Financial Accounting For MBAs, MSMs, et al.
What Could Be On the Final ExamThe fundamentals (half of the
final exam will cover this stuff)Routine HAM entries:Receiving
contributed capital, receiving salary revenue when you pass go,
purchasing a property with cash, receiving rent revenue, paying
rent expense, receiving miscellaneous revenue, paying miscellaneous
expense, paying prepaid income taxes, taking out a mortgage loan on
a Monopoly property.HAM adjusting entries:Salary adjusting entries
and their resolution when you pass go and receive cash for salary,
interest adjusting entries and their resolution when you actually
pay the interest using cash in the future, Journal entries Know how
to record all of the routine HAM entries above and all of the HAM
adjusting entries above in both HAM and journal entry format.
Vocabulary (know definitions and which financial statement(s) any
accounts belong to)Adjusting entries, Allowance for doubtful
accounts, Assets, Audit, Bad debt expense, Balance sheet, Book
value, Capitalize, Cash flow statement, Common stock, Conservatism,
Contingent liability, Contra account, Cost flow assumptions, Cost
of goods sold, Defined benefit, Defined contribution, Depreciation,
Dividend, Earnings, Expenses, Face value, Financing activities,
Gains, General journal, General ledger, General purpose financial
statements, Goodwill, Income, Income statement, Intangible assets,
Interest, Inventory, Investing activities, Lease, Liability,
Liquidity, Losses, Matching concept, Materiality, Operating
activities, Other post-retirement benefits, Payables, Present
value, Receivables, Retained earnings, Revenue, Salvage value,
Selling and administrative costs, Shrinkage, Solvency, Transaction,
Unearned revenue, Useful life, Write-down.
Final Exam Question FormatThe format will be like the quizzes
and midterm.You could see multiple choice, short answer, matching
vocabulary, horizontal accounting model entries, journal entries,
or accounting math (like depreciation or COGS and ending
inventory).
What Could Be On the Final ExamThe non-fundamental, but still
really important stuff (half of the final exam will cover this
stuff)Complex HAM entries:Trading Monopoly properties or RRUs.
Complex HAM adjusting entriesIncome tax adjusting entries with or
without prepaid taxes and their resolution when you pay taxes in
April, writing down monopoly properties or RRUs, depreciating
Monopoly houses.Accounting calculations and reasoningRecording a
sale for a company using a perpetual inventory system or a periodic
inventory system.Inventory calculations to estimate cost of goods
sold (COGS) and ending inventory using specific identification,
FIFO, LIFO, or average cost. Estimating bad debt expense and
allowance for doubtful accounts using the percent of sales or
percent of accounts receivables methods. Capitalizing and
depreciating a long-term asset using the straight-line or units of
production methods. Calculating depreciation when there is a change
in one of your estimates. Selling long-term assets, which may have
been previously depreciated. Properly forecasting the cash flows
associated with a bond. You will be given the bonds face value,
payment frequency, coupon rate, and maturity date. Calculating the
present value of a single future cash flow or a series of future
cash flows. Journal entriesFor the complex HAM entries and complex
HAM adjusting entries listed above. For sales when using either a
perpetual or periodic inventory system. Recording bad debt expense
as an adjusting entry and using the allowance for doubtful accounts
account to write off bad debts. Capitalizing and depreciation
long-term assets.
