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This is my study guide. My exam is tomorrow. Can someone help me with this please MBA 503 - Financial Reporting and Analysis Study Guide
This is my study guide. My exam is tomorrow. Can someone help me with this please
MBA 503 - Financial Reporting and Analysis Study Guide 1) The information below was obtained from the records of the Thompson Corporation for the year ending December 31, 2013 Sales Revenue Gross Profit Salary Expenses Supplies Expense Rent Expense Maintenance Expense Pre-Tax Income Income Tax Rate $500,000 $300,000 $50,000 $30,000 $65,000 ? $130,000 30% Prepare a completed Income Statement in proper format (showing both gross profit and income from operation calculations) for the year ending December 31, 2013. Please report the gross profit percentage as well. 2) The Riverdale Company reported the following transactions during the months of May and June 2013. Based on the information below calculate the net sales for the two months ending in June 2013. Remember to show sales at the gross amount and each deduction to gross sales separately (sales returns and allowances, sales discounts and credit card discounts). May 25th Sold 15 items of merchandise to Pandora, Inc. at an invoice price of $10,500 (total), terms of 2/10, net 30 May 21 Sold 5 items of merchandise to John Jones who charged the $500 sales price on his American Express card. American Express charges Riverdale a 3% credit card fee May 30th Sold 20 identical items to Prevue, Inc. at an invoice price of $7,500 (total), terms 2/10, net 30 June 1st Prevue returned 2 of the items purchased on May 30 th as they were deemed defective and a credit was granted to the customer June 4th Pandora paid the entire account balance in full for the purchase they made on May 25th June 15th Prevue, Inc. paid the amount due for the merchandise they purchased on June 1st 3) At 12/31/2013 (year-end), Gunn Instruments had an accounts receivable balance of $340,000. The allowance for doubtful accounts has a $12,000 credit balance. The following aging schedule breaks down the accounts receivable: A/R 1-30 days 31-60 days Estimated Uncollectible $185,000 1% $65,000 5% 61-90 days $53,000 10% Over 90 days $37,000 60% a) Based on the aging of A/R, is the unadjusted balance of the allowance account adequate, too high or too low?? b) Make the necessary journal entry required by the aging schedule c) Show how Gunn will reports its Accounts Receivable on its year ending balance sheet as of 12/31/2013 4) The Cooper Group received their bank statement in the mail for the month ending January 31, 2014. The balance per the bank statement was $8,050. The balance per their Cash account in their general ledger was $8,700. The following information was obtained: - - Deposits of $765 were made but not reflected on the bank statement Checks were written totaling $200 not reflected on the bank statement Bank fees of $50 were charged against the account, shown on the bank statement but not reflected in Cooper's Cash account in the general ledger A check written by a customer bounced in the amount of $75 Interest of $40 was earned on the account Based on this information, prepare a bank reconciliation for January Prepare any journal entries as a result of the reconciliation that would be needed to adjust Cooper's general ledger for the activity not originally recorded (Hint - 3 journal entries are needed in total) 5) The Clarkson Company uses a periodic inventory system. At the end of their accounting period, June 30, 2013, they provided the following information for Product A Units Inventory, July 1, 2012 Unit Cost 1,000 Purchases: November 10, 2012 March 26, 2013 2,500 Inventory, June 30, 2013 2,000 $10 $12 1,500 $16Step by Step Solution
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