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UMUC ACC310 final exam

Problem 3-1 (Part Level Submission)
Listed below are the transactions of Yasunari
Kawabata, D.D.S., for the month of September.

Sept. 1

Kawabata begins practice as a dentist
and invests $21,710 cash.

2

Purchases dental equipment on account
from Green Jacket Co. for $17,640.

4

Pays rent for office space,
$844 for the month.

4

Employs a receptionist, Michael
Bradley.

5

Purchases dental supplies for cash,
$963.

8

Receives cash of $1,710 from
patients for services performed.

10

Pays miscellaneous office expenses,
$480.

14

Bills patients $6,910 for
services performed.

18

Pays Green Jacket Co. on account,
$4,150.

19

Withdraws $3,460 cash from the
business for personal use.

20

Receives $1,080 from patients on
account.

25

Bills patients $2,890 for
services performed.

30

Pays the following expenses in cash:
Salaries and wages $2,550; miscellaneous office expenses $97. (Record each
separately.)

30

Dental supplies used during
September, $360.

Record depreciation using a 5-year life on the equipment, the straight-line
method, and no salvage value.

Enter the transactions shown above in appropriate
general ledger accounts (use T-accounts).(Post entries in the order displayed in the problem statement.)

Prepare a trial balance.

Prepare a statement of
owner’s equity.(List items that increase owner’s equity first.)

Prepare an unclassified
balance sheet.(List assets in order of liquidity.)
Prepare an income
statement.

Problem 133 (Part Level
Submission)
Selected amounts
from Trent Company’s trial balance of 12/31/14 appear below:

1.

Accounts Payable

$123,920

2.

Accounts Receivable

143,510

3.

Accumulated
Depreciation-Equipment

187,950

4.

Allowance for Doubtful
Accounts

15,350

5.

Bonds Payable

499,000

6.

Cash

152,860

7.

Common Stock

50,000

8.

Equipment

947,100

9.

Prepaid Insurance

29,150

10.

Interest Expense

10,730

11.

Inventory

300,400

12.

Notes Payable (due 6/1/15)

217,900

13.

Prepaid Rent

212,040

14.

Retained Earnings

839,800

15.

Salaries and Wages Expense

301,900

(All of the above accounts have their standard or normal debit or credit
balance.)

(a)

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Your answer is correct.

Prepare
adjusting journal entries at year end, December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, based on the
following supplemental information.(Credit account titles are automatically indented when the amount
is entered. Do not indent manually.)

a.

The equipment has a useful
life of 15 years with no salvage value. (Straight-line method being used.)

b.

Interest accrued on the
bonds payable is $14,970 as of 12/31/14.

c.

Prepaid insurance at
12/31/14 is $22,330.

d.

The rent payment of
$212,040 covered the six months from November 30, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay through May 31,
2015 – Research Paper Writing Help Service.

e.

Salaries and wages earned
but unpaid at 12/31/14, $22,740.

Exercise 123

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Your answer is correct.

For each of the items listed below, indicate how it
should be treated in the financial statements.

Exercise 123

Your answer is correct.
For each of the items listed below, indicate how it should
be treated in the financial statements.
1. The
bad debt rate was increased from 1% to 2%, thus increasing bad debt expense.

2. Obsolete
inventory was written off. This was the first loss of this type in the
company’s history.

3. An
uninsured casualty loss was incurred by the company. This was the first loss of
this type in the company’s 50-year history.

4. Recognition
of income earned last year which was inadvertently omitted from last year’s
income statement.

5. The
company sold one of its warehouses at a loss.

6. Settlement
of litigation with federal government related to income taxes of three years
ago. The company is
continually involved in various adjustments with the federal
government related to its taxes.

Problem 126

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Your answer is correct.

Shown below is an income statement for 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay that
was prepared by a poorly trained bookkeeper of Howell Corporation.

Howell
Corporation
INCOME STATEMENT
December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay

Sales revenue

$

907,500

Investment revenue

17,040

Cost of goods sold

(408,170

)

Selling expenses

(143,510

)

Administrative expenses

(192,500

)

Interest expense

(12,360

)

Income before special items

168,000

Special items

Loss on
disposal of a component of the business

(29,170

)

Major
casualty loss (extraordinary item)

(49,540

)

Net federal income tax liability

(26,787

)

Net income

$

62,503

Prepare a multiple-step income statement for 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay for Howell Corporation that
is presented in accordance with generally accepted accounting principles
(including format and terminology). Howell Corporation has 50,000 shares of
common stock outstanding and has a 30% federal income tax rate on all tax
related items.(Round per share values to 2 decimal
places, e.g. $2.50.)