Some Sample QuestionsWhat follows are some sample questions.The
are intended to help you identify gaps in your knowledge to help
you determine what to study. This is NOT a final exam preview
meaning I am NOT giving you all of the final exam questions
early.So dont come to my office and complain that I put something
on the exam that was not included in the sample questions. In other
words, you need to know more than is tested in the sample
questions. The sample questions should be considered a random
sample of questions that could be asked on the final exam, NOT an
exhaustive list of everything I could possibly ask on the final
exam. I reserve the right to include questions about anything that
has been covered in my class.You should expect to see primarily
questions about the stuff on the what could be on the final exam
slides (slides 3 and 4).Sample QuestionsThe FundamentalsRoutine HAM
entriesMake the HAM entry for a Monopoly company that receives a
contribution of $1,500 of capital in exchange for ownership
shares.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01+C 1500 = +CC 1500+FA 1500 = +NCF 1500DateAccount you
debit (left aligned) Account you credit
(centered)DebitCredit1/2001CashContributed Capital1500
1500
Make the HAM entry for a Monopoly company that receives a
contribution of $1,500 of capital in exchange for ownership
shares.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01+C 1500 = +CC 1500No entry+FA 1500 = +NCF
1500DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit1/2001Cash Contributed Capital1500
1500
Make the HAM entry for a Monopoly company that purchases a
railroad for $200 cash.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01-C 200 +RRU 200 = 0-IA 200 = -NCF 200DateAccount you
debit (left aligned) Account you credit
(centered)DebitCredit1/2001Railroads and UtilitiesCash200
200
Make the HAM entry for a Monopoly company that purchases a
railroad for $200 cash.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01-C 200 +RRU 200No entry-IA 200 = -NCF 200DateAccount
you debit (left aligned) Account you credit
(centered)DebitCredit1/2001Railroads and utilities (RRU)
Cash200
200
Make the HAM entry for a Monopoly company that receives $200
salary in cash for passing Go.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01+C 200 = +RE 200+SRev 200 = +NI 200+OA 200 = +NCF
200DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit1/2001CashSalary Revenue200
200
Make the HAM entry for a Monopoly company that receives $200
salary in cash for passing Go.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01+C 200 = +RE 200+SRev 200 = +NI 200+OA 200 = +NCF
200DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit1/2001Cash Salary Revenue200
200
Make the HAM entry for a Monopoly company that pays $50 in rent
with cash to another company.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01-C 50 = -RE 50-RExp 50 = -NI 50-OA 50 = -NCF
50DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit1/2001Rent ExpenseCash50
50
Make the HAM entry for a Monopoly company that pays $50 in rent
with cash to another company.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01-C 50 = -RE 50-RExp 50 = +NI 50-OA 50 = -NCF
50DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit1/2001Rent Expense Cash50
50
Make the HAM entry for a Monopoly company that borrows $100 from
the bank in the form of a mortgage loan.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01+C 100 = +MP 100+FA 100 = +NCF 100DateAccount you debit
(left aligned) Account you credit
(centered)DebitCredit1/2001CashMortgage Payable100
100
Make the HAM entry for a Monopoly company that borrows $100 from
the bank in the form of a mortgage loan.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF1/01+C 100 = +MP 100No entry+FA 100 = +NCF 100DateAccount
you debit (left aligned) Account you credit
(centered)DebitCredit1/2001Cash Mortgages Payable100
100
Sample QuestionsThe FundamentalsHAM adjusting entriesMake the
HAM adjusting entry for a Monopoly company that has ended the year
on side 3 of the board and has earned half of a $200 salary
payment.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF12/01+Rec 100 = +RE 100+SRev 100 = +NI 100DateAccount you
debit (left aligned) Account you credit
(centered)DebitCredit12/2001Salary ReceivableSalary Revenue100
100
Make the HAM adjusting entry for a Monopoly company that has
ended the year on side 3 of the board and has earned half of a $200
salary payment.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF12/01+Rec 100 = +RE 100+SRev 100 = +NI 100No
entryDateAccount you debit (left aligned) Account you credit
(centered)DebitCredit12/2001Receivables (Salary Receivable) Salary
Revenue100
100
As an adjusting entry on 12/2001, a Monopoly company recognized
$100 of salary revenue because it was halfway around the board. On
2/2002, the firm passed Go. Make the HAM entry to record the event
on 2/2002
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF2/02+C 200 Rec 100 = +RE 100+Srev 100 = +NI 100+OA 200 =
+NCF 200DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit2/2002CashSalary ReceivableSalary
Revenue200
