Ac2001 SPRING 2015 BONUS PROBLEM #2MAXIMUM 4 POINTS
PLEASE ANSWER THE QUESTIONS BELOW USING THESE DIRECTIONS:
- Bonus Problem due in-class only. See your class schedule for date due.
(Papers will NOT be accepted after class)
- Answers MUST BE TYPED in space provided. (Handwritten NOT accepted)
- To make your answer easy to grade, please use the answer sheet provided at the start of the bonus problem. Turn in ONLY the answer sheet.
- Hand in the ANSWER SHEET ONLY (no supporting work).
- SIGN YOUR NAME TO STATE THAT YOU DID YOUR OWN WORK.
You can work together BUT, each person must do their own solution.
TA’s can answer questions only. They CANNOT check your answers.
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ANSWER SHEET FOR BONUS #2 (TO HAND IN)
(TYPE BOTH NAME AND PEOPLESOFT NUMBER BELOW)
NAME: ______Peoplesoft ID # ______
CLASS TIME: ______SIGNATURE: ______
1.CREDIT to ______(Account Title)
For$______(Amount)
2.CREDIT to ______(Account Title)
For$______(Amount)
3.CREDIT to ______(Account Title)
For$______(Amount)
4.CREDIT to ______(Account Title)
For$______(Amount)
5.CREDIT to ______(Account Title)
For$______(Amount)
6.$______(Amount)
7.$______(Amount)
8.$______(Amount)
9.$______(Amount)
10.$______(Amount)
You are given the following unadjusted accounts as of December 31, 2015
(all accounts have normal balances):
Accounts Receivable22,000
Purchases Discounts200
Accumulated Depreciation: Equipment800
Unearned Sales Revenue700
Sales Revenue53,800
Merchandise Inventory (1/1/2015)6,500
Note Payable23,000
Dividends1,000
Sales Discounts500
Transportation-Out900
Allowance for Doubtful Accounts 800
Purchases11,800
Cash24,300
Salary Expense11,350
Transportation-In300
Prepaid Rent10,000
Equipment52,000
Accounts Payable7,500
Land21,400
Common Stock64,650
Retained Earnings (1/1/2015)10,200
Purchase Returns400
Ending Inventory on 12/31/2015 is $7,400.
(NOTE: We are treating the inventory amount change as a CLOSING entry.) See Chap 5
STARTING ANSWER: TO HELP YOU, THE UNADJUSTED TRIAL BALANCE ABOVE WILL BALANCE AT $162,050.
The following adjustments have NOT been made as of December 31, 2015. You will need to open up additional accounts.
A.The equipment was purchased on November 1, 2014. The equipment has an estimated useful life of ten years and a residual value of $4,000. Straight-line depreciation is used.
B.$400 of the unearned sales revenue has been earned as of December 31, 2015.
C.The Note Payable is the result of a bank loan from Storrs Bank. The note was issued on August 3, 2015, has an annual interest rate of 12%, and a term to maturity of 300 days.
D.Based on an analysis of Accounts Receivable at December 31, 2015, it is determined that the allowance for doubtful accounts should be increased to 8% of Accounts Receivable.
E.The rent of $10,000 was paid on October 1, 2015 and is effective for five months beginning on October 1, 2015.
REQUIRED:
- For adjustment A, fill in both of the following:
CREDIT to ______(Account Title)
For$______(Amount)
- For adjustment B, fill in both of the following:
CREDIT to ______(Account Title)
For$______(Amount)
- For adjustment C, fill in both of the following:
CREDIT to ______(Account Title)
For$______(Amount)
- For adjustment D, fill in both of the following:
CREDIT to ______(Account Title)
For$______(Amount)
- For adjustment E, fill in both of the following:
CREDIT to ______(Account Title)
For$______(Amount)
- Compute the dollar amount the adjusted trial balance will balance at on December 31, 2015. Be careful on this part since the rest of your answers depend on your accuracy here.
$______(Amount)
Using the adjusted account balances, compute each of the following financial statements amounts:
7.Cost of Goods Sold for the year ended December 31, 2015.
- Total ending Owners’ Equity as of December 31, 2015.
- Total current liabilities as of December 31, 2015 on the balance sheet.
- Total assets as of December 31, 2015 on the balance sheet.