9.10 Stock Cards for donations and drawings of stock
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VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.
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9.13 Accounting for stock gains and losses
VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.
9.4 The Stock Control account
VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.
21.8 Re-creating the Stock and Creditors Control ledgers
The document discusses recreating stock and creditors control ledgers for budgeting purposes. It provides an example of recreating the stock control ledger for a business. It shows the opening stock balance, expected cost of sales, stock losses, drawings by the owner, and planned closing stock balance. It then solves to find that $12,300 of stock purchases are needed during the month. A similar process is shown to recreate the creditors control ledger using expected purchases on credit, discount revenue, returns, and planned closing creditors balance to solve that $12,000 of estimated payments to creditors are needed. The document outlines factors that increase or decrease the stock and creditors control ledger balances.
21.6 Re-creating the Debtors Control ledger
The document describes how to recreate a debtors control ledger for a small business for the month of January 2015. It provides the opening balance of debtors as $3,000 on January 1st. It then lists expected credit sales, discounts given, bad debts, and sales returns for the month. It calculates the estimated collections from debtors as $18,000 by taking the total sales and payments and subtracting discounts, bad debts, returns, and the closing balance. Recreating the debtors control ledger involves tracking additions like sales and payments in, and subtractions like discounts, debts, and returns out to calculate the estimated collections amount.
21.3 Budgeting for debtor receipts
The document discusses budgeting for debtor receipts, including discounts and bad debts. It provides an example where a firm expects $50,000 in credit sales plus $5,000 in GST in 2015. Discounts are expected to be 5% of total amounts owing from credit sales, and bad debts are also expected to be 5% of total amounts owing. Discounts and bad debts are calculated on the GST inclusive amount. The document also discusses using past collection history to budget expected receipts from debtors in the current month and subsequent months.
21.1 The need for Budgeting
Budgeting involves planning for the future by making estimates of expected financial results rather than reporting on past events. While budgets provide relevant information for decision making, they are less reliable than actual historical reports because they are based on estimates and guesses about future performance. Budgets require preparing projected income statements, cash flow statements, and balance sheets to plan finances for the upcoming period.
21.10 Budgeting for prepaid expenses and cost of sales
The document discusses budgeting for prepaid expenses and cost of sales. It provides examples of how to calculate budgeted sales given a cost of sales and mark-up percentage. It also shows how to calculate budgeted cost of sales given budgeted sales and a target gross profit percentage. Specifically:
1) If cost of sales is budgeted at $50,000 and mark-up is 50%, budgeted sales are $75,000.
2) If cost of sales is $100,000 and mark-up is 150%, budgeted sales are $250,000.
3) If sales are budgeted at $150,000 and mark-up is 50%, budgeted cost of sales
15.4 Recording returns in Stock Cards
The document discusses how to record returns in stock cards. For purchase returns, the value entered in the stock card is the value listed on the supplier's credit note. For sales returns, a last-in, first-out (LIFO) approach is used - the most recent stock purchased is returned first until all returned units are accounted for, then it moves to the next most recent price if more are returned. Several examples are provided to illustrate entering sales and purchase returns in stock cards.
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VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.
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VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.
21.8 Re-creating the Stock and Creditors Control ledgers
The document discusses recreating stock and creditors control ledgers for budgeting purposes. It provides an example of recreating the stock control ledger for a business. It shows the opening stock balance, expected cost of sales, stock losses, drawings by the owner, and planned closing stock balance. It then solves to find that $12,300 of stock purchases are needed during the month. A similar process is shown to recreate the creditors control ledger using expected purchases on credit, discount revenue, returns, and planned closing creditors balance to solve that $12,000 of estimated payments to creditors are needed. The document outlines factors that increase or decrease the stock and creditors control ledger balances.
21.6 Re-creating the Debtors Control ledger
The document describes how to recreate a debtors control ledger for a small business for the month of January 2015. It provides the opening balance of debtors as $3,000 on January 1st. It then lists expected credit sales, discounts given, bad debts, and sales returns for the month. It calculates the estimated collections from debtors as $18,000 by taking the total sales and payments and subtracting discounts, bad debts, returns, and the closing balance. Recreating the debtors control ledger involves tracking additions like sales and payments in, and subtractions like discounts, debts, and returns out to calculate the estimated collections amount.
21.3 Budgeting for debtor receipts
The document discusses budgeting for debtor receipts, including discounts and bad debts. It provides an example where a firm expects $50,000 in credit sales plus $5,000 in GST in 2015. Discounts are expected to be 5% of total amounts owing from credit sales, and bad debts are also expected to be 5% of total amounts owing. Discounts and bad debts are calculated on the GST inclusive amount. The document also discusses using past collection history to budget expected receipts from debtors in the current month and subsequent months.
21.1 The need for Budgeting
Budgeting involves planning for the future by making estimates of expected financial results rather than reporting on past events. While budgets provide relevant information for decision making, they are less reliable than actual historical reports because they are based on estimates and guesses about future performance. Budgets require preparing projected income statements, cash flow statements, and balance sheets to plan finances for the upcoming period.
21.10 Budgeting for prepaid expenses and cost of sales
The document discusses budgeting for prepaid expenses and cost of sales. It provides examples of how to calculate budgeted sales given a cost of sales and mark-up percentage. It also shows how to calculate budgeted cost of sales given budgeted sales and a target gross profit percentage. Specifically:
1) If cost of sales is budgeted at $50,000 and mark-up is 50%, budgeted sales are $75,000.