100100As an adjusting entry on 12/2001, a Monopoly company
recognized $100 of salary revenue because it was halfway around the
board. On 2/2002, the firm passed Go. Make the HAM entry to record
the event on 2/2002
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF2/02+C 200 Rec 100 = +RE 100+SRev 100 = +NI 100+OA 200 =
+NCF 200DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit2/2002Cash Receivables (salary receivable)
Salary Revenue200
100100A Monopoly company borrowed $100 in the form of a mortgage
loan during 8/2001. The lender charges 12% interest per year. Make
the HAM adjusting entry needed at the end of year 1 related to this
loan.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF0= +IP 5 RE 5-Iexp 5 = -NI 5DateAccount you debit (left
aligned) Account you credit (centered)DebitCreditInterest
ExpenseInterest Payable5
5
A Monopoly company borrowed $100 in the form of a mortgage loan
during 8/2001. The lender charges 12% interest per year. Make the
HAM adjusting entry needed at the end of year 1 related to this
loan.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF0 = +IP 5 RE 5 -IExp 5 = -NI 5No entryDateAccount you debit
(left aligned) Account you credit (centered)DebitCreditInterest
Expense Interest Payable5
5
A Monopoly company has a $10 balance in the interest payable
account. On 2/2002 it uses cash to pay off its interest obligation
with the bank. Make the HAM entry to record this transaction.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF2/2002-C 10 = -IP 10-OA 10 = -NCF 10DateAccount you debit
(left aligned) Account you credit (centered)DebitCreditInterest
PayableCash10
10
A Monopoly company has a $10 balance in the interest payable
account. On 2/2002 it uses cash to pay off its interest obligation
with the bank. Make the HAM entry to record this transaction.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF2/2002-C 10 = -IP 10No entry-OA 10 = -NCF 10DateAccount you
debit (left aligned) Account you credit
(centered)DebitCredit2/2002Interest Payable Cash10
10
Sample QuestionsThe FundamentalsVocabularyIm not going to give
you vocabulary sample questions.To study the vocabulary, go through
the list on slide 3 and be sure you know what each word means, and,
if it is an account, which financial statement(s) it belongs to. If
you dont know one, look it up in the textbooks glossary or on
wikipedia or investopedia. Sample QuestionsNon-fundamental, but
still important stuffComplex HAM entriesMonopoly company A agrees
to trade $500 cash plus Ventnor Ave. to company B in exchange for
Boardwalk. The book value of Ventnor on As books is $150 and A
estimates its fair value is $300. Company A estimates the fair
value of Boardwalk to be $900. The book value of Boardwalk on
Company Bs books is $400 and company B estimates its fair value is
$600. Company B estimates the fair value of Ventnor is $250.
Make the required for company A to record this trade in both HAM
and journal entry formats. DateBalance SheetA = L + SEIncome
StatementR E = NICash Flow StatementOA + IA + FA = NCF-C 500 P 150
+P 900 = +RE 250+G 250 = +NI 250-IA 500 = -NCF 500DateAccount you
debit (left aligned) Account you credit
(centered)DebitCreditPropertyCashGain750
500250
Monopoly company A agrees to trade $500 cash plus Ventnor Ave.
to company B in exchange for Boardwalk. The book value of Ventnor
on As books is $150 and A estimates its fair value is $300. Company
A estimates the fair value of Boardwalk to be $900. The book value
of Boardwalk on Company Bs books is $400 and company B estimates
its fair value is $600. Company B estimates the fair value of
Ventnor is $250.
Make the required for company A to record this trade in both HAM
and journal entry formats.DateBalance SheetA = L + SEIncome
StatementR E = NICash Flow StatementOA + IA + FA = NCF-C 500 +P 750
= +RE 250+G 250 = +NI 250-IA 500 = -NCF 500DateAccount you debit
(left aligned) Account you credit (centered)DebitCreditProperty
(Boardwalk) Gain Property (Ventnor) Cash900
250150500Monopoly company A agrees to trade $500 cash plus
Ventnor Ave. to company B in exchange for Boardwalk. The book value
of Ventnor on As books is $150 and A estimates its fair value is
$300. Company A estimates the fair value of Boardwalk to be $900.
The book value of Boardwalk on Company Bs books is $400 and company
B estimates its fair value is $600. Company B estimates the fair
value of Ventnor is $250.
Make the required entries for company B to record this trade in
both HAM and journal entry formats.DateBalance SheetA = L +
SEIncome StatementR E = NICash Flow StatementOA + IA + FA = NCF+C
500 P 400 +P 250 = +RE 350+G 350 = +NI 350+IA 500 = +NCF
500DateAccount you debit (left aligned) Account you credit
(centered)DebitCreditCashPropertyGain
500
150350
Monopoly company A agrees to trade $500 cash plus Ventnor Ave.
to company B in exchange for Boardwalk. The book value of Ventnor
on As books is $150 and A estimates its fair value is $300. Company
A estimates the fair value of Boardwalk to be $900. The book value
of Boardwalk on Company Bs books is $400 and company B estimates
its fair value is $600. Company B estimates the fair value of
Ventnor is $250.
