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Please document all answers in one file and submit these as a Word document when completed 1 5% Explain the nature of subsidiary ledgers

Please document all answers in one file and submit these as a Word document when
completed
1
5%
Explain the nature of subsidiary ledgers, and give two specific examples For each of
these examples, explain (1) the unit of organization within this ledger, and (2) the
usefulness of this ledger in business operations 2 10%
A customer purchased merchandise for $400 which cost the seller $200 The
customer was dissatisfied with some of the goods and thus returned $100 worth and
received a cash refund
(a) What journal entries should the seller make when the merchandise is sold and at
the time of the return? Assume that the seller uses a perpetual inventory system
(b) If the seller uses a periodic inventory system, what entries would be made? 3 5% Periodic inventory system
Armstrong Creation uses a periodic inventory system During the current year, the
company purchased merchandise at a cost of $245,000 You are to compute the cost
of goods sold under each of the following alternative assumptions: 4 10% Bank reconciliation
At March 31, the balance of the Cash account according to the records of Fisher
Company was $7,261 The March 31 bank statement showed a balance of $8,798
You are to prepare the bank reconciliation of Fisher Company at March 31, using the
following supplementary information and as per the given format:
(a) Deposit in transit at March 31, $6,772
(b) Outstanding checks: no 120, $140; no 121, $932; no 127, $307; no 134,
$2,200
(c) Service charge by bank, $50
(d) A note receivable for $5,050 left by Fisher Company with bank for collection that
had been collected and credited to company’s account No interest involved
(e) A check for $90 drawn by a customer, Stuart Sands, but deducted from Fisher’s
account by the bank and returned with the notation "NSF"
(f) Fisher’s check no 480, issued in payment of $970 worth of office equipment, correctly written in the amount of $970 but erroneously recorded in Fisher’s
accounting records as $790 5 5% Balance sheet method-journal entries
The general ledger controlling account for Accounts Receivable has a balance of
$120,500 at year-end before adjustment The company uses the balance sheet
approach to estimate uncollectible accounts By aging the individual customers’
accounts, it was determined that the doubtful accounts amounted to $5,020 Prepare
the year-end adjusting entry for uncollectible accounts under each of the following
independent assumptions
(a) Allowance for Doubtful Accounts has a credit balance of $2,850
(b) Allowance for Doubtful Accounts has a debit balance of $925 6 5% The Valley Garden Company had the following transactions: (A) Prepare journal entries for Valley Garden assuming the company uses a perpetual
inventory
(B) Prepare journal entries for Valley Garden assuming the company uses a periodic
inventory 7 5% On September 6, 2014, East River Tug Co purchased a new tugboat for
$400,000 The estimated life of the boat was 20 years, with an estimated residual
value of $40,000
Compute the depreciation on this tugboat in 2014 and 2015 using the following
methods Apply the half-year convention (If necessary, round to the nearest dollar) 8 5% On March 1, 2015, five-year bonds are sold for $508,026 that have a face value of
$500,000 and an interest rate of 10% Interest is paid semi-annually on March 1 and
September 1 Using the straight-line amortization method, prepare the borrower’s
journal entries on:
March 1, 2015; September 1, 2015; December 31, 2015; and March 1, 2016 9 5% On September 1, 2015, Charles Associates borrowed $600,000 from Diana Credit
Union and signed a 9%, one-year note payable, all due at maturity 10 10% When Haven Corporation was incorporated in 2013, authorization was obtained to issue 200,000 shares of $5 par value common stock and 6,000 shares of
8% cumulative preferred stock The preferred stock has a par value of $100 All the
preferred stock was issued at $107 per share, and 110,000 shares of the common
stock were sold for $9 per share The operations of the company resulted in a net loss
of $19,000 in 2013 and net income of $125,000 in 2014 In 2015, net income was
$352,000, and the cash position was sufficient to allow the board of directors to
declare a cash dividend of $1 per share to the common shareholders, as well as
satisfy all preferred stock dividend requirements
Complete in good form the stockholders’ equity section of Haven Corporation’s
balance sheet at December 31, 2015 (Hint: First determine the total amount of dividends declared in 2015) 11 10% Shown below is information relating to operations of Broadway Industries for 2015: In the space provided, complete the income statement for Broadway Industries,
including earnings per share figures Broadway Industries has 100,000 shares of a
single class of common stock outstanding throughout the year 12 5% Greenwich Corporation had net income of $1,712,500 in 2015 The company had 300,000 shares of $4 par value common stock and 25,000 shares of 8%, $100
par, preferred stock outstanding throughout the year Each share of preferred stock is
both cumulative and convertible Each share of preferred stock is convertible into
four shares of common stock Compute the following for 2015: 13 5%
Differences between net income and operating cash flow
Identify three factors that may cause net income to differ from the net cash flow from
operating activities 14 10% The following information was obtained from the Champion Company for
the year ending December 31, 20__ Using the direct method, prepare a statement of cash flows 15 5%
An analysis of the 2015 financial statements of Portside Provisions reveals the
following:
(a) Accounts payable to suppliers of merchandise decreased by $65,000 during 2015
(b) Dividends of $135,000 were declared in November 2015, to be paid in January
2016
(c) Dividends of $120,000, declared in November 2014, were paid in January 2015
(d) Inventory levels increased by $91,000 during 2015
(e) Depreciation expense for 2015 amounted to $53,000
(f) Land, which had a cost of $350,000, was sold in 2015 for $400,000 cash, resulting
in a gain of $50,000
(g) Net income for 2015 was $745,000
Using only the above information, follow the indirect method to compute Portside
Provisions’ net cash flows from operating activities for 2015

Mar 22 2020 Read more Less More

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