ACC 291 Week 5 Practice: Connect Practice Assignment

ACC 291 Week 5 Practice: Connect Practice Assignment

attempt 1

1

Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm’s general ledger contained the accounts and balances that follow.

Required:

Record adjusting entries in the general journal as of December 31, 2019.
Record closing entries in the general journal as of December 31, 2019.
Record reversing entries in the general journal as of January 1, 2020.
Analyze:

Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,000 are paid on January 3?

2

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firm’s worksheet for the year ended December 31, 2019

Accounts    Debit    Credit
Cash    $    99,000                    
Petty Cash Fund         600                    
Notes Receivable, due 2020         15,000                    
Accounts Receivable         140,200                    
Allowance for Doubtful Accounts                   $    3,800     
Interest Receivable         150                    
Merchandise Inventory         128,500                    
Warehouse Supplies         3,300                    
Office Supplies         700                    
Prepaid Insurance         4,640                    
Land         16,000                    
Building         107,000                    
Accumulated Depreciation—Building                        16,700     
Warehouse Equipment         19,800                    
Accumulated Depreciation—Warehouse Equipment                        9,500     
Office Equipment         9,400                    
Accumulated Depreciation—Office Equipment                        3,900     
Notes Payable, due 2020                        15,000     
Accounts Payable                        56,900     
Interest Payable                        400     
Loans Payable—Long-Term                        17,000     
Mortgage Payable                        20,000     
Colin O’Brien, Capital (Jan. 1)                        326,870     
Colin O’Brien, Drawing         70,650                    
Income Summary         131,400              128,500     
Sales                        1,110,300     
Sales Returns and Allowances         8,400                    
Interest Income                        580     
Purchases         463,000                    
Freight In         9,800                    
Purchases Returns and Allowances                        13,650     
Purchases Discounts                        9,240     
Warehouse Wages Expense         108,600                    
Warehouse Supplies Expense         5,800                    
Depreciation Expense—Warehouse Equipment         3,400                    
Salaries Expense—Sales         151,700                    
Travel Expense         24,000                    
Delivery Expense         37,425                    
Salaries Expense—Office         85,000                    
Office Supplies Expense         1,220                    
Insurance Expense         9,875                    
Utilities Expense         8,000                    
Telephone Expense         3,280                    
Payroll Taxes Expense         31,600                    
Building Repairs Expense         3,700                    
Property Taxes Expense         16,400                    
Uncollectible Accounts Expense         3,580                    
Depreciation Expense—Building         5,600                    
Depreciation Expense—Office Equipment         1,620                    
Interest Expense         4,000                    
Totals    $    1,732,340         $    1,732,340     
Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.
Analyze:

What percentage of total operating expenses is attributable to warehouse expenses?

3

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2019.

ACCOUNTS    Debit    Credit
Cash    $    34,100                    
Petty Cash Fund         500                    
Notes Receivable, due 2020         11,800                    
Accounts Receivable         86,000                    
Allowance for Doubtful Accounts                   $    6,000     
Merchandise Inventory         234,000                    
Warehouse Supplies         2,860                    
Office Supplies         1,420                    
Prepaid Insurance         10,200                    
Land         46,000                    
Building         178,000                    
Accumulated Depreciation—Building                        54,000     
Warehouse Equipment         37,000                    
Accumulated Depreciation—Warehouse Equipment                        17,400     
Delivery Equipment         51,000                    
Accumulated Depreciation—Delivery Equipment                        19,600     
Office Equipment         25,000                    
Accumulated Depreciation—Office Equipment                        12,000     
Notes Payable, due 2020                        20,200     
Accounts Payable                        49,000     
Interest Payable                        580     
Mortgage Payable                        61,000     
Loans Payable, Long-term                        17,000     
Charles Ronie, Capital (Jan. 1)                        452,460     
Charles Ronie, Drawing         127,000                    
Income Summary         244,000              234,000     
Sales                        1,685,000     
Sales Returns and Allowances         18,200                    
Interest Income                        1,580     
Purchases         767,000                    
Freight In         13,800                    
Purchases Returns and Allowances                        8,440     
Purchases Discounts                        11,160     
Warehouse Wages Expense         199,600                    
Warehouse Supplies Expense         7,100                    
Depreciation Expense—Warehouse Equipment         5,800                    
Salaries Expense—Sales         269,200                    
Travel and Entertainment Expense         21,500                    
Delivery Wages Expense         60,330                    
Depreciation Expense—Delivery Equipment         9,800                    
Salaries Expense—Office         70,600                    
Office Supplies Expense         4,000                    
Insurance Expense         6,200                    
Utilities Expense         9,290                    
Telephone Expense         6,520                    
Payroll Taxes Expense         59,000                    
Property Taxes Expense         5,600                    
Uncollectible Accounts Expense         5,800                    
Depreciation Expense—Building         9,000                    
Depreciation Expense—Office Equipment         4,000                    
Interest Expense         8,200                    
Totals    $    2,649,420         $    2,649,420     
Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.
Analyze:

