ACC 421 week 5 assignment-Transactions for Mehta Company for the month of May are presented below.

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1)
Transactions for Mehta
Company for the month of May are presented below.

May

1

B.D. Mehta invests $3,300 cash in exchange for common stock of
Mehta Company, a small welding corporation.

3

Buys equipment on account for $1,245.

13

Pays $497 to landlord for May rent.

21

Bills Noble Corp. $511 for welding work done.

Prepare journal entries for each of these transactions.

2)
On July 1, 2012, Crowe Co. pays
$19,352 to Zubin Insurance Co. for a 3-year insurance contract. Both companies
have fiscal years ending December 31. For Crowe Co. journalize the entry on
July 1 and the adjusting entry on December 31. (Round
answers to zero decimal places, e.g. 2,555.)

3)
Dresser Company’s weekly
payroll, paid on Fridays, totals $6,100. Employees work a 5-day week. Prepare
Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to
record the $6,100 cash payment on Friday, January 2. (List multiple debit/credit entries from largest to smallest
amount, e.g. 10, 5, 2.)

4)
Side Kicks has year-end account
balances of Sales $900,990; Interest Revenue $15,300; Cost of Goods Sold
$559,960; Operating Expenses $226,990; Income Tax Expense $36,710; and
Dividends $22,699. Prepare the year-end closing entries. (List multiple debit/credit entries from largest to smallest
amount, e.g. 10, 5, 2.)

5)
Starr Co. had sales revenue
of $627,800 in 2012. Other items recorded during the year were:

Cost of goods sold

$324,500

Wage expense

128,700

Income tax expense

26,700

Increase in value of company reputation

19,300

Other operating expenses

11,700

Unrealized gain on value of patents

20,000

6)
Prepare a single-step
income statement for Allen for 2012. Allen has 100,000 shares of stock
outstanding.(List multiple entries from largest to smallest
amount, e.g. 10, 5, 2. Round earnings per share to 2 decimal places, e.g. 0.20.
Enter all amounts as positive amounts and subtract where necessary.)

7)
Portman Corporation has
retained earnings of $707,080 at January 1, 2012. Net income during 2012 was
$1,811,090, and cash dividends declared and paid during 2012 totaled $76,490.
Prepare a retained earnings statement for the year ended December 31, 2012. Assume
an error was discovered: land costing $87,050 (net of tax) was charged to
repairs expense in 2009. (Enter all amounts as
positive amounts and subtract where necessary.)

8)
On January 1, 2012, Richards
Inc. had cash and common stock of $63,530. At that date the company had no
other asset, liability or equity balances. On January 2, 2012, it purchased for
cash $21,710 of equity securities that it classified as available-for-sale. It
received cash dividends of $4,940 net of tax during the year on these securities.
In addition, it has an unrealized holding gain on these securities of $6,880
net of tax. Determine the following amounts for 2012: (a) net income; (b)
comprehensive income; (c) other comprehensive income; and (d) accumulated other
comprehensive income (end of 2012).

9)
Armstrong Corporation reported
the following for 2012: net sales $1,229,700; cost of goods sold $750,700;
selling and administrative expenses $335,300; and an unrealized holding gain on
available-for-sale securities $17,400.

10)Prepare a statement of comprehensive income, using the two-income
statement format. Ignore income taxes and earnings per share.(Enter all amounts as positive amounts and
subtract where necessary.)

11)
Guillen, Inc. began work on a
$7,088,400 contract in 2012 to construct an office building. Guillen uses the
completed-contract method. At December 31, 2012, the balances in certain
accounts were construction in process $1,752,600; accounts receivable $252,600;
and billings on construction in process $1,108,600. Indicate how these accounts
would be reported in Guillen’s December 31, 2012, balance sheet.

12)
Lazaro, Inc. sells goods on the
installment basis and uses the installment-sales method. Due to a customer
default, Lazaro repossessed merchandise that was originally sold for $890,
resulting in a gross profit rate of 40%. At the time of repossession, the
uncollected balance is $710, and the fair value of the repossessed merchandise
is $281. Prepare Lazaro’s entry to record the repossession. (List multiple debit/credit entries from largest to smallest
amount, e.g. 10, 5, 2.)

