Can I please have worked out solutions (i.e. Journal entries, tcharts) and reasoning why the answer is the answer. Please list conceptual concepts.

NAME: Do NOT open your exam until you are told to do so! BEFORE STARTING: Without opening your exam, pull out your scantron and fill it in as follows (bubble carefully & avoid losing class administration points): your last name & first initial (use your legal name per the University system). your net id (this is the same as your Enterprise ID & is the first part of your University email address) your UIN number Your section number (use \"scantron entry\" number below to bubble in to scantron). Make sure the exam version on your scantron is bubbled as Version A. DURING THE EXAM There should be no communication between students in any manner during the entire exam period. This means no talking, whispering or signaling to each other and no electronic communication. Bubble your scantron as you are working. Time will not be allowed for bubbling after the exam has ended. Use the table attached to your assigned seat. You cannot lean over and use the adjacent table! It is your job to keep your scantron/exam booklet hidden from wandering eyes . Keep your test FLAT on your desk at all times! If you are allowing your exam/scantron to be visible to other students it will be assumed that YOU are cheating. All books and papers & cell phones must be securely placed in a back-pack or other case and placed completely under the student's seat. Please turn off your cell phone before putting it away! Baseball hats, headphones and/or sunglasses may not be worn during an exam. All extra wearing apparel and parcels must be on the floor, under the student's desk or seat during quizzes, tests or exams. By enrolling in this course students agree to abide by the rules & regulations stated in Article 4 of the Student Code. If academic dishonesty is evident your exam will be confiscated and turned over to the Accountancy Department Head for resolution. In this event, I will recommend a penalty of an \"F\" for the course. In especially serious cases, the Department Head may impose harsher penalties such as expulsion from the University. Please keep in mind that expulsion for cheating becomes part of your permanent academic record which will follow you for the rest of your academic career. AFTER THE EXAM 1. Double check that your test version is properly bubbled on your scantron. You can see your test version on the last page of the exam or above in the last bullet under the \"before starting\" section above. 2. When turning in your exam, bring your exam booklet with you (so we can see the color), photo ID and scantron. 3. Turn in your scantron & show a photo i.d. if asked to do so. NOTA = None of the above 1) In class and in your notes we discussed three broad types or categories of Adjusting Journal Entries, specifically Category (i) (a) entry to adjust an existing deferred revenue. (b) entry to adjust an existing deferred expense. Category (ii) (a) entry to accrue additional revenue. (b) entry to accrue additional expense. Category (iii) entry to correct an error. Consider the economic events listed below and select the transaction that will result in the Consulting Company recording a category (i)(a) type adjusting entry in March. A) B) C) D) E) In February, the company collected payments from customers for consulting services occurring in March. In April, the company mailed invoices for consulting services performed in March. In March, the company collected payments from customers for consulting services occurring in April. In March, the company mailed invoices for consulting services performed in February. Both A and B 2) An error is indicated if the following account(s) has a balance appearing on the post-closing trial balance ("PCTB"): A) Office Equipment. B) Accumulated Depreciation-Office Equipment. C) Depreciation Expense-Office Equipment. D) A balance on the PCTB for A, B, or C above would indicate an error. E) A balance on the PCTB for A, B, or C above would not indicate an error. 