acct 200 correspondence exam three version B 2
\nI.Fortheyear2006KolarCompanyhasthefollowinginformationavailable.Usethisinformationtoanswer
\nqnestionsA,B,C,&D.
\nGrossCreditSalesof$90,000 SalesDiscountsof$4,000
\nDebitbalanceinAllowanceforDonbtfulAcconnts
\n(beforeadjustingentries)
\nof$6,000BalanceinAcconnts
\nReceivable(beforeadjusting
\nentries)of$22,000.
\nAnswereachofthefollowingquestionsINDEPENDENToftheotherquestions. (10points)<\/p>\n
A.
\nIfKolarCompanyestimatesbaddebtexpense
\ntobe4%ofNetCreditSales,
\nwhatamountofbaddebtexpenseshouldbereportedonthe2006Income Statement?.<\/p>\n
.gif”><\/p>\n
B.<\/p>\n
IfKolarCompanyperforms
\nanagingofAccountsReceivable anddeterminesthat
\n$8,000worthof accountsareuncollectible,maketheadiustm<'ournalentrytorecordbaddebtsexpense\nfor2006.\n\n\n\n\n\n\nC. \nAssumethatonDecember\n31,2006, KolarCompany\nmakesajournalentrytorecord$7,500ofBad DebtExpense. Assume that onJanuary1,2007(beforeanymorecredit\nsalesaremade)KolarCompany decidestowrite-offasuncollectiblea$1,000account\nreceivable.Aftermakingthisjournal\nentry,what willbethenetrealizablevalueof accountsreceivable?\n\n\n\n\n\n\n\nD. \nAssumethatonDecember\n31,2006,KolarCompanymakes a\njournalentrytorecord$7,500ofBad DebtExpense. AssumethatonJanuruy\n1,2007(before\nanymorecredit\nsalesaremade)KolarCompany decidestowrite-offasnncollectiblea$1,000account\nreceivable.Ifthebookkeeperforgets\ntomakethis\n1ourna1entry,whatw1\u00c2\u00b7nbethenetrear1zable va1ueofaccountsrece1\u00c2\u00b7vable.?\n\n\n\n\n\n\n\n.gif\"><\/p>\n
II. Finley
\nCompanyhadthefollowingtransactionsin2006. (9points)
\nJan
\nI Usedcashtopurchase
\naminefor$70million.
\nThemineisestimatedtohave250,000tonsofore andasalvage
\nvalueof$10million.<\/p>\n
JulyI Purchasedapatentfor$1,500,000cash.Thepatent’s
\nlegallifeis17yearsbutthe company estimatesthepatent’s
\nusefullifetobe5yearsbecauseatthattimethepatentwillnolongerhave anyvalue.<\/p>\n
Dec29Paid cash forresearchanddevelopmentcostof$400,000 duringtheprevious12months. Maketheappropnategeneraljourna entriesforJan!,Julv1 &Dec29<\/p>\n
MaketheappropriateadjustingentryonDecember
\n31forthemine(assume
\n50,000tonsoforeminedand
\n40,000tonssold)<\/p>\n
IIIJournalEntries
\n12points
\nForthefollowing
\nsituations,ifajournalentryisrequiredon December31toadjustthecashbalanceperthebooksmaketheappropriateentry. IfnoentryisrequiredwriteNONE.<\/p>\n
Wh”1le
\nreconc1T1ngthebankstatementthecompanyd”1scoversthereare$4,000m.<\/p>\n
outstandingchecks.<\/p>\n
.gif”><\/p>\n
.gif”>Whilereconcilingthebankstatement
\nthecompanydiscovers
\nthebankhaschargedthecompanyaservicechargeof$45forhavingsomechecksprinted.<\/p>\n
Whilereconcilingthebankstatement
\nthecompanydiscovers
\nthebankhasmadeanerrorrelated
\ntoacompanydeposit ofcashsales. Thebankadded$7,800
\ntothecompany’scheckingaccountwheninfact
\ntherewas$8,100incashdeoosited.<\/p>\n
Whilereconcilingthebankstatement
\nthecompanydiscovers
\nthatanotereceivablewithafacevalueof
\n$1,200hasbeencollected
\nforthecompany.Thetotalamountcollected
\nwas$1,280with$100of interest<\/p>\n
accruinganda$20bankcharge.<\/p>\n
Noi\u00c2\u00b7nterestrevenue
\nhasbeenrecordedre1atedtothenote.<\/p>\n
.gif”><\/p>\n
Whilereconcilingthebankstatement thecompanydiscoversthatacashpaymenttoavendorintheamountof$250hasaccidentlybeenrecordedinthecashpayments1ournal
\nfor$520.<\/p>\n
IVEssay 5points
\nThefollowing
\nnarrativedescribesthebusiness
\nprocessatCompanyB. Afterreading
\nthenarrative, identifyandexplain
\nWHYeachSPECIFIC
\ninternal controlweaknessatCompanyBisaviolationof goodinternal
\ncontrol.<\/p>\n
Rodneyisnormallyresponsibleforwritingallchecks.
