Accounting Homework Assessment

Accounting Homework Assessment

Acct 220

As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $950,000 and liabilities of $330,000. During Year 2, stockholders invested an additional $65,000 and received $30,000 in dividends from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $965,000 and liabilities were $290,000?
Your Answer:
Question 1 options:

Answer
Question 2 (3 points)

Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $310,000. The Focus Company initially offered to buy the land for $237,000. The companies settled on a purchase price of $282,000. On the same day, another piece of land on the same block sold for $322,000. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company?
Your Answer:
Question 2 options:

Answer
Question 3 (12 points)

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
Question 3 options:

Received utility bill to be paid next month

Paid part of an amount owed to a creditor

Paid cash for the purchase of a one-year insurance policy

Payment for common stock by stockholder

Received payment from a customer on account

Received cash for providing services to customers

Purchased equipment for cash

Provided a service to a customer on account

Payment of dividends

Used up supplies that were already on hand

Purchased supplies on credit

Borrowed money from a bank

Received cash for services provided

Paid wages

Contribution of land by stockholder
1. Increase assets, increase liabilities
2. Increase liabilities, decrease stockholders’ equity
3. Increase assets, increase stockholders’ equity
4. No effect
5. Decrease assets, decrease liabilities
6. Decrease assets, decrease stockholders’ equity

Question 4 (10 points)

Match the type of account (a – e) with the business transactions that follow.
Question 4 options:

Received 6 months of rental payments from a tenant.

Annual property taxes that are paid at the end of the year.

Received payment covering a 6-month magazine subscription.

Paid for a 6-month magazine subscription.

Services provided that have not been recorded.

Electric bill to be paid next month.

Annual depreciation on equipment, recorded on a monthly basis.

A contract to provide tutoring services beginning next month was signed.

Paid for one year’s insurance policy.

Provided tutoring for a student that will be invoiced next month.

Paid 6 months of rental payments to the landlord.

Retainer fee received from a client for future legal representation.

Prepaid expense
2. Accrued expense
3. Unearned revenue
4. Accrued revenue
5. None of these

Question 6 (3 points)

Use the adjusted trial balance for Stockton Company below to determine the Retained Earnings ending balance.
Stockton Company
Adjusted Trial Balance
31-Dec
Cash 7,530
Accounts Receivable 2,100
Prepaid Expenses 700
Equipment 13,700
Accumulated Depreciation 1,100
Accounts Payable 1,900
Notes Payable 4,300
Common Stock 1,000
Retained Earnings 12,940
Dividends 790
Fees Earned 9,250
Wages Expense 2,500
Rent Expense 1,960
Utilities Expense 775
Depreciation Expense 250
Miscellaneous Expense 185

Totals 30,490 30,490
Your Answer:
Question 6 options:

Answer
Question 7 (3 points)

Use the adjusted trial balance for Stockton Company below to determine Total Current Assets.
Stockton Company
Adjusted Trial Balance
31-Dec
Cash 7,530
Accounts Receivable 2,100
Prepaid Expenses 700
Equipment 13,700
Accumulated Depreciation 1,100
Accounts Payable 1,900
Notes Payable 4,300
Common Stock 1,000
Retained Earnings 12,940
Dividends 790
Fees Earned 9,250
Wages Expense 2,500
Rent Expense 1,960
Utilities Expense 775
Depreciation Expense 250
Miscellaneous Expense 185

Totals 30,490 30,490

Your Answer:
Question 7 options:

Answer
Question 8 (3 points)

Use this end-of-period spreadsheet to answer the questions that follow.
Finley Company
End-of-Period Spreadsheet
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 48,000 48,000
Accounts Receivable 18,000 18,000
Supplies 6,000 6,000
Equipment 57,000 57,000
Accumulated Depr. 18,000 18,000
Accounts Payable 25,000 25,000
Wages Payable 6,000 6,000
Common Stock 30,000 30,000
Retained Earnings 3,000 3,000
Dividends 3,000 3,000
Fees Earned 155,000 155,000
Wages Expense 63,000 63,000
Rent Expense 27,000 27,000
Depreciation Expense 15,000 15,000
Totals 237,000 237,000 105,000 155,000 132,000 82,000
Net Income (Loss) 50,000 50,000
155,000 155,000 132,000 132,000
The entry to close Expenses would be:
Question 8 options:

