ACC 291(NEW) Effective Communication/tutorialrank.com

ACC 291 Final Exam Guide (New, 2019, 100% Score)
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1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
amounts due from individuals or companies.
2. Three accounting issues associated with accounts receivable are
depreciating, valuing, and collecting.
depreciating, returns, and valuing.
accrual, bad debts, and accelerating collections.
recognizing, valuing, and accelerating collections.
3. When the allowance method is used to account for uncollectible
accounts Bad Debts Expense is debited when:

management estimates the amount of uncollectibles.
a customer’s account becomes past due.
an account becomes bad and is written off.
a sale is made.
4. Which one of the following is not a principle of sound accounts
receivable management?
Determine a payment period.
Determine to whom to extend credit.
Delay cash receipts from receivables if necessary.
Monitor collections.
5. The accounts receivable turnover is used to analyze
profitability.
long-term solvency.
liquidity.
risk.
6. The following information is provided for Sunland Company and
Marigold Corp.:
7. What is Marigold’s return on assets (rounded) for 2017?
3%

2%
3%
9%
8. Which of the following is not properly classified as property, plant
and equipment?
A truck held for resale by an automobile dealership.
Land improvement, such as parking lots and fences.
Building used as a factory.
Land used in ordinary business operations.
9. A characteristic of a plant asset is that it is
held for sale in the ordinary course of the business.
used in the operations of a business.
not currently used in the business but held for future use.
intangible
10. A current liability is a debt that can reasonably be expected to be
paid
out of cash currently on hand.
within one year, or the operating cycle, whichever is longer.
out of currently recognized revenues.
between 6 months and 18 months.
11. A current liability is a debt that can reasonably be expected to be
paid

out of cash currently on hand.
within one year, or the operating cycle, whichever is longer.
out of currently recognized revenues.
between 6 months and 18 months.
12. The 2017 financial statements of Blossom Company contain the
following selected data (in millions).
13. The debt to assets ratio (rounded) is
40%.
7.1 times.
44.4%.
2.25%.
14. In a recent year Monty Corp. had net income of $152000, interest
expense of $28700, and income tax expense of $41500. What was
Monty Corp.’s times interest earned (rounded) for the year?
7.74
6.30
6.74
5.30
15. If bonds are issued at a discount, it means that the

bondholder will receive effectively less interest than the contractual rate
of interest.
market interest rate is lower than the contractual interest rate.
financial strength of the issuer is suspect.
market interest rate is higher than the contractual interest rate.
16. If bonds are issued at a premium, the stated interest rate is
higher than the market rate of interest.
too low to attract investors.
lower than the market rate of interest.
adjusted to a higher rate of interest.
17. The chief accounting officer in a company is known as the
treasurer.
controller.
vice-president.
president.
18. Which one of the following would not be considered an advantage of
the corporate form of organization?
Separate legal existence.
Continuous life.
Limited liability of stockholders.
Government regulation.

19. Which of the following would not be true of a privately held
corporation?
It is usually smaller than a publicly held company.
It is sometimes called a closely held corporation.
Its shares are regularly traded on the New York Stock Exchange.
It does not offer its shares for sale to the general public.
20. The following information pertains to Sheffield Company. Assume
that all balance sheet amounts represent average balance figures
21. What is Sheffield’s payout ratio?
11%.
39%.
19%.
26.05%.
22. Ayayai Corp. had net income of $91875 and paid dividends of
$39000 to common stockholders and $16500 to preferred stockholders
in 2017. Ayayai Corp. common stockholders’ equity at the beginning
and end of 2017s was $440000 and $565000, respectively. Ayayai Corp.
return on common stockholders’ equity is
15%.
14%.
10%.

19%.
23. The primary purpose of the statement of cash flows is to
facilitate banking relationships.
provide information about the investing and financing activities during a
period.
prove that revenues exceed expenses if there is a net income.
provide information about the cash receipts and cash payments during a
period
24. Which one of the following items is not generally used in preparing
a statement of cash flows?
Current income statement.
Additional information.
Adjusted trial balance.
Comparative balance sheets.
25. The category that is generally considered to be the best measure of a
company’s ability to continue as a going concern is
cash flows from investing activities.
usually different from year to year.
cash flows from financing activities.
cash flows from operating activities.
26. Assume that the Fitzgerald Corporation uses the indirect method to
depict cash flows. Indicate where, if at all, a stock dividend declared and
issued would be classified on the statement of cash flows.

Does not represent a cash flow.
Investing activities section.
Financing activities section.
Operating activities section.
27. Free cash flow provides an indication of a company’s ability to
generate cash to invest in capital expenditures.
generate cash to pay dividends.
generate cash to invest in capital expenditures and to pay dividends.
generate net income
28. When using the indirect method to compute cash provided by
operating activities
increases in accounts receivable are added to net income.
income taxes paid may be ignored.
amortization expense is added to net income.
decreases in inventory are subtracted from net income
29. To determine the net cash provided (used) by operating activities, it
is necessary to analyze
the current year’s income statement.
a comparative balance sheet.
additional information.
all of these answer choices are correct.

30. Which of these is not a liquidity ratio?
Current ratio
Accounts receivable turnover
Asset turnover
Inventory turnover
The current ratio would be of most interest to
long-term creditors.
stockholders.
customers.
short-term creditors
===============================================
ACC 291 Week 1 Apply Connect Assignment

1
Exceptional Electronics began operations September 1, 2019. The firm
sells its merchandise for cash and on open account. Sales are subject to a
7 percent sales tax. During September, Exceptional Electronics engaged
in the following transactions:
DATE TRANSACTIONS
2019
Sept. 1 Sold a high-definition television set on credit to Candy Cho;
issued Sales Slip 101 for $1,600 plus sales tax of $112.
3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102
for $800 plus sales tax of $56.
7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales
Slip 103 for $400 plus sales tax of $28.
12 Accepted return of defective stereo equipment from Jim Peterson;
issued Credit Memorandum 101 for $200 plus sales tax of $14. The
stereo equipment was sold on September 3.
15 Recorded cash sales for the period from September 1 to September
15 of $10,000 plus sales tax of $700.
16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104

17 Sold a home entertainment system on credit to Mark Navalta; issued
Sales Slip 105 for $1,600 plus sales tax of $112.
18 Received $620 from Candy Cho on account.
20 Received payment in full from Jim Peterson for the sale of September
3, less the return of September 12.
25 Gave Mark Navalta an allowance because of scratches on his home
entertainment system sold on September 17, Sales Slip 105; issued
Credit Memorandum 102 for $300 plus sales tax of $21.
27 Received payment in full from Bridgette Huffman for the sale of
September 7.
29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106
Required:
Record the transactions in a general journal.
Analyze:
What portion of the sales during September were for entertainment
items? Assume the cash sales transactions are for non-entertainment
items. (Hint: Do not forget to reduce sales by any sales returns or
allowances.)