What is the current ratio for this business?

4

The data below concerns adjustments to be made at Coffee Bean Importers.

Adjustments

On November 1, 2019, the firm signed a lease for a warehouse and paid rent of $21,000 in advance for a six-month period.
On December 31, 2019, an inventory of supplies showed that items costing $1,940 were on hand. The balance of the Suppliesaccount was $11,880.
A depreciation schedule for the firm’s equipment shows that a total of $10,750 should be charged off as depreciation in 2019.
On December 31, 2019, the firm owed salaries of $6,100 that will not be paid until January 2020.
On December 31, 2019, the firm owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on all accrued salaries.
On October 1, 2019, the firm received a five-month, 8 percent note for $6,500 from a customer with an overdue balance.
Required:

Record the adjusting entries in the general journal as of December 31, 2019.
Record reversing entries in the general journal as of January 1, 2020.
Analyze:

After the adjusting entries have been posted, what is the balance of the Prepaid Rent account on January 1, 2020?

5

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.

Required:

Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.
Prepare a classified balance sheet as of December 31, 2019.
Analyze:

What is the inventory turnover for Artisan Wines?

Explanation
Analyze:

The inventory turnover for Artisan Wines is 6.59 times, calculated as follows:

                     
Cost of good sold    =    92,225    =    6.59
Average inventory    14,000
 

                     
Average inventory    =    13,000 + 15,000    =    14,000
2
 

attempt 2

1

The data below concerns adjustments to be made at Coffee Bean Importers.

Adjustments

On November 1, 2019, the firm signed a lease for a warehouse and paid rent of $21,000 in advance for a six-month period.
On December 31, 2019, an inventory of supplies showed that items costing $1,940 were on hand. The balance of the Suppliesaccount was $11,880.
A depreciation schedule for the firm’s equipment shows that a total of $10,750 should be charged off as depreciation in 2019.
On December 31, 2019, the firm owed salaries of $6,100 that will not be paid until January 2020.
On December 31, 2019, the firm owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on all accrued salaries.
On October 1, 2019, the firm received a five-month, 8 percent note for $6,500 from a customer with an overdue balance.
Required:

Record the adjusting entries in the general journal as of December 31, 2019.
Record reversing entries in the general journal as of January 1, 2020.
Analyze:

After the adjusting entries have been posted, what is the balance of the Prepaid Rent account on January 1, 2020?

2

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.

Required:

Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.
Prepare a classified balance sheet as of December 31, 2019.
Analyze:

What is the inventory turnover for Artisan Wines?

3

Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm’s general ledger contained the accounts and balances that follow.

Required:

Record adjusting entries in the general journal as of December 31, 2019.
Record closing entries in the general journal as of December 31, 2019.
Record reversing entries in the general journal as of January 1, 2020.
Analyze:

Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,000 are paid on January 3?