2) If cost of sales is $100,000 and mark-up is 150%, budgeted sales are $250,000.
3) If sales are budgeted at $150,000 and mark-up is 50%, budgeted cost of sales
15.4 Recording returns in Stock Cards
The document discusses how to record returns in stock cards. For purchase returns, the value entered in the stock card is the value listed on the supplier's credit note. For sales returns, a last-in, first-out (LIFO) approach is used - the most recent stock purchased is returned first until all returned units are accounted for, then it moves to the next most recent price if more are returned. Several examples are provided to illustrate entering sales and purchase returns in stock cards.
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This document discusses adjusting entries in accounting. It explains that adjusting entries are needed when revenue or expenses affect more than one accounting period. There are four main types of adjusting entries: 1) converting assets to expenses, 2) converting liabilities to revenue, 3) accruing unpaid expenses, and 4) accruing uncollected revenue. The document provides examples of each type of adjusting entry and explains how they affect the financial statements. It also discusses key accounting concepts like accruals, deferrals, and depreciation expense.
19.1 - Cash vs accrual accounting
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- Under the reconstruction plan, equity shares were reduced to Rs. 5 per share and preference shares to Rs. 80 per share. New shares were issued in exchange for old shares.
- Equity shares were also issued at Rs. 5 per share to pay off 50% of accumulated preference share dividends in arrears.
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15.3 Sales Returns
- Elsternwick Electricals sold 4 light fittings to Southern Primary School for $320 plus GST of $32
- Southern Primary School returned the light fittings because they were the wrong size
- Elsternwick Electricals issued Credit Note 9 and recorded the sales return in their accounts
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The document discusses a budgeted balance sheet, which estimates a firm's assets, liabilities, and owner's equity at a future date. It provides examples of how to budget for prepaid expenses and accrued expenses by showing the expected balances on the budgeted balance sheet compared to the starting balances, and how the related transactions would be recorded on the budgeted cash flow statement and income statement. Specifically, it demonstrates budgeting for prepaid rent that is paid for in the current year but applies to next year, and accrued wages where some of the wages paid in the current year satisfy a liability from the previous year.
Reconstruction of companies solved problem
- The company was undergoing financial difficulties and reconstruction was needed.
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- Elsternwick Electricals sold 4 light fittings to Southern Primary School for $320 plus GST of $32
- Southern Primary School returned the light fittings because they were the wrong size
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- Recording sales returns separately from sales allows the financial statements to clearly show the level of sales returns, which can help the business analyze reasons for returns and make appropriate decisions
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The document describes a budgeted income statement, which estimates revenues, expenses, and profit over a specific time period like a month, quarter, or year. It then provides an example budgeted income statement for the year ended December 31, 2015, including estimated revenues of $100,000, cost of goods sold of $51,000, other expenses of $35,000, and a projected net profit of $18,000. Finally, it compares line items that appear on an income statement and cash flow statement.
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This document compares cash accounting and accrual accounting. Cash accounting measures profit based on cash received from revenue and cash paid for expenses. Accrual accounting measures profit based on revenue earned and expenses incurred regardless of when cash is received or paid. Accrual accounting provides a more accurate measure of net profit as it accounts for transactions that occur across reporting periods. Examples are provided to illustrate the differences between cash and accrual accounting treatment of transactions like prepaid expenses, credit sales, and depreciation.
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This document discusses the accounting cycle and financial statement preparation for JJ's Lawn Care Service for the month ending May 31, 2003. It includes the adjusted trial balance, income statement, statement of owner's equity, balance sheet, statement of cash flows, and the closing entries to prepare the after-closing trial balance. The financial statements are used to evaluate the business's profitability, solvency, and how efficiently resources are being used to help focus management's attention. Companies often prepare financial statements at different intervals throughout the year.
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This chapter discusses preparing financial statements for JJ's Lawn Care Service for the month of May. It covers creating an adjusted trial balance, statements of retained earnings, owner's equity, and cash flows. It also discusses drafting notes to the financial statements, closing temporary accounts through journal entries, and evaluating the business based on the financial statements.
Whbm05
This document discusses the accounting cycle and preparing financial statements. It provides an example of JJ's Lawn Care Service adjusting trial balance, income statement, statement of retained earnings, balance sheet, and statement of cash flows for May. It then discusses closing entries, evaluating the business using financial statements, and preparing interim financial statements at different points in the year.
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The budgeted cash flow statement for a firm projects a cash balance of -$1,600 at the end of the quarter. Key areas of concern are that operating activities are not expected to generate sufficient cash and payments to creditors equal total cash sales. As a result, the firm will not be able to purchase a new $7,000 computer system in July without obtaining additional financing or reducing other expenses. The firm will need to consider options like obtaining a loan, deferring asset purchases or payments, or having the owner contribute capital.
Accruals
This document discusses the accounting concepts of accruals and deferrals. Accrual accounting records transactions when they occur rather than when cash is exchanged. Examples of accrual events include sales on credit, wages expense, and interest expense. Accounts receivable and accounts payable arise from accruals. The document also discusses how to accrue revenues, expenses, interest, and taxes before preparing financial statements. Deferred revenues and expenses occur when cash is received or paid before the revenue is earned or expense incurred. Examples of deferrals include prepaid rent, insurance, and supplies.
