Accounting – Multiple problems

$15.00

Description

1. (TCO A) Platypus Building Inc. won a bid for a new office building contract. Below is info from the project accountant:
Total Construction Fixed Price $8,000,000
Construction Start Date March 3, 2012
Construction Complete Date December 4, 2013
As of Dec 31… 2012 2013
Actual cost incurred $2,500,000 $3,150,000
Estimated remaining costs $3,750,000 $-
Billed to customer $2,400,000 $5,300,000
Received from customer $2,250,000 $5,400,000
Assuming Platypus Building Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?
1. $2,000,000
2. $2,350,000
3. $1,650,000
4. $940,000
2. (TCO A) Kerry Corp purchased a used bottling machine from Bob’s Bottling Inc. on Jan 1, 2012 for $2100000. Bob accounted for the sale correctly under the installment sales method. It had a book value of $1575000. Kerry paid with $300000 cash and a note for $1800000 with an annual interest of 10%. Kerry agreed to make equal annual payments of $600000. Kerry Corp made their first payment on Jan 1, 2013 of $780000 which included interest of $180000 to date of payment.
As of Dec 31, 2013 Bob has deferred gross profit of ?
1. $255,000
2. $330,000
3. $375,000
4. $300,000
3. (TCO A) Blue Suede Construction Corp used the percentage-of-completion method of revenue recognition. They were contracted to build the new amphitheater for $800000. Additional information was provided:
As of Dec 31…. 2012 2013
Percentage of completion 15% 40%
Estimated total expected costs $550,000 $580,000
Gross profit recognized (Cumulative) $50,000 $99,000
Contracted costs incurred during 2013 were… (Points : 5)
1. $145,000
2. $149,500
3. $151,000
4. $232,000
4. (TCO A) In industries with high rates of return (such as a magazine distribution company) an alternative method of revenue recognition would be
• record sales net of an estimate of expected future returns
• record sales in current period and returns in future periods as they occur
• do not record any sales until expiration of all return privileges have passed
• all of the above

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Accounting Multiple Problems

$42.00

Description

Consider the following account starting balances and transactions involving these accounts.
Use T-accounts to record the starting balances and the offsetting entries for the transactions.
The starting balance of Accounts Receivable is $3,400
The starting balance of Cash is $9,000
The starting balance of Inventory is $5,100
1. Receive payment of $10 owed by a customer
2. Buy $16 worth of manufacturing supplies for cash
3. Sell product for $40 with historical cost of $40
What is the final amount in Cash?
#2
Consider the following account starting balances and transactions involving these accounts.
Use T-accounts to record the starting balances and the offsetting entries for the transactions.
The starting balance of Accounts Payable is $1,900
The starting balance of Cash is $9,100
The starting balance of Debt is $2,400
The starting balance of Inventory is $4,800
1. Buy $18 worth of manufacturing supplies on credit
2. Borrow $53 from a bank
3. Pay $8 owed to a supplier
What is the final amount in Debt?
#3
Consider the following account starting balances and transactions involving these accounts.
Use T-accounts to record the starting balances and the offsetting entries for the transactions.
The starting balance of Cash is $8,400
The starting balance of Inventory is $4,200
The starting balance of Retained Earnings is $23,500
1. Pay expense of $2
2. Sell product for $40 with historical cost of $32
3. Sell service for $25
What is the final amount in Retained Earnings?

#4

The T-accounts below summarize transactions of Torche Corporation from February 22 to February 25, 2013:
Cash

Balance
14,700
12
15
80
58

PP&E, Net

44
4

Accounts Receivable

Balance
4,800

Balance
15,800
44

Other Assets

12

Balance
900

Inventory

Balance
3,800
15

Accounts Payable

4

Balance
2,400
15

Debt

Balance
3,700
58

Other Liabilities

Balance
5,000

Paid­In Capital

Balance
6,000
80

Retained Earnings

12

What is the final amount in Total Liabilities & Equity?

Balance
22,900
3

#5
Stuart Company
Balance Sheet
As of March 11, 2013
(amounts in thousands)

Cash
Accounts Receivable
Inventory
Property Plant & Equipment
Other Assets

Total Assets

8,400 Accounts Payable
4,700 Debt
4,200 Other Liabilities
17,200 Total Liabilities
2,800 Paid-In Capital
Retained Earnings
Total Equity
37,300 Total Liabilities & Equity

2,800
3,400
900
7,100
6,700
23,500
30,200
37,300

Use T-accounts to record the transactions below, which occur on March 12, 2013, close the T-accounts, and
construct a balance sheet to answer the question.
1. Borrow $52,000 from a bank
2. Purchase equipment for $48,000 in cash
3. Issue $85,000 in stock
What is the final amount in Total Assets?
Please specify your answer in the same units as the financial statement.
#6

Lightspeed Industries
Balance Sheet
As of March 11, 2013
(amounts in thousands)