Make the required entries for company B to record this trade in
both HAM and journal entry formats.DateBalance SheetA = L +
SEIncome StatementR E = NICash Flow StatementOA + IA + FA = NCF+C
500 -P 150 = +RE 350+G 350 = +NI 350+IA 500 = +NCF 500DateAccount
you debit (left aligned) Account you credit
(centered)DebitCreditCash Property (Ventnor) Property (Boardwalk)
Gain500250
400350Sample QuestionsNon-fundamental, but still important
stuffComplex HAM adjusting entriesAt year end, a Monopoly company
has a $200 balance in the prepaid taxes account and owes income
taxes of $100. Make the HAM adjusting entry to record income
taxes.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF12/01+Rec 100 -PpdT 200 = -RE 100-ITExp 100 = -NI
100DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit12/02Tax Refund ReceivableIncome Tax
ExpensePrepaid Tax100100
200At year end, a Monopoly company has a $200 balance in the
prepaid taxes account and owes income taxes of $100. Make the HAM
adjusting entry to record income taxes.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF12/01+Rec 100 -Ppdt 200 = -RE 100-ITexp 100 = -NI 100No
entryDateAccount you debit (left aligned) Account you credit
(centered)DebitCredit12/02Receivables (tax refund receivable)Income
Tax Expense Prepaid Taxes100100
200At the end of year 1, a Monopoly company made the following
entry to record income taxes.
Make the entries to properly record this firms transaction with
the tax authorities in April of year 2 (when cash will actually
change hands) in both HAM and journal entry format. DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF12/01+Rec 100 -Ppdt 200 = -RE 100-ITexp 100 = -NI 100No
entryDateAccount you debit (left aligned) Account you credit
(centered)DebitCredit4/02CashTax Refund Receivable100
100
DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF4/02+C 100 Rec 100 = 0+OA 100 = +NCF
100At the end of year 1, a Monopoly company made the following
entry to record income taxes.
Make the entries to properly record this firms transaction with
the tax authorities in April of year 2 (when cash will actually
change hands) in both HAM and journal entry format. DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF12/01+Rec 100 -Ppdt 200 = -RE 100-ITexp 100 = -NI 100No
entryDateAccount you debit (left aligned) Account you credit
(centered)DebitCredit4/02Cash Receivables (income tax
receivable)100
100
DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF4/02+C 100 -Rec. 100No entry+OA 100 =
+NCF 100At year end, a Monopoly company has a $200 balance in the
prepaid taxes account and owes income taxes of $300. Make the HAM
adjusting entry to record income taxes.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF12/01-PpdT 200 = +TP 100 RE300-ITExp 300 = -NI
300DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit12/02Income Tax ExpensePrepaid TaxesTaxes
Payable300
200100At year end, a Monopoly company has a $200 balance in the
prepaid taxes account and owes income taxes of $300. Make the HAM
adjusting entry to record income taxes.
Make the journal entry to record this transaction.DateBalance
SheetA = L + SEIncome StatementR E = NICash Flow StatementOA + IA +
FA = NCF12/01-Ppdt 200 = +TP 100 -RE 300-ITexp 300 = -NI 300No
entryDateAccount you debit (left aligned) Account you credit
(centered)DebitCredit12/02Income Tax Expense Prepaid Taxes Taxes
Payable300
200100At the end of year 1, a Monopoly company made the
following entry to record income taxes.
Make the entries to properly record this firms transaction with
the tax authorities in April of year 2 (when cash will actually
change hands) in both HAM and journal entry formats.DateAccount you
debit (left aligned) Account you credit
(centered)DebitCredit4/02Taxes PayableCash100
100
DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF4/02-C 100 = -TP 100-OA 100 = -NCF
100DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF12/01-Ppdt 200 = +TP 100 -RE 300-ITexp
300 = -NI 300No entryAt the end of year 1, a Monopoly company made
the following entry to record income taxes.
