ACCOUNTING JEOPARDY ACCOUNTING REVIEW DOCSEDA DebitCredit Adjustments Income
ACCOUNTING JEOPARDY ACCOUNTING REVIEW DOCSEDA
Debit/Credit Adjustments Income Statement Balance Sheet Statement of Equity 100 100 100 200 200 200 300 300 300 400 400 400 500 500 500
Debit/Credit 100 SOLD EQUIPMENT THAT COST $60, 000 AND HAS ACCUMULATED DEPRECIATION OF $48, 000 FOR $25, 000. A: What is a debit to Cash for 25, 000, Accumulated Depreciation-Equip for 48, 000 and credits to Equip. for 60, 000 and Gain on Sale of Equip. for $13, 000? Docseda
Debit/Credit 200 ISSUED 60, 000 $1 PAR VALUE COMMON STOCK FOR $2. 50 PER SHARE. A: What is a debit to Cash for 150, 000 and credits to Common Stock for 60, 000 and Paid-in-Capital. Excess over Par Value, Common for 90, 000 ? Docseda
Debit/Credit 300 SOLD 3, 000 OF 8, 000 TREASURY SHARES THAT INITIALLY COST $10 FOR $12 PER SHARE. A: What is a debit to Cash for 36, 000 and credits to Treasury Stock-Common for 30, 000 and Paid-in. Capital from Treasury Stock Transactions, Common for 6, 000? Docseda
Debit/Credit 400 Declared a 100% stock dividend on $2 par value common stock. Market price per share of 70, 000 shares outstanding is $18. A: What is a debit to Stock Dividends-Common for 140, 000 and credit to Stock Dividends to be Issued for 140, 000? Docseda
Debit/Credit 500 Equipment that cost 60, 000 and has accumulated depreciation of 48, 000 is exchanged for similar equipment with FMV of 20000 and 5000 cash is received. A: What is a debit to Equipment-New for 9, 600, Accumulated Depreciation-Equip. for 48, 000, Cash for 5, 000 and Credits to Old Equipment for 60, 000 and Gain on Disposal of Equip. 2600 ? [Cost – Acc. Dep = BV; BV – FMV = Gain; ] [60000 – 48000 = 12000; 12000 -25000 =13000; ] [Gain recognized (2/10 × $13, 000)=$ 2, 600; ] Check: Fair value - Deferred gain = Basis of new equipment; 20000 - 10400 Docseda = 9, 600
Adjustments 100 This entry represents Gaston’s accrued interest payable as of 12/31/05. On 9/01/05, Gaston issued note payable to Nat’l Bank in amount of $1, 500, 000, bearing interest at 12%, and payable in 3 equal annual principal payments of $500, 000. First payment for interest and principal was made on September 1, 2005. A: What is debit to Interest Expense and credit to Interest Payable for 40, 000 (1, 000×. 12× 1/3)? Docseda
Adjustments 200 This entry represents Patton’s accrued payroll tax expense as of 10/31/04. Patton Co. 's payroll for pay period ended 10/31/04 is summarized as follows: Federal Dept. Total Income Tax Payroll Wages Withheld Amount of Wages Subject to Payroll Taxes F. I. C. A. (8%) Unemployment (4%) Factory $ 75, 000 $10, 000 $66, 000 $22, 000 Sales 22, 000 3, 000 16, 000 2, 000 Office 18, 000 2, 000 8, 000 $115, 000 $90, 000 — $24. 000 A: What is debit to Payroll Tax Expense for 8, 160 and credits to FICA payable for 7, 200 and FUTA/SUTA Payable for 960? [($90, 000×. 08)+($24, 000×. 04)] Docseda
Adjustments 300 This entry represents adjustment to Short-term Investments in Stock account at 12/31/03. Trading Security Portfolio consists of 300 shares of Schoff Corporation $3 par value stock that initially cost $10. 50 and is currently valued at $12 per share. A: What is debit to Short-term Investments in Stock and credit to Unrealized Gain on Investments for 300 [(12*300) - (10. 50*300)]? Docseda
Adjustments 400 This entry represents adjustment to Long-term Investments in Stock account at 12/31/03. Portfolio consists of 10, 000 shares or 25% of Collins Corp that initially cost $8 and is currently valued at $10. Collins reported a net loss for 2003 of $20, 000. A: What is debit to Equity in Investee Loss and credit to Long-term Investment in Stock for 5, 000 [20, 000*. 25]? Docseda
Adjustments 500 This entry represents a prior-period adjustment initiated by Controller who discovered that income tax expense was overstated by $50, 000 in 2002. A: What is debit to Income Tax Payable and credit to Retained Earnings-Prior Period Adjustment for 50, 000? Docseda
Income Statement 100 This amount represents Nixon’s depletion expense for 2003. In January of 2003, Nixon Corporation purchased a mineral mine for $6, 800, 000 with removable ore estimated by geological surveys at 2, 000 tons. The property has an estimated value of $400, 000 after the ore has been extracted. The company incurred $2, 000 of development costs preparing the mine for production. During 2003, 500, 000 tons were removed and 400, 000 tons were sold. A: What is $1, 680, 000 [($6, 800, 000–$400, 000 + $2, 000) ÷ 2, 000] × 400, 000? Docseda
Income Statement 200 These amounts represent net income and related EPS based on following data: A: What is $14, 000 Net Income and EPS of $2. 80 ? [160 -80 -66 -8+20 -14 -6+8] and [14, 000 / 5000] Docseda
Income Statement 300 Using effective interest method, this amount represents Dodge’s interest expense for 2003. On 1/2/03, Dodge Corporation sold 8% bonds with face value of $1, 500, 000. These bonds mature in 5 years, and interest is paid semiannually on 6/30 and 12/31. Bonds were sold for $1, 384, 000 to yield 10%. A: What is $138, 860? {[1, 384, 000×. 05=69, 200] [1, 384, 000+($69, 200 – $60, 000)]×. 05 =69, 660] 138, 860} Docseda
Income Statement 400 Using treasury stock method for computing Edson’s Diluted EPS , this amount represents increase of weighted average number of outstanding shares due to assumed exercise of warrants in following scenario. Edson Corporation has warrants exercisable at $20 each to obtain 70, 000 shares of common stock during period when average market price of common stock was $25. A: What is $14, 000 [70000–((70000× 20)÷ 25)] ? Docseda
Income Statement 500 This amount represents Fairly’s Diluted EPS for 2003. Fairly Co. had 200, 000 shares of common stock, 20, 000 shares of convertible preferred stock, and $1, 000 of 10% convertible bonds outstanding during 2003. The preferred stock is convertible into 40, 000 shares of common stock. During 2003, Fairly paid dividends of $1. 20 per share on common stock and $4. 00 per share on preferred stock. Each $1, 000 bond is convertible into 45 shares of common stock. Net income for 2003 was $800, 000 and income tax rate was 30%. A: What is $3. 05? {800, 000+($1, 000×. 10×. 7)} {200, 000 + 45, 000 + 40, 000} Docseda
Balance Sheet 100 This account is created when purchase price of net assets exceeds fair market value of net assets acquired. A: What is Goodwill? Docseda
Balance Sheet 200 Accounts Receivable Turnover and Current Ratios are used to measure this criteria of a company’s success. A: What is Short-term Liquidity? Docseda
Balance Sheet 300 Based on LIFO, this amount represents value of James’ ending inventory for March. James Co. has following data related to inventory items: Inventory, March 1 Purchase, March 7 Purchase, March 16 Inventory, March 31 200 units @ $4. 20 700 units @ $4. 40 140 units @ $4. 50 300 units A: What is $1, 280 [(200*4. 20)+ (100*4. 40)]? Docseda
Balance Sheet 400 Unrealized Gains and Losses on Available -For-Sale Securities are disclosed in this section of Balance Sheet. A: What is separate component of Stockholder’s Equity after Total Contributed Capital and Retained Earnings? Docseda
Balance Sheet 500 Using Sum-of Years Digit depreciation method, this amount represents balance of accumulated depreciation on Riley’s machinery at 3/31/04. Riley Co. purchased machinery on 4/01/02 for $480, 000. Machinery has estimated useful life of 5 years and a salvage value of $30, 000. A: What is $270, 000[(480 -30)×(5/15 + 4/15)]? Docseda
Statement of Equity 100 Preferred stockholders with this feature are entitled to dividends in arrears. A: What is Cumulative? Docseda
Statement of Equity 200 This amount represents Total Contributed Capital at 12/31/03 based on data below regarding El Paso’s Stockholder’s Equity information. A: What is $375, 700 [250, 000+125, 000+700] ? [700=1200*(8 -7(cost)) + 500*(6 -7(cost))] Docseda
Statement of Equity 300 This amount represents Treasury Stock balance as of 12/31/03 based on data below: A: What is $5, 600 [2500 -(1200+500)*$7)? Docseda
Statement of Equity 400 This amount represents Total Stockholder’s Equity for company as of 12/31/03 based on data below: A: What is $850, 100 [250, 000+125, 000+700+480, 000 – 5, 600]? Docseda
Statement of Equity 500 Assuming that $100, 000 will be distributed as a dividend in current year, this amount represents portion of dividend received by common stockholders. Tomlin Inc. has outstanding 200, 000 shares of $2 par common stock and 40, 000 shares of no-par 8% preferred stock with stated value of $5. Preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except past two years and current year. A: What is $52, 000 [100, 000–(40, 000×$5×. 08× 3)]? Docseda
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