Accounting Unit_5

profilerojtohnzopx
unit_5_chaps_9_10_assignments.xls
Home>Business & Finance homework help>Accounting homework help>Accounting Unit_5

Chap_9_Bad_Debts_Exp.

CHAPTER 9 - ASSIGNMENT 1: Calculating the Amount of Bad Debts Expense
Student Name Type your name here
1. INSTRUCTIONS: Calculate the amount of Estimated Amount of Bad Debts for each of the Aging
Categories shown in the Accounts Receivable Schedule below and find the Total of all the Categories.
A C C O U N T S R E C E I V A B L E A G I N G S C H E D U L E
1 - 30 31 - 60 61 - 90 Over 90
CUSTOMER NAME Days Days Days Days
Abbot, Andrea 328.56 117.34
Able, Steve 789.23 59.34
Ackers, Carylon 56.43 28.45
Zwickie, Zack 298.45 89.45
TOTALS 78,499.87 12,866.74 4,216.74 2,144.98
% UNCOLLECTIBLE 1% 3% 6% 20% TOTAL
ESTIMATED BAD DEBTS $0.00
A. Compute the amount of the Adjusting Entry for Bad Debts Expense if the Allowance for Doubtful
Accounts has a CREDIT Balance of $460.00 because the amount of last year's write off was
Overestimated.
Desired Ending Credit Bal. Credit Balance in Allow. for Amount of Adjusting
in Allow. for Doubtful Accts. Doubtful Accts. from Last Yr. Entry Needed
B. Compute the amount of the Adjusting Entry for Bad Debts Expense if the Allowance for Doubtful
Accounts has a DEBIT Balance of $460.00 because the amount of last year's write off was
Underestimated.
Desired Ending Credit Bal. Debit Balance in Allow. for Amount of Adjusting
in Allow. for Doubtful Accts. Doubtful Accts. from Last Yr. Entry Needed
ACCT 211 - Assignment Prepared by Barry J. Bomboy Chap. 9 - Page 1

Chap_9_Gen_Jour

CHAPTER 9 - ASSIGNMENT 2 - PART 1: Posting Accounts & Notes Receivable Transactions
1. INSTRUCTIONS: Record each of the Accounts Receivable and Notes Receivable Transactions
described below in the General Journal using Accounts from the partial Chart of Accounts shown
below. Omit explanations but leave a blank line between transactions.
ASSETS REVENUES EXPENSES
11 - Cash 41 - Sales 51 - Bad Debts Expense
12 - Accounts Receivable 42 - Sales Returns & Allow. 52 - Service Charge
13 - Allowance for Doubtful Accts. 43 - Sales Discounts Expense
14 - Notes Receivable 44 - Interest Revenue
15 - Interest Receivable
T# Transaction Description Account Titles P.R. Debit Credit
A. EXAMPLE: Sold $1,200 of merchandise to J. Accounts Receivable 12 1,200
Smith on account. Sales 41 1,200
B. Customer J. Smith returned $200 of the merchan- -
dise purchased on account in Transaction A. -
C. Customer J. Smith paid the amount owed in Trans. -
A less the merchandise returned in Trans. B. A 2% -
discount was granted for prompt payment of his bill. -
D. C. Jones was charged a monthly interest rate of -
1.5% on her store credit card's unpaid bal.of $2,000 -
E. Total Bad Debts for the month was estimated to be -
1% of its net credits sales of $150,000 for the month. -
ACCT 211 - Assignment Chap. 9 - Page 2
T# Transaction Description Account Titles P.R. Debit Credit
F. Customer I. Nopaa's $400 account receivable was -
written off as uncollectible after repeated attempts to -
contact him.
G. Customer I. Nopaa showed up after a lengthy trip -
abroad and paid the amount he owned in full after -
his account had been written off in Transaction F.
(NOTE: His write-off must be reversed and then -
recorded as collected). -
H. $8,000 of its Accounts Receivable were factored -
(sold) to another firm less a 3% service charge fee -
to raise cash for buying seasonal inventory. -
I. $700 of merchandise was sold to a customer on a -
Capital One credit card who reimbursed the store -
immediately less a 2% service charge fee. -
J. A 60 day, 8% annual interest rate promissory note -
for $3,000 was issued to replace the long over due -
account receivable of customer M. Fundless
K. One month's interest accrued and was recorded on -
the note receivable in Transaction J. -
ACCT 211 - Assignment Chap. 9 - Page 3
T# Transaction Description Account Titles P.R. Debit Credit
L. The note receivable in Transaction J & the interest -
earned in Transaction K along with the remaining -
interest was collected. -
-
M. Another 6 month, 8% interest rate note receivable -
for $2,000 from Y. Scofflaw was dishonored -
(not paid) on its due date. -
ACCT 211 - Assignment Chap. 9 - Page 4

