Accounting Help Needed by 10/10 Displaying messages 1 - 3 of 3 Participants: YourBusinessT... and Zmoves Zmoves 2015-10-09 17:20 Hi Can you do this?  $40. Floppy Company's December 31, 2014 trial balance is as follows: Floppy Corporation Trial Balance December 31, 2014 Account Debit Credit Cash $43,500 Accounts Receivable 53,500 Allowance for Doubtful Accounts 1,500 Notes Receivable 30,000 Merchandise Inventory 55,000 Land 20,000 Building 150,000 Accumulated Depreciation, Building $15,000 Equipment 50,000 Accumulated Depreciation, Equipment 21,000 Goodwill 26,000 Accounts Payable 25,000 Long Term Notes Payable 75,000 Common Stock, $10 par, 2,000 shares authorized & outstanding 20,000 Retained Earnings 147,000 Sales Revenue 700,000 Salaries Expense 150,000 Utilities Expense 3,500 Cost of Goods Sold 350,000 Administrative Expenses 55,000 Sales Expenses 15,000 _______ Totals $1,003,000 $1,003,000 Floppy is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded. Additional Information: a. Notes Receivable is a 3-months, 6% note accepted on November 1, 2014. b. Long Term Notes Payable is a 5-year, 5% note, that was signed on July 1, 2014. Interest is payable annually. c. Building is depreciated at 3% per year. There is no salvage value. d. Equipment is depreciated at 15% year. There is no salvage value. e. Floppy discovered, on December 30 th , that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue. f. The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss. g. Salaries for the last half of December, payable in January, amount to $5,500. h. Floppy estimates that of the Accounts Receivable 5% will not be collectable. Required: a. Prepare in journal form, any required correcting entries b. Prepare in journal form, all end-of-the period adjusting entries c. Prepare a December adjusted trial balance d. Prepare a classified balance sheet for the year ended December 31, 2014 e. Prepare in journal form, the closing entries for the year ended December 31, 2014 Floppy uses the period method and had the following inventory events during January: Date Units Purchased Unit Cost Date Units Sold Unit Sales Price Jan. 1 150 $7.00 Jan. 2 100 $10.00 Jan. 5 225 7.20 Jan. 7 125 10.00 Jan. 10 100 7.50 Jan. 12 75 12.00 Jan. 15 150 7.80 Jan. 17 200 12.50 Jan. 20 200 7.95 Jan. 24 150 15.00 Jan. 25 150 8.00 Jan. 30 75 8.20 Note: January 1 amount was the beginning inventory and unit value. (Round all total dollar values to the nearest dollar. Round all unit values to the nearest penny.) Required: a. Calculate cost of goods available for sale. b. Calculate the dollar v.

1. Accounting Help Needed by 10/10
Displaying messages 1 - 3 of 3
Participants:
YourBusinessT...
and
Zmoves
Zmoves
2015-10-09 17:20
Hi Can you do this? $40.
Floppy Company's December 31, 2014 trial balance is as
follows:
Floppy Corporation
Trial Balance
December 31, 2014
Account
Debit
Credit
Cash
$43,500
Accounts Receivable
53,500
Allowance for Doubtful Accounts
1,500
Notes Receivable
30,000

2. Merchandise Inventory
55,000
Land
20,000
Building
150,000
Accumulated Depreciation, Building
$15,000
Equipment
50,000
Accumulated Depreciation, Equipment
21,000
Goodwill
26,000
Accounts Payable
25,000
Long Term Notes Payable
75,000
Common Stock, $10 par, 2,000 shares authorized & outstanding
20,000
Retained Earnings
147,000
Sales Revenue
700,000

3. Salaries Expense
150,000
Utilities Expense
3,500
Cost of Goods Sold
350,000
Administrative Expenses
55,000
Sales Expenses
15,000
_______
Totals
$1,003,000
$1,003,000
Floppy is a small company and records adjusting entries &
closing entries only at fiscal (calendar) year end. Correcting and
adjusting entries have not been recorded.
Additional Information:

