Final Application Project ACCT-111 Summer 2022 1) In the State of Ohio what are the requirements for being designated a Certified Public Accountant. What are the educational requirements and how many sections of the CPA exam must be passed? 2) List the four financial statements with a brief description of each. 3) List classification and normal balance of the following accounts Cash Prepaid Insurance Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Treasury Stock 4) The current balance in the books for office supplies is $1,000. A physical inventory of the office supplies reveals that $200 remains in stock. Journalize the adjusting entry. 5) The company has $10,000 of revenues and $8,000 of expenses. Journal the closing of the books. 6) The company purchases $10,000 of inventory on January 15th from its vendor on terms 2/10N30. On January 18th the company returns $2,000 of defective inventory. On January 24th the company pays the vendor. Journalize all the transactions assuming the company uses the gross method. 7) The bank statement balance is $12,134. There are $2,123 of checks outstanding and $3,543 of deposits in transit and there are no bank errors. A single check written to pay for utilities for $768 was improperly entered for $678 by the bookkeeper. What is the current balance of the cash account before entering the correction? 8) The company uses the income statement method to account for bad debt. Sales, all credit, for the period is $10,000 and the company estimates 2% of the receivables will never be collected. The current balance of the Allowance for Doubtful Accounts is a debit balance of $75. Journalize the adjusting entry for bad debt. 9) The company made the following purchases and sales. Purchased 5000 widgets at $1 each Sold 2000 widgets for $5 each Purchased 1,000 widgets at $1.25 each What is the value of cost of goods sold under perpetual FIFO, perpetual LFO and perpetual Weighted-Average. 10) The company purchases a piece of equipment for $100,000. The engineer estimates the life of the equipment is 5 years. The company using double-declining balance for depreciation. Journalize the adjusting entries for depreciation of this equipment in years 1 and 2 , assume full years of operations. What is the book value of the machine at the end of year 2 . 11) The company accrues $10,000 of payroll on Wednesday which will be payable on Friday. Income tax withholding is 5% of payroll, assume standard Social Security and Medicare rates with no discretionary withholdings. This payroll is towards the end of the year, and everyone has exceeded the cap for FUTA and SUTA. Journalize the payroll including the employer portion of payroll taxes. How much will the employees be paid on Friday? 12) The company issues bonds with a face value of $100,000 and a stated interest rate of 5%, paid quarterly, at 95 . The current market rate of interest is 6%. The company uses the effective interest rate method. Journal the issuance and 1st quarters interest payment assuming the company issues quarterly financial statements. 13) The company has authorized and issued 100,000 shares of $1.00 par value stock. The company purchases 1,000 shares of its own stock on the open market for $10.00 per share. Journalize the purchase of the treasury stock. How many shares are authorized and how many shares are outstanding. 14) The company has a beginning cash balance of $50,000. Next cash flow provided from operations is $10,000, next cash flow used by investing is $5,000 and, next cash flow used by financing is $5,000. What is the ending cash balance
