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Take Test: Final Examination Part C-B Unit HACC111.40:8 4/25/14, 6:05 PM ? Take Test: Final Examination Part C-B Financial Acct[MOD4 ONLINE (3/34/26/2014)] Take Test: Final Examination Part C-B Multiple Attempts Not allowed. This test can only be taken once. Force Completion This test can be saved and resumed later. Question Completion Status: Save All Answers Save and Submit 6 points Question 1 Sales Revenue Beginning Inventory Purchases Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income Paragraph Save Answer $1000 $400 $500 ? $300 ? ? $100 ? Arial 3 (12pt) Path: p Question 2 Words:0 9 points Save Answer Assume you serve on the board of a local golf and country club. In preparation for renegotiating the club's bank loans, the president indicates that the club needs to increase its operating cash flows before the end of the current year. The club's treasurer reassures the president and other board https://post.blackboard.com/webapps/assessment/take/launch.jsp?cour...nt_id=_109945_1&course_id=_50132_1&content_id=_1896321_1&step=null Page 1 of 4 Take Test: Final Examination Part C-B 4/25/14, 6:05 PM before the end of the current year. The club's treasurer reassures the president and other board members that he knows a couple of ways to boost the club's operating cash flows. First, he says, the club can sell some of its accounts receivable to a collections company that is willing to pay the club $97,000 up front for the right to collect $1 00,000 of the overdue accounts. That will immediately boost operating cash flows. Second, he indicates that the club paid about $200,000 last month to relocate the 18th fairway and green closer to the clubhouse. The treasurer indicates that although these costs have been reported as expenses in the club's own monthly financial statements, he feels an argument can be made for reporting them as part of land and land improvements (a long-lived asset) in the yearend financial statements that would be provided to the bank. He explains that, by recording these payments as an addition to a long-lived asset, they will not be shown as a reduction in operating cash flows. Required: 1. Does the sale of accounts receivable to generate immediate cash harm or mislead anyone? Would you consider it an ethical business activity? 2. What category in the statement of cash flows is used when reporting cash spent on long-lived assets, such as land improvements? What category is used when cash is spent on expenses, such as costs for regular upkeep of the grounds? 3. What facts are relevant to deciding whether the costs of the 18th hole relocation should be reported as an asset or as an expense? Is it appropriate to make this decision based on the impact it could have on operating cash flows? 4. As a member of the board, how would you ensure that an ethical decision is made? Paragraph Arial 3 (12pt) Path: p Question 3 Words:0 15 points Save Answer Following is the adjusted trial balance of Post Company. Based on this information prepare a Balance Sheet, Income Statement and Statement of Retained Earnings. POST COMPANY ADJUSTED TRIAL BALANCE Debit Credit Cash 80,000 Accounts Receivable 11,100 https://post.blackboard.com/webapps/assessment/take/launch.jsp?cour...nt_id=_109945_1&course_id=_50132_1&content_id=_1896321_1&step=null Page 2 of 4 Take Test: Final Examination Part C-B 4/25/14, 6:05 PM Prepaid Insurance 1,500 Equipment Accumulated Depreciation Supplies Accounts Payable Wages Payable Unearned Revenue Contributed Capital Retained Earnings Sales Gas Expense Supply Expense Insurance Expense Depreciation Expense Wage Expense Dividends 4,000 Attach File 200 500 700 300 1,500 80,000 0 17,000 400 300 200 200 500 1,000 99,700 Browse My Computer 99,700 Browse Content Collection 10 points Question 4 Save Answer Explain the closing entry process and prepare the closing entries in journal form based on the information in question 3. Paragraph Arial 3 (12pt) Path: p Words:0 10 points Question 5 POST INC. BANK RECONCILIATION Cash balance per bank Cash balance per books (general ledger) Outstanding checks Check mailed to the bank for deposit had Save Answer $8,500 $7,320 $2,150 https://post.blackboard.com/webapps/assessment/take/launch.jsp?cour...nt_id=_109945_1&course_id=_50132_1&content_id=_1896321_1&step=null Page 3 of 4 Take Test: Final Examination Part C-B 4/25/14, 6:05 PM not reached the bank by the statement date. NSF check returned by the bank for accounts receivable July interest earned on the bank statement Check no. 700 for misc. expense cleared the bank for $200; erroneously recorded in the Matrix books for $20 $600 $200 $10 Prepare a bank reconciliation. Shown the accounting entries that must be made by Matrix in journal entry and T-Account format. Attach File Browse My Computer Browse Content Collection Save and Submit Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit https://post.blackboard.com/webapps/assessment/take/launch.jsp?cour...nt_id=_109945_1&course_id=_50132_1&content_id=_1896321_1&step=null Page 4 of 4