ACC 422 Week 5 Assignment Help

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ACC 422 Week 5 Assignment Help | University Of Phoenix

University of Phoenix / ACC 422
02 Apr 2019
Price: $20
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ACC 422 Week 5 Assignment Help | University Of Phoenix

Question 1

Flint Enterprises owns the following assets at December 31, 2017.

Cash in bank—savings account 69,100 Checking account balance 22,500

Cash on hand 9,430 Postdated checks 890

Cash refund due from IRS 38,300 Certificates of deposit (180-day) 92,450

What amount should be reported as cash?

Question 2

Marigold Family Importers sold goods to Tung Decorators for $36,000 on November 1, 2017, accepting Tung’s $36,000, 6-month, 6% note.

Prepare Marigold’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Question 3

Recent financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at the beginning of the year and $953,000,000 at the end of the year.

Question 4

Kingbird Company designated Jill Holland as petty cash custodian and established a petty cash fund of $310. The fund is reimbursed when the cash in the fund is at $15, which it is. Petty cash receipts indicate funds were disbursed for office supplies $91 and miscellaneous expense $201.

Prepare journal entries for the establishment of the fund and the reimbursement. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Question 5

Ivanhoe Company uses a periodic inventory system. For April, when the company sold 540 units, the following information is available.

Units Unit Cost Total Cost

April 1 inventory 220 $25 $ 5,500

April 15 purchase 380 30 11,400

April 23 purchase 400 33 13,200

1,000 $30,100

(a)

Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Question 6

Your answer is correct.

Pina Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available.

Units Unit Cost Total Cost

April 1 inventory 230 $26 $ 5,980

April 15 purchase 360 31 11,160

April 23 purchase 410 34 13,940

1,000 $31,080

Compute the April 30 inventory and the April cost of goods sold using the FIFO method.

Question 7

Your answer is correct.

Ivanhoe Company uses a periodic inventory system. For April, when the company sold 570 units, the following information is available.

Units Unit Cost Total Cost

April 1 inventory 250 $28 $ 7,000

April 15 purchase 350 34 11,900

April 23 purchase 400 36 14,400

1,000 $33,300

Compute the April 30 inventory and the April cost of goods sold using the LIFO method.

Question 8

Your answer is correct.

Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer?

Question 9

A fire destroys all of the merchandise of Nash Company on February 10, 2017. Presented below is information compiled up to the date of the fire.

Inventory, January 1, 2017 $419,100

Sales revenue to February 10, 2017 2,127,000

Purchases to February 10, 2017 1,082,150

Freight-in to February 10, 2017 64,060

Rate of gross profit on selling price 35%

What is the approximate inventory on February 10, 2017?

Question 10

Presented below is information related to Grouper Inc.’s inventory, assuming Grouper uses lower-of-LIFO cost-or-market.

(per unit) Skis Boots Parkas

Historical cost $220.40 $122.96 $61.48

Selling price 245.92 168.20 85.55

Cost to distribute 22.04 9.28 2.90

Current replacement cost 235.48 121.80 59.16

Normal profit margin 37.12 33.64 24.65

Determine the following:

(a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis.

(b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots.

Question 11

Flint Company began operations in 2017 and determined its ending inventory at cost and at LCNRV at December 31, 2017, and December 31, 2018. This information is presented below.

Cost Net Realizable Value

12/31/17 $318,270 $296,260

12/31/18 440,430 422,800

(a) Prepare the journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

(b) Prepare journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at cost and a perpetual system using the loss method. (Use Recovery of Loss Inventory account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Question 12

Metlock Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $415,800. The estimated fair values of the assets are land $79,200, building $290,400, and equipment $105,600. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to 0 decimal places, e.g. 5,275.)

Question 13

Flounder Corporation traded a used truck (cost $23,600, accumulated depreciation $21,240) for a small computer with a fair value of $3,894. Flounder also paid $590 in the transaction.

Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Question 14

The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.

(a) Money borrowed to pay building contractor (signed a note) $(294,000 )

(b) Payment for construction from note proceeds 294,000

(d) Delinquent real estate taxes on property assumed by purchaser 7,990

(e) Premium on 6-month insurance policy during construction 11,280

(f) Refund of 1-month insurance premium because construction completed early (1,880 )

(g) Architect’s fee on building 26,210

(h) Cost of real estate purchased as a plant site (land $201,800 and building $54,800) 256,600

(i) Commission fee paid to real estate agency 8,660

(j) Installation of fences around property 3,810

(k) Cost of razing and removing building 11,840

(l) Proceeds from salvage of demolished building (4,730 )

(m) Interest paid during construction on money borrowed for construction 14,230

(n) Cost of parking lots and driveways 18,650

(o) Cost of trees and shrubbery planted (permanent in nature) 14,920

(p) Excavation costs for new building 2,880

Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. (Enter receipt amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). If no entry is required in other accounts, select "No Entry" for the account titles.)

