北京大学财务会计：期中练习资料.doc

1.The following items and amounts were taken from Motte Inc.s 2014 income statement and balance sheet.a.In each case, identify on the item is an asset, liability, stockholders equity, revenue, or expense item.Cash$92,244Retained earnings123,023Cost of goods sold438,576Salaries and wages expense119,809Prepaid insurance7,934Inventory64,020Accounts receivable90,419Sales revenue589,568Notes payable6,693Accounts payable58,565Service revenue5,413Interest expense1,742b. Prepare an income statement for Motte Inc. for the year ended December 31, 2014.2.Here are incomplete financial statements for Riedy, Inc. Calculate the missing amounts.REIDY, INC.Balance SheetAssetsCash$13,920Inventory16,920Buildings38,080Total assets$68,920Liabilities and Stockholders EquityLiabilitiesAccounts payable$5,310Stockholders EquityCommon stock(a)Retained earnings(b)Total liabilities and stockholders equity$68,920RIEDY, INC.Income StatementRevenues$85,650Cost of goods sold(c)Salaries and wages expense10,120Net Income$(d)RIEDY, INC.Retained Earnings StatementBeginning retained earnings$18,920Add: Net income(e)Less: Dividends4,290Ending retained earnings$33,9203. Classify each of the following financial statement items based upon the major balance sheet classifications.Prepaid advertisingEquipmentTrademarksSalaries and wages payableIncome taxes payableRetained earningsAccounts receivableLand (held for future use)PatentsBonds payableCommon stockAccumulated depreciationequipmentUnearned sales revenueInventory4. Identify the accounting assumption or principle that is described below.(a)Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.)(b)Indicates that personal and business record-keeping should be separately maintained.(c)Assumes that the dollar is the “measuring stick” used to report on financial performance.(d)Separates financial information into time periods for reporting purposes.(e)Measurement basis used when a reliable estimate of fair value is not available.(f)Dictates that companies should disclose all circumstances and events that make a difference to financial statement users.5.A tabular analysis of the transactions made during August 2014 by Colaw Company during its first month of operations is shown below. Each increase and decrease in stockholders equity is explained.Assets=Liabilities+Stockholders EquityCash+A/R+Supp.+Equip.=Accounts Payable+Common Stock+Retained EarningsRevenuesExpensesDividends(1)$23,900$23,900Com. Stock(2)1,200$5,000$3,800(3)690$690(4)3,740$5,450$9,190Serv. Rev.(5)2,0002,000(6)2,020$2,020Div.(7)800$800Rent Exp.(8)410410(9)2,6502,650Salar. Exp.(10)260260Util. Exp.Determine how much stockholders equity increased for the month.Increase in stockholders equity$Compute the net income for the month.The net income$6. The May transactions of Hanschu Corporation were as follows.May 4Paid $770 due for supplies previously purchased on account.7Performed advisory services on account for $6,890.8Purchased supplies for $930 on account.9Purchased equipment for $2,450 in cash.17Paid employees $740 in cash.22Received bill for equipment repairs of $980.29Paid $1,210 for 12 months of insurance policy. Coverage begins June 1.Journalize the transactions.7. The following accounts, in alphabetical order, were selected from recent financial statements ofKrispy Kreme Doughnuts, Inc.For each account, indicate whether the normal balance is a debit or a credit, and the financial statementbalance sheet or income statementwhere the account should be presented.AccountNormal Balance Debit or CreditBalance Sheet or Income StatementAccounts payableAccounts receivableCommon stockDepreciation expenseInterest expenseInterest incomeInventoriesPrepaid expensesProperty and EquipmentRevenues8. For each situation, list the assumption, principle, or constraint that has been violated, if any. Some were presented in earlier chapters. List only one answer for each situation.(a)Bonilla Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain.(b)Barto Company is in its fifth year of operation and has yet to issue financial statements.(c)Lopez, Inc. is carrying inventory at its original cost of $100,000. Inventory has a fair value of $110,000.(d)Ryno Hospital Supply Corporation reports only current assets and current liabilities on its balance sheet. Equipment and bonds payable are reported as current assets and current liabilities, respectively. Liquidation of the company is unlikely.(e)Liu Company has inventory on hand that cost $400,000. Liu reports inventory on its balance sheet at its current fair value of $425,000.(f)Sara Toney, president of Classic Music Company, bought a computer for her personal use. She paid for the computer by using company funds and debited the “Computers” account.9. The ledger of Beckett Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.DebitCreditSupplies$3,860Prepaid Insurance2,880Equipment26,300Accumulated DepreciationEquipment$7,890Notes Payable21,200Unearned Rent Revenue11,180Rent Revenue60,700Interest Expense0Salaries and Wages Expense13,100An analysis of the accounts shows the following.1.The equipment depreciates $380 per month.2.Half of