Financial Accounting Journal Entry Cumulative Study Guide  

Find out all the journal entries for the transactions listed below.

1.The company issued shares of common stock in exchange for cash

2. Purchased office supplies on credit.

3. Purchased office equipment paying part in cash and signed a 30-day, note payable for the remiander.

4. Performed services and received cash from customer.

5 Paid cash in cash for the current month's rent.

6 Paid cash on account for office supplies purchased prior.

7 Received a bill for advertising for the current month. Payment will be made next month.

8 Hired a new employee who will begin working next month at a salary paid per month.

9 Billed customer for services performed.

10 Received cash in advance for work to be done next month.

11 Paid cash for a one-year insurance policy

12 Received cash from customer in partial payment for billing on account in transaction 9.

13 Performed but not billed customers for services performed

14 Purchase of a three-month insurance policy for cash.

15 Accrued interest on a long-term Note Payable. Monthly interest is accrued at an annual rate of 6%.

16 The company purchased a new copier at the beginning of the month for cash. The copier will depreciate per year. Depreciation Adjusting Entry is:

17 The company accepted a deposit of cash for work to be done over a six-month period.

18 The Supplies account has a balance of $1,005 An inventory of supplies at the end of March shows supplies with a cost of $275 on hand.

19 Salaries owed to employees at the end of the March total $3,400. The salaries will be paid on April 3.

20 Closing Entry for Year End

21 Purchased desks on account, terms 1/10, n/30.

22 Purchased desks for cash

23 Received credit for the return of 2 desks purchased that were defective.

24 Sold 12 desks on account terms 2/10, n/30.

25 Sold 12 Desks for cash

26 Paid cash for freight purchsed in 21 Stockholders’ Equity Retained Earnings

27 Paid cash for frieght sold in 25

28 Issued a credit to School for the return of 1 desk which is in usable condition and will be returned to stock.

29 Made Payment in full for purchased desks without discount

30 Made Payment in full for purchased desks with discount

31 Received payment in full for desks sold without discount

32 Received payment in full for desks sold with discount

33 Recording estimated uncollectibles;

34 Write-off of an uncollectible account:

35 Collection of an account after write-off:

Mr. X has been seen his business growing and increasing. It is a good business because online sales are available to reach all segment customers. The company is categorized as Small Medium Enterprises. Mr. X tried to anticipate these sales increased by buying more inventories. By buying more inventories, the company can fulfill increasing demand and attract new customers. This is data at present time:

Total Assets IDR 100

Fixed Assets IDR 40

Total current assets IDR 60 which including cash and inventory for IDR 32

Total current liabilities IDR 10

Share Paid Capital is IDR 90

Mr. X plans to expand his business for medium and long planning and it requires long term resources to finance more equipment.

Questions:

a. If the company wants Debt to Asset = 0,50. How much long-term liabilities is needed?

b. What is the changes in Debt to Equity Ratio.?

c. Using the old data (before the DER changes), company want to have current ratio = 2. How much credit purchase need to be made if the company wants current ratio =2?

3. Woodland Corporation purchased a printing machine three (3) years ago and is considering replacing it with a new one which is faster and easier to operate. The old machine has been depreciated over 3 years using straight line depreciation. Its original installation cost was $15,000. The old machine has been in use for 2 years, and it can be traded in for $3,500. The new machine will be purchased $24,000 and it will also be depreciated over 3 years using the straight line method. It is not expected to have a residual value. Net working capital will decrease because supply levels can be reduced by $1,500. Revenues will increase by $5,000 every year, it will result in laborsavings of $3,000 per year due to its greater speed. Reducing training expenses are expected to save an additional $2,500 per year. The firm is in the 20% tax bracket. Required: i. Calculate the operating cash flows from years 1 to 3. ii. What is the terminal year non‐operating cash flow?

A). The government needs revenue. It decides to tax lemon pie sales by 20%. Jimmy is a fan of lemon pies. He has an income of 100 pence. The price of lemon pies is 5 pence, the price of mascarpone pies is 4 pennies. Jimmy's utility is U=(lp)^2/3(mp)^1/3. How much revenue will the tax generate?

