ACCT 304 WEEK 1 Exercise

ACCT 304 WEEK 1  Exercise
E 1 4 FASB codification research

 LO1-3

Access the FASB- Codification Research System at the FASB website (www.fasb.org). Determine the specific citation for each of the following items:

1. The topic number for business combinations.
2. The topic number for related party disclosures.
3. The topic, subtopic, and section number for the initial measurement of internal-use software.
4. The topic, subtopic, and section number for the subsequent measurement of asset retirement obligations.
5. The topic, subtopic, and section number for the recognition of stock compensation.
E 1-7: Concepts; terminology; conceptual framework

 LO1-7 Listed below are several terms and phrases associated with the FASB- conceptual framework. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.
 

Research Case 1-4: Accessing IASB information through the Internet

 LO1-3

The purpose of this case is to introduce you to the information available on the website of the International Accounting Standards Board (IASB).

Required:

Access the IASB home page on the Internet. The web address is www.iasb.org. Answer the following questions.

1. Describe the mission of the IASB.
2. The IASB has how many board members?
3. Who is the current chairman of the IASB?
4. Where is the IASB located?

E 2-4: Journal entries

 LO2-2

The following transactions occurred during the month of June 2013 for the Stridewell Corporation. The company owns and operates a retail shoe store.

1. Issued 100,000 shares of common stock in exchange for $500,000 cash.
2. Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000.
5. Paid $6,000 in rent on the store building for the month of June.
6. Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2013.
7. Paid $120,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Paid shareholders a cash dividend of $5,000.
10. Recorded depreciation expense of $2,000 for the month on the furniture and fixtures.
11. Recorded the amount of prepaid insurance that expired for the month.
Required:

Prepare journal entries to record each of the transactions and events listed above.

E 2-8: Adjusting entries

 LO2-5

Prepare the necessary adjusting entries at December 31, 2013, for the Falwell Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.

1. A three-year fire insurance policy was purchased on July 1, 2013, for $12,000. The company debited insurance expense for the entire amount.
2. Depreciation on equipment totaled $15,000 for the year.
3. Employee salaries of $18,000 for the month of December will be paid in early January 2014.
4. On November 1, 2013, the company borrowed $200,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2014.
5. On December 1, 2013, the company received $3,000 in cash from another company that is renting office space in Falwell- building. The payment, representing rent for December and January, was credited to unearned rent revenue.
E 2-12: Closing entries

American Chip Corporation- fiscal year-end is December 31. The following is a partial adjusted trial balance as of December 31, 2013.

  


Required:

Prepare the necessary closing entries at December 31, 2013.