Chap_9_Ledger_Accts

CHAPTER 9 - ASSIGNMENT 2 - PART 2: Posting Accounts & Notes Receivable Transactions
2. INSTRUCTIONS: Post each of the General Journal Transactions recorded on the previous sheets to the
General Ledger Accounts shown below. NOTE: All accounts should have their Normal Balance.
Cash #11 Allow. For Doubtful Accts. #13 Sales Discounts #43
T# Debit Credit DR. Bal. T# Debit Credit CR. Bal. T# Debit Credit DR. Bal.
X Beg. Bal 1,000 X Beg. Bal. 200 -
1,000 200
1,000 200 Sales Returns & Allowances #42
1,000 200 T# Debit Credit DR. Bal.
1,000 -
1,000 Notes Receivable #14
T# Debit Credit DR. Bal. Interest Revenue #44
Accounts Receivable #12 X Beg. Bal 4,000 T# Debit Credit CR. Bal.
T# Debit Credit DR. Bal. 4,000 -
X Beg. Bal 12,000 4,000 -
A 1,200 13,200 4,000 -
13,200
13,200 Interest Receivable #15 Bad Debts Expense #51
13,200 T# Debit Credit DR. Bal. T# Debit Credit DR. Bal.
13,200 X Beg. Bal 200 -
13,200 200
13,200 200 Service Charge Expense #52
13,200 200 T# Debit Credit DR. Bal.
13,200 -
13,200 Sales #41 -
T# Debit Credit CR. Bal.
A 1,200 1,200
1,200
ACCT 211 - Assignment Chap. 9 - Page 5

A.R. BAL. CHECK FIGS.

ACC 211 - CHAPTER 9 - ASSIGNMENT 2: General Ledger Check Figures
Compare your figures with the Check Figures below to troubleshoot possible recording or
computational errors.
C H E C K F i g u r e s Y O U R F i g u r e s Acct.
DEBIT CREDIT Total # DEBIT CREDIT Total # Error
# LEDGER ACCOUNT TITLES Balance1 Balance1 Entries1 Balance Balance Entries1 Alert
11 Cash 13,866 6 1,000 1 Error
12 Accounts Receivable 2,710 11 13,200 2 Error
13 Allowance for Doubtful Accts. 1,700 4 200 1 Error
14 Notes Receivable 2,000 4 4,000 1 Error
15 Interest Receivable 120 4 200 1 Error
41 Sales 1,900 2 1,200 1 Error
42 Sales Discounts 20 1 - - Error
43 Sales Returns & Allowances 200 1 - - Error
44 Interest Revenue 70 3 - - Error
51 Bad Debts Expense 1,500 1 - - Error
52 Service Charges Expense 254 2 - - Error
1 Includes Beginning Balances & Example Transaction
ACCT 211 - Assignment Chap. 9 - Page 6

