10 Accounting exercise questions

Anonymous
timer Asked: Jul 5th, 2018
account_balance_wallet $15

Question description

Answers need to be correct at least 90% or above.

Please see the attached.


Thank you.

Brief Exercise 7-15 Grouper Company designated Jill Holland as petty cash custodian and established a petty cash fund of $260. The fund is reimbursed when the cash in the fund is at $23, which it is. Petty cash receipts indicate funds were disbursed for office supplies $98 and miscellaneous expense $136. Prepare journal entries for the establishment of the fund and the reimbursement. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record establishment of the fund.) (To record reimbursement.) Exercise 9-4 Teal Company began operations in 2017 and determined its ending inventory at cost and at LCNRV at December 31, 2017, and December 31, 2018. This information is presented below. Cost Net Realizable Value 12/31/17 $315,690 $293,860 12/31/18 437,360 419,880 (a) Prepare the journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-ofgoods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date 12/31/17 12/31/18 Account Titles and Explanation Debit Credit (b) Prepare journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at cost and a perpetual system using the loss method. (Use Recovery of Loss Inventory account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/17 12/31/18 (c) Which of the two methods above provides the higher net income in each year? Brief Exercise 13-5 Kingbird Corporation made credit sales of $43,800 which are subject to 7% sales tax. The corporation also made cash sales which totaled $18,618 including the 7% sales tax. Don't show me this message again for the assignment Prepare the entry to record Kingbird’s credit sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Don't show me this message again for the assignment Prepare the entry to record Kingbird’s cash sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Brief Exercise 13-10 Sheridan Inc. is involved in a lawsuit at December 31, 2017. Don't show me this message again for the assignment Prepare the December 31 entry assuming it is probable that Sheridan will be liable for $896,500 as a result of this suit. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2017 Don't show me this message again for the assignment Prepare the December 31 entry, if any, assuming it is not probable that Sheridan will be liable for any payment as a result of this suit. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit December 31, 2017 Brief Exercise 13-13 Vaughn Factory provides a 2-year warranty with one of its products which was first sold in 2017. Vaughn sold $986,900 of products subject to the warranty. Vaughn expects $117,650 of warranty costs over the next 2 years. In that year, Vaughn spent $65,190 servicing warranty claims. Prepare Vaughn’s journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2017 (To record sales) During 2017 (To record warranty claims) 12/31/17 Brief Exercise 14-3 The Splish Company issued $370,000 of 7% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds were issued at 96. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Splish Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) No. Date (a) January 1, 2017 Account Titles and Explanation Debit Credit (b) (c) Brief Exercise 14-12 Sheffield Corporation issued a 4-year, $53,000, 5% note to Greenbush Company on January 1, 2017, and received a computer that normally sells for $41,732. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare Sheffield’s journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) January 1, 2017 (b) December 31, 2017 Brief Exercise 14-14 Sweet Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 12% and has a carrying value of $19,000. At year-end, Sweet’s borrowing rate (credit risk) has declined; the fair value of the note payable is now $21,000. Don't show me this message again for the assignment Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) $ Unrealized Holding Gain or Loss Don't show me this message again for the assignment Prepare the entry to record any unrealized holding gain or loss. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Brief Exercise 21-11 Sarasota Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $105,300 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $43,200 payable each January 1, beginning January 1, 2017. An interest rate of 12% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Prepare Sarasota’s January 1, 2017, journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Click here to view factor tables Date Account Titles and Explanation January 1, 2017 (To record the lease.) January 1, 2017 Debit Credit (To record cost.) January 1, 2017 (To record first lease payment.) Exercise 21-1 On January 1, 2017, Waterway Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Waterway to make annual payments of $8,634 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $4,900 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Waterway uses the straight-line method of depreciation for all of its plant assets. Waterway’s incremental borrowing rate is 10%, and the lessor’s implicit rate is unknown. Click here to view factor tables Don't show me this message again for the assignment Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) $ The present value of the minimum lease payments Don't show me this message again for the assignment Prepare all necessary journal entries for Waterway for this lease through January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. 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. 58,971.) Date Account Titles and Explanation Debit Credit (To record the lease.) (To record first payment.) (To record depreciation.) (To record interest.) 1/1/18 (To record second payament.)

Tutor Answer

Teacher_Lucia
School: UT Austin

Hi, here is the answers, if there are wrong answers, please message me okay :).

Brief Exercise 7-15
Grouper Company designated Jill Holland as petty cash custodian and established a petty cash
fund of $260. The fund is reimbursed when the cash in the fund is at $23, which it is. Petty cash
receipts indicate funds were disbursed for office supplies $98 and miscellaneous expense $136.
Prepare journal entries for the establishment of the fund and the reimbursement. (If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts. Credit
account titles are automatically indented when the amount is entered. Do not indent
manually.)
Answer:
Account Titles and Explanation

Debit

Credit

260

Petty Cash

260

Cash
(To record establishment of the fund.)

Office Supplies

98

Micesllaneous Expense

136

cash over and short

3

Cash

237

(To record reimbursement.)

Exercise 9-4
Teal Company began operations in 2017 and determined its ending inventory at cost and at
LCNRV at December 31, 2017, and December 31, 2018. This information is presented below.
Cost

Net Realizable Value

12/31/17

$315,690

$293,860

12/31/18

437,360

419,880

(a) Prepare the journal entries required at December 31, 2017, and December 31, 2018,
assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-ofgoods-sold method. (Credit account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select "No entry" for the
account titles and enter 0 for the amounts.)
Answer:

Date
12/31/17

Account Titles and Explanation

Cost of Goods Sold

Debit

Credit

21,830

Allowance to Reduce Inventory to NRV
12/31/18

Allowance to Reduce Inventory to NRV

21,830
4,350

Cost of Goods Sold

4,350

(b) Prepare journal entries required at December 31, 2017, and December 31, 2018, assuming
inventory is recorded at cost and a perpetual system using the loss method. (Use Recovery of
Loss Inventory account.) (Credit account titles are automatically indented when amount
is entered. Do not indent manually. If no entry is required, select "No entry" for the
account titles and enter 0 for the amounts.)
Answer:
Date
12/31/17

Account Titles and Explanation

Loss due to Decline of Inventory to NRV

Debit

Credit

21,830

Allowance to Reduce Inventory to NRV
12/31/18

Allowance to Reduce Inventory to NRV

21,8...

flag Report DMCA
Review

Anonymous
Awesome! Exactly what I wanted.

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors