For each of the following transactions, if revenue is to be recognized in September, indicate the revenue account title and amount. If revenue is not to be recognized in September, explain why.

The following transactions occurred in September 2016:

1. A popular ski magazine company receives a total of $12,345 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company?s standpoint.
2. Hyundai, Inc., sells a truck with a list, or ?sticker,? price of $20,050 for $19,500 cash.
3. Macy?s department store orders 1,000 men?s shirts for $15 each for future delivery from Phillips-Van Heusen Corporation. The terms require payment in full within 30 days of delivery. Answer from Phillips-Van Heusen?s standpoint.
4. AcustomerpurchasesaticketfromAmericanAirlinesfor$780cashtotravelthefollowingJanuary.AnswerfromAmericanAirlines?sstandpoint.
5. FordMotorCompanyissues$15millioninnewcapitalstock.
6. Precision Builders signs a contract with a customer for the construction of a new $1,500,000 warehouse. At the signing, Precision receives a check for $200,000 as a deposit on the future construction. Answer from Precision?s standpoint.
7. A customer orders and receives 10 personal computers from Dell; the customer promises to pay $9,600 within three months. Answer from Dell?s standpoint.
8. Sears, a retail store, sells a $300 lamp to a customer who charges the sale on his store credit card. Answer from Sears?s standpoint.

Assignment #2 Solve all the questions below and upload your answers by the due date and time indicated y syllabus. Good luck. Question #1 For each of the following transactions, if revenue is to be recognized in September, indicate the revenue account title and amount. If revenue is not to be recognized in September, explain why. The following transactions occurred in September 2016: 1. A popular ski magazine company receives a total of $12,345 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. 2. Hyundai, Inc., sells a truck with a list, or \"sticker,\" price of $20,050 for $19,500 cash. 3. Macy's department store orders 1,000 men's shirts for $15 each for future delivery from Phillips-Van Heusen Corporation. The terms require payment in full within 30 days of delivery. Answer from Phillips-Van Heusen's standpoint. 4. A customer purchases a ticket from American Airlines for $780 cash to travel the following January. Answer from American Airlines's standpoint. 5. Ford Motor Company issues $15 million in new capital stock. 6. Precision Builders signs a contract with a customer for the construction of a new $1,500,000 warehouse. At the signing, Precision receives a check for $200,000 as a deposit on the future construction. Answer from Precision's standpoint. 7. A customer orders and receives 10 personal computers from Dell; the customer promises to pay $9,600 within three months. Answer from Dell's standpoint. 8. Sears, a retail store, sells a $300 lamp to a customer who charges the sale on his store credit card. Answer from Sears's standpoint. Solution of Question #1 Activity 1. 2. 3. 4. 5. 6. 7. 8. Revenue Account Affected Amount of Revenue Earned in September Question #2 For each of the transactions, if an expense is to be recognized in January, indicate the expense account title and the amount. If an expense is not to be recognized in January, indicate why. The following transactions occurred in January 2016: 1. McGraw-Hill Education uses $3,800 worth of electricity and natural gas in its headquarters building for which it has not yet been billed. 2. At the beginning of January, Turner Construction Company pays $963 for magazine advertising to run in monthly publications each of the first three months of the year. 3. The campus bookstore receives 500 accounting texts at a cost of $95 each. The terms indicate that payment is due within 30 days of delivery. 4. During the last week of January, the campus bookstore sold 500 accounting texts received in (e) at a sales price of $130 each. 5. Hyundai, Inc., pays its salespersons $13,800 in commissions related to December automobile sales. Answer from Hyundai's standpoint. 6. A new grill is purchased and installed at a Wendy's restaurant at the end of the day on January 31; a $12,750 cash payment is made on that day. 7. Carousel Center Mall had janitorial supplies costing $3,500 in storage on Jan.1, 2016. An additional $2,600 worth of supplies was purchased during January. At the end of January, $1,400 worth of janitorial supplies remained in storage. 8. Wang Company paid $4,800 for a fire insurance policy on January 1. The policy covers 12 months beginning on January 1. Answer from Wang's point of view. 9. Hass Company, a farm equipment company, receives its phone bill at the end of January for $154 for January calls. The bill has not been paid to date. 10. Parillo's Taxi Company pays a $595 invoice from a consulting firm for services received and recorded in December. Solution of Question #2 Activity 1. 2. 3. 4. 5. Expense Account Affected Amount of Expense Incurred in January 6. 7. 8. 9. 10. Question #3 The following transactions occurred during a recent year: 1. Issued stock to organizers for cash. 2. Purchased equipment on credit. 3. Declared and paid cash dividends. 4. Earned revenue, collected cash. 5. Incurred expenses, on credit. 6. Earned revenue, on credit. 7. Incurred expenses; paid cash. 8. Earned revenue; collected three-fourths in cash, balance on credit. 9. Borrowed cash from local bank. 10. Collected cash from customers on account. 11. Incurred expenses; paid four-fifths in cash, balance on credit. 12. Paid income tax expense for the period. Required: For each of the transactions, complete the tabulation, indicating the effect (+ for increase and for decrease) of each transaction. (Remember that A = L + SE, R E = NI, and NI affects SE through Retained Earnings.) Write NE if there is no effect. The first transaction is provided as an example. Solution of Question #3 Assets 1. 2. 3. 4. 5. 6. Balance Sheet Income Statement Stockholders' Net Liabilities Equity Revenues Expenses Income 7. 8. 9. 10. 11. 12. Question #4 John's Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended, December 31, 2015. The transactions for the past year have been recorded. For each of the following transactions, indicate the amount and direction of effects of the adjustment on the elements of the balance sheet and income statement. Using the format below, indicate + for increase, for decrease, and NE for no effect. 1. John's winterized (cleaned and covered) three boats for customers at the end of December, but did not record the service for $3,300. 2. On October 1, 2015, John's paid $2,200 to the local newspaper for an advertisement to run every month starting October for 4 months. 3 months advertisements were run. 3. The Johnson family paid John's $4,500 on December 1, 2015, to store its sailboat for the winter until May 1, 2016. John's credited the full amount to Unearned Storage Revenue on December 1. 4. Boat repair supplies on hand at December 1, 2014, totaled $18,900. Repair supplies purchased and debited to Supplies during the year amounted to $45,200. The year-end count showed $15,600 of the supplies on hand. Solution of Question #4 Transaction 1. 2. 3. 4. Assets Balance Sheet Stockholders' Liabilities Equity Income Statement Revenues Expenses Net Income Question #5 Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $40 million. At the end of 2014, accounts receivable were presented in the company's balance sheet as follows: Q1. What do the above numbers mean to you? During 2015, $70,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totalling $15,000 were subsequently collected. Q2. Were your estimations in line of what actually happened? Was the Allowance for Doubtful Accounts understated / overstated at the end of 2014? What does that mean? At the end of 2015, analysis of accounts receivable indicated a need for a $90,000 allowance to cover possible failure to collect the accounts currently outstanding. Wilcox Mills makes adjustments for uncollectible accounts only at year-end. Q3. What is the adjustment needed at the end of 2015 and how much \"Uncollectible accounts expense\" wilcox is going to record? Repeat questions 2&3 assuming that $120,000 of receivables were written off during 2015. Everything else remains the same. Question #6 Tungsten Company, Inc., sells heavy construction equipment. The annual fiscal period ends on December 31. The following accounts show the balances on December 31, 2014: Account Titles Balance Cash Accounts receivable (net) Inventory, ending Operational assets Accumulated depreciation Liabilities Capital stock Retained earnings, January 1, 2014 Sales revenue Sales returns and allowances Cost of goods sold Selling expense Administrative expense Bad debt expense Sales discounts Income tax expense $ 33,600 14,400 52,000 40,000 $ 16,800 24,000 72,000 9,280 147,100 5,600 78,400 14,100 15,400 1,600 6,400 7,680 Required: 1. Prepare an income statement (showing both gross profit and income from operations). Treat sales discounts and sales returns and allowances as a contra-revenue. 2. The beginning balance (Jan. 1, 2014) in Accounts Receivable (net) was $16,000. Compute the receivables turnover ratio and explain its meaning. Assignment #2 Solve all the questions below and upload your answers by the due date and time indicated y syllabus. Good luck. Question #1 For each of the following transactions, if revenue is to be recognized in September, indicate the revenue account title and amount. If revenue is not to be recognized in September, explain why. The following transactions occurred in September 2016: 1. A popular ski magazine company receives a total of $12,345 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. 2. Hyundai, Inc., sells a truck with a list, or \"sticker,\" price of $20,050 for $19,500 cash. 3. Macy's department store orders 1,000 men's shirts for $15 each for future delivery from Phillips-Van Heusen Corporation. The terms require payment in full within 30 days of delivery. Answer from Phillips-Van Heusen's standpoint. 4. A customer purchases a ticket from American Airlines for $780 cash to travel the following January. Answer from American Airlines's standpoint. 5. Ford Motor Company issues $15 million in new capital stock. 6. Precision Builders signs a contract with a customer for the construction of a new $1,500,000 warehouse. At the signing, Precision receives a check for $200,000 as a deposit on the future construction. Answer from Precision's standpoint. 7. A customer orders and receives 10 personal computers from Dell; the customer promises to pay $9,600 within three months. Answer from Dell's standpoint. 8. Sears, a retail store, sells a $300 lamp to a customer who charges the sale on his store credit card. Answer from Sears's standpoint. Solution of Question #1 Activity 1. 2. 3. 4. 5. 6. 7. 8. Revenue Account Affected Amount of Revenue Earned in September Question #2 For each of the transactions, if an expense is to be recognized in January, indicate the expense account title and the amount. If an expense is not to be recognized in January, indicate why. The following transactions occurred in January 2016: 1. McGraw-Hill Education uses $3,800 worth of electricity and natural gas in its headquarters building for which it has not yet been billed. 2. At the beginning of January, Turner Construction Company pays $963 for magazine advertising to run in monthly publications each of the first three months of the year. 3. The campus bookstore receives 500 accounting texts at a cost of $95 each. The terms indicate that payment is due within 30 days of delivery. 4. During the last week of January, the campus bookstore sold 500 accounting texts received in (e) at a sales price of $130 each. 5. Hyundai, Inc., pays its salespersons $13,800 in commissions related to December automobile sales. Answer from Hyundai's standpoint. 6. A new grill is purchased and installed at a Wendy's restaurant at the end of the day on January 31; a $12,750 cash payment is made on that day. 7. Carousel Center Mall had janitorial supplies costing $3,500 in storage on Jan.1, 2016. An additional $2,600 worth of supplies was purchased during January. At the end of January, $1,400 worth of janitorial supplies remained in storage. 8. Wang Company paid $4,800 for a fire insurance policy on January 1. The policy covers 12 months beginning on January 1. Answer from Wang's point of view. 9. Hass Company, a farm equipment company, receives its phone bill at the end of January for $154 for January calls. The bill has not been paid to date. 10. Parillo's Taxi Company pays a $595 invoice from a consulting firm for services received and recorded in December. Solution of Question #2 Activity 1. 2. 3. 4. 5. Expense Account Affected Amount of Expense Incurred in January 6. 7. 8. 9. 10. Question #3 The following transactions occurred during a recent year: 1. Issued stock to organizers for cash. 2. Purchased equipment on credit. 3. Declared and paid cash dividends. 4. Earned revenue, collected cash. 5. Incurred expenses, on credit. 6. Earned revenue, on credit. 7. Incurred expenses; paid cash. 8. Earned revenue; collected three-fourths in cash, balance on credit. 9. Borrowed cash from local bank. 10. Collected cash from customers on account. 11. Incurred expenses; paid four-fifths in cash, balance on credit. 12. Paid income tax expense for the period. Required: For each of the transactions, complete the tabulation, indicating the effect (+ for increase and for decrease) of each transaction. (Remember that A = L + SE, R E = NI, and NI affects SE through Retained Earnings.) Write NE if there is no effect. The first transaction is provided as an example. Solution of Question #3 Assets 1. 2. 3. 4. 5. 6. Balance Sheet Income Statement Stockholders' Net Liabilities Equity Revenues Expenses Income 7. 8. 9. 10. 11. 12. Question #4 John's Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended, December 31, 2015. The transactions for the past year have been recorded. For each of the following transactions, indicate the amount and direction of effects of the adjustment on the elements of the balance sheet and income statement. Using the format below, indicate + for increase, for decrease, and NE for no effect. 1. John's winterized (cleaned and covered) three boats for customers at the end of December, but did not record the service for $3,300. 2. On October 1, 2015, John's paid $2,200 to the local newspaper for an advertisement to run every month starting October for 4 months. 3 months advertisements were run. 3. The Johnson family paid John's $4,500 on December 1, 2015, to store its sailboat for the winter until May 1, 2016. John's credited the full amount to Unearned Storage Revenue on December 1. 4. Boat repair supplies on hand at December 1, 2014, totaled $18,900. Repair supplies purchased and debited to Supplies during the year amounted to $45,200. The year-end count showed $15,600 of the supplies on hand. Solution of Question #4 Transaction 1. 2. 3. 4. Assets Balance Sheet Stockholders' Liabilities Equity Income Statement Revenues Expenses Net Income Question #5 Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $40 million. At the end of 2014, accounts receivable were presented in the company's balance sheet as follows: Q1. What do the above numbers mean to you? During 2015, $70,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totalling $15,000 were subsequently collected. Q2. Were your estimations in line of what actually happened? Was the Allowance for Doubtful Accounts understated / overstated at the end of 2014? What does that mean? At the end of 2015, analysis of accounts receivable indicated a need for a $90,000 allowance to cover possible failure to collect the accounts currently outstanding. Wilcox Mills makes adjustments for uncollectible accounts only at year-end. Q3. What is the adjustment needed at the end of 2015 and how much \"Uncollectible accounts expense\" wilcox is going to record? Repeat questions 2&3 assuming that $120,000 of receivables were written off during 2015. Everything else remains the same. Question #6 Tungsten Company, Inc., sells heavy construction equipment. The annual fiscal period ends on December 31. The following accounts show the balances on December 31, 2014: Account Titles Balance Cash Accounts receivable (net) Inventory, ending Operational assets Accumulated depreciation Liabilities Capital stock Retained earnings, January 1, 2014 Sales revenue Sales returns and allowances Cost of goods sold Selling expense Administrative expense Bad debt expense Sales discounts Income tax expense $ 33,600 14,400 52,000 40,000 $ 16,800 24,000 72,000 9,280 147,100 5,600 78,400 14,100 15,400 1,600 6,400 7,680 Required: 1. Prepare an income statement (showing both gross profit and income from operations). Treat sales discounts and sales returns and allowances as a contra-revenue. 2. The beginning balance (Jan. 1, 2014) in Accounts Receivable (net) was $16,000. Compute the receivables turnover ratio and explain its meaning