4. a. Notes Receivable is a 3-months, 6% note accepted on
November 1, 2014.
b. Long Term Notes Payable is a 5-year, 5% note, that was
signed on July 1, 2014. Interest is payable annually.
c. Building is depreciated at 3% per year. There is no salvage
value.
d. Equipment is depreciated at 15% year. There is no salvage
value.
e. Floppy discovered, on December 30
th
, that the inexperienced bookkeeper recorded in the general
journal and general ledger that day's $1,500 cash sales as a
debit to Accounts Receivable and a credit to Sales Revenue.
f. The year-end physical count for Merchandise Inventory
reflected a value of $51,500. Any difference in value will not be
considered theft or loss.
g. Salaries for the last half of December, payable in January,
amount to $5,500.
h. Floppy estimates that of the Accounts Receivable 5% will not
be collectable.
Required:

5. a. Prepare in journal form, any required correcting entries
b. Prepare in journal form, all end-of-the period adjusting
entries
c. Prepare a December adjusted trial balance
d. Prepare a classified balance sheet for the year ended
December 31, 2014
e. Prepare in journal form, the closing entries for the year ended
December 31, 2014
Floppy uses the period method and had the following inventory
events during January:
Date
Units Purchased
Unit Cost
Date
Units Sold
Unit Sales Price
Jan. 1
150
$7.00

6. Jan. 2
100
$10.00
Jan. 5
225
7.20
Jan. 7
125
10.00
Jan. 10
100
7.50
Jan. 12
75
12.00
Jan. 15
150
7.80
Jan. 17
200
12.50
Jan. 20
200
7.95
Jan. 24
150
15.00
Jan. 25
150
8.00
Jan. 30
75
8.20

7. Note:
January 1 amount was the beginning inventory and unit value.
(Round all total dollar values to the nearest dollar. Round all
unit values to the nearest penny.)
Required:
a. Calculate cost of goods available for sale.
b. Calculate the dollar value of sales.
c. Calculate the value of Ending Inventory and Cost of Good
Sold under the following independent assumptions:
1) LIFO method
2) FIFO method
3) Average-cost method

8. Required:
Prepare Flipper's Supply Co. general journal entries for the
following transactions:
Jan. 1
Accepted Flop's 120 days, 10% note, as settlement of an
outstanding $15,000 account receivable for goods sold last year
Jan. 15
Purchased $10,000 Equipment from Floppy, signing a 9 month,
12% note
Jan. 25
Loaned Flam Co. $30,000 cash, accepting a 90 days, 10% note
Jan. 31
Prepared accrual adjusting entry for any interest revenue
Apr. 25
Received payment in full from Flam Co. for outstanding note &
interest
May 1
Received payment in full from Flop Co. for outstanding note &
interest
Oct. 15
Paid Floppy in full
Floppy Company purchased a refrigerated delivery truck for
$65,000 on April 1, 2016.
The plan is to use the truck for 5 years and then replace it.

9. At the end of its useful life the truck is expected to have a
salvage value of $10,000.
a. Prepare the depreciation table for Floppy’s truck assuming
that the company uses the straight-line method for depreciation.
b. Prepare the depreciation table for Floppy’s truck assuming
that the company uses the double-declining-balance
depreciation method.
c. Compute the depreciation expense for 2016 for Floppy’s
truck assuming the truck has an expected life of 200,000 miles
and during 2016 the truck was driven 24,540 miles.
Round your depreciation expense per mile to three decimal
places.

10. Flipper Company has a January 15 mid-month gross salaries
expense of $25,000. All is subject to FICA Social Security
(6.2%), FICA Medicare (1.45%), state income tax (5%) and
federal income tax (15%) withholdings. Additionally, all is
subject to employer taxes to include FUTA (0.8%) and SUTA
(5.4%) taxes. (Round all calculations to the nearest penny.)
Required:
a. Prepare the general journal entry to record the employer's
payroll liability.
b. Prepare the general journal entry to record the employer's
payroll tax liability.
c. Prepare the general journal entry to liquidate the liabilities
accrued in parts (a) and (b) on January 22.

