ACC 557 Week 2 Homework Solution ( It iS FOR the Questions in the list)

•  Question 1

Dreamtime Laundry purchased $7,000 worth of supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the supplies indicated only $1,000 on hand. The adjusting entry that should be made by the company on June 30 is                                     

•             Question 2

Crue Company had the following transactions during 2018:

•             Sales of $4,800 on account

•             Collected $2,000 for services to be performed in 2019

•             Paid $1,625 cash in salaries

•             Purchased airline tickets for $250 in December for a trip to take place in 2019

What is Crue’s 2018 net income using accrual accounting-basis after accrual?                                      

•             Question 3

REM Real Estate received a check for $27,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $27,000. Financial statements will be prepared on July 31. REM Real Estate should make the following adjusting entry on July 31:                                          

•             Question 4

                The following is selected information from Motley Corporation for the fiscal year ending October 31, 2018.

•             Cash received from customers $300,000

•             Revenue recognized $375,000

•             Cash paid for expenses $180,000

•             Cash paid for computers on November 1, 2017 that will be used for 3 years (annual depreciation is $16,000) $48,000

•             Expenses incurred, including interest, but excluding any depreciation $220,000

•             Proceeds from a bank loan, part of which was used to pay for the computers $100,000

Based on the accrual basis of accounting, what is Motley Corporation’s net income for the year ending October 31, 2018?                                   

•             Question 5

Which statement is correct?                                                       

•             Question 6

Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be                                    

•             Question 7

The balance in the Prepaid Rent account before adjustment at the end of the year is $21,000, which represents three months' rent paid on December 1. The adjusting entry required on December 31 is to                                     

•             Question 8

A small company may be able to justify using a cash-basis of accounting if they have                                        

•             Question 9

Meat Puppets Company purchased equipment for $7,200 on December 1. It is estimated that annual depreciation on the equipment will be $1,800. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:                                    

•             Question 10

Fugazi City College sold season tickets for the 2018 football season for $240,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30                                   

•             Question 11

As of June 30, 2018, Actual Tigers Company has assets of $100,000 and stockholders' equity of $40,000. What are the liabilities for Actual Tigers Company as of June 30, 2018?                                               

•             Question 12

Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000. Mofro's stockholders' equity changed by what amount from the beginning of the year to the end of the year?                                              

•             Question 13

If total liabilities increased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?                                             

•             Question 14

As of December 31, 2018, Calexico Company has assets of $42,000 and stockholders' equity of $20,000. What are the liabilities for Calexico Company as of December 31, 2018?                                             

•             Question 15

At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, no stock was issued and the company earned net income of $18,000. If stockholders' equity at October 31 totals $78,000, what amount of dividends were paid during the month?                                

•             Question 16

On January 1, 2018, Cat Power Company reported stockholders' equity of $705,000. During the year, the company paid dividends of $30,000. At December 31, 2018, the amount of stockholders' equity was $825,000. What amount of net income or net loss would the company report for 2015?                                         

•             Question 17

If total liabilities decreased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?                                             

•             Question 18

Collection of a $1,000 Accounts Receivable                                         

•             Question 19

Black Keys Company began the year with stockholders' equity of $280,000. During the year, the company recorded revenues of $375,000, expenses of $285,000, and paid dividends of $30,000. What was Black Keys' stockholders' equity at the end of the year?                                   

•             Question 20

If total liabilities increased by $8,000, then                                          

•             Question 21

Black Keys Company began the year with stockholders' equity of $280,000. During the year, the company recorded revenues of $375,000, expenses of $285,000, and paid dividends of $30,000. What was Black Keys' stockholders' equity at the end of the year?                                   

•             Question 22

If total liabilities decreased by $50,000 and stockholders' equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period?                             

•             Question 23

At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, no stock was issued and the company earned net income of $18,000. If stockholders' equity at October 31 totals $78,000, what amount of dividends were paid during the month?                                

•             Question 24

Collection of a $1,000 Accounts Receivable                                         

•             Question 25

Ted Leo is the proprietor (owner) of Ted's, a retailer of golf apparel. When recording the financial transactions of Ted's, Ted does not record an entry for a car he purchased for personal use. Ted took out a personal loan to pay for the car. What accounting concept guides Ted's behavior in this situation?             

•             Question 26

Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000. Stockholders' equity at the end of the year was                                                                     

•             Question 27

If total liabilities decreased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?                                             

•             Question 28

Fat Possum's Service Shop started the year with total assets of $330,000 and total liabilities of $2400,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. The net income reported by Fat Possum's Service Shop for the year was:

•             Question 29       

If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal                                                        

•             Question 30

The Duce Company has five plants nationwide that cost a total of $100 million. The current fair value of the plants is $500 million. The plants will be recorded and reported as assets at              

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