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This document discusses various aspects of accounting for cash and receivables. It begins by explaining how businesses need sufficient cash on hand to pay bills and covers common types of financial assets like cash, short-term investments, and accounts receivable. It then discusses how these assets are valued on the balance sheet and issues related to cash management, internal controls over cash, bank reconciliations, and estimating and accounting for uncollectible accounts receivable.
21.4 Budgeting for creditor payments
The document summarizes a company's budget for creditor payments in October 2015. It shows that in August the company made credit purchases of $5,000 plus $500 GST for a total of $5,500. In September, credit purchases were $7,000 plus $700 GST for a total of $7,700. The budgeted purchases for October are $4,000 plus $400 GST for a total of $4,400. Based on past payments, 90% of creditors are typically repaid the month after purchase to receive a 5% discount, while the remaining 10% are repaid the second month after purchase.
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The document describes a purchase return transaction. Elsternwick Electricals originally purchased $170 of goods plus $17 of GST from Wholesale Trading on credit on January 17th. However, on January 24th Elsternwick returned the goods to Wholesale Trading as they were faulty. Wholesale Trading issued a credit note to Elsternwick for the return. The document provides the journal entries to record the original purchase and subsequent return in the general ledger and subsidiary ledgers of Elsternwick Electricals.
17.10 Summary of disposal procedures
The document outlines the steps to account for the disposal of assets, including transferring the asset's historical cost and accumulated depreciation to a disposal account, recording any proceeds or trade-in allowances, and then closing the disposal account to either a profit or loss on disposal account. It also details similar steps for trading in assets, including recording the purchase of a new asset through a sundry creditor account.
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Acc 227 week 7 dq 1
This document contains instructions and information for several accounting exercises and questions. It includes details about stock splits, stock dividends, equity transactions, earnings per share calculations, and links to additional online resources and tutorials. Students are to record journal entries, prepare balance sheet sections, and compute earnings per share data based on the information provided for various corporations.
All answers must be on the answer sheet provided. $ and . needed.docx
All answers must be on the answer sheet provided. $ and . needed
Question 1
(30 points)
QUESTION 1A
On December 31, 2015, Raleigh Corp. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
The following events occurred during 2015 and were not recorded:
a
On January 1, Raleigh Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share.
Stock dividends were distributed on January 31 to shareholders as of January 25.
c. On February 15, Raleigh reacquired 1,000 shares of common stock for $20 each.
d. On March 31, Raleigh reissued 250 shares of treasury stock for $25 each.
e. On July 1, Raleigh reissued 500 shares of treasury stock for $16 each.
f. On October 1, Raleigh declared full year dividends for preferred stock (
see outstanding shares in table above).
g. Then, paid preferred shareholders on October 15
h. On October 1, Raleigh also declared $1.50 cash dividends for the 104,750 remaining common outstanding shares.
i. Then, paid common shareholders on October 15.
j. On December 15, Raleigh split common stock 2 shares for 1.
QUESTION 1B
Given below is information for the Stockholder Equity section of Jones Balance Sheet as of December, 2014
b
8% Preferred stock, $100 par value, 10,000 shares authorized, 5,000 shares issued and outstanding.
c
Common stock, no par, $2 stated value, 500,000 shares authorized, 204,000 shares issued and outstanding
d
Additional paid-in capital:
Preferred stock in excess of par value is $34,000
Common stock in excess of stated value is $437,000
Requirements:
Prepare a Stockholders' section of Jones classified balance sheet as of December 31, 2014.
Question 2
(5 points)
On January 1, 2016, XYZ Company purchased shares of the stock of Rayco, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $90,000, and represents a 30% ownership stake. Rayco made $25,000 of net income in 2014, and paid dividends of $10,000.
Requirements:
Prepare the January 1 and December 31 general journal entries for XYZ Company.
How much should the XYZ Company report on the balance sheet for the investment in Rayco at the end of 2016?
Question 3
(10 points)
The following is selected information from Reliant Company for the fiscal years ended December 31, 2016: Reliant Company had net income of $1,225,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $40,000. Depreciation was $500,000. Purchases of plant assets were for $1,250,000 cash, and sold plant assets for $500,000 cash, which resulted in a $50,000 gain. Stock was issued in exchange for an outstanding note payable of $725,000. Dividends of $300,000.
Week 6 assignment· do problems 1, 2 3 and 4 (see below)· Reso.docx
Week 6 assignment:
· do problems 1, 2 3 and 4 (see below)
· Resource: Chapters. 11 and 12 of your text.
· Submit as either a Microsoft® Excel® or Microsoft® Word document (Excel is preferred)
Problem #1 -- Issuing stock
Bellvue Products Inc., a wholesaler of office products, was organized on January 30 of the current year, with an authorization of 80,000 shares of 2% preferred stock, $75 par and 800,000 shares of $20 par common stock. The following selected transactions were completed during the first year of operations:
Jan. 30. Issued 300,000 shares of common stock at par for cash.
31. Issued 750 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Feb. 21. Issued 32,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $150,000, $460,000, and $90,000, respectively.
Mar. 2. Issued 15,000 shares of preferred stock at $77.50 for cash. Journalize the transactions.
Journalize the entries to record the transactions.
Problem #2 – Treasury stock transactions
Tom’s Lawn Equipment Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On June 19 of the current year, Tom’s Lawn Equipment Inc. reacquired 24,000 shares of its common stock at $64 per share. On August 30, 19,000 of the reacquired shares were sold at $68 per share, and on September 6, 3,000 of the reacquired shares were sold at $70.
a. Journalize the transactions of June 19, August 30, and September 6.
b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
c. What is the balance in Treasury Stock on December 31 of the current year?
d. How will the balance in Treasury Stock be reported on the balance sheet?