Make the entries to properly record this firms transaction with
the tax authorities in April of year 2 (when cash will actually
change hands) in both HAM and journal entry formats.DateAccount you
debit (left aligned) Account you credit
(centered)DebitCredit4/02Taxes Payable Cash100
100
DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF4/02-C 100 = -TP 100No entry-OA 100 =
-NCF 100DateBalance SheetA = L + SEIncome StatementR E = NICash
Flow StatementOA + IA + FA = NCF12/01-Ppdt 200 = +TP 100 -RE
300-ITexp 300 = -NI 300No entrySample QuestionsNon-fundamental, but
still important stuffAccounting Calculations and ReasoningOn
February 5th, Kirk Co. makes a sale, receiving $100 of cash and
delivering goods to the customer which cost Kirk Co. $80 to
produce. Assuming Kirk Co. uses a periodic inventory system, make
the appropriate entries for Kirk Co. to record the sale in both HAM
and journal entry formats.
DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF2/5+C 100 = +RE 100+Rev 100 = +NI 100+OA
100 = +NCF 100DateAccount you debit (left aligned) Account you
credit (centered)DebitCredit2/5CashSales Revenue100
100
On February 5th, Kirk Co. makes a sale, receiving $100 of cash
and delivering goods to the customer which cost Kirk Co. $80 to
produce. Assuming Kirk Co. uses a periodic inventory system, make
the appropriate entries for Kirk Co. to record the sale in both HAM
and journal entry formats.
DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF2/5+C 100 = +RE 100+SalesRev 100 = +NI
100+OA 100 = +NCF 100DateAccount you debit (left aligned) Account
you credit (centered)DebitCredit2/5Cash Sales Revenue100
100
On February 5th, Kirk Co. makes a sale, receiving $100 of cash
and delivering goods to the customer which cost Kirk Co. $80 to
produce. Assuming Kirk Co. uses a perpetual inventory system, make
appropriate entries for Kirk Co. to record the sale in both HAM and
journal entry formats.DateBalance SheetA = L + SEIncome StatementR
E = NICash Flow StatementOA + IA + FA = NCF2/5+C 100 Inv 80 = +RE
20+Rev 100 CoGS 80 = +NI 20+OA 100 = +NCF 100DateAccount you debit
(left aligned) Account you credit (centered)DebitCredit2/5CashCost
of Goods SoldInventorySales Revenue10080
80100On February 5th, Kirk Co. makes a sale, receiving $100 of
cash and delivering goods to the customer which cost Kirk Co. $80
to produce. Assuming Kirk Co. uses a perpetual inventory system,
make appropriate entries for Kirk Co. to record the sale in both
HAM and journal entry formats.DateBalance SheetA = L + SEIncome
StatementR E = NICash Flow StatementOA + IA + FA = NCF2/5+C 100 =
+RE 100+SalesRev 100 = +NI 100+OA 100 = +NCF 1002/5-Inventory 80 =
-RE 80-COGS 80 = -NI 80No entryDateAccount you debit (left aligned)
Account you credit (centered)DebitCredit2/5Cash Sales RevenueCost
of goods sold (COGS) Inventory100
80
100
80Rupar Co. is a business that sells bottled wines. At the
beginning of January, Rupar has no bottles in inventory. During
January, Rupar Co. purchased four bottles of wine at the following
dates and prices. Jan. 5: 1 bottle for $30Jan. 10: 1 bottle for
$40Jan. 12: 1 bottle for $56Jan. 15:1 bottle for $60
Assume that Rupar Co. sold 3 bottles during January. Please
calculate Rupar Co.s January COGS and ending inventory using FIFO
and LIFO.
Rupar Co. is a business that sells bottled wines. At the
beginning of January, Rupar has no bottles in inventory. During
January, Rupar Co. purchased four bottles of wine at the following
dates and prices. Jan. 5: 1 bottle for $30Jan. 10: 1 bottle for
$40Jan. 12: 1 bottle for $56Jan. 15:1 bottle for $60
Assume that Rupar Co. sold 3 bottles during January. Please
calculate Rupar Co.s January COGS and ending inventory using FIFO
and LIFO.
FIFO: COGS = 30 + 40 + 56 = $126 EI = $60LIFO: COGS = 60 + 56 +
40 = $156 EI = $30During 2012, Reppenhagen Co. had credit sales
(sales on account) of $1,000. At the end of 2012, Reppenhagen Co.
had a balance in its allowance for doubtful accounts equal to $10.
