E2-4B (Assumptions, Principles, and Constraints) Presented below are the assumptions, principles, and constraints used in this chapter.

E2-4B (Assumptions, Principles, and Constraints) Presented below are the assumptions, principles, and constraints used in this chapter.

1. Economic entity assumption 5. Historical cost principle 9. Materiality

2. Going concern assumption 6. Matching principle 10. Industry practices

3. Monetary unit assumption 7. Full disclosure principle 11. Conservatism

4. Periodicity assumption 8. Cost-benefit relationship

Instructions

Identify by number the accounting assumption, principle, or constraint that describes each situation below.

Do not use a letter more than once.

(a) Permits the use of market value valuation in certain specific situations.

(b) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.)

(c) Allocates expenses to revenues in the proper period.

(d) Indicates that personal and business record keeping should be separately maintained.

(e) Ensures that all relevant financial information is reported.

(f) Indicates that market value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.)

(g) Anticipates all losses, but reports no gains.

(h) Separates financial information into time periods for reporting purposes.

(i) Assumes that the dollar is the “measuring stick” used to report on financial performance.

(j) Requires that information significant enough to affect the decision of reasonably informed users should be disclosed. (Do not use full disclosure principle.)

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ACC 349 Exercise 2-4 (E2-4) Assumptions, Principles, and Constraints. Presented below are the

ACC 349 Exercise 2-4 (E2-4) Assumptions, Principles, and Constraints. Presented below are the assumptions, principles, and constraints used in this chapter.

Axia College of University of Phoenix (UoP)

Intermediate Accounting 1: Wey gandt, Kieso, Kimmel

Exercise 2-4 (E2-4) Assumptions, Principles, and Constraints. Presented below are the assumptions, principles, and constraints used in this chapter.

1. Economic entity assumption 5. Historical cost principle 9. Materiality

2. Going concern assumption 6. Matching principle 10. Industry practices

3. Monetary unit assumption 7. Full disclosure principle 11. Conservatism

4. Periodicity assumption 8. Cost-benefit relationship

Instructions

Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a letter more than once.

(a) Allocates expenses to revenues in the proper period. –

(b) Indicates that market 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) Anticipates all losses, but reports no gains.

(f) Indicates that personal and business record keeping should be separately maintained.

(g) Separates financial information into time periods for reporting purposes.

(h) Permits the use of market value valuation in certain specific situations.

(i) Requires that information significant enough to affect the decision of reasonably informed users should be disclosed. (Do not use full disclosure principle.)

(j) Assumes that the dollar is the “measuring stick” used to report on financial performance. SOLUTION

XACC 280 E15-2 (E15-2) Operating data for Gallup Corporation are presented below

XACC 280 E15-2 (E15-2) Operating data for Gallup Corporation are presented below

XACC 280 Financial Accounting (6th ed.)

Axia College of University of Phoenix (UoP)

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008).. Hoboken, NJ: Wiley.

E15-2 (E15-2) Operating data for Gallup Corporation are presented below.

                                         2009             2008

Sales                                 $750,000      $600,000

Cost of goods sold            465,000        390,000

Selling expenses                120,000        72,000

Administrative expenses    60,000           54,000

Income tax expense          33,000           24,000

Net income                       72,000           60,000

Instructions

Prepare a schedule showing a vertical analysis for 2009 and 2008.

File name: ACC-280-E15-2-Gallup-Corporation.doc File type: application/msword Price: $4

XACC 280 Exercise 15-1 (E15-1) XACC 280 Financial information for Blevins Inc. is presented below

XACC 280 E15-1 Financial information for Blevins Inc. is presented below XACC 280 Axia College of University of Phoenix (UoP)

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.

December 31, 2009 December 31, 2008

Current assets $125,000 $100,000                                                                           SOLUTION

Plant assets (net) 396,000 330,000

Current liabilities 91,000 70,000

Long-term liabilities 133,000 95,000

Common stock, $1 par 161,000 115,000

Retained earnings 136,000 150,000

Instructions

Prepare a schedule showing a horizontal analysis for 2009 using 2008 as the base year. SOLUTION

Exercise 10-2 (E10-2) Trudy Company incurred the following costs. 1. Sales tax on factory machinery

Exercise 10-2 (E10-2) Trudy Company incurred the following costs. 1. Sales tax on factory machinery purchased $5,000

Axia College of University of Phoenix (UoP) XACC 280 Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.

E10-2 Trudy Company incurred the following costs.

1. Sales tax on factory machinery purchased $5,000

2. Painting of and lettering on truck immediately upon purchase 700 

3. Installation and testing of factory machinery 2,000

4. Real estate broker’s commission on land purchased 3,500

5. Insurance premium paid for first year’s insurance on new truck 880

6. Cost of landscaping on property purchased 7,200

7. Cost of paving parking lot for new building constructed 17,900

8. Cost of clearing, draining, and filling land 13,300

9. Architect’s fees on self-constructed building 10,000

Instructions

Indicate to which account Trudy would debit each of the costs.