Problem #3 -- Entries for selected corporate transactions
Bath ‘n More Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Bath ‘n More Inc., with balances on January 1, 2012, are as follows:
Common Stock, $10 stated value (600,000 shares authorized, 400,000 shares issued) $4,000,000
Paid-In Capital in Excess of Stated Value 750,000
Retained Earnings 9,150,000
Treasury Stock (40,000 shares, at cost) 600,000
The following selected transactions occurred during the year:
Jan. 4. Paid cash dividends of $0.13 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $46,800.
Apr. 3. Issued 75,000 shares of common stock for $1,200,000.
June 6. Sold all of the treasury stock for $725,000.
July 1. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.
Aug. 15. Issued the certificates for the dividend declared on July 1.
Nov. 10. Purchased 25,000 shares of treasury stock for $500,000.
Dec. 27. Declared a $0.16-per-share dividend on common stock.
31. Closed the credit balance of the income summary account, $950,000.
31. Closed the two divid.
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Acct 221Final Exam Student NameQuestion 1 30 pointsa. .docx
Acct 221Final Exam
Student Name:
Question 1: 30 points
a. General Journal Entries
Date
Account
Debit
Credit
b. Partial Classified Balance Sheet
Question 2: 5 points
a. General Journal Entries
Date
Account
Debit
Credit
b. Stock Investments Accounts Balance 12/31/14:
Question 3: 10 points
Question 4: 15 points
Date
Account
Debit
Credit
Question 5: 10 points
a.1.
Breakeven Sales Dollars
a.2.
Breakeven Units
b.1.
Breakeven Sales Dollars
b.2.
Breakeven Units
Question 6: 5 points
Question 7: 6 points
Produce
Buy
Question 1 (30 points)
QUESTION 1A
On December 31, 2015, Raleigh Corp. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
The following events occurred during 2015 and were not recorded:
a On January 1, Raleigh Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share.
Stock dividends were distributed on January 31 to shareholders as of January 25.
c. On February 15, Raleigh reacquired 1,000 shares of common stock for $20 each.
d. On March 31, Raleigh reissued 250 shares of treasury stock for $25 each.
e. On July 1, Raleigh reissued 500 shares of treasury stock for $16 each.
f. On October 1, Raleigh declared full year dividends for preferred stock (see outstanding shares in table above).
g. Then, paid preferred shareholders on October 15
h. On October 1, Raleigh also declared $1.50 cash dividends for the 104,750 remaining common outstanding shares.
i. Then, paid common shareholders on October 15.
j. On December 15, Raleigh split common stock 2 shares for 1.
QUESTION 1B
Given below is information for the Stockholder Equity section of Jones Balance Sheet as of December, 2014
b 8% Preferred stock, $100 par value, 10,000 shares authorized, 5,000 shares issued and outstanding.
c Common stock, no par, $2 stated value, 500,000 shares authorized, 204,000 shares issued and outstanding
d Additional paid-in capital:
Preferred stock in excess of par value is $34,000
Common stock in excess of stated value is $437,000
Requirements:
Prepare a Stockholders' section of Jones classified balance sheet as of December 31, 2014.
Question 2 (5 points)
On January 1, 2016, XYZ Company purchased.
For this exam, omit all general journal entry explanations.Ensure .pdf
For this exam, omit all general journal entry explanations.
Ensure to include correct dollar signs, underlines & double underlines.
Question1: 30% points:
On December 31, 2014, Flimsy Incorporated, had the following balances (all balances are
normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares
issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and
outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2014 and were not recorded:
a. On January 1, Flimsy declared a 5% stock dividend on its common stock when the
market value of the common stock was $15 per share. Stock dividends were distributed on
January 31 to shareholders as of January 25.
b. On February 15, Flimsy reacquired 1,000 shares of common stock for $20 each.
c. On March 31, Flimsy reissued 250 shares of treasury stock for $25 each.
d. On July 1, Flimsy reissued 500 shares of treasury stock for $16 each.
e. On October 1, Flimsy declared full year dividends for preferred stock and $1.50 cash
dividends for outstanding shares and paid shareholders on October 15.
f. One December 15, Flimsy split common stock 2 shares for 1.
g. Net Income for 2014 was $275,000.
Requirements:
a. Prepare journal entries for the transactions listed above.
b. Prepare a Stockholders\' section of a classified balance sheet as of December 31, 2014.
Ensure to include correct dollar signs, underlines & double underlines.
Date
Account
Debit
Credit
Comment
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares
issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and
outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
Solution
Journal entries:
Date
Accounts Title
Debit $
Credit $
Jan. 1
Retained Earnings (100000 Shares x 5%x$15)
75,000.00
Dividend Distributable (100000 Shares× 5%x$15)
75,000.00
(Being Stock Dividend Declared)
Jan. 31
Dividend Distributable
75,000.00
Paid-in Capital in Excess of par, Common (100,000 Shares x5%x($15- $10)
25,000.00
Common Stock (100000 Shares ×5%x$10)
50,000.00
(Being Stock Dividend Distributed)
Feb. 15
Treasury Stock
20,000.00
Cash (1,000x$20)
20,000.00
(Being 1000 Shares required)
Mar. 31
Cash (250 Sharesx$25)
6,250.00
Paid-in Capital in Excess of par, Common (250 Shares x ($25-20)
1,250.00
Treasury Stock (250 Shares x $20)
5,000.00
Rissued 250 shares of treasury stock for $25 each)
Jul. 1
Cash (500 Shares x $16)
8,000.00
Paid-in Capital in Excess of par, Common (500 Shares x ($20-16)
2,000.00
Treasury Stock (500 Shares x$20)
10,000.00
(To record the issued 500 shares of treasury stock for $16 each)
Oct. 1
Reatined Earnings
199,625.00
Dividend Distributable (50,000+149,625)
199,625.00
(To record the Dividend Declared)
Pref.