13)
Harding Corporation has the
following accounts included in its December 31, 2012, trial balance: Accounts
Receivable $118,190; Inventories $297,600; Allowance for Doubtful Accounts
$9,260; Patents $75,110; Prepaid Insurance $9,630; Accounts Payable $85,580;
Cash $27,010. Prepare the current assets section of the balance sheet listing
the accounts in proper sequence.

14)
Patrick Corporation’s adjusted
trial balance contained the following asset accounts at December 31, 2012:
Prepaid Rent $21,860; Goodwill $55,710; Franchise Fees Receivable $4,820;
Franchises $40,540; Patents $34,850; Trademarks $13,780. Prepare the intangible
assets section of the balance sheet. (List
amounts from largest to smallest, e.g. 10, 5, 3, 2.)

15)
Hawthorn Corporation’s adjusted
trial balance contained the following accounts at December 31, 2012: Retained
Earnings $123,010; Common Stock $707,490; Bonds Payable $109,630; Additional
Paid-in Capital $209,230; Goodwill $64,340; Accumulated Other Comprehensive
Loss $151,180. Prepare the stockholders’ equity section of the balance sheet. (List entries in order of stock preferred status. For
negative numbers use either a negative sign preceding the number, e.g. -45 or
parenthesis, e.g. (45).)

16)Keyser Beverage Company reported the following items in the most
recent year.

Net income

$40,910

Dividends paid

5,060

Increase in accounts receivable

11,930

Increase in accounts payable

7,940

Purchase of equipment (capital expenditure)

8,940

Depreciation expense

6,940

Issue of notes payable

20,350

Compute net cash flow
provided by operating activities and the net change in cash during the year.(List amounts from largest positive to smallest positive followed by
most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. For negative
numbers use either a negative sign preceding the number e.g. -45 or parenthesis
e.g. (45).)

17)
Ames Company reported
2012 net income of $151,290. During 2012, accounts receivable increased by
$15,170 and accounts payable increased by $9,720. Depreciation expense was
$46,910. Prepare the cash flows from operating activities section of the
statement of cash flows.(List amounts from
largest positive to smallest positive followed by most negative to least negative,
e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign
preceding the number e.g. -45 or parenthesis e.g. (45).)

18)Martinez Corporation engaged in the following cash transactions
during 2012.

Sale of land and building

$195,500

Purchase of treasury stock

48,320

Purchase of land

37,490

Payment of cash dividend

91,480

Purchase of equipment

55,440

Issuance of common stock

152,150

Retirement of bonds

101,240

Compute the net cash
provided (used) by investing activities.(List
multiple entries from the largest positive to the smallest positive amount
followed by the most negative to the least negative amount, e.g. 15, 14, 10,
-17, -5, -1. For negative numbers use either a negative sign preceding the
number, e.g. -45 or parenthesis, e.g. (45).)

19)
Chris Spear invested $10,619
today in a fund that earns 8% compounded annually. To what amount will the
investment grow in 3 years? To what amount would the investment grow in 3 years
if the fund earns 8% annual interest compounded semiannually? (Round answers to 2 decimal places, e.g. 12,250.25. Hint: Use
tables in text.)

20)
Amy Monroe wants to create a
fund today that will enable her to withdraw $26,920 per year for 8 years, with
the first withdrawal to take place 5 years from today. If the fund earns 9%
interest, how much must Amy invest today? (Round
the answer to zero decimal places, e.g. 120,250. Hint: Use tables in text.)

21)Zach Taylor is settling a $30,000 loan due today by making 6 equal
annual payments of $7,091.29.

22)What payments must Zach Taylor make to settle the loan at the
interest rate of 11%, but with the 6 payments beginning on the day the loan is
signed?(Round answer to 2
decimal places, e.g. 2,250.25. Hint: Use tables in text.)

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