Problem 127

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Your answer is correct.

Presented below is an income statement for Kinder
Company for the year ended December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay.

Kinder
Company
Income Statement
For the Year Ended December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay

Net sales

$794,050

Costs and expenses:

Cost of goods
sold

567,900

Selling,
general, and administrative expenses

76,930

Other, net

30,760

Total
costs and expenses

675,590

Income before income taxes

118,460

Income taxes

35,538

Net income

$82,922

Additional information:

1.

“Selling, general, and
administrative expenses” included a usual but infrequent charge of
$7,390 due to a loss on the sale of investments.

2.

“Other, net” consisted of
interest expense, $11,430, and an extraordinary loss of $19,330 before taxes
due to earthquake damage. If the extraordinary loss had not occurred, income
taxes for 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay would have been $41,337 instead of $35,538.

3.

Kinder had 20,000 shares of common
stock outstanding during 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay.

Using the single-step format, prepare a corrected income statement, including
the appropriate per share disclosures.(Round earnings per share to 2 decimal places, e.g. $1.48.)

Exercise 111

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Your answer is correct.

Indicate, for each balance sheet item listed below
the usual valuation reported on the balance sheet.

1.

Common stock

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

2.

Prepaid insurance

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

3.

Natural resources

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

4.

Property, plant, and equipment

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

5.

Accounts receivable

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

6.

Copyrights

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

7.

Inventory

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

8.

Long-term bonds payable

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

9.

Land (in use)

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

10.

Land (future plant site)

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

11.

Patents

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

12.

Equity investments (trading)

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

13.

Accounts payable

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Par value
Current cost of replacement
Amount payable when due, less unamortized discount or plus unamortized premium
Amount payable when due
Market value at balance sheet date
Net realizable value
Lower of cost or market
Original cost less accumulated amortization
Original cost less accumulated depletion
Original cost less accumulated depreciation
Historical cost
Unexpired or unconsumed cost

Problem 120

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Your answer is correct.

Selected financial statement information and
additional data for Stanislaus Co. is presented below.

December
31

2013

2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay

Cash

$41,530

$72,290

Accounts Receivable (net)

83,320

140,720

Inventory

168,550

205,120

Land

59,510

18,960

Equipment

506,600

788,530

TOTAL

$859,510

$1,225,620

Accumulated depreciation

$84,000

$114,410

Accounts payable

48,460

85,280

Notes payable – short-term

65,620

29,830

Notes payable – long-term

165,350

295,160

Common stock

415,780

484,450

Retained earnings

80,300

216,490

TOTAL

$859,510

$1,225,620

Additional data for 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay:

1.

Net income was $217,730.

2.

Depreciation was $30,410.

3.

Land was sold at its original cost.

4.

Dividends of $81,540 were paid.

5.

Equipment was purchased for $83,450 cash.

6.

A long-term note for $198,480 was
used to pay for an equipment purchase.

7.

Common stock was issued to pay a
$68,670 long-term note payable.

Problem 5-2

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Your answer is correct.

Presented below are a number of balance sheet items
for Montoya, Inc., for the current year, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay.

Goodwill

$ 129,040

Accumulated Depreciation-Equipment

$ 292,172

Payroll Taxes Payable

181,631

Inventory

243,840

Bonds payable

304,040

Rent payable (short-term)

49,040

Discount on bonds payable

15,172

Income taxes payable

102,402

Cash

364,040

Rent payable (long-term)

484,040

Land

484,040

Common stock, $1 par value

204,040

Notes receivable

449,740

Preferred stock, $10 par value

154,040

Notes payable (to banks)

269,040

Prepaid expenses

91,960

Accounts payable

494,040

Equipment

1,474,040

Retained earnings

?

Equity investments (trading)

125,040

Income taxes receivable

101,670

Accumulated Depreciation-Buildings

270,372

Notes payable (long-term)

1,604,040

Buildings

1,644,040

Prepare a classified balance sheet in good form. Common stock authorized
was 400,000 shares, and preferred stock authorized
was 20,000 shares. Assume that notes receivable and notes payable are
short-term, unless stated otherwise. Cost and fair value of equity investments
(trading) are the same.(List
Current Assets in order of liquidity. List Property, Plant and Equipment in
order of Land, Building and Equipment.)

Exercise 136

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If $80,000 is deposited annually
starting on January 1, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay and it earns 15%, how much will accumulate by
December 31, 2023?(Round factor values to
5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g.
458,581.)
(Use the below table.)

