new account.\u00b7\u00a0Two salaried employees earn $400 each for a 5-day week. The employees are paid every Friday, and December 31 falls on a Thursday.\u00b7\u00a0Mary\u2019s Day Care paid insurance premiums as follows, each time debiting Pre\u00adpaid Insurance:Date PaidPolicy No.Length of PolicyAmountFeb. 1, 20X21033MCM191 year$540Jan. 1, 20X37952789HP1 year912Aug. 1, 20X3XQ943675ST2 years840InstructionsThe center\u2019s accounts were last adjusted on December 31, 20X2. Prepare the adjusting entries necessary under the accrual basis of accounting.5.\u00a0Bank reconciliation and entries. The following information was taken from the accounting records of Palmetto Company for the month of January:Balance per bank$6,150Balance per company records3,580Bank service charge for January20Deposits in transit940Interest on note collected by bank100Note collected by bank1,000NSF check returned by the bank with the bank statement650Outstanding checks3,080Instructions:a. Prepare Palmetto\u2019s January bank reconciliation.b. Prepare any necessary journal entries for Palmetto.6.\u00a0Direct write-off method. Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was\u00a0 $550 for a sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that Mattingly had filed for personal bankruptcy. Harrisburg uses the direct write-off method to account for uncollectibles.a. Prepare the journal entry needed to write off Mattingly\u2019s account.b. Comment on the ability of the direct write-off method to value receivables on the year-end balance sheet.7.\u00a0Allowance method: analysis of receivables. At a January 20X2 meeting, the presi\u00addent of Sonic Sound directed the sales staff \u201cto move some product this year.\u201d The president noted that the credit Assessment department was being disbanded be\u00adcause it had restricted the company\u2019s growth. Credit decisions would now be made by the sales staff.By the end of the year, Sonic had generated significant gains in sales, and the president was very pleased. The following data were provided by the accounting department:20X220X1Sales$23,987,000$8,423,000Accounts Receivable, 12\/3112,444,0001,056,000Allowance for Uncollectible Accounts, 12\/31?23,000 cr.The $12,444,000 receivables balance was aged as follows:Age of ReceivableAmountPercentage of Accounts Expected to Be CollectedUnder 31 days$4,321,00099%31-60 days4,890,0009061-90 days1,067,00080Over 90 days2,166,00060Assume that no accounts were written off during 20X2.Instructionsa. Estimate the amount of Uncollectible Accounts as of December 31, 20X2.b. What is the company\u2019s Uncollectible Accounts expense for 20X2?c. Compute the net realizable value of Accounts Receivable at the end of 20X1 and 20X2.d. Compute the net realizable value at the end of 20X1 and 20X2 as a percentage of respective year-end receivables balances. Analyze your findings and comment on the president\u2019s decision to close the credit Assessment department.Week_Two_Exercise_Assignment_B.docx\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Question description Week Two Exercise AssignmentRevenue and Expenses1.\u00a0Recognition of concepts. Jim Armstrong operates a small company that books enter\u00adtainers for theaters, parties, conventions, and so\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8827,10099,10540,10536,10892,10538,10539,10537,10891],"tags":[10549,10616,10615,7687,10627,8857,10552,10295,10548,10622,8907],"class_list":["post-130101","post","type-post","status-publish","format-standard","hentry","category-australia-essays","category-buy-essay","category-cheap-essay-writers","category-get-assignments-done","category-page-paper","category-phd-essay-writers","category-research-paper-writing-service-for-any-topic","category-study-bay-essay","category-write-my-assignment-ireland","tag-ai-plagiarism-free-essay-writing-tool","tag-australian-best-tutors","tag-best-trans-tutors","tag-buy-essay-uk","tag-cheap-dissertation-writer","tag-help-with-writing-an-essay","tag-help-write-my-paper-ai-free","tag-homework-for-you","tag-online-essay-writers","tag-phd-essays","tag-write-my-essay-for-me"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/130101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=130101"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/130101\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=130101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=130101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=130101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}