Customer Service Chat
Get quote & make Payment
H.W, Accounting Basics
BUS ADM-201 Fall 2012 EXTRA CREDIT 2 - Due in DS week of November 26
GRADING: Worth 15 points. Partially credit will only be given if you attempt all requirements a through g listed below.
Aberkonkie & Fitch Corporation prepares quarterly financial statements. The balance sheet at 12/31/12 is presented below.
Cash $ 24,300 Accounts payable $ 12,370
Accounts receivable 22,400 Common stock 90,000
Allowance for doubtful accounts (1,200) Retained earnings 53,130
Accumulated depreciation - equipment (15,000)
Accumulated depreciation - building (15,000)
$ 155,500 $155,500
During the first quarter of 2013, the following transactions occurred:
1. Aberkonkie & Fitch performed services during the first quarter for $140,000 on account.
2. On 2/1/13, Aberkonkie & Fitch collected fees of $12,000 in advance for $1,000 of services to be performed each month from 2/1/13 to 1/30/14.
3. On 2/1/13, Aberkonkie & Fitch purchased computer equipment for $9,000 plus sales taxes of $600. $3,000 cash was paid with the rest on account. Check #455 was used.
4. Aberkonkie & Fitch collected $133,000 on 3/5/13 from customers on account.
5. Aberkonkie & Fitch paid $16,370 on accounts payable. Check #456 was used.
6. Paid other operating expenses of $97,525. Check #457 was used.
7. Acquired a patent with a 10-year life for $9,600 cash on 3/1/13. Check #458 was used.
8. Wrote off a customer receivable of $200 who went bankrupt.
9. On 3/31/13, Aberkonkie & Fitch sold for $1,620 cash equipment which originally cost $11,000. It had an estimated life of 5 years and salvage of $1,000. Accumulated depreciation as of 12/31/12 was $8,000 using the straight line method. Record depreciation on the equipment sold, then record the sale.
10. AJE: Record revenue earned from item 2 above.
11. AJE: $26,000 of accounts receivable at 3/31/13 are not due yet. The bad debt percentage for these is 4%. The balance of A/R are past due. The bad debt percentage for these is 23.75%. Record bad debt expense.
HINT: You will need to compute the balance in accounts receivable before calculating this.
12. AJE: Depreciation is recorded on the equipment still owned at 3/31/13. The new equipment purchased in February is being depreciated on a double declining basis over 5 years and salvage value was estimated at $1,000. The old equipment still owned is being depreciated over a 10 year life using straight line with no salvage value.
13. AJE: Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000.
14. AJE: Amortization is recorded on the patent.
15. The company reconciles its bank statement every quarter. Information from the 12/31/12 Bank Reconciliation is:
Deposit in transit: 12/30/12 $5,000
Outstanding Checks #440 3,444
The Bank statement received for the quarter ended 3/31/13 is as follows:
Beginning balance per bank $ 29,787
Deposits: 1/2/13 $5,000, 2/2/13 $12,000, 3/6/13 $133,000 150,000
Checks: #452 $333, #453 $865, #456 $16,370, #457 $97,525 (115,093)
Debit memo: Bank service charge (Record as operating expense) ( 100)
Ending bank balance $ 64,594
16. AJE: The income tax rate is 30%. This amount will be paid when the tax return is due in April. Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.
REQUIRED: Print out the solution pages for the general ledger, journal and worksheet that follow and enter the following transactions. I suggest that you use a pencil.
a. Enter the transactions 1-9 in the general journal provided on the following pages.
b. Enter the 12/31/12 balances in ledger accounts. Use the ledger account running balance format accounts provided on the following pages.
c. Post the journal entries to the ledger accounts for items 1 – 9.
d. Prepare an unadjusted trial balance at March 31 and enter on the worksheet. Then complete the other worksheet columns. (See below.)