4

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firm’s worksheet for the year ended December 31, 2019

Accounts    Debit    Credit
Cash    $    99,000                    
Petty Cash Fund         600                    
Notes Receivable, due 2020         15,000                    
Accounts Receivable         140,200                    
Allowance for Doubtful Accounts                   $    3,800     
Interest Receivable         150                    
Merchandise Inventory         128,500                    
Warehouse Supplies         3,300                    
Office Supplies         700                    
Prepaid Insurance         4,640                    
Land         16,000                    
Building         107,000                    
Accumulated Depreciation—Building                        16,700     
Warehouse Equipment         19,800                    
Accumulated Depreciation—Warehouse Equipment                        9,500     
Office Equipment         9,400                    
Accumulated Depreciation—Office Equipment                        3,900     
Notes Payable, due 2020                        15,000     
Accounts Payable                        56,900     
Interest Payable                        400     
Loans Payable—Long-Term                        17,000     
Mortgage Payable                        20,000     
Colin O’Brien, Capital (Jan. 1)                        326,870     
Colin O’Brien, Drawing         70,650                    
Income Summary         131,400              128,500     
Sales                        1,110,300     
Sales Returns and Allowances         8,400                    
Interest Income                        580     
Purchases         463,000                    
Freight In         9,800                    
Purchases Returns and Allowances                        13,650     
Purchases Discounts                        9,240     
Warehouse Wages Expense         108,600                    
Warehouse Supplies Expense         5,800                    
Depreciation Expense—Warehouse Equipment         3,400                    
Salaries Expense—Sales         151,700                    
Travel Expense         24,000                    
Delivery Expense         37,425                    
Salaries Expense—Office         85,000                    
Office Supplies Expense         1,220                    
Insurance Expense         9,875                    
Utilities Expense         8,000                    
Telephone Expense         3,280                    
Payroll Taxes Expense         31,600                    
Building Repairs Expense         3,700                    
Property Taxes Expense         16,400                    
Uncollectible Accounts Expense         3,580                    
Depreciation Expense—Building         5,600                    
Depreciation Expense—Office Equipment         1,620                    
Interest Expense         4,000                    
Totals    $    1,732,340         $    1,732,340     
Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.
Analyze:

What percentage of total operating expenses is attributable to warehouse expenses?

5

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2019.

ACCOUNTS    Debit    Credit
Cash    $    34,100                    
Petty Cash Fund         500                    
Notes Receivable, due 2020         11,800                    
Accounts Receivable         86,000                    
Allowance for Doubtful Accounts                   $    6,000     
Merchandise Inventory         234,000                    
Warehouse Supplies         2,860                    
Office Supplies         1,420                    
Prepaid Insurance         10,200                    
Land         46,000                    
Building         178,000                    
Accumulated Depreciation—Building                        54,000     
Warehouse Equipment         37,000                    
Accumulated Depreciation—Warehouse Equipment                        17,400     
Delivery Equipment         51,000                    
Accumulated Depreciation—Delivery Equipment                        19,600     
Office Equipment         25,000                    
Accumulated Depreciation—Office Equipment                        12,000     
Notes Payable, due 2020                        20,200     
Accounts Payable                        49,000     
Interest Payable                        580     
Mortgage Payable                        61,000     
Loans Payable, Long-term                        17,000     
Charles Ronie, Capital (Jan. 1)                        452,460     
Charles Ronie, Drawing         127,000                    
Income Summary         244,000              234,000     
Sales                        1,685,000     
Sales Returns and Allowances         18,200                    
Interest Income                        1,580     
Purchases         767,000                    
Freight In         13,800                    
Purchases Returns and Allowances                        8,440     
Purchases Discounts                        11,160     
Warehouse Wages Expense         199,600                    
Warehouse Supplies Expense         7,100                    
Depreciation Expense—Warehouse Equipment         5,800                    
Salaries Expense—Sales         269,200                    
Travel and Entertainment Expense         21,500                    
Delivery Wages Expense         60,330                    
Depreciation Expense—Delivery Equipment         9,800                    
Salaries Expense—Office         70,600                    
Office Supplies Expense         4,000                    
Insurance Expense         6,200                    
Utilities Expense         9,290                    
Telephone Expense         6,520                    
Payroll Taxes Expense         59,000                    
Property Taxes Expense         5,600                    
Uncollectible Accounts Expense         5,800                    
Depreciation Expense—Building         9,000                    
Depreciation Expense—Office Equipment         4,000                    
Interest Expense         8,200                    
Totals    $    2,649,420         $    2,649,420     
Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.
Analyze:

What is the current ratio for this business?