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Omit all general journal entry explanations.Be sure to include cor.docx
Omit all general journal entry explanations.Be sure to include correct dollar signs, underlines and double underlines.
Question 1 (15 points) Statement of Cash Flows
The following is selected information from Murphy Company for the fiscal years ended December 31, 2015: Murphy Company had net income of $500,000. Depreciation was $50,000, purchases of plant assets were $ 250,000, and disposals of plant assets for $500,000 resulted in a $20,000 gain. Stock was issued in exchange for an outstanding note payable of $925,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $10,000. Dividends of $200,000 were paid to shareholders. Murphy Company had interest expense of $5,000. Cash balance on January 1, 2015 was $250,000.
Requirements:Prepare Murphy Company's statement of cash flows for the year ended December 31, 2015 using the indirect method.
Hint (recall the 3 sections)
Question 2 (10 points)
On January 1, 2015, Baker Company purchased 10,000 shares of the stock of Murphy, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $70,000, and represents a 25% ownership stake. Murphy made $20,000 of net income in 2015, and paid dividends of $10,000. The price of Murphy's stock increased from $20 per share at the beginning of the year, to $22 per share at the end of the year.
Requirements:
a. Prepare the January 1 and December 31 general journal entries for Baker Company.
b. How much should the Baker Company report on the balance sheet for the investment in Murphy at the end of 2015?
Question 3 (20 Points)
On December 31, 2016, Murphy Inc. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2016 and were not recorded:
a. On January 1, Murphy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b. On February 15, Murphy re-acquired 1,000 shares of common stock for $20 each.
c. On March 31, Murphy reissued 250 shares of treasury stock for $25 each.
d. On July 1, Murphy reissued 500 shares of treasury stock for $16 each.
e. On October 1, Murphy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f. On December 15, Murphy split common stock 2 shares for 1.
g. Net Income for 2016 was $275,000.
Requirements:
a. Prepare journal entries for the transactions listed above.
b. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2016.
c.
Question 4 (14 points)
4A. Janu.
Acc 227 week 7 dq 2
This document contains accounting questions and problems related to stock splits, stock dividends, equity transactions, earnings per share calculations, and preferred stock conversions. It includes journal entries, balance sheet preparations, and computations for basic and diluted EPS. The document provides a complete course guide for ACC 227 Week 7 available at the given URL.
Omit all general journal entry explanations.Be sure to include c.docx
Omit all general journal entry
explanations.
Be sure to include correct dollar signs, underlines and double underlines.
Question 1 (15 points) Statement of Cash Flows
The following is selected information from Murphy Company for the fiscal years ended December 31, 2015: Murphy Company had net income of $500,000. Depreciation was $50,000, purchases of plant assets were $ 250,000, and disposals of plant assets for $500,000 resulted in a $20,000 gain. Stock was issued in exchange for an outstanding note payable of $925,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $10,000. Dividends of $200,000 were paid to shareholders. Murphy Company had interest expense of $5,000. Cash balance on January 1, 2015 was $250,000.
Requirements:Prepare Murphy Company's statement of cash flows for the year ended December 31, 2015 using the indirect method.
Hint (recall the 3 sections)
Question 2 (10 points)
On January 1, 2015, Baker Company purchased 10,000 shares of the stock of Murphy,
and did obtain significant influence
. The investment is intended as a long-term investment. The stock was purchased for $70,000, and represents a 25% ownership stake. Murphy made $20,000 of net income in 2015, and paid dividends of $10,000. The price of Murphy's stock increased from $20 per share at the beginning of the year, to $22 per share at the end of the year.
Requirements:
a.
Prepare the January 1 and December 31 general journal entries for Baker Company.
b.
How much should the Baker Company report on the balance sheet for the investment in Murphy at the end of 2015?
Question 3 (20 Points)
On December 31, 2016, Murphy Inc. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2016 and were not recorded:
a.
On January 1, Murphy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b.
On February 15, Murphy re-acquired 1,000 shares of common stock for $20 each.
c.
On March 31, Murphy reissued 250 shares of treasury stock for $25 each.
d.
On July 1, Murphy reissued 500 shares of treasury stock for $16 each.
e.
On October 1, Murphy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f.
On December 15, Murphy split common stock 2 shares for 1.
g.
Net Income for 2016 was $275,000.
Requirements:
a.
Prepare journal entries for the transactions listed above.
b.
Prepare a Stockholders' section of a classified balance sheet as of December 31, 2016.
Question 4 (14 poi.
9706 y10 sp_4
This document is a specimen exam paper for an accounting exam. It consists of 3 exam questions testing various accounting concepts and calculations. The first question involves calculating goodwill and preparing financial statements after a business acquisition. The second question requires calculating and explaining various financial ratios for a company. The third question involves flexed and standard costing calculations and variances for a manufacturing business.