3) When $2,500 of accounts receivable are determined to be uncollectible, which of the following should the company record to write off the accounts using the allowance method? A) B) C) D) E) A debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts. A debit to the Allowance for Doubtful accounts and a credit to Bad Debt Expense. A debit to Bad Debt Expense and a credit to Accounts Receivable. A debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. A debit to Bad Debt Expense and a credit to Cash 4) Please consider the Lazy Daisy 12/31/2012 Unadjusted Trial Balance located at the back of this exam and for purposes of answering this question consider only the facts contained here, i.e. do not incorporate additional facts from other questions in the Lazy Daisy sequence. What is the ending balance in the Retained Earnings account at 12/31/2012 after all closing entries are made? A) $14,000 B) $36,500 C) $11,500 D) $27,500 E) NOTA 5) Blanket Corporation sold equipment for cash of $40,500. Accumulated depreciation on the sale date amounted to $34,000 and a loss of $1,800 was recognized on the sale. What was the original cost of the asset? A) $38,700 B) $72,700 C) $4,700 D) $76,300 E) $42,300 6) Please consider the Lazy Daisy 12/31/2012 Unadjusted Trial Balance (including note found with the trial balance) located at the back of this exam and for purposes of answering this question consider only the facts contained here, i.e. do not incorporate additional facts from other questions in the Lazy Daisy sequence. (i). Lazy has the following detail of customer advance deposits (A/C # 205) collected for pre-arranged special events: (ii). In your role as the accounting intern you go to the store on January 1st, 2013 while it is closed for business and you physically count the quantity of Floral Supplies (A/C 110) and Office Supplies (A/C 115) noting the following respective quantities were on hand as of this date: $8,000 (floral) and $500 (office). What is the company's adjusted net income after considering the above two situations? A) $20,000 B) $44,000 C) $60,000 D) $19,000 E) NOTA 7) Cardco Inc. has an annual accounting period that ends on December 31. During the current year a depreciable asset that cost $42,000 was purchased on September 1. The asset has a $4,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a five-year life. What is the total depreciation expense for the current year? A) $8,400.00 B) $7,600.00 C) $2,533.33 D) $2,800.00 E) $3,166.67 8) At the beginning of 2018, Angel Corporation began offering a 1-year warranty on its products. The warranty repairs were expected to cost Angel 4% of net sales. Net sales made under warranty in 2018 were $180 million. Five percent of the units sold were returned in 2018 and repaired or replaced at a cost of $5.3 million. The amount of warranty expense on Angel's 2018 income statement (in millions) is: A) $5.3 B) $7.2 C) $9.0 D) $27.0 E) $1.9 Continued on next page. 9) Wolf Company reported the following normal account balances at 12/31/2015: Accounts Receivable Allowance for Doubtful Accounts $1,515,000 $45,000 During 2016, Wolf accrued bad debt monthly using an estimate of 1/2 of 1% of Credit Sale. Wolf reported the following in 2016: 2016 Credit Sales 2016 Cash Collections of Accounts Receivable Write offs of customer receivables during 2016 $3,000,000 $3,650,000 $40,000 During December Wolf performed an extensive aging analysis of the year-end Receivable balance and determined that the receivables should be reported on the 12/31/2016 Balance sheet at a net realizable value of $800,000. How much Bad Debt Expense will Wolf report on its 12/31/2016 (year-to-date) Income Statement? A) $5,000 B) $15,000 C) $25,000 D) $40,000 E) $20,000 10) A company purchased a point-of-sale cash register on January 1 for $5,400. This register has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method? A) $500 B) $800 C) $864 D) $1,000 E) $1,080 11) Please consider the Lazy Daisy 12/31/2012 Unadjusted Trial Balance located at the back of this exam and for purposes of answering this question, consider only the facts contained here, i.e. do not incorporate additional facts from other questions in the Lazy Daisy sequence. Please consider the following occurrences: (i). In January 2013, Lazy collected $16,975 from credit card companies: Amount Owed to Lazy (A/C 105) Less: Service Fee withheld (A/C 545) January bank deposit (A/C 100) $17,500 (525) $16,975 (ii). In January 2013, Lazy paid $925 to the landlord for the December rent. (iii). In January 2013, Lazy received the December bank statement in the mail and reconciled the general ledger cash activity to the December activity reported by the bank. While doing so, Lazy discovered that the company had paid the bank an $8 monthly service fee. (iv). While reconciling the cash account (i.e. #3 above), Lazy determined that $4,300 of the checks that were shown as outstanding at Nov. 30th (and included in the Nov. Reconciliation) had cleared the bank in December. How many of the 4 items described above will result in a 12/31/2012 adjusting entry to cash (i.e. meaning the AJE entry includes a debit or credit to general ledger A/C #100)? A) 4 B) 3 C) 2 D) 1 E) 0 12) The first step in using an income statement approach for bad debt accounting is to calculate which account balance? A) Accounts receivable. B) Allowance for doubtful accounts. C) Bad debt expense. D) Net Realizable Value. E) All of the above would need to be independently estimated and the order performed is N/A. 13) Please consider the Lazy Daisy 12/31/2012 Unadjusted Trial Balance located at the back of this exam and for purposes of answering this question, consider only the facts contained here, i.e. do not incorporate additional facts from other questions in the Lazy Daisy sequence. On August 1, 2012, the company borrowed $50,000 from the local bank. The 9 month note is recorded in A/C 235. It charges 6% interest with principal and interest payable on May 1st. Select the answer that correctly explains the December adjusting entry necessary for this scenario. (Answer choices may have been rounded to the nearest $1). A/C # 100 235 210 520 A) B) C) D) E) A/C Title Cash Note Payable Interest Payable Interest Expense Debit A/C # 520 and Credit A/C #100 for $1,250 Debit A/C # 520 and Credit A/C #210 for $1,667 Debit A/C # 520 and Credit A/C #235 for $937.50 Debit A/C # 520 and Credit A/C #100 for $1,667 Debit A/C # 520 and Credit A/C #210 for $1,250 14) A company purchased a rope-braiding machine for $190,000. The machine has a useful life of eight years and a residual value of $10,000. As shown below, it is estimated at the time of acquisition that the machine will produce 750,000 units of climbing rope over its 8 year useful life. Rope Braiding Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 ESTIMATED Units Cumulative 92,100 92,100 92,561 184,661 93,023 277,684 93,488 371,172 93,956 465,128 94,426 559,554 94,898 654,452 95,548 750,000 ACTUAL Units Cumulative 91,400 91,400 92,100 183,500 94,418 277,918 94,890 372,808 93,700 466,508 95,842 562,350 96,021 658,371 96,981 755,352 Using the units-of-production method, what is the amount of depreciation that should be recorded for the eighth year? (Answer choices have been rounded to the nearest $1) A) $23,275 B) $21,991 C) $22,932 D) $21,661 E) NOTA 15) Please consider the Lazy Daisy 12/31/2012 Unadjusted Trial Balance located at the back of this exam and for purposes of answering this question, consider only the facts contained here, i.e. do not incorporate additional facts from other questions in the Lazy Daisy sequence. The flower shop employees work 5 days per week (Tuesday-Saturday) and the store is closed every Sunday and Monday. *Assume that employees are paid, in total, $250 per day*. Consider the below payroll calendar which shows all the paydays in December 2012 and all the paydays in January 2013 (paydays have a box around them). Further, the calendar starts with Saturday, 12/1/2012 and ends with Thursday, 1/31/2013. The company pays its employees on the 2nd and 4th Saturdays of each month and the payment includes the Saturday payday. For example, consider the December 22 payroll: the employees were last paid on Saturday, December 8th and the payroll on Saturday the 22nd would therefore include pay for 10 working days: i.e. starting with 12/11th and up to and including 12/22nd. S M TU W TR F 2 9 16 23 