Question 15

Bridgeport Company purchased machinery for $170,100 on January 1, 2017. It is estimated that the machinery will have a useful life of 20 years, salvage value of $14,700, production of 76,400 units, and working hours of 40,300. During 2017, the company uses the machinery for 13,702 hours, and the machinery produces 14,516 units. Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years’-digits, and double-declining-balance methods. (Round intermediate calculations to 5 decimal places, e.g. 1.56487 and final answers to 0 decimal places, e.g. 5,125.)

Question 15

Question 17

Sarasota Corporation purchases a patent from Ivanhoe Company on January 1, 2017, for $72,000. The patent has a remaining legal life of 16 years. Sarasota feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Sarasota’s books is $57,600. In January, Sarasota spends $32,800 successfully defending a patent suit. Sarasota still feels the patent will be useful until the end of 2026.

Prepare the journal entries to record the $32,800 expenditure and 2019 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Question 18

Grouper Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $380,000. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $790,000. The fair value of the division is estimated to be $720,000 and the implied goodwill is $310,000.

Prepare Grouper journal entry to record impairment of the goodwill. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts

Question 19

Joni Shamrock Inc. has the following amounts reported in its general ledger at the end of the current year.

Organization costs $22,500

Trademarks 13,100

Discount on bonds payable 35,500

Deposits with advertising agency for ads to promote goodwill of company 10,500

Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,500

Cost of equipment acquired for research and development projects; the

equipment has an alternative future use 85,500

Costs of developing a secret formula for a product that is expected to

be marketed for at least 20 years 80,000

(a)

On the basis of this information, compute the total amount to be reported by Shamrock for intangible assets on its balance sheet at year-end.

Question 20

Concord Company borrowed $31,200 on November 1, 2017, by signing a $31,200, 9%, 3-month note. Prepare Concord’s November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 21

Novak Corporation made credit sales of $20,400 which are subject to 5% sales tax. The corporation also made cash sales which totaled $28,455 including the 5% sales tax.

Prepare the entry to record Novak’s credit sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 22

Sage Inc. is involved in a lawsuit at December 31, 2017.

Prepare the December 31 entry assuming it is probable that Sage will be liable for $919,300 as a result of this suit. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 23

Nash Factory provides a 2-year warranty with one of its products which was first sold in 2017. Nash sold $1,077,700 of products subject to the warranty. Nash expects $123,000 of warranty costs over the next 2 years. In that year, Nash spent $63,400 servicing warranty claims. Prepare Nash’s journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 24

The Culver Company issued $230,000 of 12% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds were issued at 97.

Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Culver Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.)

Question 25

Marin Corporation issued a 4-year, $54,000, 5% note to Greenbush Company on January 1, 2017, and received a computer that normally sells for $38,583. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 15%.

Prepare Marin’s journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 26

Cheyenne Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $19,000. At year-end, Cheyenne’s borrowing rate (credit risk) has declined; the fair value of the note payable is now $20,800.

Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

Question 27

Swifty Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $102,700 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $41,900 payable each January 1, beginning January 1, 2017. An interest rate of 12% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs.

Prepare Swifty’s January 1, 2017, journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Question 28

On January 1, 2017, Blossom Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Blossom to make annual payments of $8,176 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Blossom uses the straight-line method of depreciation for all of its plant assets. Blossom’s incremental borrowing rate is 10%, and the lessor’s implicit rate is unknown.

Question 29

On June 30, 2018, Sheridan Co. sold equipment to an unaffiliated company for $2250000. The equipment had a book value of $1205000 and a remaining useful life of 10 years. That same day, Sheridan leased back the equipment at $12500 per month for 5 years with no option to renew the lease or repurchase the equipment. Sheridan’s rent expense for this equipment for the year ended December 31, 2018, should be

Question 30

Sunland, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $284152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4 year useful life and no salvage value. Sunland, Inc.’s incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Sunland, Inc.) is 9%. Assuming that this lease is properly classified as a capital lease, what is the amount of principal reduction recorded when the second lease payment is made in Year 2?

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