2
Exceptional Electronics began operations September 1, 2019. The firm
sells its merchandise for cash and on open account. Sales are subject to a
7 percent sales tax. During September, Exceptional Electronics engaged
in the following transactions.
DATE TRANSACTIONS
2019
Sept. 1 Sold a high-definition television set on credit to Candy Cho;
issued Sales Slip 101 for $3,200 plus sales tax of $224.
3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102
for $1,000 plus sales tax of $70.
7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales
Slip 103 for $400 plus sales tax of $28.
12 Accepted return of defective stereo equipment from Jim Peterson;
issued Credit Memorandum 101 for $200 plus sales tax of $14. The
stereo equipment was sold on September 3.

16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104
17 Sold a home entertainment system on credit to Mark Navalta; issued
Sales Slip 105 for $2,200 plus sales tax of $154.
18 Received $780 from Candy Cho on account.
20 Received payment in full from Jim Peterson for the sale of September
3, less the return of September 12.
25 Gave Mark Navalta an allowance because of scratches on his home
entertainment system sold on September 17, Sales Slip 105; issued
Credit Memorandum 102 for $100 plus sales tax of $7
27 Received payment in full from Bridgette Huffman for the sale of
September 7
29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106
GENERAL LEDGER ACCOUNTS
101 Cash 401 Sales

111 Accounts Receivable 421 Sales Returns and Allowances
221 Sales Tax Payable
ACCOUNTS RECEIVABLE LEDGER ACCOUNTS
Candy Cho Jim Peterson
Bridgette Huffman Kathy Sundstrand
Mark Navalta
Required:
Post the entries from the general journal into the appropriate accounts in
the general ledger and in the accounts receivable ledger.
Prepare a schedule of accounts receivable.
Analyze:
What is the amount of sales tax owed at September 30, 2019?
===============================================

ACC 291 Week 1 Assignment Comparative Analysis
Problem (2 Papers)
This Tutorial contains Papers+ Excel Sheet
Purpose of Assignment
The purpose of this assignment is to help you understand the basics of
financial statement analysis using financial ratios on the assets section of
the balance sheet, data interpretation, and how ratios are used to gain
insight about the management of receivable.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Develop an 875-word analysis providing conclusions concerning the
management of accounts receivable based on the financial statements of
Columbia Sportswear Company presented in Appendix B and the
financial statements of VF Corporation presented in Appendix C,
including the following:
Based on the information contained in these financial statement,
compute the following 2014 values for each company:
What conclusions concerning the management of accounts receivable
can be drawn from this data?

Accounts receivable turnover (For VF, use “Net sales” and assume all
sales were credit sales)
Average collection period for accounts receivable
Use the Week 1 Excel® spreadsheet to show your work
and submit with your analysis.
Click the Assignment Files tab to submit your assignment.
===============================================
ACC 291 Week 1 Practice Connect Practice Assignment
attempt 1
1

Record the following transactions of Lisa’s Fashion Boutique in a
general journal. Lisa’s Fashion Boutique operates in a state with 8%
sales tax. (Round your intermediate calculations and final answers to 2
decimal places):
DATE TRANSACTIONS
2019
Feb. 2 Sold merchandise for cash totaling $3,800 to customers using
bank credit cards. Record the 2 percent discount on credit card sales at
time of sale.
15 Sold merchandise totaling $2,100 to customers using American
Express.
20 Received amount due from American Express, less their 3 percent
discount, for sales made by customers using American Express on
February 15.
2
On April 1, Moloney Meat Distributors sold merchandise on account to
Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment
was received in full from Fronke’s Franks, less discount, on April 10.

Required:
Record the transactions on April 1 and April 10.
3
Record the following transactions of Fashion Park in a general journal.
Fashion Park must charge 8 percent sales tax on all sales.
DATE TRANSACTIONS
2019
April 2 Sold merchandise for cash, $2,500 plus sales tax.
3 The customer purchasing merchandise for cash on April 2 returned
$250 of the merchandise; provided a cash refund to the customer.
4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for
$1,050 plus tax, terms n/30.

6 Accepted return of damaged merchandise from Jordan Clark; issued
Credit Memorandum 302 for $150 plus tax. The original sale was made
on Sales Slip 908 of April 4.
30 Received payment on account from Jordan Clark in payment of her
purchase of April 4, less the return on April 6.
4
Main Street Distributors, a wholesale firm, made sales using the
following list prices and trade discounts. What amount should be
recorded for each sale?
List price of $6,000 and trade discounts of 40 percent and 15 percent.
5

The following transactions took place at Five Flags Amusement Park
during May. Five Flags Amusement Park must charge 8 percent sales
tax on all sales:
DATE TRANSACTIONS
2019
May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip
1015 for $1,200 plus 8 percent sales tax, terms n/30.
15 Recorded cash sales, $5,800 plus 8 percent sales tax.
31 Received payment on account due from Bill Gomez for the sale on
May 1.
attempt 2
1
On April 1, Moloney Meat Distributors sold merchandise on account to
Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment
was received in full from Fronke’s Franks, less discount, on April 10.

Required:
Record the transactions on April 1 and April 10.
2
Record the following transactions of Lisa’s Fashion Boutique in a
general journal. Lisa’s Fashion Boutique operates in a state with 8%
sales tax. (Round your intermediate calculations and final answers to 2
decimal places):
DATE TRANSACTIONS
2019
Feb. 2 Sold merchandise for cash totaling $3,800 to customers using
bank credit cards. Record the 2 percent discount on credit card sales at
time of sale.
15 Sold merchandise totaling $2,100 to customers using American
Express.
20 Received amount due from American Express, less their 3 percent
discount, for sales made by customers using American Express on
February 15.

3
The following transactions took place at Five Flags Amusement Park
during May. Five Flags Amusement Park must charge 8 percent sales
tax on all sales:
DATE TRANSACTIONS
2019
May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip
1015 for $1,200 plus 8 percent sales tax, terms n/30.
15 Recorded cash sales, $5,800 plus 8 percent sales tax.
31 Received payment on account due from Bill Gomez for the sale on
May 1.
4
Main Street Distributors, a wholesale firm, made sales using the
following list prices and trade discounts. What amount should be
recorded for each sale?