30 6 13 20 27 3 10 17 24 31 7 14 21 28 4 11 18 25 1 8 15 22 29 5 12 19 26 2 9 16 23 30 6 13 20 27 3 10 17 24 31 7 14 21 28 4 11 18 25 S 1 8 15 22 29 5 12 19 26 Consider the January 12th payday and determine the value of wages, paid on the 12th that should be accrued as of 12/31st. Flower shop employees receive paid holidays so any holiday included in the above calendar should be treated like a regular work day. A) $3,750 B) $2,500 C) $1,250 D) $1,875 E) NOTA 16) Consider the scenario described in the previous question and the below account titles/account #. Select the answer that correctly explains which accounts would be debited and credited in the December adjusting entry necessary from question #15. A/C # 100 220 540 A) B) C) D) E) A/C Title Cash Salary Payable Salary Expense Debit A/C #540; Credit A/C #100 Debit both A/C #540 and A/C #220; Credit A/C #100 Debit A/C #540; Credit A/C #220 Debit A/C #220; Credit A/C #540 NOTA 17) On December 31, 2018, before any year-end adjustments, Andy Inc. has an unadjusted debit balance of $1,500 in the Allowance for Doubtful Accounts. Andy Inc. also prepares the following aging analysis for its $80,000 of ending Accounts Receivable Age 0-30 days 31-60 days 61-90 days total Receivable in bracket $50,000 $20,000 $10,000 $80,000 Uncollectible Portion 5% 10% 20% What amount of bad debt expense will be reported on Andy Inc.'s financial statements for 2018 using the above aging analysis? A) $6,500. B) $1,500. C) $5,000. D) $8,000. E) NOTA 18) An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n): A) Accrued account. B) Contra account. C) Temporary Account. D) Clearing account. E) Permanent Account. 19) Reeves Co. filed suit against Higgins, Inc., seeking damages for copyright violations. Higgins' legal counsel believes it is probable that Higgins will settle the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely. In addition to disclosing the range of possible loss, how else should Higgins report this litigation? A) As a liability for $100,000. B) As a liability for $150,000. C) As a liability for $200,000. D) As a disclosure only nothing else is reported. 20) At December 31, Gill Co. reported credit sales of $238,000; accounts receivable of $265,000 and an allowance for doubtful accounts of $600 (credit) before any adjustments. Based on an analysis, the company estimated bad debt to be 3% of credit sales. The amount of the adjustment for uncollectible accounts would be: A) $7,140 B) $7,350. C) $7,950 D) $6,540. E) NOTA 21) Please consider the Lazy Daisy 12/31/2012 Unadjusted Trial Balance located at the back of this exam and for purposes of answering this question, consider only the facts contained here, i.e. do not incorporate additional facts from other questions in the Lazy Daisy sequence. Additional space is provided for your work on the next page. (i). In January 2013, Lazy received the December bank statement in the mail and noted the following activity reported by the bank in December: Debits & Other Withdrawals Check #1705 Check #1716 Check #1725 Check #1726 Check #1728 Check #1729 Check #1732 Check #1734 SC NSF KEY: Credits & Other Deposits Deposit - Dec 1st Deposit - Dec 9th Deposit - Dec 17th Deposit - Dec 23rd INT $2,200 2,100 925 2,350 6,500 375 860 800 8 3,100 $1,650 3,100 7,500 8,650 15 SC = Service Charge; NSF = Insufficient Funds; INT = Interest Earned Additional Information: (a.) The NSF check relates to a payment received from POS Company as payment for a November event. The payment was collected and deposited after 4 pm on December 8th. (b.) Check #1729 was correctly drawn for $375 but was erroneously recorded by the company as: Accounts Payable- Direct Floral Cash 3,750 3,750 (ii). The company's general ledger showed the following December activity: 11/30/2012 Check #1725 Check #1726 Deposit 12/8th Check #1728 Check #1729 Deposit 12/16th Check #1731 Check #1732 Deposit 12/22nd Check #1734 Check #1735 Deposit 12/31st Total Dec. Activity 12/31/2012 Cash A/C #100 $31,340 925 2,350 3,100 6,500 3,750 7,500 1,425 860 8,650 800 3,750 9,250 $28,500 $20,360 $39,480 (iii) Please consider further that the November bank reconciliation prepared by Lazy