Cash
Accounts Receivable
Inventory
Property Plant & Equipment
Other Assets

14,100 Accounts Payable
3,200 Debt
4,900 Other Liabilities
16,300 Total Liabilities
500 Paid-In Capital

1,900
3,600
2,000
7,500
7,200

Total Assets

Retained Earnings
Total Equity
39,000 Total Liabilities & Equity

24,300
31,500
39,000

Use T-accounts to record the transactions below, which occur on March 12, 2013, close the T-accounts, and
construct a balance sheet to answer the question.
1. Issue $80,000 in stock
2. Borrow $65,000 from a bank
3. Receive payment of $12,000 owed by a customer
4. Pay $6,000 owed to a supplier
5. Buy $17,000 worth of manufacturing supplies on credit
What is the final amount in Total Assets?
Please specify your answer in the same units as the financial statement.
#7

Lightspeed Industries
Balance Sheet
As of March 11, 2013
(amounts in thousands)

Cash
Accounts Receivable
Inventory
Property Plant & Equipment
Other Assets

Total Assets

14,100 Accounts Payable
3,200 Debt
4,900 Other Liabilities
16,300 Total Liabilities
500 Paid-In Capital
Retained Earnings
Total Equity
39,000 Total Liabilities & Equity

1,900
3,600
2,000
7,500
7,200
24,300
31,500
39,000

Use T-accounts to record the transactions below, which occur on March 12, 2013, close the T-accounts, and
construct a balance sheet to answer the question.
1. Sell service for $20,000
2. Pay expense of $3,000
3. Sell product for $25,000 with historical cost of $20,000
What is the final amount in Total Assets?
Please specify your answer in the same units as the financial statement.

Statement of Cash flows
#3

Siam Traders had Net Income for 2012 of $9,500,000.

The firm invested $1,000,000 in manufacturing equipment during 2012.
The equipment is being depreciated over five years using straight-line depreciation, starting in 2012.

Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2012
with amounts in thousands.
What is the Net Cash Flow in 2012?
Please specify your answer in the same units as the financial statement.
#4

Valley Technology had Net Income for 2012 of $9,600,000.

The firm invested $5,000,000 in manufacturing equipment during 2011 but made no additional capital investments in
2012.
The equipment is being depreciated over five years using straight-line depreciation, starting in 2011.
Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2012
with amounts in thousands.
What is the Net Cash Flow in 2012?
Please specify your answer in the same units as the financial statement.
#5

Suppose Siam Traders has the following results related to cash flows for 2012:

Net Income of $9,400,000
Increase in Accounts Payable of $800,000
Decrease in Accounts Receivable of $600,000
Decrease in Inventory of $700,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in
thousands.
What is the Net Cash Flow from Operating Activities?
Please specify your answer in the same units as the financial statement.

#6

Suppose Hopewell Corporation has the following results related to cash flows for 2012:

Net Income of $8,000,000
Increase in Accounts Payable of $500,000
Increase in Accounts Receivable of $700,000
Depreciation of $1,300,000
Decrease in Inventory of $300,000
Other Adjustments from Operating Activities of -$900,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in
thousands.
What is the Net Cash Flow from Operating Activities?
Please specify your answer in the same units as the financial statement.
#7

Suppose Dansko Integrated has the following results related to cash flows for 2012:

Decrease in Debt of $200,000
Dividends of $800,000
Purchases of Property, Plant, & Equipment of $6,700,000
Other Adjustments from Financing Activities of -$600,000
Other Adjustments from Investing Activities of $300,000

Assuming no other cash flow adjustments than those listed above, create a statement of cash flows for financing and
investing activities with amounts in thousands.
What is the Net Cash Flow from Financing and Investing Activities?
Please specify your answer in the same units as the financial statement.
#8

Suppose Torche Corporation has the following results related to cash flows for 2012:

Net Income of $8,500,000
Decrease in Accounts Payable of $400,000
Increase in Accounts Receivable of $800,000
Increase in Debt of $100,000
Depreciation Expenses of $1,600,000
Purchases of Property, Plant, & Equipment of $5,400,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in
thousands.
What is the Net Cash Flow?
Please specify your answer in the same units as the financial statement.
#9

Suppose Stuart Company has the following results related to cash flows for 2012:

Net Income of $7,700,000
Decrease in Accounts Payable of $900,000
Decrease in Accounts Receivable of $300,000
Decrease in Debt of $600,000
Depreciation Expenses of $1,700,000
Dividends of $800,000
Increase in Inventory of $800,000
Purchases of Property, Plant, & Equipment of $7,500,000
Other Adjustments from Financing Activities of $300,000
Other Adjustments from Investing Activities of $300,000
Other Adjustments from Operating Activities of $600,000
Create a statement of cash flows with amounts in thousands.
What is the Net Cash Flow?
Please specify your answer in the same units as the financial statement.

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