Problem 144 (Part Level Submission)
Bates Company has entered into two
lease agreements. In each case the cash equivalent purchase price of the asset
acquired is known and you wish to find the interest rate which is applicable to
the lease payments.
Calculate the implied interest rate for the lease payments.
(Use the below tables.)

Problem 144 (Part Level Submission)
Bates Company has entered into two
lease agreements. In each case the cash equivalent purchase price of the asset
acquired is known and you wish to find the interest rate which is applicable to
the lease payments.
Calculate the implied interest rate for the lease payments.
(Use the below tables.)

Problem 145 (Part Level Submission)
Pine Leasing Company purchased
specialized equipment from Wayne Company on December 31, 2013 for $720,000. On
the same date, it leased this equipment to Sears Company for 5 years, the
useful life of the equipment. The lease payments begin January 1, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay and are
made every 6 months until July 1, 2018: 2024 – Write My Essay For Me | Essay Writing Service For Your Papers Online. Pine Leasing wants to earn 10% annually
on its investment.

Various
Factors at 10%

Periods
or Rents

Future
Value of $1

Present
Value of $1

Future
Value of an
Ordinary Annuity

Present
Value of an
Ordinary Annuity

9

2.35795

0.42410

13.57948

5.75902

10

2.59374

0.38554

15.93742

6.14457

11

6.49506

0.35049

18.53117

6.49506

Various
Factors at 5%

Periods
or Rents

Future
Value of $1

Present
Value of $1

Future
Value of an
Ordinary Annuity

Present
Value of an
Ordinary Annuity

9

1.01725

0.64461

11.02656

7.10782

10

1.62889

0.61391

12.57789

7.72173

11

8.30641

0.58468

14.20679

8.30641

Problem 145 (Part Level Submission)
Pine Leasing Company purchased
specialized equipment from Wayne Company on December 31, 2013 for $720,000. On
the same date, it leased this equipment to Sears Company for 5 years, the
useful life of the equipment. The lease payments begin January 1, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay and are
made every 6 months until July 1, 2018: 2024 – Write My Essay For Me | Essay Writing Service For Your Papers Online. Pine Leasing wants to earn 10% annually
on its investment.

Various
Factors at 10%

Periods
or Rents

Future
Value of $1

Present
Value of $1

Future
Value of an
Ordinary Annuity

Present
Value of an
Ordinary Annuity

9

2.35795

0.42410

13.57948

5.75902

10

2.59374

0.38554

15.93742

6.14457

11

6.49506

0.35049

18.53117

6.49506

Various
Factors at 5%

Periods
or Rents

Future
Value of $1

Present
Value of $1

Future
Value of an
Ordinary Annuity

Present
Value of an
Ordinary Annuity

9

1.01725

0.64461

11.02656

7.10782

10

1.62889

0.61391

12.57789

7.72173

11

8.30641

0.58468

14.20679

8.30641

Exercise 161

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Your answer is correct.

Accounts receivable in the amount of
$520,000 were assigned to the Fast Finance Company by Marsh, Inc., as security
for a loan of $590,000. The finance company charged a 2% commission on the face
amount of the loan, and the note bears interest at 4% per year.

During the first month, Marsh collected $380,000 on assigned accounts. This
amount was remitted to the finance company along with one month’s interest on
the note.

Make all the entries for Marsh Inc. associated with the transfer of the
accounts receivable, the loan, and the remittance to the finance company.(Credit account titles are automatically indented when the amount is
entered. Do not indent manually. Round answers to 0 decimal places, e.g.
5,275.)

Problem 162
The trial balance before
adjustment of Risen Company reports the following balances:

Dr.

Cr.

Accounts receivable

$100,000

Allowance for doubtful accounts

$1,000

Sales (all on credit)

500,000

Sales returns and allowances

20,000

Problem 163 (Part Level Submission)
On December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, Green Company finished
consultation services and accepted in exchange a promissory note with a face
value of $610,000, a due date of December 31, 2017, and a stated rate of 5%,
with interest receivable at the end of each year. The fair value of the
services is not readily determinable and the note is not readily marketable.
Under the circumstances, the note is considered to have an appropriate imputed
rate of interest of 10%.

The following interest factors are provided:

Interest
Rate

Table Factors For Three Periods

5%

10%

Future Value of 1

1.15763

1.33100

Present Value of 1

0.86384

0.75132

Future Value of Ordinary Annuity of 1

3.15250

3.31000

Present Value of Ordinary Annuity of
1

2.72325

2.48685

Problem 163 (Part Level Submission)
On December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, Green Company finished
consultation services and accepted in exchange a promissory note with a face
value of $610,000, a due date of December 31, 2017, and a stated rate of 5%,
with interest receivable at the end of each year. The fair value of the
services is not readily determinable and the note is not readily marketable.
Under the circumstances, the note is considered to have an appropriate imputed
rate of interest of 10%.

