ACC 291 Week 5 Practice: Connect Practice Assignment

0 items
ACC 291 Week 5 Practice: Connect Practice Assignment
ACC 291 Week 5 Practice: Connect Practice Assignment
$11.99
Go to the store page
  • Description

ACC 291 Week 5 Practice: Connect Practice Assignment

attempt 1

1

Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm’s general ledger contained the accounts and balances that follow.

Required:

  1. Record adjusting entries in the general journal as of December 31, 2019.

  2. Record closing entries in the general journal as of December 31, 2019.

  3. Record reversing entries in the general journal as of January 1, 2020.

Analyze:

Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,000 are paid on January 3?

 

2

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firm’s worksheet for the year ended December 31, 2019

AccountsDebitCredit
Cash$99,000
Petty Cash Fund600
Notes Receivable, due 202015,000
Accounts Receivable140,200
Allowance for Doubtful Accounts$3,800
Interest Receivable150
Merchandise Inventory128,500
Warehouse Supplies3,300
Office Supplies700
Prepaid Insurance4,640
Land16,000
Building107,000
Accumulated Depreciation—Building16,700
Warehouse Equipment19,800
Accumulated Depreciation—Warehouse Equipment9,500
Office Equipment9,400
Accumulated Depreciation—Office Equipment3,900
Notes Payable, due 202015,000
Accounts Payable56,900
Interest Payable400
Loans Payable—Long-Term17,000
Mortgage Payable20,000
Colin O’Brien, Capital (Jan. 1)326,870
Colin O’Brien, Drawing70,650
Income Summary131,400128,500
Sales1,110,300
Sales Returns and Allowances8,400
Interest Income580
Purchases463,000
Freight In9,800
Purchases Returns and Allowances13,650
Purchases Discounts9,240
Warehouse Wages Expense108,600
Warehouse Supplies Expense5,800
Depreciation Expense—Warehouse Equipment3,400
Salaries Expense—Sales151,700
Travel Expense24,000
Delivery Expense37,425
Salaries Expense—Office85,000
Office Supplies Expense1,220
Insurance Expense9,875
Utilities Expense8,000
Telephone Expense3,280
Payroll Taxes Expense31,600
Building Repairs Expense3,700
Property Taxes Expense16,400
Uncollectible Accounts Expense3,580
Depreciation Expense—Building5,600
Depreciation Expense—Office Equipment1,620
Interest Expense4,000
Totals$1,732,340$1,732,340

Required:

  1. Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

  2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.

  3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.

Analyze:

What percentage of total operating expenses is attributable to warehouse expenses?

 

3

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2019.

ACCOUNTSDebitCredit
Cash$34,100
Petty Cash Fund500
Notes Receivable, due 202011,800
Accounts Receivable86,000
Allowance for Doubtful Accounts$6,000
Merchandise Inventory234,000
Warehouse Supplies2,860
Office Supplies1,420
Prepaid Insurance10,200
Land46,000
Building178,000
Accumulated Depreciation—Building54,000
Warehouse Equipment37,000
Accumulated Depreciation—Warehouse Equipment17,400
Delivery Equipment51,000
Accumulated Depreciation—Delivery Equipment19,600
Office Equipment25,000
Accumulated Depreciation—Office Equipment12,000
Notes Payable, due 202020,200
Accounts Payable49,000
Interest Payable580
Mortgage Payable61,000
Loans Payable, Long-term17,000
Charles Ronie, Capital (Jan. 1)452,460
Charles Ronie, Drawing127,000
Income Summary244,000234,000
Sales1,685,000
Sales Returns and Allowances18,200
Interest Income1,580
Purchases767,000
Freight In13,800
Purchases Returns and Allowances8,440
Purchases Discounts11,160
Warehouse Wages Expense199,600
Warehouse Supplies Expense7,100
Depreciation Expense—Warehouse Equipment5,800
Salaries Expense—Sales269,200
Travel and Entertainment Expense21,500
Delivery Wages Expense60,330
Depreciation Expense—Delivery Equipment9,800
Salaries Expense—Office70,600
Office Supplies Expense4,000
Insurance Expense6,200
Utilities Expense9,290
Telephone Expense6,520
Payroll Taxes Expense59,000
Property Taxes Expense5,600
Uncollectible Accounts Expense5,800
Depreciation Expense—Building9,000
Depreciation Expense—Office Equipment4,000
Interest Expense8,200
Totals$2,649,420$2,649,420

Required:

  1. Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

  2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.

  3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.

Analyze:

What is the current ratio for this business?

 

4

The data below concerns adjustments to be made at Coffee Bean Importers.

Adjustments

  1. On November 1, 2019, the firm signed a lease for a warehouse and paid rent of $21,000 in advance for a six-month period.

  2. On December 31, 2019, an inventory of supplies showed that items costing $1,940 were on hand. The balance of the Suppliesaccount was $11,880.

  3. A depreciation schedule for the firm’s equipment shows that a total of $10,750 should be charged off as depreciation in 2019.

  4. On December 31, 2019, the firm owed salaries of $6,100 that will not be paid until January 2020.

  5. On December 31, 2019, the firm owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on all accrued salaries.

  6. On October 1, 2019, the firm received a five-month, 8 percent note for $6,500 from a customer with an overdue balance.

Required:

  1. Record the adjusting entries in the general journal as of December 31, 2019.

  2. Record reversing entries in the general journal as of January 1, 2020.

Analyze:

After the adjusting entries have been posted, what is the balance of the Prepaid Rent account on January 1, 2020?

 

5

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.

Required:

  1. Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.

  2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.

  3. Prepare a classified balance sheet as of December 31, 2019.

Analyze:

What is the inventory turnover for Artisan Wines?