Worksheet requirement: Using your unadjusted trial balance above and the data for adjusting entries, prepare a 10 column worksheet similar to the one on page 195 in the chapter 4 appendix of your text.
e. Prepare a bank reconciliation in good form. (Item 15 above.) Use your own paper. Record the necessary AJE.
f. Journalize and post all other adjusting entries. (Items 10 - 16)
g. Prepare an income statement and a retained earnings statement for the quarter ended 3/31/13 and a classified balance sheet at 3/31/13. Use your own paper. (No formatted sheets are supplied as we did for the other items.)
EXTRA CREDIT TWO SOLUTION – Name ________________________
Part a, e and f
Extra Credit 2 – General Journal Debit Credit
Part b, c and d
b. CASH DR CR BALANCE
b. ACCOUNTS RECEIVABLE DR CR BALANCE
b. ALLOW FOR DOUBTFUL ACCTS DR CR BALANCE
b. EQUIPMENT DR CR BALANCE
b. ACCUM DEPR EQUIPMENT DR CR BALANCE
b. LAND DR CR BALANCE
b. BUILDING DR CR BALANCE
b. ACCUM DEPR BUILDING DR CR BALANCE
b. PATENTS DR CR BALANCE
b. ACCOUNTS PAYABLE DR CR BALANCE
b. UNEARNED REVENUE DR CR BALANCE
b. INCOME TAXES PAYABLE DR CR BALANCE
b. COMMON STOCK DR CR BALANCE
b. RETAINED EARNINGS DR CR BALANCE
b. SERVICE REVENUE DR CR BALANCE
b. OPERATING EXPENSES DR CR BALANCE
b. DEPRECIATION EXPENSE DR CR BALANCE
b. AMORTIZATION EXPENSE DR CR BALANCE
b. LOSS ON DISPOSAL DR CR BALANCE
b. BAD DEBT EXPENSE DR CR BALANCE
b. INCOME TAX EXPENSE DR CR BALANCE
Posted Date: 11/29/2012 4:44:18 PM | Location : United States
Ask an Expert
H.W, Assignment Help, Ask Question on H.W, Get Answer, Expert's Help, H.W Discussions
Write discussion on H.W
Your posts are moderated
Write your message here..
The qualitative characteristics of relevance and reliability, Maryanne was ...
Maryanne was looking to purchase a local business that sold coal jewelry to tourists along the interstate. The present business owner instructed his accountant, Jane Sane, CPA, to
Ledger, on 1st july,2008,machinery purchased rs10,000 for cash from bhim.gi...
on 1st july,2008,machinery purchased rs10,000 for cash from bhim.give journal entry and prepare ledger accounts.
What is t-account, Q. What is T-account? To exemplify recording the inc...
Q. What is T-account? To exemplify recording the increases and decreases in an account texts use the T-account which appear like a capital letter T. The name of the account suc
Present Value, A $9,000 loan to be repaid in full at the end of five years....
A $9,000 loan to be repaid in full at the end of five years. Interest on the loan is payable quarterly. The interest rate is 8% compounded quarterly. What is the present value
The sneed corporation issues 10, The Sneed Corporation issues 10,000 shares...
The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $75
Explain the schedule of accounts payable, Schedule of Accounts Payable ...
Schedule of Accounts Payable Lists the balances of accounts payable ledger, and Accounts Payable controlling account demonstrates the total amount owed to ALL creditors. Th
Meaning of periodic review, Ordering inventory at a regular and set time in...
Ordering inventory at a regular and set time interval
Lifo under periodic inventory procedure, Q. LIFO under periodic inventory p...
Q. LIFO under periodic inventory procedure? The LIFO (last-in, firstout) method of inventory costing presume that the costs of the most recent purchases are the first costs cha
Show recording changes in dividends, Q. Show Recording changes in dividends...
Q. Show Recording changes in dividends? Recording changes in dividends ever since dividends decrease retained earnings increases appear on the left side of the Dividends accoun
The type of accounting concerned with providing information, The type of ac...
The type of accounting concerned with providing information and analyses to managers within the organization is referred to as
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Terms & Conditions
Copyright by ExpertsMind IT Educational Pvt. Ltd.