Day 2 may 7 08 ders.ch.10.plant assets
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Busi 320 Dev Shell - 2012 Fall BFoundations of Financial Managem.docx
Busi 320 Dev Shell - 2012 Fall B
Foundations of Financial Management ( Block , 14th ed.)
assignment: Homework 1
1.Problem 2-1 Income statement [LO1]
Frantic Fast Foods had earnings after taxes of $1,200,000 in the year 2009 with 322,000 shares outstanding. On January 1, 2010, the firm issued 30,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 24 percent.
(a)
Compute earnings per share for the year 2009. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Earnings per share
(b)
Compute earnings per share for the year 2010. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Earnings per share
2.Problem 2-3 Gross profit [LO1]
Hillary Swank Clothiers had sales of $428,000 and cost of goods sold of $260,000.
(a)
What is the gross profit margin (ratio of gross profit to sales)? (Round your answer to the nearest whole percentage. Omit the "%" sign in your response.)
Gross profit margin
(b)
If the average firm in the clothing industry had a gross profit of 35 percent, how is the firm doing?
The firm is .
3.Problem 2-4 Operating profit [LO1]
A-Rod Fishing Supplies had sales of $2,160,000 and cost of goods sold of $1,550,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,450,000.
What was the firm’s operating profit? (Omit the "$" sign in your response.)
Operating profit
4.Problem 2-6 Income statement [LO1]
Given the following information, prepare an income statement for the Dental Drilling Company. (Input all amounts as positive values. Omit the "$" sign in your response.)
Selling and administrative expense
$
72,000
Depreciation expense
71,000
Sales
536,000
Interest expense
45,000
Cost of goods sold
179,000
Taxes
53,000
5.Problem 2-7 Income statement [LO1]
Given the following information, prepare an income statement for Jonas Brothers Cough Drops. (Input all amounts as positive values. Omit the "$" sign in your response.)
Selling and administrative expense
$
326,000
Depreciation expense
196,000
Sales
1,600,000
Interest expense
124,000
Cost of goods sold
551,000
Taxes
167,000
6.Problem 2-11 Depreciation and earnings [LO1]
Stein Books, Inc., sold 2,300 finance textbooks for $200 each to High Tuition University in 2010. These books cost $170 to produce. Stein Books spent $12,300 (selling expense) to convince the university to buy its books.
Depreciation expense for the year was $15,500. In addition, Stein Books borrowed $102,000 on January 1, 2010, on which the company paid 17 percent interest. Both the interest and principal of the loan were paid on December 31, 2010. The publishing firm’s tax rate is 30 percent.
Prepare an income statement for Stein Books. (Input all amounts as positive values.Omit the "$" sign in your response.)
7.Problem 2-15 ...
Acc 557 homework 4 chapters 11 and 12
This document provides instructions for ACC 557 Homework 4 assignments covering accounting topics from Chapters 11 and 12. It includes exercises involving journal entries for stock transactions, stock dividends, and investments. It also includes problems calculating stockholders' equity accounts and preparing a classified balance sheet. Students are to complete the assignments in a Word or Excel document and submit by the due date of Week 8.
Stockholders’ Equity 1 Corporate Capital Illustration Experience Tradition/tu...
FOR MORE CLASSES VISIT
www.tutorialoutlet.com
Stockholders’ Equity 1 Corporate Capital
Illustration: Bad Corporation issued 300 shares of $10 par value common stock for $4,500. Prepare the journal entry to record the
issuance of the shares.
Similar to 9.10 Stock Cards for donations and drawings of stock (20)
All answers must be on the answer sheet provided. $ and . needed.docx
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Week 6 assignment· do problems 1, 2 3 and 4 (see below)· Reso.docx
Acct 221Final Exam Student NameQuestion 1 30 pointsa. .docx
Acct 221Final Exam Student NameQuestion 1 30 pointsa. .docx
For this exam, omit all general journal entry explanations.Ensure .pdf
For this exam, omit all general journal entry explanations.Ensure .pdf
Omit all general journal entry explanations.Be sure to include cor.docx
Omit all general journal entry explanations.Be sure to include cor.docx
Omit all general journal entry explanations.Be sure to include c.docx
Omit all general journal entry explanations.Be sure to include c.docx
Busi 320 Dev Shell - 2012 Fall BFoundations of Financial Managem.docx
Busi 320 Dev Shell - 2012 Fall BFoundations of Financial Managem.docx
Stockholders’ Equity 1 Corporate Capital Illustration Experience Tradition/tu...
Stockholders’ Equity 1 Corporate Capital Illustration Experience Tradition/tu...
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This document provides revision tests and solutions for the VCE Accounting Unit 3/4 exam. It lists 22 chapters that cover various accounting topics like balance sheets, cash journals, income statements, and budgeting. For each chapter, there is a test, solutions to the test, and instructions to submit answers online. The tests and solutions are designed to help students revise key content and concepts in preparation for their accounting exam.
Chapter 22 Analysis and Interpretation - Test 2 Solutions
Chapter 22 Analysis and Interpretation - Test 2 Solutions
Chapter 22 Analysis and Interpretation - Test 2
This document contains a 25 question multiple choice test on analysis and interpretation of business performance ratios. It provides context for the questions in the form of financial information from four sample businesses. The questions cover topics such as return on assets, working capital ratios, cash flow ratios, and analysis of sales and purchase returns. The test is intended to assess understanding of calculating and interpreting common financial ratios used to analyze business performance.
