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I have an exam 2, and I want someone to help me with Acct 5100 I had uploaded. If there is TB that would be
I have an exam 2, and I want someone to help me with Acct 5100 I had uploaded. If there is TB that would be great.2
ACCT 5100 Exam 2 Study Guide - Preliminary The exam will consist of 33 multiple-choice questions. The exam will cover Chapters 8, 9, 10, 11, 12 and 13. For those chapters, you are responsible for all of the material we covered in class, especially the material noted below, except as noted, including items mentioned in class but not in the textbook (though those questions will be kept to a minimum). Items in bold below are especially important. This preliminary version of the study guide omits details for Chapters 12 & 13, which will be provided after we have covered those chapters in class. Chapter 8 - Receivables How do Accounts Receivable differ from other receivables? (pgs. 398 & 399) Know the journal entry to write off an account receivable as uncollectible under the Direct Write-Off method (pg. 401) Know that the Direct Write-Off Method does not comply with GAAP, and why (it does not comply with the Matching Principle). Know what the Matching Principle is, and in what way the Direct Write-Off method fails to comply with the Matching Principle. Know that the Allowance Method does comply with GAAP. Know the two journal entries under the Allowance Method (pgs. 402 & 403): one done at the end of the (company's fiscal) year to record Bad Debt Expense and adjust the Allowance for Doubtful Accounts account, and one done to write off a specific customer's account as uncollectible (could happen on any business day of the year). Do not mix these two entries up! Know that Accounts Receivable are reported on the Balance Sheet at their Net Realizable Value. Know what Net Realizable Value means (Accounts Receivable minus Allowance for Doubtful Accounts). Know that the Allowance for Doubtful Accounts account is a contra asset. Know what a contra asset account is. Know that, under the allowance method, writing off an account receivable as uncollectible does not change the net realizable value of total accounts receivable. Know what the entries are when a customer whose account (receivable) has been written off as uncollectible actually pays what they owe. Know how to estimate the amount of uncollectible accounts for the journal entry on page 402. Specifically, know the Percentage of Receivables Basis (pg. 404). Know that this method does not directly give you the amount of the year-end entry: instead, it gives you the amount you want in the allowance account. You do not need to know the Aging the Accounts Receivable method (pg. 405). Know in general the steps in managing receivables from pgs. 415 to 422. In particular, know the Receivables Turnover Ratio (pg. 416) and the Average Collection Period (pg. 416) and whether you want these ratios to be high or low. Know about National Credit Card Sales (pgs. 418 & 419) and Sales of Receivables to a Factor (pg. 418). You do not need to know about Notes Receivable (pgs. 407 to 411) except you do need to know how to calculate interest (pgs. 408 & 409). You don't need to know the information starting with \"Managing Receivables\" on pg. 412, through pg. 414. You don't need to know the information about IFRS (pgs. 444-445). We worked the following in class: Brief Exercises 8-3 (pg. 406) and 8-11 (assume all sales are on credit; pg. 407), and Exercises 8-6 (Dec. 31, 2016 entries only; pg. 409) and 8-11 (pg. 410). 1 Chapter 9 - Long-Lived Assets Know what a plant asset is, and what should be included in the cost of one (especially land, buildings & equipment). Know how to value a plant asset paid for with assets other than cash, such as stock. Know what land improvements are, and how to account for them. Know the difference between how to account for a capital lease vs. an operating lease (pg. 452). Know what depreciation is, and which assets are depreciated. Know how to calculate and record depreciation expense under the straight-line method and the units-of-activity method. Know what accumulated depreciation is, how to calculate the net book value of a depreciable asset, and what happens to the balance in each of these as a depreciable asset ages. Know the patterns of depreciation expense shown in Illustration 9-13 (pg. 458, and in the Powerpoints under \"Accounting for Plant Assets...Comparison of Depreciation Methods\"). Know the difference between ordinary repairs of plant assets and \"additions and improvements\" of plant assets, and how each is accounted for. Know how to account for depreciable assets that are sold or otherwise disposed of (\"retired\"). Know how to calculate the Return on Assets ratio and the Asset Turnover ratio. Know what intangible assets are in general, and be able to identify specific intangible assets as such. Know