The following interest factors are provided:

Interest
Rate

Table Factors For Three Periods

5%

10%

Future Value of 1

1.15763

1.33100

Present Value of 1

0.86384

0.75132

Future Value of Ordinary Annuity of 1

3.15250

3.31000

Present Value of Ordinary Annuity of
1

2.72325

2.48685

Prepare a Schedule of Note
Discount Amortization for Green Company under the effective interest method.(Do not leave any answer field blank. Enter 0 for amounts.)

Problem 164 (Part Level
Submission)
Prepare journal entries for Mars Co. for:

(a)

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Your answer is correct.

Accounts receivable in the amount of
$1,150,000 were assigned to Utley Finance Co. by Mars as security for a loan
of $900,000. Utley charged a 2% commission on the accounts; the interest rate
on the note is 11%.(Credit account titles are automatically indented when the amount
is entered. Do not indent manually.)

Problem 164 (Part Level
Submission)
Prepare journal entries for Mars Co. for:

(b)

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Your answer is correct.

During the first month, Mars collected
$300,000 on assigned accounts after deducting $660 of discounts. Mars wrote
off a $920 assigned account.(Credit account titles are automatically indented when the amount
is entered. Do not indent manually.)

Problem 164 (Part Level
Submission)
Prepare journal entries for Mars Co. for:

(c)

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Your answer is correct.

Mars paid to Utley the amount collected
plus 3 month’s interest on the note.(Credit account titles are automatically indented when the amount
is entered. Do not indent manually.)

Problem 157

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Your answer is correct.

Vogts Company sells TVs. The perpetual inventory
was stated as $38,500 on the books at December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay. At the close of the
year, a new approach for compiling inventory was used and apparently a
satisfactory cut-off for preparation of financial statements was not made. Some
events that occurred are as follows.

1.

TVs shipped to a customer January 2,
2015 – Research Paper Writing Help Service, costing $5,000 were included in inventory at December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay. The
sale was recorded in 2015 – Research Paper Writing Help Service.

2.

TVs costing $12,000 received December
30, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, were recorded as received on January 2, 2015 – Research Paper Writing Help Service.

3.

TVs received during 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay costing
$4,600 were recorded twice in the inventory account.

4.

TVs shipped to a customer December
28, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, f.o.b. shipping point, which cost $9,000, were not received by the customer
until January, 2015 – Research Paper Writing Help Service. The TVs were included in the ending inventory.

5.

TVs on hand that cost $6,100 were
never recorded on the books.

Compute the correct inventory at December 31, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay.

Exercise 8-8 (Part Level
Submission)
Cruise Industries purchased
$10,100 of merchandise on February 1, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, subject to a trade discount
of 9% and with credit terms of 3/15, n/60. It returned
$2,800 (gross price before trade or cash discount) on February 4. The
invoice was paid on February 13.

(a)

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Your answer is correct.

Assuming that Cruise uses the perpetual
method for recording merchandise transactions, record the purchase, return,
and payment using the gross method.(If no entry is required, select “No entry” for the
account titles and enter 0 for the amounts. Round answers to 0 decimal
places, e.g. 6,578. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)

Exercise 8-8 (Part Level
Submission)
Cruise Industries purchased
$10,100 of merchandise on February 1, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, subject to a trade discount
of 9% and with credit terms of 3/15, n/60. It returned
$2,800 (gross price before trade or cash discount) on February 4. The
invoice was paid on February 13.

(b)

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Your answer is correct.

Assuming that Cruise uses the periodic
method for recording merchandise transactions, record the purchase, return,
and payment using the gross method.(If no entry is required, select “No entry” for the
account titles and enter 0 for the amounts. Round answers to 0 decimal
places, e.g. 6,578. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)

Exercise 8-8 (Part Level
Submission)
Cruise Industries purchased
$10,100 of merchandise on February 1, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, subject to a trade discount
of 9% and with credit terms of 3/15, n/60. It returned
$2,800 (gross price before trade or cash discount) on February 4. The
invoice was paid on February 13.

(c)

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.png” alt=”Correct answer.”>

Your answer is correct.

At what amount would the purchase on February
1 be recorded if the net method were used?(Round answer to 0 decimal places, e.g. 6,578.)

Exercise 8-18

Order | Check Discount