Chap_10_Note Receivable

CHAPTER 9 - ASSIGNMENT 3 - Identifying Parts of a Promissory Note
1. Date of Note is _ _ _ _ _ _ _ _ _ _ _ _ _ $ 2,400 July 10, 201X
2. Term of Note is _ _ _ _ _ _ _ _ _ _ _ _ _ 60 days after date I promise to pay to the order of:
3. Due Date of Note is (calculate) Tech Elec Inc. Richmond, VA ___________ __
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Two Thousand Four Hundred and no/00 Dollars
4. If the Term of the Note were 2 months for the value received with annual interest at annual rate of 10%
instead of 60 days, the Due Date payable at the First National Bank of Washington D.C.
would now be _ _ _ _ _ _ _ _ _ _ _ _ _ _ Paul Dole____
5. Principle of Note is _ _ _ _ _ _ _ _ _ _ _ 10. The Year used to Calculate Interest is _ _ _ _ _ _ _ _ _ _ _ _
6. Interest Rate of Note is _ _ _ _ _ _ _ _ _ (365 day Calendar / 360 day Banker's) Year.
7. The Interest is _ _ _ _ _ _ _ _ _ _ (Simple 11. The Maker of this Note is _ _ _ _ _ _ _ _ _ _ _ _ _ _ to whom
/ Compound) Interest. this is a Note _ _ _ _ _ _ _ _ _ _ _ (Receivable / Payable).
8. The Formula used to Calculate Interest is: 12. The Payee of this Note is _ _ _ _ _ _ _ _ _ _ _ _ _ _ to whom
Principal _ _ Rate _ _ Time (+ / − / x or ¸). this is a Note _ _ _ _ _ _ _ _ _ _ _ (Receivable / Payable).
9. The Amount of Interest on the Note is
(calculate) $ _ _ _ _ _ _ _ _ _ _ _ _ _ _
ACCT 211 - Assignment Chap. 9 - Page 7

Chap_10_Deprec. Calculations

CHAPTER 10 - ASSIGNMENT 1: Calculating Depreciation, Depletion, & Amortization
A. DATA for the Calculation of Depreciation of Equipment using Double Declining Balance
Equipment costing $200,000 is planned to be used for 4 years and then sold for an estimated salvage value
of $50,000. Compute the table below using he Double Declining Balance method of Depreciation
Annual Accumulated Book
Preliminary Calculations: Year Depreciation Depreciation Value
Straight Line Depreciation Rate = Year 1 - 200,000
Double Declining Bal. Depr. Rate = Year 2 - 200,000
CHECK FIGURE: Yr. 3 Book Value $50,000 Year 3 - 200,000
B. DATA for the Calculation of Depletion of a Mine using Units of Production
A copper mine was acquired at a cost of $1,900,000. An additional $200,000 was spend building an access
road to the mine. Geologists believe the mine contains 400,000 tons of copper & that the land will be worth
$100,000 after the copper is removed. The amount of copper extracted during the first three years was as
follows: Year 1 - 68,000 tons; Year 2 - 74,000 tons, & Year 3 - 85,000 tons. Complete the table below using
using the Units of Production method of Depletion. Annual Accumulated Book
Preliminary Calculations: Year Depletion Depletion Value
Depreciable Cost of Mine = Year 1 - 2,100,000
Depletion Cost Per Ton of Ore = Year 2 - 2,100,000
CHECK FIGURE: Yr. 3 Depletion $425,000 Year 3 - 2,100,000
C. DATA for the Calculation of the Amortization of Patent using Straight Line Method
A patent was purchased a patent from a competitor at a cost of $154,000. The patent has a remaining life
of 14 years with no residual value. Compute the table below using the Straight Line Method of Amortization.
Annual Accumulated Book
Preliminary Calculations: Year Amortization Amortization Value
Depreciable Cost of Patent = Year 1 - 154,000
Straight Line Depreciat. Amount = Year 2 - 154,000
ACCT 211 - Assignment Chap. 10 - Page 1 Year 3 - 154,000