5
Record the following transactions of Fashion Park in a general journal.
Fashion Park must charge 8 percent sales tax on all sales.
DATE TRANSACTIONS
2019
April 2 Sold merchandise for cash, $2,500 plus sales tax.
3 The customer purchasing merchandise for cash on April 2 returned
$250 of the merchandise; provided a cash refund to the customer.
4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for
$1,050 plus tax, terms n/30.
6 Accepted return of damaged merchandise from Jordan Clark; issued
Credit Memorandum 302 for $150 plus tax. The original sale was made
on Sales Slip 908 of April 4.
===============================================
ACC 291 Week 1 Wileyplus Assignment E8-4, E8-11,
BYP8-1, and BYP8-2 (New)

E8-4, E8-11, BYP8-1, and BYP8-2 in MS Excel
 Exercise 8-4 Wainwright Company
 Exercise 8-11 Fedex Corporation
 Broadening your Perspective 8-1 Tootsie Roll
 Broadening your Perspective 8-2 Tootsie Roll and Hershey
===============================================
1

NewTech Medical Devices is a medical devices wholesaler that
commenced business on June 1, 2019. NewTech Medical Devices
purchases merchandise for cash and on open account. In June 2019,
NewTech Medical Devices engaged in the following purchasing and
cash payment activities:
DATE TRANSACTIONS
2019
June 1 Issued Check 101 to purchase merchandise, $3,100.
3 Purchased merchandise for $1,900 from BioCenter Inc., Invoice 606;
terms 1/10, n/30.
5 Purchased merchandise for $4,450, plus a freight charge of $120, from
New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less
discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation
for damaged merchandise totaling $250 that was returned; the goods
were purchased on Invoice 1011, dated June 5.
terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of
June 5, less the return of June 10 and less the cash discount, Check 103.

15 Purchased merchandise with a list price of $7,800 and trade discounts
of 25 percent and 20 percent from Park Research, Invoice 1029, terms
n/30.
20 Issued Check 104 to purchase merchandise, $1,600.
25 Returned merchandise purchased on June 20 as defective, receiving a
cash refund of $220.
New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Required:
Journalize the transactions in a general journal.
Analyze:
What was the amount of trade discounts received on the June 15
purchase from Park Research?
2

Big Country Ski Shop is a retail store that sells ski equipment and
clothing. Big Country Ski Shop commenced business on September 1,
2019. The firm purchases merchandise on open account. The firm’s
purchases, purchase returns and allowances, and cash payments on
account during September 2019 follow:
DATE TRANSACTIONS
2019
Sept. 2 Purchased ski boots for $6,000 plus a freight charge of $250
from Colorado Ski Shop, Invoice 6672, terms n/30.
3 Purchased skis for $11,600 from Alaska Supply Company, Invoice
5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $940 from Colorado Ski Shop
for return of damaged ski boots; the boots were originally purchased
September 2 on Invoice 6672.
11 Purchased ski jackets for $4,400 from Cold Mountain Clothing
Company, Invoice 4091, terms n/30.
12 Issued Check 104 to Alaska Supply Company in payment of Invoice
5916, dated September 3, less the cash discount.
22 Purchased ski poles for $4,160 plus a freight charge of $140 from
Alaska Supply Company, Invoice 5950, terms 3/10, n/30.

23 Purchased ski pants for $2,650 from Swenson Ski Goods, Invoice
528, terms n/30.
25 Received Credit Memorandum 245 for $340 from Swenson Ski
Goods for return of defective ski pants; the pants were originally
purchased September 23 on Invoice 528.
27 Purchased ski sweaters for $3,000 plus a freight charge of $120 from
Colorado Ski Shop, Invoice 6722, terms n/30.
30 Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672,
dated September 2, less the return of September 7.
Required:
Analyze:
What was the amount of the cash discount on September 12?
===============================================

ACC 291 Week 2 Assignment Financial Reporting
Problem, Apple Inc
The purpose of this assignment is to help you understand the basics of
financial statement analysis related to the assets section of the balance
sheet, data interpretation, and how financial information is obtained to
understand how a company accounts for its long-lived assets.
Assignment Steps
Note: The financial statements of Apple, Inc. are presented in Appendix
A of Financial Accounting. Instructions for accessing and using the
company's complete annual report, including the notes to the financial
statements, are also provided in Appendix A.
Complete a 1,050-word summary of findings and recommendations
from the following questions:
· What were the total cost and book value of property, plant, and
equipment at September 27, 2014?

· Using the notes to find financial statements, what method or
methods of depreciation are used by Apple for financial reporting
purposes?
· What was the amount of depreciation and amortization expense
for each of the three years 2012-2014? (Hint:Use the statement of cash
flows).
· Using the statement of cash flows, what are the amounts of
property, plant, and equipment purchased in 2014 and 2013?
· Using the notes to the financial statements, explain in the
summary how Apple accounted for its intangible assets in 2014.
Use the Week 2 Excel® spreadsheet to show your work and submit with
your summary.
===============================================
ACC 291 Week 2 Fordyce and Atwater (New)
P10-5A

Fordyce Electronics issues a $400,000,8%, 10-year mortgage note on
December 31, 2007. The proceeds from the note are to be used in
financing a new research laboratory. The terms of the note provide for
semiannualinstallment payments, exclusive of real estate taxes and
insurance, of $29,433. Payments are due June 30 and December 31.
Complete the installment payments schedule for the first 2 years. (Round
answers to 0 decimal places, e.g. 125. Use rounded amounts for future
calculations.)
Prepare the entries for (1) the loan and (2) the first two installment
payments. (For multiple debit/credit entries, list amounts from largest to
smallest eg 10, 5, 3,
2.) Show how the total mortgage liability should be reported on the
balance sheet at December 31, 2008.
P10-6A
On July 1, 2011, Atwater Corporation issued $2,098,000 face value,
12%, 10-year bonds at $2,507,354. This price resulted in an effective-
interest rate of 9% on the bonds. Atwater uses the effective-interest
method to amortize bond premium or discount. The bonds pay
semiannual interest July 1 and January 1.
Prepare an amortization table through December 31, 2012 (3 interest
periods) for this bond issue.
Prepare the journal entry to record the accrual of interest and the
amortization of the premium on December 31, 2011
Prepare the journal entry to record the payment of interest and the
amortization of the premium on July 1, 2012, assuming no accrual of
interest on June 30

===============================================
1
DATE TRANSACTIONS

2019
5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $1,000 from Colorado Ski
Shop for return of damaged ski boots; the boots were originally
528, terms n/30.
Required:

Post the entries from the general journal to the appropriate accounts in
the general ledger and in the accounts payable ledger.
Prepare a schedule of accounts payable.
101 Cash, $27,000 Dr.
201 Accounts Payable
501 Purchases
502 Freight In
503 Purchases Returns and Allowances
504 Purchases Discounts
ACCOUNTS PAYABLE LEDGER ACCOUNTS
Alaska Supply Company
Cold Mountain Clothing Company
Colorado Ski Shop