 

File name: Trudy-Company.doc File type: application/msword  Price: $3

E10-13 Herzogg Company, organized in 2008, has the following transactions XACC 280 Axia College of University of Phoenix (UoP)

Exercise 10-13 E10-13 Herzogg Company, organized in 2008, has the following transactions XACC 280 Axia College of University of Phoenix (UoP)

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.

E10-13 Herzogg Company, organized in 2008, has the following transactions related to intangible assets. 1/2/08 Purchased patent (7-year life) $560,000 4/1/08 Goodwill purchased (indefinite life) 360,000 7/1/08 10-year franchise; expiration date 7/1/2018 440,000 9/1/08 Research and development costs 185,000

Instructions
Prepare the necessary entries to record these intangibles.
All costs incurred were for cash.
Make the adjusting entries as of December 31, 2008, recording any necessary amortization and reporting all intangible asset balances accurately as of that date.

File name:Herzogg-Company.doc File type:application/msword Price: $4

Xacc280 week 6 appendix G Comprehensive problem on pp 189-190 of Financial Accounting Julie Molony opened Julie’s Maids Cleaning Service Inc

Xacc280 week 6 appendix G Comprehensive problem on pp 189-190 of Financial Accounting Julie Molony opened Julie’s Maids Cleaning Service Inc.

 

Complete the Comprehensive Problem on pp. 189-190 of Financial Accounting. Use the templates in Appendix G to complete the problem, complete all six tabs. Post the completed Appendix G as an attachment.

Axia College of University of Phoenix (UoP) 

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ:  Wiley.

Comprehensive Problem: Chapters 2 to 4 Julie Molony opened Julie’s Maids Cleaning Service Inc.

on July 1, 2008. During July, the company completed the following transactions.

July 1 Issued $14,000 of common stock for $14,000 cash.

1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account.

3 Purchased cleaning supplies for $800 on account.

5 Paid $1,800 on a one-year insurance policy, effective July 1.

12 Billed customers $3,800 for cleaning services.

18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies.

20 Paid $1,600 for employee salaries.

21 Collected $1,400 from customers billed on July 12.

25 Billed customers $1,500 for cleaning services.

31 Paid gas and oil for the month on the truck, $400.

31 Paid a $600 cash dividend.

The chart of accounts for Julie’s Maids Cleaning Service contains the following accounts: No. 101

Cash, No. 112

Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense.

Instructions

(a) Journalize and post the July transactions. Use page J1 for the journal.

(b) Prepare a trial balance at July 31 on a worksheet.

(c) Enter the following adjustments on the worksheet, and complete the worksheet.

(1) Earned but unbilled fees at July 31 were $1,300.

(2) Depreciation on equipment for the month was $200.

(3) One-twelfth of the insurance expired.

(4) An inventory count shows $100 of cleaning supplies on hand at July 31.

(5) Accrued but unpaid employee salaries were $500.

(d) Prepare the income statement and a retained earnings statement for July, and a classified balance

sheet at July 31, 2008.

(e) Journalize and post the adjusting entries. Use page J2 for the journal.

(f ) Journalize and post the closing entries, and complete the closing process. Use page J3 for the

journal.

(g) Prepare a post-closing trial balance at July 31.

 

SOLUTION PREVIEW

JULIE’S MAIDS CLEANING SERVICE INC. Worksheet For the Month Ended July 31, 2008

Adjusted

Income

Trial Balance

Adjustments

Trial Balance

Statement

Balance Sheet

Account Titles

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Cash

6,600

6,600

6,600

Accounts Receivable

3,900

1,300

5,200

5,200

Cleaning Supplies

800

700

100

100

Prepaid Insurance

1,800

150

1,650

1,650

 

File name: xacc280-app-G-Julies-maid-cleaning-service.xls File type: application/vnd.ms-excel Price: $15

The adjusted trial balance of Gertz Company included the following selected accounts:

The adjusted trial balance of Gertz Company included the following selected accounts

Debit Credit

Sales $575,000

Sales Returns and Allowances $ 50,000

Sales Discounts 9,500

Cost of Goods Sold 347,000

Freight-out 2,000

Advertising Expense 15,000

Interest Expense 19,000

Store Salaries Expense 74,000

Utilities Expense 18,000

Depreciation Expense 3,500

Interest Revenue 25,000

Instructions

(1). Use the above information to prepare a multiple-step income statement for the year ended December 31, 2007.

(2). Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. (Points: 25)

SOLUTION PREVIEW [EXCEL SHEET]

GERTZ COMPANY Income Statement For the Year Ended December 31, 2007
Sales		575,000
Less:
Sales Returns and Allowances	50,000
Sales Discounts	9,500	59,500
Net Sales		515,500

 

File name: Gertz-Company.xls File type: application/vnd.ms-excel Price: $6