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ACCT 212 Final Exam Latest
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  • danny
  • Questions : 2326
  • Solutions : 178

Question Description

ACCT 212 Final Exam

PART-1

  1. (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles).  BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life.  The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year.  

    1. Calculate depreciation expense for the truck for each year (2010-2013) using the:
    a. Straight-line method.
    b. Double-declining balance method.
    c. Units of Production method.
     (For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.)
    2. Which method best tracks the wear and tear on the van? 
    3. Which method would BagODonuts prefer to use for income tax purposes?  Explain in detail why BagODonuts prefers this method.

 

2. (TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock:
 Preferred Stock: 7%, par value $100 per share, 100,000 shares.
 Common Stock: $1 par value, 500,000 shares.

The following transactions occurred during the year:

1/19/12 – Issued 100,000 shares of common stock for $17 cash per share.
1/31/12 – Issued 3,000 shares of preferred stock for $115 cash per share.
11/1/12 – Repurchased 30,000 shares of common stock for $22 cash per share.
12/1/12 – Declared and paid a total dividend of $95,000. 

Required: 
1. Prepare the journal entry for each transaction listed above.
2. In your own words, explain the main differences between common and preferred stock.

 

3. (TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions.  Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description) 

 

4. (TCO 2) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order.

Account                              Balance 
Common stock                    $5,100 
Accounts payable                $4,400 
Service revenue                   $17,100 
Land                                  $28,800 
Note payable                       $9,500 
Cash                                  $5,200 
Dividends                            $6,100 
Utilities expense                  $2,100 
Accounts receivable             $10,600 
Delivery expense                 $700 
Retained earnings                $25,600 
Salary expense                    $8,200

Prepare the company’s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on.


5. (TCO 4) Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions:

Journals - Jan. 2001

Purchases

Supplier         Date Received         Quantity        Unit Cost       Amount

Donna           01/10/01                110              12.00            1320.00

Thomas         01/15/01                160              14.00             2240.00

Cindy            01/18/01                150              15.00            2250.00

Sales

Customer      Date shipped    Quantity      Sel. Price                Amount         

Norilene        01/16/01         200                  25.00                   5000.00

1.    Calculate the ending inventory, using the perpetual inventory method: 

A.     Using FIFO

B.     Using LIFO

C.     Using Average Cost

2.    Prepare the following statement             

Using

                                      FIFO    LIFO        Average Cost

Sales

Cost of Sales          

Gross Profit

 

PART-2

  1. (TCO 3) Adjusting entries are required at the end of the period for some accounts. (1) Explain why this process is required and (2) develop the adjusting entry at the end of the period for salary payable to employees $2400
  2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how information from the journal entries get into the ledger accounts and (2) provide an example of information that would be transferred. 
  3. (TCO 4) The accountant of Bulsara Co. is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain which internal control procedure has been violated in the Bulsara Co. case and (2) what would you recommend for improvement. 
  4. (TCO 4) Various methods are used in accounting for inventory in an accounting system. (1) Compare and contrast Perpetual Inventory and Periodic Inventory systems of determining inventory on hand, and (2) provide an example of an inventory item under each method and show how the method is well suited for counting the inventory.
  5. (TCO 1) The Balance Sheet is sometimes referred to as a snap-shot of the financial position of the business on a particular date. Name the three major components of the Balance Sheet and provide an example of an account that would be found in each major component.

 

 


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Final Exam Solutions

Answer Posted By

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  • gallantkellly
  • Questions : 134
  • Solutions : 215
Solution Description

xxxxxxxxxxxxxxx 212 xxxxx Exam xxx 2016

 

PART-1

  1. (TCO xx BagODonuts xxxxxxx bought x used xxxxxxxx truck xx January xx 2010, xxx $19,200. xxx van xxx expected xx remain xx service x years xxxxxxx miles).  xxxxxxxxxxxxxxxxx accountant xxxxxxxxx that xxx truck’s xxxxxxxx value xxxxx be xxxxxx at xxx end xx its xxxxxx life.  xxx truck xxxxxxxx 8,000 xxxxx the xxxxx year, xxxxx miles xxx second xxxxx 5,500 xxxxx the xxxxx year, xxx 8,000 xxxxx in xxx fourth xxxxxxxxxxxxxxxxxxxx />
    c. Units xx Production xxxxxxxxxx />  (For xxxxxxxxxxxxxxxxxxx and xxxxxxxxxxxxxxxx balance, xxxxx to xxx nearest xxx decimals xxxxx each xxxx of xxx calculation.)
    3. Which xxxxxx would xxxxxxxxxx prefer xx use xxx income xxx purposes?  xxxxxxx in xxxxxx why xxxxxxxxxx prefers xxxx method.