11. Flipper Company at the end of the fiscal 2014 year has the
following information: Credit Sales, $2,500,000 Sales Returns
& Allowances $25,000 Accounts Receivable $200,000 and
Allowance for Doubtful Accounts with a debit o $1,500.
Required:
a. Prepare the general journal entry to record the end of the year
adjusting entry if Flipper uses 0.5% of Net Credit Sales as the
basis for determining Bad Debt Expense.
b. Prepare the general journal entry to record the end of the year
adjusting entry if Flipper uses 5% of Accounts Receivable as
the basis for determining Bad Debt Expense.

12. Question 7:
After the bank reconciliation is prepared, the entry to record
bank service charges would have a credit to:
a.
Bank Service Charge Expense
b.
Cash
c.
Petty Cash
d.
Cash Short and Over
e.
None of the above

13. Question 8:
Frick Company estimates uncollectible accounts using the
percentage-of-receivables method and expects that 5 percent of
outstanding receivables will be uncollectible for 2010. The
balance in Accounts Receivable is $200,000, and the allowance
account has a $3,000 credit balance before adjustment at year-
end. The uncollectible accounts expense for 2010 will be:
a
$7,000
b.
$10,000
c.
$13,000
d.

14. $9,850
e.
None of the above
Question 9:
Frick Company issued its own $10,000, 90-day, non interest-
bearing note to a bank. If the note is discounted at 10 percent,
the proceeds to Frick are:
a.
$10,000
b.
$9,000
c.
$9,750
d.

15. $10,250
e.
None of the above
Question 10:
On 2010 July 1, Frick Company purchased equipment for
$400,000, and installation and testing costs totaled $40,000.
The equipment has an estimated useful life of 10 years and an
estimated salvage value of $40,000. If Frick uses the double-
declining-depreciation method, the depreciation expense for
2010 is:
a.
$88,000
b.
$72,000

16. c.
$36,000
d.
$44,000
e.
$40,000
Question 11:
The result of recording a capital expenditure as a revenue
expenditure is an:
a.
Overstatement of current year's expense
b.

17. Understatement of current year's expense
c.
Understatement of subsequent year's net income
d.
Overstatement of current year's net income
e.
None of the above
Question 12:
A truck costing $45,000 and having an estimated salvage value
of $4,500 and an original life of five years is exchanged for a
new truck. The cash price of the new truck is $57,000, and a
trade-in allowance of $22,500 is received. The old truck has
been depreciated for three years using the straight-line method.
The new truck would be recorded at:

18. a.
$55,200
b.
$57,000
c.
$34,500
d.
$43,200
e.
None of the above
Question 13:

19. Which of the following is not an advantage of the corporate
form of organization?
a.
Continuous existence of the entity
b.
Limited liability of stockholders
c.
Government regulation
d.
Easy transfer of ownership
Question 14:
Treasury stock should be shown on the balance sheet as a(n):
a.

20. Reduction of the corporation's stockholders' equity
b.
Current asset
c.
Current liability
d.
Investment asset
Question 15:
When the stockholders invest cash in the business, what is the
effect?
a
Liabilities increase and stockholders’ equity increases

21. b
Both assets and liabilities increase
c
Both assets and stockholders’ equity increase
d
None of the above
Question 16:
The ending balance in retained earnings is shown in the:
Income statement
Statement of retained earnings
Balance sheet
Both (b) and (c)
Both (a) and (c)
(a), (b) and (c)

22. Question 17:
A cash dividend of $500 was declared and paid to stockholders.
The correct journal entry to record the declaration is:
a.
DR Capital stock 500 and CR Cash 500
b.
DR Cash 500 and CR Dividends 500
c.
DR Dividends 500 and CR Cash 500
d.
DR Cash 500 and CR Capital stock 500

23. Question 18:
If $3,000 has been earned by a company’s workers since the last
payday in an accounting period, the necessary adjusting entry
would be:
a.
Debit an expense and credit a liability.
b.
Debit an expense and credit an asset.
c.
Debit a liability and credit an asset.
d.
Debit a liability and credit an expense.

