Accounting Final

Attatched is the accounting course final, all answers should be in the format of a word prosseing document. I have already submitted this once and the answer I paid for got me a 56, and now I am being required to retake it before moving on.

Fi

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al Examination Booklet

Financial Accounting

1

Financial Accounting

Complete the following exam by answering the questions and

compiling your answers into a word-processing document. When

you’re ready to submit your answers, refer to the instructions at

the end of your exam booklet. Be certain to indicate the proper

question number before each of your answers. Remember to

show your work if an answer requires a mathematical solution.

Part A: Answer each of the following questions. Each answer is

worth 20 points.

EXAMINATION NUMBER:

06169300

1. The following information was made available from the
income statement and balance sheet of Lauren Company.

Item 12/31/10 12/31/09
Accounts Receivable $53,400 58,600
Accounts Payable 35,600 32,700
Merchandise Inventory 85,000 79,000
Sales (2010) 243,000
Interest Revenue (2010) 5,600
Dividend Revenue (2010) 1,200
Tax Expense (2010) 12,300
Salaries Expense (2010) 28,000
COGS (2010) 65,000
Interest Expense (2010) 3,600
Operating Expenses 28,500

Complete the cash flow from operating activities section for
Lauren Company using the direct method for the year ended
December 31, 2010.

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Financial Accounting

2. Given the following balance sheet, complete a horizontal
analysis. Compute the percentage to the nearest tenth of a
percent.

2

Jill’s Bikes
Comparative Balance Sheet

For Years Ended December 31, 2011 and 2010

(in thousands) 2011 2010 Difference Percentage

Assets

Current Assets

Cash and Equivalents $72 $94

Accounts Receivable, net 122 104

Inventory 288 232

Total Current Assets 482 430

Property, Plant and Equipment 638 358

Total Assets

$1,120 $788

Liabilities

Current Liabilities

Accounts Payable $242 $148

Accrued Liabilities 48 66

Total Current Liabilities 290 214

Long-Term Liabilities 346 208

Total Liabilities 636 422

Stockholders’ Equity

Common Stock 70 60

Retained Earnings 414 306

Total Stockholders’ Equity 484 366

Total Liabilities and
Stockholders’ Equity

$1,120 $788

Final Examination 3

Part B: Answer each of the following questions. Each answer is

worth 4 points.

1. Record the following transactions using the accounting
equation.

Example:
Assets = Liabilities + Equity
XXXX(cash) XXXX(accounts payable)

A. Amanda invests $17,000 cash into her merchandising
business.

B. She buys $6,500 of office equipment and $3,000 of office
supplies with cash from Office Depot.

C. Additional purchases were supplies for $35,000 on
account from various suppliers.

2. Journalize the following transactions and omit the explana-
tions.

A. ABC Corporation purchased $15,000 of office furniture by
putting $7,000 down in cash and the rest on account on
April 8.

B. The corporation paid $60,000 for a two-year lease on
April 19.

C. The corporation had sales of $45,000, of which $35,000
were on account on April 20.

D. The corporation borrowed $25,000 by signing a note
payable on April 22.

E. The corporation paid $1,250 on one of its accounts
payable on April 26.

3. Prepare a trial balance from the following information for
Learn a New Language, Inc. for December 31, 2012.

Accounts payable $5,012
Common stock $9,692
Cash $3,928
Notes payable $1,439
Wages expense $777
Marketing expense $493
Equipment $8,345
Accounts receivable $1,142
Inventory $8,074
Sales $6,616

Financial Accounting4

4. Compute the missing information from this post-closing trial
balance.

5. Journalize the following transactions using the perpetual
inventory method.

Aug. 6 Purchased $830 of inventory on account from
Johnston with terms of 2/10, n/30.

Aug. 8 Purchased $2,611 of inventory for cash from
Pillner Company.

Aug.15 Paid for August 6 purchase from Johnston.
Aug. 17 Purchased $1,743 of merchandise on account

from Luis Company with Terms of 3/15, n/45.

6. Given the following information, prepare a balance sheet for
Isaiah’s Tool Shed for the year ending December 31, 2012.

Cash $65,750 Retained Earnings $179,319

Common Stock $35,000 Equipment $27,500

Accounts Receivable $11,478 Accounts Payable $29,450

Land $30,000 Inventory $78,311

Prepaid Supplies $7,357 Income Taxes Payable $4,209

Office Computers $11,345 Other PPE $31,446

Accum. Depr. (all) $23,459 Prepaid Insurance $8,250

Cash $34,689

Accounts Receivable 9,467

Prepaid Rent 5,000

Prepaid Insurance (A)

Supplies 944

Accounts Payable $5,389

Wages Payable (B)

Common Stock 37,049

Retained Earnings 8,234

_______ _______

Total $52,356 $52,356

Final Examination 5

7. Rick Company’s beginning inventory and purchases during
the fiscal year ended December 31, 2012, were as follows:
(Note: The company uses a perpetual system of inventory.)