Swenson Ski Goods
Analyze:
What portion of the purchases in September, before purchases returns
and allowances and before purchases discounts, were for clothing items?
Include ski boots as a clothing item.
2
DATE TRANSACTIONS
2019

terms 2/10, n/30.
New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less
discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation
for damaged merchandise totaling $150 that was returned; the goods
were purchased on Invoice 1011, dated June 5.
terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of
June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $9,200 and trade discounts
of 20 percent and 15 percent from Park Research, Invoice 1029, terms
n/30.
20 Issued Check 104 to purchase merchandise, $3,000.
25 Returned merchandise purchased on June 20 as defective, receiving a
cash refund of $280.
New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Required:

Journalize the transactions in a general journal.
Analyze:
What was the amount of trade discounts received on the June 15
purchase from Park Research?
3
DATE TRANSACTIONS
2019

5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $1,000 from Colorado Ski
Shop for return of damaged ski boots; the boots were originally
528, terms n/30.
Required:

Analyze:
What was the amount of the cash discount on September 12?
4
DATE TRANSACTIONS
2019

Post the transactions in to the appropriate accounts in the general ledger
and the accounts payable subsidiary ledger.
Prepare a schedule of accounts payable at June 30, 2019.
101 Cash, $37,400 Dr.
201 Accounts Payable
501 Purchases
502 Purchases Returns and Allowances
503 Purchases Discounts
504 Freight In
ACCOUNTS PAYABLE LEDGER ACCOUNTS
BioCenter Inc.

New Concepts Corporation
Park Research
Analyze:
What was the amount of merchandise returned to vendors by NewTech
Medical Devices in June?
5
Bowden Company (buyer) and Song, Inc. (seller), engaged in the
following transactions during January 2019:
Bowden Company
DATE TRANSACTIONS

2019
Jan. 8 Issued Check 2101 for $2,940 on account to Song, Inc., in
payment of Invoice 1885 dated December 30, 2018, less cash discount
of $60.
10 Purchased merchandise for $3,500 from Song, Inc., Invoice 1920;
terms 2/10, n/30.
15 Received Credit Memorandum 320 from Song, Inc., for damaged
merchandise totaling $300 that was returned; the goods were purchased
on Invoice 1920, dated January 10.
19 Paid amount due to Song, Inc., for Invoice 1920 of January 10, less
the return of January 15 and less the cash discount, Check 2130.
30 Purchased merchandise for $4,400 from Song, Inc., Invoice 1950;
terms 2/10, n/30.
GENERAL LEDGER ACCOUNTS—BOWDEN COMPANY
201 Accounts Payable, $3,000 Cr.
ACCOUNTS PAYABLE LEDGER ACCOUNT—BOWDEN
COMPANY
Song, Inc., $3,000

Song, Inc.
DATE TRANSACTIONS
2019
Jan. 8 Received payment of $2,940 on account from Bowden Company
in payment of Invoice 1885 dated December 30, 2018, less cash discount
of $60.
10 Sold merchandise for $3,500 on account to Bowden Company,
Invoice 1920, terms 2/10, n/30.
15 Issued Credit Memorandum 320 to Bowden Company for damaged
merchandise totaling $300 that was returned; the goods were purchased
on Invoice 1920, dated January 10.
19 Received payment from Bowden Company for Invoice 1920 of
January 10, less the return of January 15 and less the cash discount.
30 Sold merchandise for $4,400 to Bowden Company, Invoice 1950;
terms 2/10, n/30.

GENERAL LEDGER ACCOUNTS—SONG, INC.
111 Accounts Receivable, $3,000 Dr.
ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SONG, INC.
Bowden Company, $3,000
Required:
Journalize the transactions above in a general journal for both Bowden
Company and Song, Inc.
Post the transactions to the appropriate accounts in the general ledger
and the accounts payable subsidiary ledger for Bowden Company.
Post the transactions to the appropriate accounts in the general ledger
and the accounts receivable subsidiary ledger for Song, Inc.
Analyze:

What is the balance of the accounts payable for Song, Inc., in the
Bowden Company accounts payable subsidiary ledger? What is the
balance of the accounts receivable for Bowden Company in the Song,
Inc., accounts receivable subsidiary ledger?
===============================================
ACC 291 Week 2 Textbook Exercise BE 8-8, E8-4, E8-
14, E9-4
ACC 291 Week 2 Textbook Exercise BE 8-8, E8-4, E8-14, E9-4
Chapter 8: BE8-8
Determine maturity dates and compute interest and rates on notes.
E8-4 The ledger of Macarty Company at the end of the current year
shows Accounts Receivable $78,000, Credit Sales $810,000, and Sales
Returns and Allowances $40,000.
Instructions

(a) If Macarty uses the direct write‐off method to account for
uncollectible accounts, journalize the adjusting entry at December 31,
assuming Macarty determines that Matisse's $900 balance is
uncollectible.
(b) If Allowance for Doubtful Accounts has a credit balance of $1,100 in
the trial balance, journalize the adjusting entry at December 31,
assuming bad debts are expected to be 10% of accounts receivable.
(c) If Allowance for Doubtful Accounts has a debit balance of $500 in
the trial balance, journalize the adjusting entry at December 31,
assuming bad debts are expected to be 8% of accounts receivable.
Determine bad debt expense, and prepare the adjusting entry.
Chapter 8: E8-14
Compute ratios to evaluate a company's receivables balance.
(LO 4), AN
E8-14 Suppose the following information was taken from the 2017
financial statements of FedEx Corporation, a major global
transportation/delivery company.
(in millions) 017 2016
Accounts receivable (gross) 3,587 $ 4,517 $
Accounts receivable (net) 3,391 4,359
Allowance for doubtful accounts 196 158
Sales revenue 35,497 37,953
Total current assets 7,116 7,244

Instructions
Answer each of the following questions.
(a) Calculate the accounts receivable turnover and the average collection
period for 2017 for FedEx.
(b) Is accounts receivable a material component of the company's total
current assets?
(c) Evaluate the balance in FedEx's allowance for doubtful accounts.
Chapter 9: E9-4
Understand depreciation concepts.
(LO 2), C
E9-4 Alysha Monet has prepared the following list of statements about
depreciation.
Depreciation is a process of asset valuation, not cost allocation.
Depreciation provides for the proper matching of expenses with
revenues.
The book value of a plant asset should approximate its fair value.
Depreciation applies to three classes of plant assets: land, buildings,
and equipment.
Depreciation does not apply to a building because its usefulness and
revenue‐producing ability generally remain intact over time.