what it means to amortize intangible assets, how to amortize them, and that only intangible assets with a limited useful life should be amortized. Know how research and development costs should be accounted for (i.e., expensed) You don't have to know how to calculate depreciation expense under the declining-balance method. You don't have to know anything about Depreciation and Income Taxes. You don't have to know anything about Impairments of plant assets. You don't have to know how to calculate the revised amount of depreciation expense when there are revisions made to the estimated useful life and/or estimated salvage value of a depreciable asset partway through its useful life. We worked the following in class: Brief Exercises 9-1 & 9-2 (both on pg. 459), and Brief Exercises 9-4, 9-7, 9-8, 9-10 & 9-11 (all on pg. 460). Chapter 10 - Liabilities Know that, when companies issue bonds, they are borrowing large sums of money. Know what the maturity date and the face value of a bond are. Know the difference between the market rate of interest on a bond payable (that is, its effective rate or discount rate) and its stated rate of interest (that is, its contractual rate), and what each is used for. Know how to tell whether a bond will be sold above, at, or below face value by comparing that bond's stated rate of interest with its market rate of interest. You do not need to know how to calculate the selling price of bonds. Know the journal entries to issue bonds at face value, at a discount, and at a premium. Know what kind of accounts \"discount on bonds payable\" and \"premium on bonds payable\" are, and how these accounts are shown on the balance sheet. Know the journal entries to pay interest on bonds issued at face value. 2 Know what it means when bonds are sold \"at 97\" or \"at 104,\" how to record the issuance (sale) of such bonds, and how they would appear on the balance sheet immediately after being issued. Know the journal entry to redeem (pay off) bonds on their maturity date. Know the Current Ratio and the Debt to Total Assets Ratio (both of which were covered in Ch. 2). I won't ask you about the Times Interest Earned Ratio on this exam. Know how to account for contingencies (pgs. 526 & 527). As in Ch. 9, know the difference between a capital lease and an operating lease (pg. 527). Know how to amortize bond discount or bond premium using the straight-line method (Appendix 10A). Know that the effective-interest method of amortizing bond premium or discount complies with GAAP, and that the straight-line method of doing so generally does not comply with GAAP. You do not need to know the material dealing with Current Liabilities (pgs. 506 to 511). You do not need to know what secured bonds are, what unsecured bonds are, what convertible bonds are, what callable bonds are, or how to account for convertible bonds. You do not need to know the journal entry to redeem (pay off) bonds prior to their maturity date. You do not need to know the material from Appendix 10-B or from Appendix 10-C. We worked the following in class: Brief Exercise 10-14 (pg. 517), Brief Exercises 10-16 & 10-17 (both on pg. 518), and Exercise 10-20 (pg. 523). Chapter 11 (Stockholders' Equity) Know the advantages and disadvantages of organizing a business as a corporation, as compared to a (sole) proprietorship or partnership. Know that the earnings of Subchapter S corporations (unlike other corporations) are not taxed twice by the IRS, but Subchapter S corporations cannot have more than 100 shareholders (the textbook is wrong on this point: it says no more than 75 shareholders). Know what the rights of a shareholder are. Know the journal entry to issue shares of common stock (both at par and at a price above par). Know what the stockholders' equity section of a balance sheet looks like (for example, Illustration 11-16, page 591) Know the journal entry to issue shares of preferred stock (both at par and at a price above par). Know the journal entry to buy shares of treasury stock. Know how treasury stock is shown on a balance sheet. Know the differences between common stock and preferred stock, and the difference between cumulative preferred stock and noncumulative preferred stock. Know what dividends in arrears are. If a corporation declares dividends, know how to determine how much of the dividends go to common shareholders and how much go to preferred shareholders. Know the journal entries to declare dividends, and to pay previously declared dividends. Know what the dividend declaration date, the date of record, and the dividend payment date refer to. Know what stock dividends are, and know how to journalize them (hint: the journal entry depends on whether the stock dividend is \"large\" or \"small.\"). Note: any stock dividends on the exam will be unambiguously large (> 25%) or unambiguously small (Step by Step Solution
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