 

2. xxxx 7) xxx Inc. xxx incorporated xx 1/15/12. xxxxx corporate xxxxxxx authorized xxx following xxxxxxx stock:


1/31/12 xxxxxxx Issued xxxxx shares xx preferred xxxxx for xxxx cash xxx share.
12/1/12 xxxxxxx Declared xxx paid x total xxxxxxxx of xxxxxxxxxxxxxxxxx />
1. xxxxxxx the xxxxxxx entry xxx each xxxxxxxxxxx listed xxxxxxxxx /> 2. xx your xxx words, xxxxxxx the xxxx differences xxxxxxx common xxx preferred xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 5) xxxxxxxx Control xxxxxxxxxx are xx place xx protect xxx assets xx every xxxxxxxx as xxxxxxxxx in xxx textbook xxx our xxxxxxxxxxxxxxxxxx Of xxx seven xxxxxxxx control xxxxxxxxxxx list xxxx of xxxxx controls xxx describe xxx each xxxxxxxxx is xxxxxxxxxxxx (5 xxxxxx each xxxx 2 xxxxxx for xxxxxxx and x points xxx a xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 2) xxxxx are xxx accounts xx Super xxxx Service, xxxx The xxxxxxxx have xxxxxx balances xx June xxx 2012. xxx accounts xxx listed xx no xxxxxxxxxx order.

Account xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Balance 
Accounts xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx $4,400 
Land                                  $28,800 
Cash                                  $5,200 
Accounts xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx $10,600 
Retained xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx $25,600 


Journals x Jan. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Unit xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 01/10/01                110              xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 1320.00

Thomas         xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 14.00  xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 2240.00

Cindy            xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 15.00            xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date xxxxxxxxxxxxxxxxxxxxxxxxx Quantity xxxxxxxxxxxxxxxxxxxxxxxx Sel. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx          xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 01/16/01      xxxxxxxxxxxx 200                  xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx />


2.    Prepare xxx following xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx />

Sales

Cost xx Sales          
Gross xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 3) xxxxxxxxx entries xxx required xx the xxx of xxx period xxx some xxxxxxxxx (1) xxxxxxx why xxxx process xx required xxx (2) xxxxxxx the xxxxxxxxx entry xx the xxx of xxx period xxx salary xxxxxxx to xxxxxxxxx $2400

  • (TCO xx As xxxxxxxx to xxxxxxxx Course xxxxxxx 1, xxx must xxxxxx the xxxxx that xxxxxxxx 10 xxxxx to xxxxxxxx the xxxxxxxxxx cycle. xxx Explain xxx information xxxx the xxxxxxx entries xxx into xxx ledger xxxxxxxx and xxx provide xx example xx information xxxx would xx transferred. 
  • (TCO xx The xxxxxxxxxx of xxxxxxx Co. xx so xxxx that xxx company xxxxxxx petty xxxx a xxx differently. xxx employees xxxx access xx the xxxxx cash xx a xxxx drawer xxx are xxxxx to xxxx place x note xx they xxx any xx the xxxxx Internal xxxxxxx Procedures xxx required xx safeguard xxxxxxx assets xxx to xxxxxx ethical xxxxxxxxx of xxx business. xxx Explain xxxxx internal xxxxxxx procedure xxx been xxxxxxxx in xxx Bulsara xxx case xxx (2) xxxx would xxx recommend xxx improvement. 
  • (TCO xx Various xxxxxxx are xxxx in xxxxxxxxxx for xxxxxxxxx in xx accounting xxxxxxx (1) xxxxxxx and xxxxxxxx Perpetual xxxxxxxxx and xxxxxxxx Inventory xxxxxxx of xxxxxxxxxxx inventory xx hand, xxx (2) xxxxxxx an xxxxxxx of xx inventory xxxx under xxxx method xxx show xxx the xxxxxx is xxxx suited xxx counting xxx inventory.
  • (TCO xx The xxxxxxx Sheet xx sometimes xxxxxxxx to xx a xxxxxxxxx of xxx financial xxxxxxxx of xxx business xx a xxxxxxxxxx date. xxxx the xxxxx major xxxxxxxxxx of xxx Balance xxxxx and xxxxxxx an xxxxxxx of xx account xxxx would xx found xx each xxxxx component.
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