The revenue‐producing ability of a depreciable asset will decline due
to wear and tear and to obsolescence.
Recognizing depreciation on an asset results in an accumulation of
cash for replacement of the asset.
The balance in accumulated depreciation represents the total cost that
has been charged to expense since placing the asset in service.
Depreciation expense and accumulated depreciation are reported on
the income statement.
Three factors affect the computation of depreciation: cost, useful life,
and salvage value.
Instructions
Identify each statement as true or false. If false, indicate how to correct
the statement.
===============================================
ACC 291 Week 2 Wileyplus Assignment P8-3A, BE9-11,
DI9-5, E9-7, E9-8, BYP9, P9-2A (New)

P8-3A, BE9-11, DI9-5, E9-7, E9-8, BYP9, P9-2A.
 Problem 8-3A: Bosworth Company
 Brief Exercise 9-11: Nike, Inc.
 Do It! 9-5
 Exercise 9-7: Wang, Co.
 Exercise 9-8: Cleand Company
 Broadening Your Perspective 9-1: Tootsie Roll
 Broadening Your Perspective 9-2: Tootsie& Hershey
 Problem 9-2A: Navaro Corporation
===============================================
1

Royal Jewels, a retail business, started business on June 25, 2019. It
keeps a $300 change fund in its cash register. The cash receipts for the
period from June 25 to June 30, 2019 are below.
DATE TRANSACTIONS
June 25 Cash sales per the cash register tape, $1,226.
Cash count, $1,518.
26 Cash sales per the cash register tape, $1,336.
Cash count, $1,629.
Cash count, $1,650.
Cash count, $1,571.
Cash count, $1,428.
Cash count, $1,657.
Required:

Record the cash receipts from June 25 to June 30, 2019, in a general
journal.
Post the amounts for Cash Short or Over in the journal entries to the
general ledger.
Analyze:
How will the balance in Cash Short or Over on June 30 be reported in
the financial statements?
2
On August 31, 2019, the balance in the checkbook and the Cash account
of the Dry Creek Bed and Breakfast was $12,199. The balance shown on
the bank statement on the same date was $13,152.
Notes
The firm’s records indicate that a $1,360 deposit dated August 30 and a
$692 deposit dated August 31 do not appear on the bank statement.

A service charge of $7 and a debit memorandum of $275 covering an
NSF check have not yet been entered in the firm’s records. (The check
was issued by Art Corts, a credit customer.)
The following checks were issued but have not yet been paid by the
bank:
Check 712, $ 101
Check 713, $ 116
Check 716, $ 229
Check 736, $ 568
Check 739, $ 69
Check 741, $ 111
A credit memorandum shows that the bank collected a $2,039 note
receivable and interest of $54 for the firm. These amounts have not yet
been entered in the firm’s records.
Required:

Prepare a bank reconciliation statement for the firm as of August 31.
Record general journal entries for items on the bank reconciliation
statement that must be journalized.
Analyze:
What effect did the journal entries recorded as a result of the bank
reconciliation have on the fundamental accounting equation?
===============================================
ACC 291 Week 3 Assignment The Liabilities Section of
O’Brian’s Balance Sheet
The purpose of this assignment is to help you understand the balance
sheet presentation for the liabilities of a company.
Assignment Steps

Prepare the liabilities section of O’Brian’s balance sheet using the
following information:
· Accounts payable $157,000
· Notes payable (due May 1, 2018) $20,000
· Bonds payable (due 2021) $900,000
· Unearned rent revenue $240,000
· Discount on bonds payable $41,000
· FICA taxes payable $7,800
· Interest payable (due 2019) $80,000
· Income taxes payable $3,500
· Sales taxes payable $1,700
The Liabilities Section of O’Brian’s balance sheet must be 525 words.
Show work on the Week 3 Excel® spreadsheet.
Note: This assignment requires that you only submit an
Excel® Workbook file. There are no written or APA guideline
requirements.
===============================================

ACC 291 Week 3 Exercise BE 1-2, BE 10-3, BE 10-4,
BE 10-5, BE 10-14
BE 1-2, BE 10-3, BE 10-4, BE 10-5, BE 10-14
BRIEF EXERCISES
Prepare entries for an interest‐bearing note payable.
BE10-2 Hive Company borrows $90,000 on July 1 from the bank by
signing a $90,000, 7%, 1‐year note payable. Prepare the journal entries
to record (a) the proceeds of the note and (b) accrued interest at
December 31, assuming adjusting entries are made only at the end of the
year.
Compute and record sales taxes payable.
BE10-3 Greenspan Supply does not segregate sales and sales taxes at the
time of sale. The register total for March 16 is $10,388. All sales are
subject to a 6% sales tax. Compute sales taxes payable and make the
entry to record sales taxes payable and sales.

Prepare entries for unearned revenues.
BE10-4 Bramble University sells 3,500 season basketball tickets at $80
each for its 10‐game home schedule. Give the entry to record (a) the sale
of the season tickets and (b) the revenue recognized after playing the
first home game.
Compute gross earnings and net pay.
BE10-5 Betsy Strand's regular hourly wage rate is $16, and she receives
an hourly rate of $24 for work in excess of 40 hours. During a January
pay period, Betsy works 47 hours. Betsy's federal income tax
withholding is $95, and she has no voluntary deductions. Compute Betsy
Strand's gross earnings and net pay for the pay period. Assume that the
FICA tax rate is 7.65%.
Analyze solvency.
BE10-14 Suppose the 2017 Adidas financial statements contain the
following selected data (in millions).
Current assets $4,485 Interest expense $169
Total assets 8,875 Income taxes 113
Current liabilities 2,836 Net income 245
Total liabilities 5,099
Cash 775
Compute the following values and provide a brief interpretation of each.

(a) Working capital.
(b) Current ratio.
(c) Debt to assets ratio.
(d) Times interest earned.
===============================================
(100% Score)
attempt 1
1

Florence Company received a bank statement showing a balance of
$13,550 on November 30, 2019. During the bank reconciliation process,
Florence’s accountant noted the following bank errors:
A check for $265 issued by Florentine, Inc., was mistakenly charged to
Florence Company’s account.
Check 2782 was written for $200 but was paid by the bank as $1,200.
Check 2920 for $85 was paid by the bank twice.
A deposit for $580 on November 22 was credited by the bank for $850.
Assuming outstanding checks total $2,450, prepare the adjusted bank
balance section of the November 30, 2019, bank reconciliation.
2
On January 2, The Public Legal Clinic issued Check 2108 for $450 to
establish a petty cash fund. Indicate how this transaction would be
recorded in a general journal.

3
Di Stefano Office Supply Company received a bank statement showing
a balance of $70,005 as of March 31, 2019. The firm’s records showed a
book balance of $71,487 on March 31. The difference between the two
balances was caused by the following items.
A debit memorandum for $40, which covers the bank’s collection fee for
the note (item 6).
A deposit in transit of $4,700.
A check for $348 issued by another firm that was mistakenly charged to
Di Stefano’s account.
A debit memorandum for an NSF check of $6,145 issued by Wozniak
Construction Company, a credit customer.
Outstanding checks: Check 3782 for $2,200; Check 3840 for $251.
A credit memorandum for a $7,300 noninterest-bearing note receivable
that the bank collected for the firm.
Prepare a bank reconciliation statement for the firm as of March 31.
Prepare the necessary journal entries for March 31, 2019 from the
statement.