B). The tax on lemon pies is a burden on Jimmy. How big of a burden is it? Calculate the income increase that would be required to compensate Jimmy for the imposition of the tax. How does this compare to the revenue raised from the tax?

There is a web advertising company that collects users' data every time they click on a website, post a message on a social app, send an e-mail, or do any online searching. This data is then sold to companies so that they can use it to send customized advertisements to potential customers.

The exercise equipment company you work for is given access to this data, and you are asked to create association rules to identify future customers who are likely to buy the company's new exercise product.

After performing association rules analysis, you discover certain patterns that are very accurate in predicting the likelihood that a customer will buy the new exercise equipment. This discovery is likely to make your company a lot of money and also make you an analysis superstar at your company. At the same time, you realize the web advertising company has been collecting its data using inappropriate, albeit not illegal, means. Even though most consumers realize their online activities are tracked without their express permission, do you consider this ethical? Does the fact that the product the exercise company wants to sell is one that can benefit the customer? Justify your opinions with specific business examples.

1. A company makes a deferral adjustment that decreased a liability. This must

mean that a(n):

A expense account was decreased by the same amount.

B expense account was increased by the same amount.

C revenue account was increased by the same amount.

D revenue account was decreased by the same amount.

2. When a deferral adjustment is made to an asset account, that asset becomes

a(n):

A liability.

B other asset.

C revenue

D expense.

3. At the end of the year, accrual adjustments could include a:

A debit to an expense and a credit to an asset.

B credit to a revenue and a debit to an expense.

C debit to cash and a credit to Common Stock.

D debit to an expense and a credit to a liability.

4. One major difference between deferral and accrual adjustments is that

A accrual adjustments affect income statement accounts and deferral adjustments affect balance

sheet accounts.

B deferral adjustments increase net income and accrual adjustments decrease net income.

C deferral adjustments are made under the cash basis of accounting and accrual adjustments are

made under the accrual basis of accounting.

D accounts affected by an accrual adjustment always go in the same direction (i.e., both accounts are

increased or both accounts are decreased) and accounts affected by a deferral adjustment always

go in opposite directions (one account is increased and one account is decreased).

Tazer management now has concluded that the company cannot devote enough money to research and development to undertake all of these projects. Only $1.5 billion is available, which may be not enough for all the projects. The first row of table shows the amount needed (in millions of dollars) for each of these projects. The second row estimates each project’s probability of being successful. If a project is successful, it is estimated that the resulting drug would generate the revenue shown in the third row. Thus, the expected revenue (in the statistical sense) from a potential drug is the product of its numbers in the second and third rows, whereas its expected profit is this expected revenue minus the investment given in the first row. These expected profits are shown in the bottom row of table. The objective is to choose the projects that will maximize the expected profit while satisfying the budget constraint.

a. Formulate algebraic form for this problem. (Please clearly define all the decision variables, clearly write down the objective function and each constraints)

b. Formulate and solve this model on a spreadsheet.

TABLE Data for the Tazer Project Selection Problem

Top executive officers of Preston Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 3,200,000 Cost of goods sold 2,240,000 Gross profit 960,000 Selling & admin. expenses 380,000 Net income $ 580,000 Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $60,000. The president has announced that the company’s goal is to increase net income by 15 percent.

Below is the Income statement for Company X

1)Forecast the firm’s Earnings per share and cash flow per share by filling in the box below.

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Dividends & Splits

Start with the most recent income statement and common size it. For the forecast period, adjust the numbers for future growth and decline in sales. Other items in income statement should be based on adjustments to past ratios.

Sandhill Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Teal Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement:

Click here to view factor tables

(a) Prepare the journal entries on the books of Sandhill Leasing to reflect the payments received under the lease and to recognize income for the years 2017 and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 0.527552 and the final answers to 0 decimal places)

I'm only stuck where the question marks are. Both the Cash should be the same $ amount.