BUS 321 INTERMEDIATE ACCOUNTING MW8:1room 03-209Spring 2018
Tad Miller Room 319756-2831office hrsMW 10-11; TR 2-3
do not hold office hours on the day of a test
1. Catalog Description Comprehensive coverage of financial reporting issues. BUS 321 covers financial statements, assets other than investments and intangibles, and liabilities.Prerequisite; BUS214; BUS 319
Text Intermediate Accounting, Ninthed. Spiceland, Sepe, Nelson
2. Grading Exams must be taken with the class on the scheduled day. I do not give make-up exams or quizzes. If you must miss a quiz or exam, you must notify ME prior to the exam. If the reason is acceptable to me then I will re-weight your other quiz and exam scores. They may be announced to encourage preparation.
If you believe a question on an exam was graded incorrectly, please discuss this with me prior to the next exam. I no longer review grading issues after the subsequent exam.
Actg Cycle Project dueMonApr 1615A 93.0 (-) 90.0
Quiz (1-4)MonApr 16608B+87.0 83.0 (-) 80.0
Exam (5 & 7)WedMay 21008C+77.0 73.0 (-) 70.0
Exam (8 & 9)MonMay 211008
Final exam 7:00am FriJun 15 100 . 8
Total Pts375407
3. Attendance The Cal Poly catalog states "Students are expected to be regular in class attendance to keep the quality and quantity of work high. Absence from classes is regarded as serious, and work missed is not excused.
4. Preparation You need to learn much of the material from the textbook, before class. Lectures will assume you have read the material and worked homework problems prior to class. Lectures should bedifficult to follow if you are not prepared. Class time will be used to explain concepts and help with material you found difficult to learn on your own. This requires you to identify areas where you need help,prior to class,and ask for help in class. On the syllabus (q) indicates questions, (be) basic exercises, (e) exercises and (p) problems from the end of the chapter. A copy of the solutions manual will be available on PolyLearn
5. Study Groups are very helpful. I strongly encourage you to study in a group.
6. Final Exam Final exams will be given at the scheduled time. Please do not make any arrangements that will conflict with the university’s final exam schedule.
Financial Statements are our product - make sure you are very familiar with the Financial Statements
Illustrative Balance Sheet p. 111Income Statements p. 165State of Cash Flowsp. 188/89
Web address for Connect
Connect recommends that you use your Cal Poly email to register to Connect
Wall Street Journal student offer
Comprehensive Accounting Problem
Stumble & Fall, Inc.
BUS 321 - Intermediate Accounting
Spring 2018 - Tad Miller
Instructions
This project is most easily completed in an Excel workbook with several worksheets. You
The first worksheet should be a cover sheet
Skip a line between journal entries
Account titles need to be the same on the chart of accounts, T-Accounts and journal entries
Accounts in Trial Balance and T-accounts should be arranged by account number
There is only one General Journal (one set of T-accounts). All entries need to be recorded in the same General Journal and posted to the same set of T-accounts.
No late assignments.
- Prepare journal entries to record each of the following transactions. You do not needto write explanations below the journal entries.
- Create T-accounts for each account in the chart of accounts and post each of the journal entries to an existing T-account. I will provide an excel template to save you some time.
- Prepare an unadjusted trial balance
- Prepare adjusting journal entries. In addition to the information provided for adjusting journal entries, review the transactions and review your unadjusted trial balance to determine if there are any other adjusting journal entries you may need to prepare.
- Post each of the adjusting journal entries to the same T-accounts you previously created.
- Total the T-accounts prior to preparing the unadjusted trial balance.
- Prepare an adjusted trial balance
- Prepare the following financial statements, in good form
- Multistep income statement you do not need to distinguish between selling expense and general & administrative expenses
- Statement of retained earnings
- Classified balance sheet
May 1Issued 10,000 shares of $1 par value common stock for $13 per share.
May 1Borrowed $30,000 for Coast National Bank by issuing a $30,000 note due in two years with 10% interest payable annually.
May 1Purchased the assets of a distressed competitor for $75,000 in cash. The assets consisted of inventory with an estimated market value of $80,000; supplies worth $6,000 and equipment worth $14,000.
May 2Paid rent on building for 12 months in advance, $7,200.
May 3Purchased display equipment from Northern Supply for $10,000. Paid $2,000 cash and the balance is to be paid with in 60 days.
May4Purchased merchandise on account from Quick Wholesale. Cost of the merchandise was $44,100, terms were 1/20 n/45. We use the perpetual inventory method.
May 4Paid $1,800 for supplies.
May 5Made a $25,000 credit sale to Ace Nursery, terms 2/10 n/30. Cost of Goods Sold was $17,500.
May 9Purchased merchandise costing $30,000 on account from Plants, Inc, terms were 2/30 n/60. Paid trucking company $250 cash for freight charges.
May 11Received $11,760 cash of the amount due from Ace Nursery (in the discount period)
May 12Paid salaries totaling $3,000
May 20Cash sales of $15,000 before the 2% sales discount. Cost of Goods Sold was $10,500.
May 20Received $300 for subleasing an office in the building for $300 per month. The payment covers rent from 4/20/18 until 5/20/18.
May 22Received $5,000 from the sale of gift certificates.
May 23Paid the amount due to Quick Wholesale (in the discount period)
May 24Purchased temporary investments in the stock of Miller Motor Co. at a cost of $3,600.
May 25Returned defective merchandise costing $1,200 to Plants, Inc.
May 26$24,000 sale to Best-Way, which paid $5,880 cash and the remaining $18,000 was on account, terms 2/10 n/30. Cost of Goods Sold was $16,800.
May 29Purchased $6,000 of merchandise on account for Quick Wholesale, terms 1/20 n/45.
May 29Cash sales (before any sales discount) of $18,000. Cost of Goods Sold was $12,600.
101 · Cash
111 · Accounts receivable
119 · Allowance for uncollectible accounts
121 · Inventory
122 · Purchases
123 · Purchase discounts
124 · Purchase returns & allow
125 · Transportation in
131 · Investments
141 · Prepaid rent
151 · Supplies
171 · Equipment
179 · accumulated depreciation
201 · Accounts payable
211 · Interest payable
221 · Salaries payable
251 · Unearned revenue: gift certificates
256 · Unearned revenue: rent
261 · Notes payable
301 · Common stock
311 · Additional paid in capital
399 Retained earnings
401 · Sales
409 · Sales discount
501 · Cost of goods sold
511 · Bad debt expense
512 · Depreciation expense
513 · Rent expense
514 · Salary expense
515 · Supplies expense
591 · Rent revenue
599 · Interest expense
Additional information
Our rent expense is $600 per month (not our sublease revenue)
Supplies used during May $1,300
Rent revenue earned during the last 10 days of May
Gift certificates redeemed - $3,500 with $2,450 Cost of Goods Sold
Interest expense on Bank Note
Salaries earned but not yet paid $2,500
Depreciation $341.67- 5-year life
Uncollectible accounts - $215 (estimate)
Ending inventory - $78,859