4
After returning from a three-day business trip, the accountant for
Southeast Sales, Johanna Estrada, checked bank activity in the
company’s checking account online. The activity for the last three days
follows.
Business Checking Account #123456-987
Date Type Description Additions Payments Balance
09/24/2019 Loan Payment Online Transfer to CM XXXX
$ 3,500.00 $
15,675.06
09/24/2019 Deposit DEPOSIT ID NUMBER 8888
$ 2,269.60 $
19,175.06
09/23/2019 Check CHECK #1554 (view)
$ 3,500.00 $ 16,905.46
09/23/2019 Bill Payment Online Payment
$ 36.05 $ 20,405.46

$ 240.00 $ 20,441.51
$ 1,750.00 $ 20,681.51
09/22/2019 ACH Credit Edwards UK AP PAYMENT
$ 8,900.00 $
22,431.51
09/22/2019 ATM ATM WITHDRAWAL
$ 240.00 $ 13,531.51
After matching these transactions to the company’s Cash account in the
general ledger, Johanna noted the following unrecorded transactions:
The ATM withdrawal on 9/22/2019 was for personal use by the owner,
Robert Savage.
The ACH credit on 9/22/2019 was an electronic funds payment received
on account from Edwards UK, a credit customer located in Great
Britain.
The bill payment made 9/23/2019 was to Waste Control Trash Services
(utilities).
The loan payment on 9/24/2019 was an automatic debit by Central
Motors for the company’s monthly payment on a loan for its
automobiles. The loan does not bear interest.

Prepare the journal entries in a general journal to record the four
transactions above. (Round your answers to 2 decimal places.)
5
Teng Corporation received a bank statement showing a balance of
$15,700 as of October 31, 2019. The firm’s records showed a book
balance of $15,262 on October 31. The difference between the two
balances was caused by the following items.
A debit memorandum for an NSF check from Richard Wolf for $332.
Three outstanding checks: Check 7017 for $124, Check 7098 for $55,
and Check 7107 for $1,560.
A bank service charge of $12.
A deposit in transit of $957.
Prepare the adjusted bank balance section and the adjusted book balance
section of the bank reconciliation statement. Prepare the necessary
journal entries for the year 2019.
===============================================

ACC 291 Week 3 Wileyplus Assignment P9-7A, E10-5,
E10-8, E10-13, E10-22, E10-24, BYP10, P10-9A, P10-
13A, IFRS10-4 (New)
·P9-7A, E10-5, E10-8, E10-13, E10-22, E10-24, BYP10, P10-9A, P10-
13A, IFRS10-4.
 Exercise 10-5: Olinger Company
 Exercise 10-8: Ortega Company
 Exercise 10-13: Romine Company
 Exercise 10-22: Cole Corporation
 Exercise 10-24: Nance, Co.
 Broadening Your Perspective 10-1: Tootsie Roll
 Broadening Your Perspective 10-2: Tootsie& Hershey
 Problem 9-7A: Farr Company
 Problem 10-9A: Wempe, Co.
 Problem 10-13A: Grace Herron
 IFRS10-4: Ratzlaff

===============================================
ACC 291 Week 4 Apply Connect Assignment (With
Excel file)
This Tutorial contains an Excel File which can be used for any change in
values (CONTAINS ALL QUESTIONS, SCROLL DOWN TO
CHECK)
Assignment 1
a.-b. Merchandise Inventory, before adjustment, has a balance of $6,600.
The newly counted inventory balance is $7,100.
1. Unearned Seminar Fees has a balance of $5,100, representing
prepayment by customers for five seminars to be conducted in June,
July, and August 2019. Two seminars had been conducted by June 30,
2019.
2. Prepaid Insurance has a balance of $6,600 for six months’
insurance paid in advance on May 1, 2019.

3. Store equipment costing $12,890 was purchased on March 31,
2019. It has a salvage value of $410 and a useful life of four years.
4. Employees have earned $160 that has not been paid at June 30,
2019.
5. The employer owes the following taxes on wages not paid at June
30, 2019: SUTA, $4.80; FUTA, $0.96; Medicare, $2.32; and social
security, $9.92.
6. Management estimates uncollectible accounts expense at 1 percent
of sales. This year’s sales were $1,100,000.
7. Prepaid Rent has a balance of $5,250 for six months’ rent paid in
advance on March 1, 2019.
8. The Supplies account in the general ledger has a balance of $310.
A count of supplies on hand at June 30, 2019, indicated $105 of supplies
remain.
9. The company borrowed $13,700 from First Bank on June 1, 2019,
and issued a four-month note. The note bears interest at 12 percent.
Required:
Based on the information above, record the adjusting journal entries that
must be made for Sufen Consulting on June 30, 2019. The company has
a June 30 fiscal year-end.
Analyze:
After all adjusting entries have been journalized and posted, what is the
balance of the Prepaid Rent account?

Assignment 1
The Green Thumb
Gardener
Merchandise inventory on December 31, 2019, is $11,521.
During 2019, the firm had net credit sales of $27,000; the firm estimates
that 0.6 percent of these sales will result in uncollectible accounts.
On December 31, 2019, an inventory of the supplies showed that items
costing $235 were on hand.
On October 1, 2019, the firm signed a six-month advertising contract for
$960 with a local newspaper and paid the full amount in advance.
On January 2, 2018, the firm purchased store equipment for $7,620. At
that time, the equipment was estimated to have a useful life of five years
and a salvage value of $520.

On January 2, 2018, the firm purchased office equipment for $1,120. At
that time, the equipment was estimated to have a useful life of five years
and a salvage value of $120.
On December 31, 2019, the firm owed salaries of $1,750 that will not be
paid until 2020.
On December 31, 2019, the firm owed the employer’s social security tax
(assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the
entire $1,750 of accrued wages.
On December 31, 2019, the firm owed federal unemployment tax
(assume 0.6 percent) and state unemployment tax (assume 5.4 percent)
on the entire $1,750 of accrued wages.
Assignment 2
TRANSACTIONS
Signed a lease for an office and issued Check 101 for $14,100 to pay the
rent in advance for six months.