Reppenhagen Co. estimates that it will be unable to collect 5% of
its 2012 credit sales. Percentage of sales = get Bad Debt Expense
right
Please make the appropriate year-end adjusting entries relating
to uncollectible accounts receivable for Reppenhagen Co. in 2012
using both HAM and journal entry formats. Assume Reppenhagen Co.
uses the percentage of sales method.DateBalance SheetA = L +
SEIncome StatementR E = NICash Flow StatementOA + IA + FA =
NCF12/12-Allowance 50 = -RE 50-BadDebtExp 50 = -NI 50DateAccount
you debit (left aligned) Account you credit
(centered)DebitCredit12/12Bad Debt ExpenseAllowance for doubtful
accts50
50During 2012, Reppenhagen Co. had credit sales (sales on
account) of $1,000. At the end of 2012, Reppenhagen Co. had a
balance in its allowance for doubtful accounts equal to $10.
Reppenhagen Co. estimates that it will be unable to collect 5% of
its 2012 credit sales. Please make the appropriate year-end
adjusting entries relating to uncollectible accounts receivable for
Reppenhagen Co. in 2012 using both HAM and journal entry formats.
Assume Reppenhagen Co. uses the percentage of sales
method.DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF12/12-Allow. for DA 50 = -NI
50-BadDebtExp 50 = -NI 50No entryDateAccount you debit (left
aligned) Account you credit (centered)DebitCredit12/12Bad Debt
Expense Allowance for doubtful accounts50
50At the end of 2012, Reppenhagen Co. had accounts receivable of
$500 and a balance in its allowance for doubtful accounts equal to
$10. Reppenhagen Co. estimates that it will be unable to collect
10% of its accounts receivable.
Percentage of sales = get Allowance for d.a. right
Please make the appropriate year-end adjusting entries relating
to uncollectible accounts receivable for Reppenhagen Co. in 2012
using both HAM and journal entry formats. Assume Reppenhagen Co.
uses the percentage of accounts receivable method.
Keep in mind that our goal when using the percentage of
accounting receivable method is to get the balance in allowance for
doubtful accounts right. Our estimate of the appropriate balance is
$50 and the pre-adjustment balance is $10. So we need to put an
additional $40 into the allowance account.DateBalance SheetA = L +
SEIncome StatementR E = NICash Flow StatementOA + IA + FA =
NCF12/12- Allowance 40 = -RE 40-BadDebtExp 40 = -NI 40DateAccount
you debit (left aligned) Account you credit
(centered)DebitCredit12/12Bad Debt ExpenseAllowance for d.a.40
40At the end of 2012, Reppenhagen Co. had accounts receivable of
$500 and a balance in its allowance for doubtful accounts equal to
$10. Reppenhagen Co. estimates that it will be unable to collect
10% of its accounts receivable.
Please make the appropriate year-end adjusting entries relating
to uncollectible accounts receivable for Reppenhagen Co. in 2012
using both HAM and journal entry formats. Assume Reppenhagen Co.
uses the percentage of accounts receivable method.Keep in mind that
our goal when using the percentage of accounting receivable method
is to get the balance in allowance for doubtful accounts right. Our
estimate of the appropriate balance is $50 and the pre-adjustment
balance is $10. So we need to put an additional $40 into the
allowance account.DateBalance SheetA = L + SEIncome StatementR E =
NICash Flow StatementOA + IA + FA = NCF12/12-Allow. for DA 40 = -NI
40-BadDebtExp 40 = -NI 40No entryDateAccount you debit (left
aligned) Account you credit (centered)DebitCredit12/12Bad Debt
Expense Allowance for doubtful accounts40
40Reppenhagen Co. is a company that occasionally makes credit
sales. It knows that it will be unable to collect all of its
accounts receivable and makes appropriate year-end adjusting
entries relating to its uncollectible accounts receivable.
Assume that on May 5th, Reppenhagen Co. determines that it will
be unable to collect a $10 accounts receivable for a prior sale to
X Co. Make the appropriate entries to record the event on May 5th
in both HAM and journal entry formats. DateBalance SheetA = L +
SEIncome StatementR E = NICash Flow StatementOA + IA + FA =
NCF5/5-A/R 10 +Allowance 10 = 0DateAccount you debit (left aligned)
Account you credit (centered)DebitCredit5/5Allowance for
d.a.Accounts Receivable10
10Reppenhagen Co. is a company that occasionally makes credit
sales. It knows that it will be unable to collect all of its
accounts receivable and makes appropriate year-end adjusting
entries relating to its uncollectible accounts receivable.
