FoA II-Individual Assignment
FoA II-Individual Assignment
FoA II-Individual Assignment
Department of Accounting
Fundamental of Accounting II
Individual Assignment
C. Journalize the entry to record the receipt of the payment of the note at maturity
2. At the end of the current year, Accounts Receivable has a balance of $685,000;
Allowance for Doubtful Accounts has a credit balance of $9,000; and net sales
for the year total
$7,400,000. Using the aging method, the balance of Allowance for Doubtful
Accounts is estimated as $20,000. Determine:
A. Jan. 30. Sold merchandise on account to Dr. Cindy Mott, $85,000. The
cost of the merchandise sold was $50,000.
B. June 3. Received $48,000 from Dr. Cindy Mott and wrote off the remainder
owed on the sale of January 30 as uncollectible.
C. Nov. 27. Reinstated the account of Dr. Cindy Mott that had been written off
on June 3and received $37,000 cash in full payment.
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4. Journalize the following transactions in the accounts of Lamp Light Company, a
restaurant supply company that uses the allowance method of accounting for
uncollectible receivables:
A. Mar. 19. Sold merchandise on account to Midnight Delights Co., $37,500. The
cost of the merchandise sold was $23,000.
B. Aug. 31. Received $22,000 from Midnight Delights Co. and wrote off the
remainder owed on the sale of March 19 as uncollectible.
C. Dec. 22. Reinstated the account of Midnight Delights Co. that had been written
off onAugust 31 and received $15,500 cash in full payment.
5. HM plc has received 500,000, 90 days and 12% on November 10/ 2017 from XYZ
Company. Required
A. Compute and journalized the accrued interest as of December 31/2017
6. Glorious Trading PLC beginning inventory and purchases during the year ended
December 31,2014, were as follows:
Date Transaction type Units Unit cost Total cost
A. Determine the cost of inventory and cost of goods sold on December 31, 2014, under
the perpetual inventory system using first-in, first-out and weighted average cost
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methods
B. Determine the cost of inventory and cost of goods sold on December 31, 2014,
under the periodic inventory system suing first-in, first-out and moving average cost
methods.
7. Based on the following data, estimate the cost of the ending merchandise inventory
using gross profit method:
Sales (net) .............$1,450,000
Purchases (net)................................860,000
8. On the basis of the following data, estimate the cost of the merchandise inventory at
June 30 by the retail method:
Cost Retail
$214,000,000 at both cost and net realizable value. At December 31, 2016, the inventory was
$286, 000,000 at cost and $265,000,000 at net realizable value. Prepare the
necessary December 31 entry under (a) the cost-of-goods sold method and (b) the
loss method.
11. Florida Corporation has the following four items in its ending inventory.
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Jokers €2,000 €2,100
Determine (a) the LCNRV for each item, and (b) the amount of write-down, if any,
using (1) an item-by-item LCNRV evaluation and (2) a total-group LCNRV
evaluation.
12. Sandblasting equipment acquired at a cost of $36,000 has an estimated residual value of
$6,000 and an estimated useful life of 10 years. It was placed into service on April 1
of the current fiscal year, which ends on December 31. Determine the depreciation
for the current fiscal year and for the following fiscal year by
A) The straight-line method and
13. A truck acquired at a cost of $69,000 has an estimated residual value of $12,000,
has an estimated useful life of 300,000 miles, and was driven 77,000 miles
during the year. Determine (a) the depreciable cost, (b) the depreciation rate, and (c)
depreciation expense and net book value at the end of the first year.
14. A truck with a cost of $82,000 has an estimated residual value of $16,000, has an estimated
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Value-in-use............................7,000,000
Assume that kaki Company will continue to use this asset in the future. As of December
31, 2010, the equipmenthas a remaining useful life of 4 years.
Instructions
(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2010.
(b) Prepare the journal entry to record depreciation expense for 2011.
(c) The recoverable amount of the equipment at December 31, 2011, is €7,050,000.
Prepare the journal entry (if any) necessary to record this increase.
16. Gono Trading acquired equipment on January 1, 2009, for €12,000. Gono elects to
value this class of equipment using revaluation accounting. This equipment is being
depreciated on a straight-line basis over its 6-year useful life. There is no residual
value at the end of the 6- year period. On December 31, 2011, the fair value of the
equipment is determined tobe
€7,000.
Instructions: record the journal entry for the equipment in December 31, 2011
estimated at 425,000,000 tons. During the current year, 42,000,000 tons were mined
and sold.
A. Determine the depletion rate.
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B. Determine the amount of depletion expense for the current year.
19. A patent with an estimated useful economic life of 15 years was acquired for
$900,000 on January 1. Journalize the adjusting entry on December 31 for the
amortization of the patent rights.