Chap_10_Gen_Jour

CHAPTER 10 - ASSIGNMENT 2: Recording Depreciation Transactions
1. INSTRUCTIONS: Record each of the Depreciation Transactions described below in the General Journal
Using the Accounts from the partial Chart of Accounts shown below. Omit explanations but leave a blank
linle between transactions.
ASSETS ASSETS continued EXPENSES OTHER REVENUE
11 - Cash 16 - Mineral Deposits 51 - Maintenance Expense 61 - Gain on Disposal
12 - Equipment 17 - Accum. Depletion 52 - Depr. Exp.- Equipment of Assets
13 - Accum. Depr.-Equip. 18 - Patents 53 - Depr. Exp.- Trucks
14 - Trucks 19 - Goodwill 54 - Depletion Expense
15 - Accum. Depr.-Trucks 55 - Amoritization Expense
T# Transaction Description ACCOUNT TITLES P.R. DEBIT CREDIT
A. EXAMPLE: Paid $58,000 for new Equipment. Equipment 12 62,000
An additional $1,000 was paid for delivery & Cash 11 62,000
$3,000 for installation and testing.
B. The equipment in Transaction A was estimated -
to have a useful life of 6 years and a salvage -
value of $8,000. Record the first year's deprec-
iation using the straight line method.
C. Discarded an old piece of equipment which -
had cost $12,000 and had an accumulated -
depreciation of $8,000 at the time of disposal. -
D. Assume the equipment in Transaction C was -
sold for $2,000 instead of being discarded. -
-
-
ACCT 211 - Assignment Chap. 10 - Page 2
T# Transaction Description ACCOUNT TITLES P.R. DEBIT CREDIT
E. Assume the equipment in Transaction C was -
sold for $5,000 instead of being discarded. -
-
-
-
F. Assume that the equipment in Transaction C -
having a fair market value of $2,000 was traded -
in for similar new equipment instead & $15,000 -
in cash was paid. -
G. Assume that the equipment in Transaction C -
having a fair market value of $7,000 was traded -
in for similar new equipment instead & $11,000 -
in cash was paid. -
H. 40,000 tons of ore was extracted from a com- -
pany mine at a depletion rate of $.50 a ton. -
-
I. One year of a 14 year patent costing $42,000 -
expired. -
J. 5% of the goodwill purchased for $80,000 when -
the business was bought is amortized. -
ACCT 211 - Assignment Chap. 10 - Page 3

VL_TABLE_9

11 Cash 11 Cash
11.1 Cash 11.1 Cash
12 Accounts Receivable 12 Equipment
12.1 Accounts Receivable 12.1 Equipment
13 Allowance for Doubtful Accts. 13 Accum. Depr.-Equip.
13.1 Allowance for Doubtful Accts. 13.1 Accum. Depr.-Equip.
14 Notes Receivable 14 Trucks
14.1 Notes Receivable 14.1 Trucks
15 Interest Receivable 15 Accum. Depr.-Trucks
15.1 Interest Receivable 15.1 Accum. Depr.-Trucks
41 Sales 16 Mineral Deposits
41.1 Sales 16.1 Mineral Deposits
42 Sales Returns & Allowances 17 Accumulated Depletion
42.1 Sales Returns & Allowances 17.1 Accumulated Depletion
43 Sales Discounts 18 Patents
43.1 Sales Discounts 18.1 Patents
44 Interest Revenue 19 Goodwill
44.1 Interest Revenue 19.1 Goodwill
51 Bad Debts Expense 51 Maintenance Expense
51.1 Bad Debts Expense 51.1 Maintenance Expense
52 Service Charge Exp. 52 Depr. Expense - Equipment
52.1 Service Charge Exp. 52.1 Depr. Expense - Equipment
53 Depr. Expense - Trucks
53.1 Depr. Expense - Trucks
54 Depletion Expense
54.1 Depletion Expense
55 Amoritization Expense
55.1 Amoritization Expense
61 Gain on Disposal of Assets
61.1 Gain on Disposal of Assets