\nWhenthebankstatement
\narrivesRodneydoes thereconciliationofthebankstatementandreportsanydiscrepanciestotheowner. Inadditionto writing
\nthechecks,Rodneyisresponsibleforapprovingallvendor
\ninvoicesforpaymentbeforehesigns andmailsthechecks. After writingthepayrollchecksRodney
\nleavesthepaychecksinanenvelope
\nin theemployeebreakroom. Inordertosavemoney,
\nRodneyorderschecksthatareunnumbered.
\nBecauseRodneyissometimesbusywithothertasks,twootheremployeesalsohavepermissiontosign andmailchecks.<\/p>\n
.gif”>
\n.gif”><\/p>\n
.gif”>
\n.gif”><\/p>\n
.gif”><\/p>\n
V OnJanuary
\n1CompanyBestablishesapettycashfundin theamountof$200. OnFebruary20the necessarybalanceinthefundisincreased
\nto$250. OnFebruary
\n28″thepettycashfundisreplenished whenthereis only
\n$82cashleftinthepettycashdrawer. Thepettycashdrawer
\nincludedpettycash vouchersasfollows. (8points)
\npostageexpense $45
\nmiscellaneousexpense$50 freight-out $55<\/p>\n
MaketheionrnalentrvonFebrnarv20.<\/p>\n
Makethejonrnal
\nentrytorep1enishthefnndonFebruary28<\/p>\n
VI. OnOctober12,BradyStorhaugCompany
\nownsaPorsche911Turbo
\nthatoriginallycost$40,000 andcurrentlyhasaccumulateddepreciationof$32,000. ThefairmarketvalueofthePorscheis$6,000. Storhaug
\nexchangesthisPorschefor
\naCavalierwithafairmarket
\nvalueof$9,000andpays$3,000cash toboot. MAKETHEJOURNAL
\nENTRYTORECORD
\nTHEEXCHANGEOFVEHICLESON STORHAUG’SBOOKS.
\n(6points)<\/p>\n
VII.
\nUsethefollowinginformationtomaketheappropriatejournal
\nentriesasrequired.
\nSellin’Inc.receivedanotesreceivablefromBuyin’Inc onApril15. Thefacevalue of
\nthenotewas
\n$3,000withamaturitydateofJune15andamaturity
\nvalueof$3,040.On
\nApril30Sellin’properlycalculatedaccruedinteresttobe
\n$10.(6points)<\/p>\n
Makethe A\u00e2\u0080\u00a2PrI”J30entrvrelatedtotheaccruaIofm”<\/p>\n
terestforSellI’D’Inc.<\/p>\n
.gif”><\/p>\n
OnJune15Buyin’Inc.informedSellin’IncthatBuyin’waslowoncashandwouldnotbeabletopaythematurity
\nvalueofthe note
\nuntilJuly18. Assume
\nSellin’madeanother
\njournalentryrelatedtotheaccrualofinterestonthenotereceivableonMay31for$20.Also,fromJune1toJune15assumeanother$10ofinterest
\nhasaccruedwithnojournal
\nentrybeingmade. Make
\ntheappropriatejournalentryonSe11I’D’IUC. booksonJuue15<\/p>\n
.gif”><\/p>\n
VIII.
\nPoorly
\nManagedInc.had totalnetcredit
\nsalesof$100,000. Atthebeginningoftheyear,PoorlyManagedhadabalance inaccounts receivableof$35,000andattheendoftheyearthisbalancehadincreasedto$65,000.
\nTheterms for
\nallofPoorlyManaged’screditsalesare 1\/5,N30.
\nTherearenofinancecharges
\nonoverduebalances.
\nREQUIRED(7points):
\nCalculatePoorlvMaua2ed’saccounts
\nreceivableturnover
\n.gif”><\/p>\n
.gif”><\/p>\n
.gif”><\/p>\n
X.
