Can someone please help?!?!?! I don't get accounting :(

University of Maryland University College Final Examination Acct220: Principles of Accounting I For this exam, omit all general journal entry explanations. Note: Ensure to include correct dollar signs, commas, underlines & double underlines where required. Note: Students may not communicate any part of this exam to anyone except the professor of this class. To do so at any time will be considered a violation the UMUC academic honesty policy. Question 1: 30% points: Alpha Company's December 31, 2016 trial balance is as follows: Alpha Corporation Trial Balance December 31, 2016 Account Debit Credit Cash $43,500 Accounts Receivable 53,500 Allowance for Doubtful Accounts 1,500 Notes Receivable 30,000 Merchandise Inventory 55,000 Land 20,000 Building 150,000 Accumulated Depreciation, Building $15,000 Equipment 50,000 Accumulated Depreciation, Equipment 20,000 Goodwill 26,000 Accounts Payable 35,500 Long Term Notes Payable 65,500 Common Stock, $5 par, 4,000 shares authorized & 20,000 outstanding Retained Earnings 197,000 Sales Revenue 650,000 Wages & Salaries Expense 160,000 Repair & Maintenance Expense 4,500 Cost of Goods Sold 349,000 Administrative Expenses 35,000 Sales Expenses 25,000 _______ $1,003,000 $1,003,000 Totals Alpha is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded. Acct220 Page 1 0f 7 Additional Information: a. Notes Receivable is a 3-months, 5% note accepted on November 1, 2016. b. Long Term Notes Payable is a 5-year, 6% note, that was signed on July 1, 2016. Interest is payable annually. c. Building is depreciated at 3% per year. There is no salvage value. d. Equipment is depreciated at 15% year. There is no salvage value. e. Alpha discovered, on December 30th, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $2,550 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue. f. The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss. g. Wages & Salaries for the last half of December, payable in January, amount to $5,500. h. Alpha estimates that of the Accounts Receivable 6% will not be collectable. Required: a. Prepare in journal form, any required correcting entries b. Prepare in journal form, all end-of-the period adjusting entries c. Prepare a December adjusted trial balance d. Prepare a classified balance sheet for the year ended December 31, 2016 e. Prepare in journal form, the closing entries for the year ended December 31, 2016 NOTE: Students are encouraged to prepare their own T-accounts, on a separate scratch sheet of paper, and track from the beginning balance thru all journal transactions, to ending balances for all accounts used in this problem. Do not turn in any separate scratch sheet of paper - those are student working papers and not part of any solution required for this exam. Question 2: 8% points: Inventory Alpha uses the period method and had the following inventory events during January: Units Purchased Unit Cost Units Sold Unit Sales Price Jan. 1 150 $7.00 Jan. 2 100 $10.00 Jan. 5 225 7.20 Jan. 7 125 10.00 Jan. 10 100 7.50 Jan. 12 75 12.20 Jan. 15 150 7.80 Jan. 17 200 12.50 Jan. 20 200 7.90 Jan. 24 150 16.00 Jan. 25 150 8.10 Date Date Jan. 30 75 8.20 Note: January 1 amount was the beginning inventory and unit value. (Round all total dollar values to the nearest dollar. Round all unit values to the nearest penny.) Acct220 Page 2 0f 7 Required: a. Calculate cost of goods available for sale. b. Calculate the dollar value of sales. c. Calculate the value of Ending Inventory and Cost of Good Sold under the following independent assumptions: 1) LIFO method 2) FIFO method 3) Average-cost method Question 3: 8% points: Required: Prepare Alpha Supply Co. general journal entries for the following transactions: Jan. 1 Accepted Bravo Company 4 month, 12% note, as settlement of an outstanding $15,000 account receivable for goods sold last year Jan. 15 Purchased $10,000 Equipment from Charlie Company, signing a 9 month, 12% note Jan. 19 Loaned Delta Co. $30,000 cash, accepting a 90 days, 12% note Jan. 31 Prepared monthly accrual adjusting entry for any interest revenue Apr. 25 Received payment in full from Delta Co. for outstanding note & interest May 1 Received payment in full from Bravo Co. for outstanding note & interest Oct. 15 Paid Charlie in full Question 4: 10% points: Alpha Company purchased a refrigerated delivery truck for $65,500 on April 30, 2016. The plan is to use the truck for 5 years and then replace it. At the end of its useful life the truck is expected to have a salvage value of $11,000. Round all annual depreciation expense to the nearest dollar. a. Prepare the depreciation table for Alpha's truck assuming that the company uses the straight-line method for depreciation. b. Prepare the depreciation table for Alpha's truck assuming that the company uses the double-declining-balance depreciation method. c. Compute the depreciation expense for 2016 for Alpha's truck assuming the truck has an expected life of 200,000 miles and during 2016 the truck was driven 24,450 miles. Round your depreciation expense per mile to three decimal places to make your overall calculation of the 2016 depreciation expense. Acct220 Page 3 0f 7 Question 5: 10% points: Alpha Company has a January 15 mid-month gross salaries expense of $25,000. All is subject to FICA Social Security (6.2%), FICA Medicare (1.45%), state income tax (5%) and federal income tax (15%) withholdings. Additionally, all is subject to employer taxes to include FUTA (0.8%) and SUTA (5.4%) taxes. (Round all calculations to the nearest penny.) Required: a. Prepare the general journal entry to record the employer's payroll liability to the employee salaries. b. Prepare the general journal entry to record the employer's payroll tax liability. c. Prepare the general journal entry to liquidate the liabilities accrued in parts (a) and (b) on January 22. Question 6: 4% points: Alpha Company at the end of the fiscal 2014 year has the following information: Credit Sales, $2,500,000 Sales Returns & Allowances $35,000 Accounts Receivable $200,000 and Allowance for Doubtful Accounts with a debit o $2,500. Required: a. Prepare the general journal entry to record the end of the year adjusting entry if Alpha uses 0.5% of Net Credit Sales as the basis for determining Bad Debt Expense. b. Prepare the general journal entry to record the end of the year adjusting entry if Alpha uses 5% of Accounts Receivable as the basis for determining Bad Debt Expense. Fill in the blank questions allocated 2% point each. Enter your answer in the blank text entry box provided next to the question number in the column titled "Answer." Question 7: Frick Company estimates uncollectible accounts using the percentageof-receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2010. The balance in Accounts Receivable is $200,000, and the allowance account has a $3,000 credit balance before adjustment at year-end. The uncollectible accounts expense for 2010 will be: Question 8: Frick Company issued its own $10,000, 90-day, non interest-bearing note to a bank. If the note is discounted at 10 percent, the proceeds to Frick are: Question 9: On 2010 July 1, Frick Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Frick uses the doubledeclining-depreciation method, the depreciation expense for 2010 is: Acct220 Page 4 0f 7 Question 10: A truck costing $45,000 and having an estimated salvage value of $4,500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57,000, and a trade-in allowance of $22,500 is received. The old truck has been depreciated for three years using the straight-line method. The new truck would be recorded at: Question 11: Frick Company began the accounting period with $60,000 of merchandise, and net cost of purchases was $240,000. A physical inventory showed $72,000 of merchandise unsold at the end of the period. The cost of goods sold of Frick Company for the period is: Question 12: Charlie Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable $65,000, Accounts receivable $45,000, Capital stock $100,000, Cash $50,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $2,000, Inventory $32,000, Notes payable $80,000, Prepaid expenses $5,000, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. How much is retained earnings to be reported in the balance sheet? Question 13: Alpha Company provided the following data concerning its income statement: sales, $1,000,000; purchases, $400,000; beginning inventory, $250,000; ending inventory, $275,000; operating expenses, $95,000; freight-in, $5,000; sales discounts, $20,000; purchases discounts, $15,000; sales returns & allowances, $120,000; and purchases returns & allowances, $45,000. The data are complete and provide the basis for preparation of an income statement. How much are net sales for Alpha Company? Question 14: Alpha Company provided the following data concerning its income statement: sales, $1,000,000; purchases, $400,000; beginning inventory, $250,000; ending inventory, $275,000; operating expenses, $95,000; freight-in, $5,000; sales discounts, $20,000; purchases discounts, $15,000; sales returns & allowances, $120,000; and purchases returns & allowances, $45,000. The data are complete and provide the basis for preparation of an income statement. How much is cost of goods sold? Question 15: Alpha Company was preparing its month-end bank reconciliation. The cash balance per the general ledger was $1,645. Alpha's accountant discovered that the bank had charged $15 in service charges for the month, that outstanding checks were $60, and that there were no deposits in transit. What is the correct adjusted ending cash balance? Acct220 Page 5 0f 7 Question 16: In preparing its August 31, 2015 bank reconciliation, Yankee Corp. has available the following information: Balance per bank statement, 8/31/15 $18,050 Outstanding checks, 8/31/15 3,250 Return of customer's check for insufficient funds, 8/31/15 600 Deposit in transit, 8/31/15 2,750 Bank service charges for August 100 At August 31, 2015, Yankee's correct cash balance is: Question 17: A business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be: Question 18: The following information: related to the bank reconciliation of the Flipper Company: Balance per bank statement $1,951.20 Balance per ledger 1,869.60 Deposits in transit 271.20 Outstanding checks 427.80 NSF check Service charges The adjusted/correct cash balance is: 61.20 13.80 Question 19: During 2016, Bravo Company had credit sales of $40,000 and cash sales of $18,000. In 2016 Bravo collected $21,000 of accounts receivable resulting from sales on credit. Bravo incurred operating expenses of $7,500; of this amount, $2,900 was paid in 2016, and the $4,600 balance represented a liability at year-end. In addition to these operating expenses, Bravo also purchased for cash a three-year insurance policy on January 1, 2016. The cost of this policy was $3,000. What is Bravo's 2016 cash basis net income? Question 20: During 2016, Bravo Company had credit sales of $40,000 and cash sales of $18,000. In 2016 Bravo collected $21,000 of accounts receivable resulting from sales on credit. Bravo incurred operating expenses of $7,500; of this amount, $2,900 was paid in 2016, and the $4,600 balance represented a liability at year-end. In addition to these operating expenses, Bravo also purchased for cash a three-year insurance policy on January 1, 2016. The cost of this policy was $3,000. What is Bravo's 2016 accrual basis net income? Acct220 Page 6 0f 7 Question 21: Bravo was paid $12,000 in advance for services to be performed. By the end of the year, only one-eighth of the services had been performed. What will be the financial statement disclosure for Bravo's Unearned Revenue at the end of the year? Acct220 Page 7 0f 7