This Tutorial contains Excel File which can be used to solve for any values
• Exercise 2-4
• Exercise 2-6
• Exercise 3-5
• Exercise 3-9
• Exercise 3-13 (Part Level Submission)
Identify the appropriate qualitative characteristic(s) to be used given the information provided below.
(a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles.
(b) Quality of information that confirms users’ earlier expectations.
(c) Imperative for providing comparisons of a company from period to period.
(d) Ignores the economic consequences of a standard or rule.
(e) Requires a high degree of consensus among individuals on a given measurement.
(f) Predictive value is an ingredient of this fundamental quality of information.
(g) Four qualitative characteristics that are related to both relevance and faithful representation.
(h) An item is not recorded because its effect on income would not change a decision.
(i) Neutrality is an ingredient of this fundamental quality of accounting information.
(j) Two fundamental qualities that make accounting information useful for decision-making purposes.
(k) Issuance of interim reports is an example of what enhancing quality of relevance?
Identify the accounting assumption, principle, or constraint that describes each situation. Do not use an answer more than once.
(a) Allocates expenses to revenues in the proper period.
(b) Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.)
(c) Ensures that all relevant financial information is reported.
(d) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.)
(e) Indicates that personal and business record keeping should be separately maintained.
(f) Separates financial information into time periods for reporting purposes.
(g) Assumes that the dollar is the “measuring stick” used to report on financial performance.
The ledger of Flint Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
Prepaid Insurance $3,912
Accumulated Depreciation-Equipment $8,799
Notes Payable 19,490
Unearned Rent Revenue 4,650
Rent Revenue 64,390
Interest Expense –0–
Salaries and Wages Expense 15,370
An analysis of the accounts shows the following.
1. The equipment depreciates $243 per month.
2. One-third of the unearned rent was earned as revenue during the quarter.
3. Interest of $510 is accrued on the notes payable.
4. Supplies on hand total $703.
5. Insurance expires at the rate of $326 per month.
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expenses
Selected accounts of Pharoah Company are shown below.
From an analysis of the T-accounts, reconstruct the October transaction entries
From an analysis of the T-accounts, reconstruct the adjusting journal entries that were made on October 31, 2017.
The adjusted trial balance of Shamrock Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2017: Sales Revenue $808,400, Delivery Expense $11,930, Sales Returns and Allowances $22,790, and Sales Discounts $12,350
Prepare the revenues section of the income statement.
Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.