\nCalculatingdepreciationexpense.
\nAbuildingisacquiredonJanuaryI,atacostof$300,000hasan
\nestimatedusefullifeof8years.
\nThe
\nsalvagevalue isestimatedtobe$25,000
\nattheendoftheasset’susefullife.
\nUsetheaboveinformationtoanswerthefollowingINDEPENDENTquestions.<\/p>\n
A
\nCalculateaccumulateddepreciationattheendofyear2ifthestraight-linemethodisused(3 points).<\/p>\n
$ year2<\/p>\n
B
\nCalculatedepreciationexpenseforyearsI&2ifthedouble-decliningbalancemethodisused(5points).<\/p>\n
$ year1<\/p>\n
$ year2<\/p>\n
C
\nCalculateaccumulateddepreciationattheendofyear2iftheunitsofactivity
\nmethodisused andtheassetisexpected
\ntobeusedatotalof500,000
\nhours.Theasset willbeused75,000hoursinyearoneand90,000
\nhoursinyeartwo(3points).<\/p>\n
$ year2<\/p>\n
XI.
\nJoyceCompany hasissneda4-month,
\n9%,$6,000notereceivabletoacustomer.
\nCalculatethe following
\n(9pts).<\/p>\n
FaceValue
\n——<\/p>\n
Totalinteresttoaccrueover
\nthe4-monthtime
\nperiodofthenote _<\/p>\n
Maturityvalue
\nofthenote———-<\/p>\n
Onthematurity
\ndate,thecustomer
\npaysJoyceCompanythematurity
\nvalueofthenote.
\nMakethe requiredjournal
\nentryonthematuritydateassumingNOadjustingentries
\nhavebeenmadeforinterest
\nrevenue.<\/p>\n
XII.
\nRodneyCompany
\nhasamachine thatoriginallycost$32,000andhasbeendepreciatedatotalof
\n$20,000. AfterfiveyearsRodneysellsthe machinefor$15,000 (7points).<\/p>\n
Calculatethebook
\nvalueofthemachine _<\/p>\n
Calculatethegain
\n(loss)onthedisposalofthemachine _<\/p>\n
XIII. Thefollowing
\ninformationisavailableforJonesCompany
\nforthemonthended April30:
\nA. ThebalanceperthebankstatementasofApril30was$6440.55
\nB. ThecashaccountbalanceinthegeneralledgerasofApril30was$5,835.55.
\nC. Acustomer’scheckwasreturned
\nwiththeAprilbankstatementmarkedNSFfor$123.ThiswasthefirsttimeJonesCompany
\nhadbeennotified
\nthecheckbounced.
\nD. JonesCompanyincorrectlyrecordedacashpaymentfor$469.
\nThecorrect
\namountofthe paymentwas$649.
\nE.
\nDepositsintransitasofApril
\n30equaled$1,200.25.
\nF. Thebankstatementincluded
\nadebitmemofor$24.75asacheckprinting
\ncharge.
\nG. Anotecollected
\nbythebankonApril28hasnotyetbeenrecorded
\ninJones’Company
\ncash receiptsjournal. Thefaceamountofthenotewas$2,000andtheinterest
\nwas$150. The bankcharged
\nacollectionfeeof$17.NOTE:**JonesCo.
\nhasalreadyrecordedallofthe interestrevenne.**NOTE<\/p>\n
Reqnired (10points):<\/p>\n
A PrepareabankreconciliationforJones CompanyforApril30.<\/p>\n
BalanceperBankStatement<\/p>\n
Balanceper
\n Books<\/p>\n","protected":false},"excerpt":{"rendered":"
acct 200 correspondence exam three version B 2 I.Fortheyear2006KolarCompanyhasthefollowinginformationavailable.Usethisinformationtoanswer qnestionsA,B,C,&D. GrossCreditSalesof$90,000 SalesDiscountsof$4,000 DebitbalanceinAllowanceforDonbtfulAcconnts (beforeadjustingentries) of$6,000BalanceinAcconnts Receivable(beforeadjusting entries)of$22,000. AnswereachofthefollowingquestionsINDEPENDENToftheotherquestions. (10points) A. IfKolarCompanyestimatesbaddebtexpense tobe4%ofNetCreditSales, whatamountofbaddebtexpenseshouldbereportedonthe2006Income Statement?. .gif”>\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-130314","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\/130314","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=130314"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/130314\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=130314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=130314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=130314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}