Assume that on May 5th, Reppenhagen Co. determines that it will
be unable to collect a $10 accounts receivable for a prior sale to
X Co. Make the appropriate entries to record the event on May 5th
in both HAM and journal entry formats. DateBalance SheetA = L +
SEIncome StatementR E = NICash Flow StatementOA + IA + FA =
NCF5/5-AR (X Co.) 10 + Allow for D.A. 10No entryNo entryDateAccount
you debit (left aligned) Account you credit
(centered)DebitCredit5/5Allowance for doubtful accounts Accounts
Receivable (X Co.)10
10Vincent Co. purchased a machine for its factory on July 12th.
The cost of the machine was $200, shipping to get it to the factory
was $10, the cost of installing it on the factory floor was $20,
and the cost of heating and cooling the factory while the machine
was being installed was $20. All of these expenditures were paid
with cash.
Make the appropriate entries to capitalize the machine in both
HAM and journal entry formats.
DateBalance SheetA = L + SEIncome StatementR E = NICash Flow
StatementOA + IA + FA = NCF7/12-C 230 +Machine 230 = 0-IA 230 =
-NCF 230DateAccount you debit (left aligned) Account you credit
(centered)DebitCredit7/12MachineCash230
230Vincent Co. purchased a machine for its factory on July 12th.
The cost of the machine was $200, shipping to get it to the factory
was $10, the cost of installing it on the factory floor was $20,
and the cost of heating and cooling the factory while the machine
was being installed was $20. All of these expenditures were paid
with cash.
Make the appropriate entries to capitalize the machine in both
HAM and journal entry formats.
The key is to capitalize the appropriate costs related to the
installation of the machine, but ignore the period costs
(utilities). DateBalance SheetA = L + SEIncome StatementR E =
NICash Flow StatementOA + IA + FA = NCF7/12 -C 230 +Machine 230No
entry-IA 230 = -NCF 230DateAccount you debit (left aligned) Account
you credit (centered)DebitCredit7/12Machine Cash230
230Imagine that Vincent Co. purchased and capitalized a $500
machine on August 1st 2012. Vincent Co. estimates that the machine
will have a useful life of 5 years and a salvage value of $250.
Make the appropriate entries to record the expense associated
with using up the machines capitalized value at year end on
December 31st 2012 using the straight-line method. Use both HAM and
journal entry formats. DateBalance SheetA = L + SEIncome StatementR
E = NICash Flow StatementOA + IA + FA = NCF12/12-AD 20.83 = -RE
20.83-Dexp 20.83 = -NI 20.83DateAccount you debit (left aligned)
Account you credit (centered)DebitCredit12/12Depreciation
ExpenseAccumulated Depreciation20.83
20.83Imagine that Vincent Co. purchased and capitalized a $500
machine on August 1st 2012. Vincent Co. estimates that the machine
will have a useful life of 5 years and a salvage value of $250.
Make the appropriate entries to record the expense associated
with using up the machines capitalized value at year end on
December 31st 2012 using the straight-line method. Use both HAM and
journal entry formats. DateBalance SheetA = L + SEIncome StatementR
E = NICash Flow StatementOA + IA + FA = NCF12/12-AD 50 = -RE
50-DExp 50 = -NI 50No entryDateAccount you debit (left aligned)
Account you credit (centered)DebitCredit12/12Depreciation Expense
Accumulated Depreciation (machine)50
50List the timing and dollar amounts of cash flows paid by a
bond with the following characteristics. Face value = $1,000Coupon
rate (annual) = 10%Market rate (annual) = 8%Payment frequency =
semiannualMaturity = 2 years
List the timing and dollar amounts of cash flows paid by a bond
with the following characteristics. Face value = $1,000Coupon rate
(annual) = 10%Market rate (annual) = 8%Payment frequency =
semiannualMaturity = 2 years
+.5 years: $50+ 1 year:$50+ 1.5 years: $50+ 2 years:$1,050Write
the formula for used to calculate the present value of a future
cash flow.
Write the formula for used to calculate the present value of a
future cash flow.
PV = FV / (1 + i ) ^ n