Chapter 22 Analysis and Interpretation - Test 1
This document contains a 25 question multiple choice test on analysis and interpretation of business performance. The test covers various financial ratios and concepts, including gross profit margin, net profit margin, return on assets, asset turnover ratio, and analyzing business performance over time and compared to benchmarks. Students are asked to select the best answer for each question by circling their response.
Chapter 22 Analysis and Interpretation - Test 1 Solutions
Chapter 22 Analysis and Interpretation - Test 1 Solutions
Chapter 21 Budgeting - Test 2
This document contains a test on budgeting concepts with multiple choice questions. It also includes information about a small business preparing budgets for October 2015 and January 2015, including expected sales, expenses, stock purchases and changes. The test questions require applying the business information to prepare budgeted financial statements such as the stock control ledger, creditors control ledger, cash flow statement, income statement and balance sheet.
Chapter 21 Budgeting - Test 1
This document contains a 25 question multiple choice test on budgeting concepts. The test questions cover topics like calculating cash collected from debtors and payments to creditors based on provided budget information. It also includes questions about which items would appear in budgeted cash flow statements and income statements. The document provides detailed budget information for various businesses to aid in answering the test questions.
Chapter 19 Prepaid and Accrued Revenues - Test
This document contains a 25 question multiple choice test on balance-day adjustments for revenue. It covers concepts like prepaid revenue, accrued revenue, and the journal entries required to record balance-day adjustments. It is from a VCE Accounting unit on analyzing business performance, and was created by an accounting teacher at Trinity Grammar School.
Chapter 18 Product Costs, Period Costs, NRV - Test Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test
This document contains a 25 question multiple choice test on inventory valuation. The questions cover topics like distinguishing between product and period costs, calculating inventory costs, recording inventory adjustments, and applying the lower of cost or net realizable value principle. It is from a VCE Accounting textbook chapter on inventory valuation and is intended for students to test their understanding of this topic.
Chapter 17 Buying and Selling Non-Current Assets - Test Solutions
Chapter 17 Buying and Selling Non-Current Assets - Test Solutions
Chapter 17 Buying and Selling Non-Current Assets - Test
This document contains a 25 question multiple choice test on accounting concepts related to buying and selling non-current assets. The test covers topics such as identifying appropriate journals to record asset purchases and sales, classifying asset-related accounts, calculating depreciation amounts, and recording journal entries for asset disposals. It provides detailed asset purchase, sale and disposal scenarios for students to apply their understanding of non-current asset accounting.
Chapter 16 Reducing Balance Depreciation - Test Solutions
Chapter 16 Reducing Balance Depreciation - Test Solutions
Chapter 16 Reducing Balance Depreciation - Test
This document contains a 25 question multiple choice test on reducing balance depreciation. It tests understanding of key concepts such as:
- The assumptions of reducing balance vs straight-line depreciation
- Calculating depreciation expense and accumulated depreciation using reducing balance method
- Applying accounting principles like consistency when selecting and changing depreciation methods
Chapter 15 Accounting for Returns - Test Solutions
Chapter 15 Accounting for Returns - Test Solutions
Chapter 15 Accounting for Returns - Test
This document contains a 25 question multiple choice test on accounting for returns of stock. It covers topics like identifying source documents for returns, journal entries to record various types of returns, calculating amounts, and updating accounts in subsidiary ledgers. The questions are designed to test understanding of concepts and procedures related to accounting for returns between businesses and their customers.
Chapter 14 Prepaid and Accrued Expenses - Test Solutions
Chapter 14 Prepaid and Accrued Expenses - Test Solutions
Chapter 14 Prepaid and Accrued Expenses - Test
This document appears to be a practice test for a unit on balance-day adjustments in accounting. It contains 25 multiple choice questions testing concepts related to adjusting entries, prepaid and accrued expenses, and their impact on financial statements. The questions cover topics such as cash vs accrual accounting, identifying prepaid and accrued items, journal entries for adjustments, and how adjustments affect accounts and statements.