 

Explanation

Analyze:

The inventory turnover for Artisan Wines is 6.59 times, calculated as follows:

Cost of good sold=92,225=6.59
Average inventory14,000

 

Average inventory=13,000 + 15,000=14,000
2

 

 

 

 

 

attempt 2

1

The data below concerns adjustments to be made at Coffee Bean Importers.

Adjustments

  1. On November 1, 2019, the firm signed a lease for a warehouse and paid rent of $21,000 in advance for a six-month period.

  2. On December 31, 2019, an inventory of supplies showed that items costing $1,940 were on hand. The balance of the Suppliesaccount was $11,880.

  3. A depreciation schedule for the firm’s equipment shows that a total of $10,750 should be charged off as depreciation in 2019.

  4. On December 31, 2019, the firm owed salaries of $6,100 that will not be paid until January 2020.

  5. On December 31, 2019, the firm owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on all accrued salaries.

  6. On October 1, 2019, the firm received a five-month, 8 percent note for $6,500 from a customer with an overdue balance.

Required:

  1. Record the adjusting entries in the general journal as of December 31, 2019.

  2. Record reversing entries in the general journal as of January 1, 2020.

Analyze:

After the adjusting entries have been posted, what is the balance of the Prepaid Rent account on January 1, 2020?

 

2

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.

 

Required:

  1. Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.

  2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.

  3. Prepare a classified balance sheet as of December 31, 2019.

Analyze:

What is the inventory turnover for Artisan Wines?

 

3

Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm’s general ledger contained the accounts and balances that follow.

Required:

  1. Record adjusting entries in the general journal as of December 31, 2019.

  2. Record closing entries in the general journal as of December 31, 2019.

  3. Record reversing entries in the general journal as of January 1, 2020.

Analyze:

Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,000 are paid on January 3?

 

4

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firm’s worksheet for the year ended December 31, 2019

AccountsDebitCredit
Cash$99,000
Petty Cash Fund600
Notes Receivable, due 202015,000
Accounts Receivable140,200
Allowance for Doubtful Accounts$3,800
Interest Receivable150
Merchandise Inventory128,500
Warehouse Supplies3,300
Office Supplies700
Prepaid Insurance4,640
Land16,000
Building107,000
Accumulated Depreciation—Building16,700
Warehouse Equipment19,800
Accumulated Depreciation—Warehouse Equipment9,500
Office Equipment9,400
Accumulated Depreciation—Office Equipment3,900
Notes Payable, due 202015,000
Accounts Payable56,900
Interest Payable400
Loans Payable—Long-Term17,000
Mortgage Payable20,000
Colin O’Brien, Capital (Jan. 1)326,870
Colin O’Brien, Drawing70,650
Income Summary131,400128,500
Sales1,110,300
Sales Returns and Allowances8,400
Interest Income580
Purchases463,000
Freight In9,800
Purchases Returns and Allowances13,650
Purchases Discounts9,240
Warehouse Wages Expense108,600
Warehouse Supplies Expense5,800
Depreciation Expense—Warehouse Equipment3,400
Salaries Expense—Sales151,700
Travel Expense24,000
Delivery Expense37,425
Salaries Expense—Office85,000
Office Supplies Expense1,220
Insurance Expense9,875
Utilities Expense8,000
Telephone Expense3,280
Payroll Taxes Expense31,600
Building Repairs Expense3,700
Property Taxes Expense16,400
Uncollectible Accounts Expense3,580
Depreciation Expense—Building5,600
Depreciation Expense—Office Equipment1,620
Interest Expense4,000
Totals$1,732,340$1,732,340

Required:

  1. Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

  2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.

  3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.

Analyze:

What percentage of total operating expenses is attributable to warehouse expenses?

 

5

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2019.

ACCOUNTSDebitCredit
Cash$34,100
Petty Cash Fund500
Notes Receivable, due 202011,800
Accounts Receivable86,000
Allowance for Doubtful Accounts$6,000
Merchandise Inventory234,000
Warehouse Supplies2,860
Office Supplies1,420
Prepaid Insurance10,200
Land46,000
Building178,000
Accumulated Depreciation—Building54,000
Warehouse Equipment37,000
Accumulated Depreciation—Warehouse Equipment17,400
Delivery Equipment51,000
Accumulated Depreciation—Delivery Equipment19,600
Office Equipment25,000
Accumulated Depreciation—Office Equipment12,000
Notes Payable, due 202020,200
Accounts Payable49,000
Interest Payable580
Mortgage Payable61,000
Loans Payable, Long-term17,000
Charles Ronie, Capital (Jan. 1)452,460
Charles Ronie, Drawing127,000
Income Summary244,000234,000
Sales1,685,000
Sales Returns and Allowances18,200
Interest Income1,580
Purchases767,000
Freight In13,800
Purchases Returns and Allowances8,440
Purchases Discounts11,160
Warehouse Wages Expense199,600
Warehouse Supplies Expense7,100
Depreciation Expense—Warehouse Equipment5,800
Salaries Expense—Sales269,200
Travel and Entertainment Expense21,500
Delivery Wages Expense60,330
Depreciation Expense—Delivery Equipment9,800
Salaries Expense—Office70,600
Office Supplies Expense4,000
Insurance Expense6,200
Utilities Expense9,290
Telephone Expense6,520
Payroll Taxes Expense59,000
Property Taxes Expense5,600
Uncollectible Accounts Expense5,800
Depreciation Expense—Building9,000
Depreciation Expense—Office Equipment4,000
Interest Expense8,200
Totals$2,649,420$2,649,420

Required:

  1. Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

  2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.

  3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.

Analyze:

What is the current ratio for this business?