Income Summary 105,000
Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000

Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000
Income Summary 105,000

Wages Expense 63,000
Rent Expense 27,000
Depreciation Expense 15,000
Dividends 105,000

Expenses 105,000
Income Summary 105,000
Question 9 (3 points)

Use this end-of-period spreadsheet to answer the questions that follow.
Finley Company
End-of-Period Spreadsheet
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 48,000 48,000
Accounts Receivable 18,000 18,000
Supplies 6,000 6,000
Equipment 57,000 57,000
Accumulated Depr. 18,000 18,000
Accounts Payable 25,000 25,000
Wages Payable 6,000 6,000
Common Stock 30,000 30,000
Retained Earnings 3,000 3,000
Dividends 3,000 3,000
Fees Earned 155,000 155,000
Wages Expense 63,000 63,000
Rent Expense 27,000 27,000
Depreciation Expense 15,000 15,000
Totals 237,000 237,000 105,000 155,000 132,000 82,000
Net Income (Loss) 50,000 50,000
155,000 155,000 132,000 132,000
The entry to close Income Summary would be:
Question 9 options:

debit Common Stock, $50,000; credit Income Summary, $50,000

debit Common Stock, $9,000; credit Income Summary, $9,000

debit Income Summary, $155,000; credit Common Stock, $155,000

debit Income Summary, $50,000; credit Retained Earnings, $50,000
Question 10 (3 points)

Using the following information, what is the amount of gross profit?
Purchases $37,000
Merchandise inventory, September 1 6,000
Selling expense 950
Merchandise inventory, September 30 7,000
Sales 85,000
Interest expense 1,740
Administrative expense 1,910
Rent revenue 1,600
Your Answer:
Question 10 options:

Answer
Question 11 (3 points)

The following units of an inventory item were available for sale during the year:
Unit Unit Cost
Beginning inventory 14 $55
First purchase 30 60
Second purchase 30 65
Third purchase 16 70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory using FIFO is
Your Answer:
Question 11 options:

Answer
Question 12 (3 points)

The following units of an inventory item were available for sale during the year:
Unit Unit Cost
Beginning inventory 15 $55
First purchase 29 60
Second purchase 32 65
Third purchase 15 70
The firm uses the periodic inventory system. During the year, 62 units of the item were sold.
The value of ending inventory using LIFO is
Your Answer:
Question 12 options:

Answer
Question 13 (3 points)

The following units of an inventory item were available for sale during the year:
Unit Unit Cost
Beginning inventory 12 $55
First purchase 26 60
Second purchase 32 65
Third purchase 17 70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory rounded to nearest dollar using average cost is:
Your Answer:
Question 13 options:

Answer
A building with an appraisal value of $163,000 is made available at an offer price of $177,000. The purchaser acquires the property for $42,000 in cash, a 90-day note payable for $52,000, and a mortgage amounting to $75,000. The cost basis recorded in the buyer’s accounting records to recognize this purchase is
Your Answer:
Question 18 options:

Question 23 (3 points)

The Torre Company has the following stockholders’ equity account balances in stockholders equity on December 31.
Common Stock – $5 par, 500,000 shares authorized $340,000
Paid-In Capital in Excess of Par—Common Stock 600,000
Preferred Stock – $100 par, 100,000 shares authorized 590,000
Paid-In Capital in Excess of Par—Preferred 140,000
Retained Earnings 270,000
Treasury Stock (cost – $10 per share) 130,000
How many shares of common stock are outstanding?
Your Answer:
Question 23 options:

Answer
Question 24 (3 points)

The Torre Company has the following stockholders’ equity account balances in stockholders equity on December 31.
Common Stock – $5 par, 60,000 shares issued $400,000
Paid-In Capital in Excess of Par—Common Stock 610,000
Preferred Stock – $100 par, 5,000 shares issued 520,000
Paid-In Capital in Excess of Par—Preferred 190,000
Retained Earnings 240,000
Treasury Stock (cost – $10 per share) 120,000
If net income for the year was $85,000 and a preferred stock dividend of $40,000 was paid, what was the beginning value of retained earnings?
Your Answer:
Question 24 options:

Answer Accounting Homework Assessment

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