Journalize the transactions in the general journal

Assignment Help Financial Accounting
Reference no: EM131627473

Part -1:

Question 1:

Qualitative Characteristics - The qualitative characteristics that make accounting information useful for decision-making purposes are as follows.

Relevance                                                                          Neutrality

Verifiability                                                                         Faithful representation

Completeness                                                                   Understandability

Predictive value                                                                Timeliness

Comparability                                                                    Confirmatory value

Materiality                                                                          Free from error

Instructions: Identify the appropriate qualitative characteristic(s) to be used given the information provided below.
(a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles.
(b) Quality of information that confirms users' earlier expectations.
(c) Imperative for providing comparisons of a company from period to period.
(d) Ignores the economic consequences of a standard or rule.
(e) Requires a high degree of consensus among individuals on a given measurement.
(f) Predictive value is an ingredient of this fundamental quality of information.
(g) Four qualitative characteristics that are related to both relevance and faithful representation.
(h) An item is not recorded because its effect on income would not change a decision.
(i) Neutrality is an ingredient of this fundamental quality of accounting information.
(j) Two fundamental qualities that make accounting information useful for decision-making purposes.
(k) Issuance of interim reports is an example of what enhancing quality of relevance?

Question 2:

Elements of Financial Statements - Ten interrelated elements that are most directly related to measuring the performance and financial status of an enterprise are provided below.

Assets                                                                     Distributions to owners

Expenses                                                                  Liabilities

Comprehensive income                                                Gains

Equity                                                                      Revenues

Losses                                                                     Investments by owners

Instructions: Identify the element or elements associated with the 12 items below.
(a) Arises from peripheral or incidental transactions.
(b) Obligation to transfer resources arising from a past transaction.
(c) Increases ownership interest.
(d) Declares and pays cash dividends to owners.
(e) Increases in net assets in a period from nonowner sources.
(f) Items characterized by service potential or future economic benefit.
(g) Equals increase in assets less liabilities during the year, after adding distributions to owners and subtracting investments by owners.
(h) Arises from income statement activities that constitute the entity's ongoing major or central operations.
(i) Residual interest in the assets of the enterprise after deducting its liabilities.
(j) Increases assets during a period through sale of product.
(k) Decreases assets during the period by purchasing the company's own stock.
(l) Includes all changes in equity during the period, except those resulting from investments by owners and distributions to owners.

Question 3:

Assumptions, Principles, and Constraint - Presented below are the assumptions, principles, and constraint used in this chapter.

1. Economic entity assumption                          2. Going concern assumption

3. Monetary unit assumption                             4. Periodicity assumption

5. Measurement principle (historical cost)            6. Measurement principle (fair value)

7. Expense recognition principle                         8. Full disclosure principle

 9. Cost constraint                                          10. Revenue recognition principle

Instructions: Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once.
(a) Allocates expenses to revenues in the proper period.
(b) Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.)
(c) Ensures that all relevant financial information is reported.
(d) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.)
(e) Indicates that personal and business record keeping should be separately maintained.
(f) Separates financial information into time periods for reporting purposes.
(g) Assumes that the dollar is the "measuring stick" used to report on financial performance.

Part -2:

Question 1:

Transaction Analysis-Service Company - Beverly Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.

April       2 Invested $32,000 cash and equipment valued at $14,000 in the business.

                2 Hired a secretary-receptionist at a salary of $290 per week payable monthly.

                3 Purchased supplies on account $700. (Debit an asset account.)

                7 Paid office rent of $600 for the month

                11 Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.)

                12 Received $3,200 advance on a management consulting engagement.

                17 Received cash of $2,300 for services completed for Ferengi Co.

                21 Paid insurance expense $110.

                30 Paid secretary-receptionist $1,160 for the month.

                 30 A count of supplies indicated that $120 of supplies had been used.

                30 Purchased a new computer for $6,100 with personal funds. (The computer will be used exclusively for business purposes.)

Instructions: Journalize the transactions in the general journal. (Omit explanations.)

Question 2:

Adjusting Entries - The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation-Equipment $ 8,400
Notes Payable 20,000
Unearned Rent Revenue 9,300
Rent Revenue 60,000
Interest Expense -0-
Salaries and Wages Expense 14,000

An analysis of the accounts shows the following.
1. The equipment depreciates $250 per month.
2. One-third of the unearned rent was recognized as revenue during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $300 per month.

Instructions: Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Omit explanations.)

Question 3:

Closing Entries for a Corporation - Presented below are selected account balances for Homer Winslow Co. as of December 31, 2014.
Inventory 12/31/14 $ 60,000 Cost of Goods Sold $225,700
Common Stock 75,000 Selling Expenses 16,000
Retained Earnings 45,000 Administrative Expenses 38,000
Dividends 18,000 Income Tax Expense 30,000
Sales Returns and Allowances 12,000
Sales Discounts 15,000
Sales Revenue 410,000

Instructions: Prepare closing entries for Homer Winslow Co. on December 31, 2014. (Omit explanations.)

Reference no: EM131627473

Questions Cloud

Develop a conclusion as the last paragraphs of the essay : Develop a conclusion as the last paragraph(s) of the essay, starting with rephrasing your thesis statement and then presenting the major points of the topic.
Define what product or service is involved in each issue : What is the public interest in each situation that requires protection
How did the tax reform act affect the popularity of lps : How does a limited partnership (LP) differ from a corporation and a general partnership? How did the Tax Reform Act of 1986 affect the popularity of LPs as tax.
Discuss claiming jones had breached their oral contract : IGA Grocers orally agreed to purchase 1000 bushels of corn for $1.25 per bushel from Jones, a farmer.
Journalize the transactions in the general journal : Journalize the transactions in the general journal - Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly
What are guaranteed investment contracts : What are guaranteed investment contracts (GICs), and what role do they play in 401(k) plans? What investment vehicles might be suitable for funding a Keogh.
Discuss an analysis teaches you how to read a case : Case analyses are extremely helpful in that an analysis teaches you how to read a case
Describe darwins theory of evolution by natural selection : Describe Darwin's theory of evolution by natural selection. Explain how this theory was a major advance over prior ideas as to how organisms changed over time.
Describe how the total tax was calculated : Obtain a copy of the most recent year's Form 1040 (U.S. Individual Income Tax Return), along with Schedules A (Itemized Deductions).

Reviews

len1627473

9/5/2017 3:50:57 AM

Please complete the following exercises and/or problems from the textbook: Chapter 2: E2-4, E2-5, E2-6 Chapter 3: E3-1, E3-5, E3-16 Prepare your answers in an Excel workbook, using one worksheet per exercise or problem

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd