| | | | Ashford University ACC205 |
| | | | Guidance Report |
| | Your Browser Must be Open to Access Video | | Week Two |
| | LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT | | | Guidance Report Download Date | | 11/28/17 | Guidance Report Revision Date | | 12/1/17 |
| | | | | YELLOW INDICATES ACCOUNT AMOUNTS CHANGED |
| | | | | Change Account to: |
| | | | | Based Upon Course Start Date |
| | Exercise/
Problem | Account to
be changed | Original
Amount | Jan-Feb | Mar-Apr | May-Jun | Jul-Aug | Sept-Oct | Nov-Dec |
| | Ch 3 Ex 4 | Fish Trip | 125 | 150 | 175 | 200 | 225 | 250 | 275 |
| | | Boat rental | 72,000 | 78,000 | 84,000 | 90,000 | 96,000 | 102,000 | 108,000 |
| | | Questions | YOUR ANSWERS BASED UPON COURSE START DATE |
| Prepare journal entries to record (1) the collection of monies from tourists and (2) the revenue generated during January. |
| | Cash |
| | | Unearned Fish Trips |
| | Unearned Fish Trips |
| | | Earned Fish Trips |
| Calculate Hawaii-Blue's total obligation to tourists at the end of January |
| On what financial statement and in which section would this amount appear? |
| What section of the financial statement would this amount appear? |
| Prepare journal entries to record (1) the payment to Pacific Yacht Supply and (2) the subsequent adjustment on January 31. |
| | Prepaid Boat Rental |
| | | Cash |
| | Boat Rental Expense |
| | | Prepaid Boat Rental |
| On what financial statement would Hawaii-Blue's January boat rental cost appear? |
| | Account to
be changed | Original
Amount |
| | Ch 3 Ex 8 |
| | Miguel Gomez, Drawing | 2,500 | | 3000 | 3500 | 4000 | 3500 | 5000 | 5500 |
| | Service Revenue | 38,000 | | 39000 | 40000 | 41000 | 47000 | 49000 | 50000 |
| | Rent Expense | 9,000 | | 9500 | 10000 | 10500 | 17000 | 17500 | 18000 |
| | | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | Service Revenue |
| | | Capital |
| | Capital |
| | | Rent Expense |
| | | Insurance Expense |
| | | Advertising Expense |
| | | Utilities Expense |
| | Capital |
| | | Drawing |
| | Ch 3 Pb 3 |
| | Account to
be changed | Original
Amount | | Jan-Feb | Mar-Apr | May-Jun | Jul-Aug | Sept-Oct | Nov-Dec |
| | Unrecorded interest | 275 | | 300 | 325 | 350 | 370 | 376 | 377 |
| | Total Tuition in advance | 60000 | | 70000 | 71000 | 74000 | 75000 | 79000 | 83000 |
| | Depreciation | 3000 | | 4000 | 4100 | 4200 | 4300 | 4400 | 4500 |
| | Rent | 21000 | | 24000 | 30000 | 36000 | 42000 | 48000 | 54000 |
| | Salaries | 400 | | 500 | 600 | 700 | 800 | 900 | 950 |
| | Feb 1 20X2 | 540 | | 600 | 610 | 620 | 640 | 650 | 660 |
| | Jan 1 20X3 | 912 | | 1000 | 1050 | 1060 | 1070 | 1090 | 1095 |
| | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | Unrecorded interest owed to the center totaled $275 as of December 31. |
| | Interest Expense |
| | | Interest Payable |
| | All clients pay tuition in advance, and their payments are credited to the Unearned Tuition Revenue account. The account was credited for $75,500 on August 31. With the exception of $15,500, which represented prepayments for 10 months' tuition from several well-to-do families, all amounts were for the current semester ending on December 31. |
| | Unearned Tuition Revenue |
| | | Tuition Revenue |
| | Depreciation on the school's van was $3,000 for the year. |
| | Depreciation Expense |
| | | Accumulated Depreciation |
| | On August 1, the center began to pay rent in 6-month installments of $21,000. Kathy wrote a check to the owner of the building and recorded the check in Prepaid Rent, a new account. |
| | Rent Expense |
| | | Prepaid Rent |
| | Two salaried employees earn $400 each for a 5-day week. The employees are paid every Friday, and December 31 falls on a Thursday. |
| | Salary Expense |
| | | Salaries Payable |
| | Kathy's Day Care paid insurance premiums as follows, each time debiting Prepaid Insurance: |
| | Date Paid | Policy No. | Length of Policy | Amount |
| | Feb. 1, 20X2 | 1033MCM19 | 1 year | $540 |
| | Jan. 1, 20X3 | 7952789HP | 1 year | 912 |
| | Aug. 1, 20X3 | XQ943675ST | 2 years | 840 |
| | Insurance Expense |
| | | Prepaid Insurance |
| | Ch 4 Ex 3 |
| | | Balance per bank | 6150 | $6,252 | $6,354 | $6,456 | $6,558 | $6,660 | $6,762 |
| | | Note collected by bank | 1000 | 1,102 | 1,204 | 1,306 | 1,408 | 1,510 | 1,612 |
| | | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | | Balance per bank |
| | | Deposits in transit |
| | | Outstanding checks |
| | | Adjusted Bank Balance |
| | | Balance per company records |
| | | Bank service charge for January |
| | | Interest on note collected by bank |
| | | Note collected by bank |
| | | NSF check returned by the bank with the bank statement |
| | | Adjusted Book Balance |
| | Ch 4 Ex 6 | Account to
be changed | Original
Amount |
| | | 5% of credit sales | 0.05 | 0.06 | 0.07 | 0.08 | 0.09 | 0.1 | 0.11 |
| | | 14% of accounts receivable | 0.14 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.2 |
| | (1) Uncollectible accounts are estimated to be 5% of Credit Sales. | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | Uncollectible Accounts Expense |
| | | Allowance for Uncollectible Accounts |
| | (2) Uncollectible accounts are estimated to be 14% of Accounts Receivable. |
| | Uncollectible Accounts Expense |
| | | Allowance for Uncollectible Accounts |
| | How would Maverick's Accounts Receivable appear on the December 31 balance sheet under assumption (1) of part (a)? |
| | Accounts Receivable |
| | Less: Allowance for Uncollectible Accounts |
| | How would Maverick's Accounts Receivable appear on the December 31 balance sheet under assumption (2) of part (a)? |
| | Accounts Receivable |
| | Less: Allowance for Uncollectible Accounts |
| | Net Receivables |
| | | Account to
be changed | Original
Amount |
| | Ch 4 Pb 3 | Percentage of Accounts Expected to Be Collected | 0.99 | 96% | 93% | 90% | 87% | 84% | 81% |
| | | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | What is the company's Uncollectible Accounts expense for 20X2? |
| | Compute the net realizable value of Accounts Receivable at the end of 20X2. | | Net Realizable value 20X2 |
| | Accounts receivable |
| | Less: Allowance for Uncollectible Accounts |
| | Net Realizable Value |
| | Compute the net realizable value at the end of 20X2 as a percentage of respective year-end receivables balances. Analyze your findings and comment on the president's decision to close the credit evaluation department. | | 20X2 |
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GuidanceReportWeekTwo2.xlsx