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Chapter 22 Analysis and Interpretation - Test 2 Solutions
Chapter 22 Analysis and Interpretation - Test 2 Solutions
Chapter 22 Analysis and Interpretation - Test 1 Solutions
Chapter 22 Analysis and Interpretation - Test 1 Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test Solutions
Chapter 18 Product Costs, Period Costs, NRV - Test
Chapter 18 Product Costs, Period Costs, NRV - Test
Chapter 17 Buying and Selling Non-Current Assets - Test Solutions
Chapter 17 Buying and Selling Non-Current Assets - Test Solutions
Chapter 17 Buying and Selling Non-Current Assets - Test
Chapter 17 Buying and Selling Non-Current Assets - Test
Chapter 16 Reducing Balance Depreciation - Test Solutions
Chapter 16 Reducing Balance Depreciation - Test Solutions
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Chapter 15 Accounting for Returns - Test Solutions
Chapter 14 Prepaid and Accrued Expenses - Test Solutions
Chapter 14 Prepaid and Accrued Expenses - Test Solutions
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9.10 Stock Cards for donations and drawings of stock
- 1. 9.10 STOCK CARDS FOR DONATIONS AND DRAWINGS OF STOCK
- 2. © Michael Allison, Trinity Grammar School. Author’s permission required for external use Chapter 7 showed that firm’s sometimes donate goods to charities and community groups as a form of advertising. E.g. A business donated 2 footballs to a local school. The Stock Card for the footballs prior to the donation is as follows... What value should the 2 units donated be valued at? $50? $52? $51? 9.10 STOCK CARDS FOR DONATIONS AND DRAWINGS OF STOCK Stock item: Product X IN OUT BALANCE Date Reference Qty Cost Value Qty Cost Value Qty Cost Value 31 Aug Balance 4 50 200 20 52 1040
- 3. © Michael Allison, Trinity Grammar School. Author’s permission required for external use Answer: So in this case the 2 donated units will be valued at?... This business has experienced an advertising expense of $100 Donations of stock = valued using First in First Out (FIFO) Stock item: Product X IN OUT BALANCE Date Reference Qty Cost Value Qty Cost Value Qty Cost Value 31 Aug Balance 4 50 200 20 52 1040 Stock item: Product X IN OUT BALANCE Date Reference Qty Cost Value Qty Cost Value Qty Cost Value 31 Aug Balance 4 50 200 20 52 1040 31 Aug Memo 31 2 50 100 2 50 100 20 52 1040 9.10 STOCK CARDS FOR DONATIONS AND DRAWINGS OF STOCK
- 4. © Michael Allison, Trinity Grammar School. Author’s permission required for external use The General Journal entry required to record a $100 donation of stock… Stock Control [A] General Journal Date Particulars General Ledger Subsidiary Ledger Debit Credit Debit Credit 31 Jan Stock Control [A] 90 Stock Gain [R] 90 Stock gain of 3 hats at $30 each (Memo 6) Advertising [E] General Journal Date Particulars General Ledger Subsidiary Ledger Debit Credit Debit Credit 31 Aug Advertising [E] 100 Stock Gain [R] 90 Stock gain of 3 hats at $30 each (Memo 6) General Journal Date Particulars General Ledger Subsidiary Ledger Debit Credit Debit Credit 31 Aug Advertising [E] 100 Stock Control [A] 100 Stock gain of 3 hats at $30 each (Memo 6) General Journal Date Particulars General Ledger Subsidiary Ledger Debit Credit Debit Credit 31 Aug Advertising [E] 100 Stock control [A] 100 Donation of 2 footballs at $50 each (Memo 31) Advertising [E] 31 Aug Stock control 100 Stock Control [A] 31 Aug Advertising 100 9.10 STOCK CARDS FOR DONATIONS AND DRAWINGS OF STOCK Narration: • Type of unit (e.g. “footballs”) • No. units lost (e.g. 2) • Cost of units lost (e.g. $50) • Memo #
- 5. © Michael Allison, Trinity Grammar School. Author’s permission required for external use A business had the following Stock Card… On March 2nd the owner withdrew one unit for personal use. How should this be valued? $10? $8? Stock item: Product X IN OUT BALANCE Date Reference Qty Cost Value Qty Cost Value Qty Cost Value 1 Mar Balance 6 10 60 12 8 96 9.10 STOCK CARDS FOR DONATIONS AND DRAWINGS OF STOCK
- 6. © Michael Allison, Trinity Grammar School. Author’s permission required for external use Answer: The withdrawal of 1 unit by the owner would be entered in the Stock Card as follows: Stock item: Product X IN OUT BALANCE Date Reference Qty Cost Value Qty Cost Value Qty Cost Value 1 Mar Balance 6 10 60 12 8 96 Withdrawal of stock by owner = valued using First in First Out (FIFO) Stock item: Product X IN OUT BALANCE Date Reference Qty Cost Value Qty Cost Value Qty Cost Value 1 Mar Balance 6 10 60 12 8 96 2 Mar Memo 5 1 10 10 5 10 50 12 8 96 9.10 STOCK CARDS FOR DONATIONS AND DRAWINGS OF STOCK
- 7. © Michael Allison, Trinity Grammar School. Author’s permission required for external use The General Journal entry required to record $10 drawings of stock… Stock Control [A] General Journal Date Particulars General Ledger Subsidiary Ledger Debit Credit Debit Credit 31 Jan Stock Control [A] 90 Stock Gain [R] 90 Stock gain of 3 hats at $30 each (Memo 6) Drawings [-OE] General Journal Date Particulars General Ledger Subsidiary Ledger Debit Credit Debit Credit 31 Aug Drawings [-OE] 10 Stock gain of 3 hats at $30 each (Memo 6) General Journal Date Particulars General Ledger Subsidiary Ledger Debit Credit Debit Credit 31 Aug Drawings [-OE] 10 Stock control [A] 10 Stock gain of 3 hats at $30 each (Memo 6) General Journal Date Particulars General Ledger Subsidiary Ledger Debit Credit Debit Credit 31 Aug Drawings [-OE] 10 Stock control [A] 10 Withdrawal of 1 t-shirt at $10 (Memo 31) Drawings [-OE] 31 Aug Stock control 10 Stock Control [A] 31 Aug Drawings 10 9.10 STOCK CARDS FOR DONATIONS AND DRAWINGS OF STOCK Narration: • Type of unit (e.g. “t-shirt”) • No. units lost (e.g. 1) • Cost of units lost (e.g. $10) • Memo #
- 8. © Michael Allison, Trinity Grammar School. Author’s permission required for external use TASK In-class Homework SQ16 X Ex9.12 part (a) - Jul 17 to Jul 30 only X