What is the cost of goods sold for Rick Company for 2012
using LIFO?

8. Assume that in Year 1, the ending merchandise inventory is
overstated by $30,000. If this is the only error in Years 1
and 2, fill in the items below, indicating which items will be
understated, overstated, or correctly stated for Years 1 and
2.

Item Year 1 Year 2
Ending inventory ___________ _____________
Beginning inventory ___________ _____________
Cost of goods sold ___________ _____________

9. Below is a list of treatments of accounting topics. Place GAAP
on the line if the treatment is GAAP-based and place IFRS on
the line if the treatment is IFRS-based.

A. Interest and dividend income are reported in the
investing section of the cash flow statement.__________

B. Interest expense is reported in the financing section of
the cash flow statement. ___________

C. The use of LIFO is prohibited. ___________

Units Unit Price Total Cost

January 1—Beginning inventory 18 $24 $432

March 12—Sold 13

April 11—Purchase 45 $29 $1,305

June 20—Sold 33

Aug 16—Purchase 35 $27 $945

Sept 11—Sold 29

Total Cost of Inventory

Ending inventory is 23 units. $2,682

Financial Accounting6

10. Record the necessary journal entries from the following bank
reconciliation information for July 31, 2011:

11. Journalize the following transactions for Tammy Company:

Sept. 1 Sold $3,500 of merchandise to Jim on account
Oct. 1 Exchanged Jim’s account receivable for a four-

month, 8% note for $3,500
Dec. 31 Recorded accrued interest on Jim’s note
Feb. 1 Jim paid off his note with interest (round to

nearest dollar)

12. A truck was purchased on January 2 at a cost of $60,000.
It’s expected to be used for five years and to have a residual
value of $5,000 after 120,000 miles of service. The truck
was driven for 23,000 miles the first year and 25,000 miles
the second year. Calculate the depreciation expense to the
nearest dollar for the first and second years.

Method Year 1 Year 2
Straight-line ________ ________
Double-declining-balance ________ ________
Units-of-production ________ ________

Bank Balance, July 31, 2011 $36,739

Checkbook Balance, July 31, 2011 36,444

Bank collection of note receivable
1,200 + 165

interest

Bank service charge 35

Deposits in transit 2,400

Outstanding checks 1,245

NSF check from customer 330

Correction of book error (check #456 written for $160,
recorded at $610)—gas expense

13. Prepare the general journal entries for the following
transactions:

Jan. 2, 2011 Purchased land with a building on it for
$750,000. The land is worth $300,000.
Paid $150,000 cash down and signed a
mortgage payable for the balance.

Dec. 31, 2011 Depreciation is computed using the
straight-line method. The estimated
salvage value of the building is $75,000
and has an estimated life of 20 years.

July 1, 2012 The building and land are sold for $825,000
cash.

14. Journalize the following treasury stock transactions:

June 3 Reacquired 350 shares of $12 par common stock
at $10 per share.

June 7 Sold 180 shares of treasury stock for $16 per
share.

June 8 Sold 150 shares of treasury stock for $9 per
share.

15. Lowry Landscapes had net income of $50,000 for 2010.
Land was sold for $40,000, of which $3,000 was a gain.
The beginning cash balance was $53,000, and the ending
cash balance was $151,000. Depreciation expenses were
$11,000. Prepare a statement of cash flows for the year
ended December 31, 2010, for Lowry Landscapes using the
indirect method.

SUBMITTING YOUR ASSIGNMENT
You can submit your final exam online:

1. On your computer, save a revised and corrected version
of your project. Be sure to include your student number
and exam number on your saved documents.

2. Go to http:www.takeexamsonline.com and log in.

3. Go to My Courses.

4. Click on Take Exam next to the lesson you’re working on.

Final Examination 7

Financial Accounting8

5. Enter your e-mail address in the box provided. (Note:
This information is required for online submission.)

6. Attach your file or files as follows:

a. Click on the Browse box.

b. Locate the file you wish to attach.

c. Double-click on the file.

d. Click on Upload File.

e. If you have more than one file to attach, repeat
steps a–d.

7. Click on Submit Files.

Be sure to keep a backup copy of your completed
assignment.