Borrowed money from Second National Bank by issuing a four-month,
12 percent note for $32,800; received $31,488 because the bank
deducted the interest in advance.
Signed an agreement with Carter Corp. to provide accounting and tax
services for one year at $6,600 per month; received the entire fee of
$79,200 in advance.
Purchased office equipment for $26,400 from Office Outfitters; issued a
two-month, 6 percent note in payment. The equipment is estimated to
have a useful life of six years and a $1,920 salvage value. The
equipment will be depreciated using the straight-line method.
Purchased a one-year insurance policy and issued Check 102 for $1,692
to pay the entire premium.
Purchased office furniture for $18,400 from Furniture Warehouse;
issued Check 103 for $10,400 and agreed to pay the balance in 60 days.

The equipment has an estimated useful life of five years and a $1,000
salvage value. The office furniture will be depreciated using the straight-
line method.
Purchased office supplies for $1,930 with Check 104. Assume $860 of
supplies are on hand July 31, 2019.
===============================================
ACC 291 Week 4 Exercise E11-2, E11-5, E11-7, E11-13
Journalize issuance of common stock and preferred stock and
purchase of treasury stock.
E11-2 Sagan Co. had these transactions during the current period.
June 12 Issued 80,000 shares of $1 par value common stock for cash
of $300,000.
11 July Issued 3,000 shares of $100 par value preferred stock for
cash at $106 per share.

Nov. 28 Purchased 2,000 shares of treasury stock for $9,000.
Prepare correct entries for capital stock transactions.
E11-5 Mesa Corporation recently hired a new accountant with
extensive experience in accounting for partnerships. Because of the
pressure of the new job, the accountant was unable to review what
he had learned earlier about corporation accounting. During the
first month, he made the following entries for the corporation's
capital stock.
Compare effects of a stock dividend and a stock split.
E11-7 On October 31, the stockholders' equity section of Manolo
Company's balance sheet consists of common stock $648,000 and
retained earnings $400,000. Manolo is considering the following two
courses of action: (1) declaring a 5% stock dividend on the 81,000 $8
par value shares outstanding or (2) effecting a 2‐for‐1 stock split
that will reduce par value to $4 per share. The current market price
is $17 per share.
Instructions
Prepare a tabular summary of the effects of the alternative actions
on the company's stockholders' equity and outstanding shares. Use
these column headings: Before Action, After Stock Dividend, and
After Stock Split.
Calculate ratios to evaluate profitability and solvency.

E11-13 Kojak Corporation decided to issue common stock and used
the $300,000 proceeds to redeem all of its outstanding bonds on
January 1, 2017. The following information is available for the
company for 2017 and 2016.
(a) Compute the return on common stockholders' equity for both
years.
(b) Explain how it is possible that net income increased but the
return on common stockholders' equity decreased.
(c) Compute the debt to assets ratio for both years, and comment on
the implications of this change in the company's solvency.
===============================================
ACC 291 Week 4 Practice Connect Assignment (100%
Score)
attempt 1
1

1. During the year 2019, Sampson Company had net credit sales of
$1,950,000. Past experience shows that 1.5 percent of the firm’s net
credit sales result in uncollectible accounts.
2. Equipment purchased by Park Consultancy for $38,220 on January
2, 2019, has an estimated useful life of 10 years and an estimated
salvage value of $2,700. What adjustment for depreciation should be
recorded on the firm’s worksheet for the year ended December 31,
2019?
3. On December 31, 2019, Giant Plumbing Supply owed wages of
$11,400 to its factory employees, who are paid weekly.
4. On December 31, 2019, Giant Plumbing Supply owed the
employer’s social security (6.2 percent) and Medicare (1.45 percent)
taxes on the entire $11,400 of accrued wages for its factory employees.
5. On December 31, 2019, Giant Plumbing Supply owed federal (0.6
percent) and state (5.4 percent) unemployment taxes on the entire
$11,400 of accrued wages for its factory employees.
2
On December 1, 2019, Jim’s Java Joint borrowed $50,000 from its bank
in order to expand its operations. The firm issued a four-month, 6
percent note for $50,000 to the bank and received $49,000 in cash
because the bank deducted the interest for the entire period in advance.
In general journal form, show the entry that would be made to record
this transaction and the adjustment for prepaid interest that should be
recorded on the firm’s worksheet for the year ended December 31, 2019.

3
1. On December 31, 2019, the Notes Payableaccount at Northwood
Manufacturing Company had a balance of $16,000. This balance
represented a three-month, 7.5 percent note issued on November 1.
2. On January 2, 2019, Hitech Computer Consultants purchased flash
drives, paper, and other supplies for $5,230 in cash. On December 31,
2019, an inventory of supplies showed that items costing $1,590 were on
hand. The Suppliesaccount has a balance of $5,230.
3. On September 1, 2019, North Dakota Manufacturing paid a
premium of $14,640 in cash for a one-year insurance policy. On
December 31, 2019, an examination of the insurance records showed
that coverage for a period of four months had expired.
4. On May 1, 2019, Headcase Beauty Salon signed a one-year
advertising contract with a local radio station and issued a check for
$10,800 to pay the total amount owed. On December 31, 2019,
the Prepaid Advertisingaccount has a balance of $10,800.
For each of the above independent situations, prepare the adjusting
entries that must be made on the December 31, 2019, worksheet
assuming no previous adjusting entries have been made during the year.
4
The Income Statement section of the Johnson Company worksheet for
the year ended December 31, 2019, has $199,000 recorded in the Debit
column and $215,345 in the Credit column on the line for the Income
Summary account.

What were the beginning and ending balances for Merchandise
Inventory?
5
On December 31, 2019, the Notes Payable account at Vanessa’s
Boutique Shop had a balance of $90,000. This amount represented funds
borrowed on a six-month, 8 percent note from the firm’s bank on
December 1.
Record the journal entry for interest expense on this note that should be
recorded on the firm’s worksheet for the year ended December 31, 2019.
===============================================
ACC 291 WEEK 4 Stockholders’ Equity Section of the
Balance Sheet (Lachlin Corporation Balance Sheet)
The purpose of this assignment is to help you become familiar with
examining the stockholders' equity section of the balance sheet.
Assignment Steps

Answer the following questions in 1,050 words using the
Lachlin Corporation Balance Sheet (partial) below:
· How many shares of common stock are outstanding?
· Assuming there is a stated value, what is the stated value of the
common stock?
· What is the par value of the preferred stock?
· If the annual dividend on preferred stock is $36,000, what is the
dividend rate on preferred stock?
· If dividends of $72,000 were in arrears on preferred stock, what
would be the balance reported for retained earnings?
===============================================
ACC 291 Week 4 Wileyplus Assignment Do It! 11-1,
E11-5, E11-7, BYP11-1, BYP11-2, P11-5A, P11-8A
(New)

