Ashford acc 205 week 4 liability

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Ashford acc 205 week 4 liability

  1. 1. ASHFORD ACC 205 Week 4 Liability PLEASE DOWNLOAD HERELiability. Please complete each of the exercises below in a word document. Savethe document, and submit it in the appropriate week using the AssignmentSubmission button.1. Prepayments by customersGreenland Enterprises began a new magazine in the fourth quarter of 19X2.Annual subscriptions, which cost $18 each, were sold as follows: Number ofSubscriptionsSoldOctober400November700December1,000If subscriptions begin (and magazines are sent) in the month of sale:a. Present the necessary journal entry to record the magazine subscriptions soldduring the fourth quarter.b. Determine how much subscription revenue Greenland earned by the end of19X2.c. Compute Greenlands liability to subscribers at the end of 19X2.2. Notes payableSentry Security Systems purchased $72,000 of office equipment on April 1, 19X3,by signing a three-year, 12% note payable to Sharp, Inc. One-third of theprincipal, along with interest on the outstanding balance, is payable each April 1until maturity. (The first payment is due in 19X4.)
  2. 2. a. Fill in the following table to reflect Sentrys liabilities, assuming a March 31year-end.March 3119X4 19X5 19X6Current liabilitiesCurrent portion of long-term debtInterest payableLong-term liabilitiesLong-term debtamount. The note is due in 30 days and carries a 14% interest rate.Oct.10The note to Paris Enterprises was paid in full.11The note to Datatex Equipment was due today, but insufficient funds wereavailable for payment. Management authorized the issuance of a new 20-day,18% note for $60,700, the maturity value of the original obligation.31The new note to Datatex Equipment was paid in full.a. Income is divided on the basis of a ratio of the beginning capital investments.b. Partners are allowed 12% interest on their investments; the remaining profitsand losses are allocated on a 6 :1 :3 basis.c. Frank and Hogan each receive salary allowances of $24,000 per year; theremaining profits and losses are shared equally.6. Investment by partners; financial statementsAbram, Haas, and Tidwell formed a partnership to practice law by combining theirrespective sole proprietorships. The assets and liabilities contributed to the firmon January 2, 19X4, the date of formation, follow. Abram
  3. 3. LandBookValue$40,000FairMarketValue$115,000Mortgagepayable38,00038,000HaasOfficesupplies42,00030,000Officeequipment64,00048,000TidwellCash50,00050,000Accountsreceivable20,00018,000Short-terminvestments4,000
  4. 4. 7,000

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