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acc205_week_two_guidance_report.xlsxStudent Guidance Report
| Ashford University ACC205 | |||||||||
| Guidance Report | |||||||||
| Your Browser Must be Open to Access Video | Week Two | ||||||||
| LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT | |||||||||
| 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 | 42000.00 | ||||||||
| Unearned Fish Trips | 42000 | ||||||||
| Unearned Fish Trips | 36000 | ||||||||
| Earned Fish Trips | 36000 | ||||||||
| Calculate Hawaii-Blue's total obligation to tourists at the end of January | 60000 | ||||||||
| On what financial statement and in which section would this amount appear? | Balance sheet | ||||||||
| What section of the financial statement would this amount appear? | Current Liabilities | ||||||||
| Prepare journal entries to record (1) the payment to Pacific Yacht Supply and (2) the subsequent adjustment on January 31. | |||||||||
| Prepaid Boat Rental | 90000 | ||||||||
| Cash | |||||||||
| Boat Rental Expense | |||||||||
| Prepaid Boat Rental | |||||||||
| On what financial statement would Hawaii-Blue's January boat rental cost appear? | Balance sheet | ||||||||
| 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 | 41000 | ||||||||
| Capital | 41000 | ||||||||
| Capital | 21500 | ||||||||
| Rent Expense | 10500 | ||||||||
| Insurance Expense | 5400 | ||||||||
| Advertising Expense | 3500 | ||||||||
| Utilities Expense | 3100 | ||||||||
| Capital | 4000 | ||||||||
| Drawing | 4000 | ||||||||
| 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 | |||||||||
| Debits | Credits | ||||||||
| Unrecorded interest owed to the center totaled $275 as of December 31. | |||||||||
| Interest Expense | 300 | ||||||||
| Interest Payable | 300 | ||||||||
| 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 | 60700 | ||||||||
| Tuition Revenue | 60700 | ||||||||
| Depreciation on the school's van was $3,000 for the year. | |||||||||
| Depreciation Expense | 4000 | ||||||||
| Accumulated Depreciation | 4000 | ||||||||
| 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 | 20000 | ||||||||
| Prepaid Rent | 20000 | ||||||||
| 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 | 1000 | ||||||||
| Salaries Payable | 1000 | ||||||||
| 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 | 1400 | ||||||||
| Prepaid Insurance | 1400 | ||||||||
| 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 | 6252 | ||||||||
| Deposits in transit | 940 | ||||||||
| Outstanding checks | -3080 | ||||||||
| Adjusted Bank Balance | 4112 | ||||||||
| Balance per company records | 3580 | ||||||||
| Bank service charge for January | -20 | ||||||||
| Interest on note collected by bank | 100 | ||||||||
| Note collected by bank | 1102 | ||||||||
| NSF check returned by the bank with the bank statement | -650 | ||||||||
| Adjusted Book Balance | |||||||||
| Ch 4 Ex 6 | Account to be changed | Original Amount | |||||||
| 5% of credit sales | 0 | 0.06 | 0.07 | 0.08 | 0.09 | 0.1 | 0.11 | ||
| 14% of accounts receivable | 0 | 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 | 15000 | ||||||||
| Allowance for Uncollectible Accounts | 15000 | ||||||||
| (2) Uncollectible accounts are estimated to be 14% of Accounts Receivable. | |||||||||
| Uncollectible Accounts Expense | 10650 | ||||||||
| Allowance for Uncollectible Accounts | 10650 | ||||||||
| How would Maverick's Accounts Receivable appear on the December 31 balance sheet under assumption (1) of part (a)? | |||||||||
| Accounts Receivable | 107000 | ||||||||
| Less: Allowance for Uncollectible Accounts | 20400 | ||||||||
| How would Maverick's Accounts Receivable appear on the December 31 balance sheet under assumption (2) of part (a)? | |||||||||
| Accounts Receivable | 107000 | ||||||||
| Less: Allowance for Uncollectible Accounts | 16050 | ||||||||
| Net Receivables | |||||||||
| Account to be changed | Original Amount | ||||||||
| Ch 4 Pb 3 | Percentage of Accounts Expected to Be Collected | 1 | 96% | 93% | 90% | 87% | 84% | 81% | |
| YOUR ANSWERS BASED UPON COURSE START DATE | |||||||||
| What is the company's Uncollectible Accounts expense for 20X2? | 1658640 | ||||||||
| Compute the net realizable value of Accounts Receivable at the end of 20X2. | Net Realizable value 20X2 | ||||||||
| Accounts receivable | 1056000 | 12444000 | |||||||
| Less: Allowance for Uncollectible Accounts | 23000 | 1658649 | |||||||
| Net Realizable Value | 1033000 | 10785351 | |||||||
| 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 | ||||||||
| 0.98 | 88% | ||||||||
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LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT
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