24. Question 19:
The accrual basis of accounting:
a.
Recognizes revenues only when cash is received
b.
Is used by almost all companies
c.
Recognizes expenses only when cash is paid out
d.
Recognizes revenues when sales are made or services are
performed and recognizes expenses only when cash is paid out.

25. Question 20:
The need for adjusting entries is based on:
a.
The matching principle
b.
Source documents
c.
The cash basis of accounting
d.
Activity that has already been recorded in the proper accounts.
Question 21:
Which of the following statements is false regarding the closing

26. process?
a.
The Dividends account is closed to Income Summary.
b.
The closing of expense accounts results in a debit to Income
Summary.
c.
The closing of revenues results in a credit to Income Summary.
d.
The Income Summary account is closed to the Retained
Earnings account.
Question 22:
Which of the following statements is true regarding the

27. classified balance sheet?
a.
Current assets include cash, accounts receivable, and
equipment.
b.
Plant, property, and equipment is one category of long-term
assets.
c.
Current liabilities include accounts payable, salaries payable,
and notes receivable.
d.
Stockholders' equity is subdivided into current and long-term
categories.

28. Question 23:
The underlying assumptions of accounting includes all the
following except:
a.
Business entity
b.
Going concern
c.
Matching
d.
Money measurement and periodicity
Question 24:
Frick Company began the accounting period with $60,000 of

29. merchandise, and net cost of purchases was $240,000. A
physical inventory showed $72,000 of merchandise unsold at
the end of the period. The cost of goods sold of Frick Company
for the period is:
a.
$300,000
b.
$228,000
c.
$252,000
d.
$168,000
e.
None of the above

30. Question 25:
A classified income statement consists of all of the following
major sections except for:
a.
Operating revenues
b.
Cost of goods sold
c.
Operating expenses
d.
Non-operating revenues and expenses
e.

31. Current assets
Question 26:
A business purchased merchandise for $12,000 on account;
terms are 2/10, n/30. If $2,000 of the merchandise was returned
and the remaining amount due was paid within the discount
period, the purchase discount would be:
a.
$240
b.
$200
c.
$1,200
d.
$1,000

32. e.
$3,600
Question 27:
Frick Company began the accounting period with inventory of
3,000 units at $30 each. During the period, the company
purchased an additional 5,000 units at $36 each and sold 4,600
units. Assume the use of periodic inventory procedure. The cost
of ending inventory using weighted-average is:
a.
$114,750
b.
$157,600
c.
$122,400

33. d.
$109,650
e.
None of the above
Question 28:
Frick Company began the accounting period with inventory of
3,000 units at $30 each. During the period, the company
purchased an additional 5,000 units at $36 each and sold 4,600
units. Assume the use of periodic inventory procedure. The cost
of goods sold using weighted-average is:
a.
$147,200
b.
$160,350

34. c.
$155,250
d.
$114,000
e.
None of the above
Question 29:
During a period of rising prices, which inventory method might
be expected to give the highest net income?
a.

35. Weighted-average
b.
FIFO
c.
LIFO
d.
Specific identification
e.
Cannot determine

36. Question 30:
The following information: related to the bank reconciliation of
the Flipper Company:
Balance per bank statement
$1,951.20
Balance per ledger
1,869.60
Deposits in transit
271.20
Outstanding checks
427.80
NSF check
61.20
Service charges
13.80
The adjusted/correct cash balance is:

37. a.
$1,794.60
b.
$1,719.60
c.
$1,638.00
d.
$1,713.00
e.
$1,876.20

38. Question 31:
In a bank reconciliation, deposits in transit should be:
a.
Deducted from the balance per books
b.
Deducted from the balance per bank statement
c.
Added to the balance per ledger
d.
Added to the balance per bank statement
e.
Disregarded in the bank reconciliation