included a single Deposit in Transit in the amount of $1,650 and 3 outstanding checks totaling $5,000 (see below). (a.) #1705 $2,200 (b.) #1716 $2,100 (c.) #1721 $700 = $5,000 Q #21 is continued on next page. Additional space is provided on next page. Q #21: How will the error described for check # 1729 described above in item (i)(b) affect the December bank reconciliation report? A) It will increase the book side of the reconciliation by $3,375 B) It will decrease the book side of the reconciliation by $3,375 C) It will increase the bank side of the reconciliation by $3,375 D) It will decrease the bank side of the reconciliation by $3,375 E) It will not be included as a reconciling item. 22) Continue with question #21 (Lazy Daisy's December bank reconciliation). What was the value of the 12/31st cash balance reported by the bank on the December Statement? A) $39,480 B) $35,687 C) $28,937 D) $39,762 Additional Space: 23) A company that uses an aging analysis when estimating bad debt is focusing on measuring the: A) Anticipated collection date for each individual accounts receivable balance. B) Ratio of accounts receivable to credit sales. C) Net realizable value of accounts receivable reported on the Balance Sheet. D) Bad Debt Expense reported on the Income Statement. E) NOTA E) $36,387 24) Please consider the Lazy Daisy 12/31/2012 Unadjusted Trial Balance located at the back of this exam and for purposes of answering this question, consider only the facts contained here, i.e. do not incorporate additional facts from other questions in the Lazy Daisy sequence. (i). Consider that Lazy made $27,500 of payments in 2012 for Advertising (A/C 505) as described below: (ii). In December of 2011, the Company paid $11,520 for 3 separate 18 month insurance policies. All policies have a coverage effective date of January 1, 2012. The premium breakdown is as follows: Type of Insurance General Liability Renter's Insurance Auto Policy Cost $4,500 5,490 1,530 $11,520 What is the company's adjusted net income or (loss) after considering the above two situations? A) $(6,405) B) $32,615 C) $(2,565) D) $21,095 E) $18,045 25) A depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years is a(n): A) Accelerated depreciation method B) Expedited depreciation method C) Straight-line depreciation method D) Units-of-production depreciation method E) Unrealized depreciation method ***Check your scantron & make sure your exam version is coded as version A*** Please consider the Lazy Daisy 12/31/2012 Unadjusted Trial Balance shown below and note that the company's unadjusted net income has been provided for you. Additionally consider that while the below information is similar to what we worked during class, changes have been made throughout. A/C # 100 105 110 115 120 125 130 135 140 200 205 210 215 220 225 230 235 300 305 310 400 500 505 510 515 520 525 530 535 540 545 550 Lazy Daisy Unadjusted Trial Balance 12/31/2012 Account Title Cash Credit Card Receivable Floral Supplies Office Supplies Prepaid Advertising Prepaid Insurance Equipment & Leasehold Improvements Vehicles Accumulated Depreciation Accounts Payable- Direct Floral Customer Deposits Interest Payable Rent Payable Salary Payable Sales Tax Payable Utilities Payable Note Payable Common Stock Retained Earnings Dividends Floral Sales Cost of Floral Supplies Advertising Expense Depreciation Expense Insurance Expense Interest Expense Miscellaneous Expense Office Supply Expense Rent Expense Salary Expense Service Fees Utility Expense Total Debit $39,480 17,500 14,500 3,500 0 11,520 65,000 55,000 Credit $52,000 8,000 55,000 0 0 0 5,000 0 50,000 25,000 14,000 16,000 325,000 198,000 27,500 0 0 0 1,500 0 10,000 62,000 4,500 8,000 $534,000 The company's unadjusted Net Income is $13,500 $534,000 Similar to the in class exercise, A/C #205 titled Customer Deposits is where Lazy records the advance deposits received from customers as required for large pre-arranged special events such as a wedding. Fall 2016: Hourly Exam 2 (Version A) answer key 1) A 2) C 3) D 4) C 5) D 6) B 7) C 8) B 9) E 10) C 11) D 12) C 13) E 14) B 15) C 16) C 17) D 18) B 19) A 20) A 21) A 22) E 23) C 24) D 25) A