Do It! 11-1, E11-5, E11-7, BYP11-1, BYP11-2,P11-5A, P11-8A.
 Do It! 11-1
 Exercise 11-5 Garcia Corporation
 Exercise 11-7 Pele Company
 Broadening Your Perspective 11-1 Tootsie Roll
 Broadening Your Perspective 11-2 Tootsie Roll & Hershey
 Problem 11-5A Pringle Corporation
 Problem 11-8A Everett Corporation
===============================================
ACC 291 Week 5 Apply Connect Assignment (Score
10/10) (with Excel File)
This Tutorial contains an Excel File which can be used for any change in
values

1
The Artisan Wines is a retail store selling vintage wines. On December
31, 2019, the firm’s general ledger contained the accounts and balances
below. All account balances are normal.
Required:
1. Prepare a classified income statement for the year ended December
31, 2019. The company does not classify its operating expenses as
selling expenses and general and administrative expenses.
2. Prepare a statement of owner’s equity for the year ended December
31, 2019. No additional investments were made during the year.
3. Prepare a classified balance sheet as of December 31, 2019.
Analyze:
What is the inventory turnover for Artisan Wines?
2

Superior Hardwood Company distributes hardwood products to small
furniture manufacturers. The adjusted trial balance data given below is
from the firm’s worksheet for the year ended December 31, 2019.
Required:
31, 2019. The expense accounts represent warehouse expenses,
selling expenses, and general and administrative expenses.
31, 2019. No additional investments were made during the period.
3. Prepare a classified balance sheet as of December 31, 2019. The
mortgage payable extends for more than a year.
Analyze:
What is the current ratio for this business?
===============================================
ACC 291 Week 5 Assignment Financial Reporting
Problem II

The purpose of this assignment is to expose you to the basic process
involved in the analysis of the cash flow statement.
Assignment Steps
Resources: Appendix A of Financial Accounting: Tools for Business
Decision Making
Note: This is a two part assignment.
Part 1
Answer questions A-F in problem CT12-1 in Financial Accounting (p.
640).
Provide an 875-word analysis of your findings.
Include conclusions concerning the management of the company's cash.
Part 2
Complete a 1,050-word summary of findings and recommendations
from the following questions:
• What is the par or stated value per share of Apple's common stock?
• What percentage of Apple's authorized common stock was issued at
September 27, 2014?
• How many shares of common stock were outstanding at September 28,
2013, and at September 27, 2014?

• Calculate the payout ratio, earnings per share, and return on common
stockholders' equity for 2014.
Use the Week 5 Excel® spreadsheet and submit with your analysis and
summary.
===============================================
ACC 291 Week 5 Connect Practice Connect Assignment
(Score 100%)
Coffee Bean
Artisan wines
Good to Go Auto Products
Superior Hardware
Healthy Eating Foods Company

The data below concerns adjustments to be made at Coffee Bean
Importers.
Adjustments
a. On November 1, 2019, the firm signed a lease for a warehouse and
paid rent of $21,000 in advance for a six-month period.
b. On December 31, 2019, an inventory of supplies showed that items
costing $1,940 were on hand. The balance of the Supplies account
was $11,880.
c. A depreciation schedule for the firm’s equipment shows that a total
of $10,750 should be charged off as depreciation in 2019.
d. On December 31, 2019, the firm owed salaries of $6,100 that will
not be paid until January 2020.
e. On December 31, 2019, the firm owed the employer’s social
security (6.2 percent) and Medicare (1.45 percent) taxes on all
accrued salaries.
f. On October 1, 2019, the firm received a five-month, 8 percent note
for $6,500 from a customer with an overdue balance.
Required:
1. Record the adjusting entries in the general journal as of December
31, 2019.
2. Record reversing entries in the general journal as of January 1,
2020.
Analyze:

After the adjusting entries have been posted, what is the balance of
the Prepaid Rent account on January 1, 2020?
2
The Artisan Wines is a retail store selling vintage wines. On December
31, 2019, the firm’s general ledger contained the accounts and balances
below. All account balances are normal.
Required:
31, 2019. The company does not classify its operating expenses as
selling expenses and general and administrative expenses.
31, 2019. No additional investments were made during the year.
3. Prepare a classified balance sheet as of December 31, 2019.
Analyze:
What is the inventory turnover for Artisan Wines?

3
Good to Go Auto Products distributes automobile parts to service
stations and repair shops. The adjusted trial balance data that follows is
from the firm’s worksheet for the year ended December 31, 2019
Required:
mortgage payable extends for more than one year.
Analyze:
What percentage of total operating expenses is attributable to warehouse
expenses?
4

Healthy Eating Foods Company is a distributor of nutritious snack foods
such as granola bars. On December 31, 2019, the firm’s general ledger
contained the accounts and balances that follow.
Required:
1. Record adjusting entries in the general journal as of December 31,
2019.
2. Record closing entries in the general journal as of December 31,
2019.
3. Record reversing entries in the general journal as of January 1,
2020.
Analyze:
Assuming that the firm did not record a reversing entry for salaries
payable, what entry is required when salaries of $6,000 are paid on
January 3?
5.
Superior Hardwood Company distributes hardwood products to small
furniture manufacturers. The adjusted trial balance data given below is
from the firm’s worksheet for the year ended December 31, 2019.
Required:

mortgage payable extends for more than a year.
Analyze:
What is the current ratio for this business?
===============================================
ACC 291 Week 5 Exercise E12-3, E12-10
Prepare the operating activities section—indirect method.
E12-3 Sosa Company reported net income of $190,000 for 2017. Sosa
also reported depreciation expense of $35,000 and a loss of $5,000 on
the disposal of plant assets. The comparative balance sheets show an

increase in accounts receivable of $15,000 for the year, a $17,000
increase in accounts payable, and a $4,000 increase in prepaid expenses.
Instructions
Prepare the operating activities section of the statement of cash flows for
2017. Use the indirect method.
Compare free cash flow of two companies.
E12-10 Information for two companies in the same industry, Merrill
Corporation and Wingate Corporation, is presented here.
Merrill Corporation Wingate Corporation
Net cash provided by operating activities 80,000 $ $100,000
Average current liabilities 50,000 100,000
Net income 200,000 200,000
Capital expenditures 40,000 70,000
Dividends paid 5,000 10,000
Instructions
Compute free cash flow for both companies and compare.
===============================================

ACC 291 Week 5 Wileyplus Assignment E7-3, E12-1,
E12-8, P12-9A, P12-10A, E13-3, E13-4, IFRS13-1, P13-
2A (New)
· E7-3, E12-1, E12-8, P12-9A, P12-10A, E13-3, E13-4, IFRS13-1,
P13-2A.
 Exercise 7-3
 Exercise 12-1
 Exercise 12-8
 Problem 12-9A
 Problem 12-10A
 Exercise 13-3
 Exercise 13-4
 International Financial Reporting Standards 13-1
 Problem 13-2A
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