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Name: Acct 220.Sp.15 Question 1: Suggested time 45 minutes: 40 points a. Flip Corporation - Correcting Journal Entry (2 points): Date Account b. Flip Corporation - Adjusting Entries (14 points): Date Account Final Exam Debit Credit Debit Credit c. Adjusted Trial Balance (9 points): Flip Corporation Adjusted Trial Balance Account Titles Debit Credit 2 d. Classified Balance Sheet (9 points): (HINT - Update Retained Earnings with NI) Emily's Dress Shop, Inc. (Classified) Balance Sheet - December 31, 2014 3 e. Emily's Dress Shop, Inc. - Closing Entries (6 points): Date Account Debit Credit 4 Question 2: Suggested time 15 minutes: 8 points a. Cost of Goods Available for Sale b. Sales c. Value of: Ending Inventory COGS 1) LIFO method 2) FIFO method 3) Average-cost method Show calculations here 5 Question 3: Suggested time 15 minutes: 7 points Date Account Debit Credit 6 Question 4: Suggested time 20 minutes: 9 points a. Answer: Year Depreciation Expense Total Accumulated Depreciation End of Year Book Value Depreciation Expense Total Accumulated Depreciation End of Year Book Value b. Answer: Year c. Answer 7 Question 5: Suggested time 10 minutes: 7 points: a. The adjusted Cash balance is: (Show calculations here.) Books Bank b. Journal entries Account Question 6: Suggested time 10 minutes: 4 points: Date Account Debit Credit Debit Credit 8 Directions There are two documents attached below. The first one is the Exam. It has 6 questions, each with multiple parts. These are the parts. Question 1 (40 points). Prepare a correcting entry, 7 adjusting journal entries, an Adjusted Trial Balance (Flip Corporation). Then prepare a Classified Balance Sheet and closing entries for Emily's Dress Shop. Each of these parts counts for different point values. Please note: If you took this course before, this Final Exam is not the same exam you previously took! Question 2 (8 points). Determine Cost of Goods Available for sale (CGAS), and then calculate ending inventory and Cost of Goods sold under a Periodic System. Do the EI and CGS parts assuming LIFO, FIFO and average cost. Question 3 (7 points). Prepare journal entries for Notes Receivable and Notes Payable transactions, including interest calculations. Question 4 (9 points). Complete calculations for Depreciation, book values and accumulated depreciation, assuming straight-line, Double-declining balance and units of production methods. Question 5 (7 points). Prepare a bank reconciliation and associated journal entries. Question 6 (4 points). Prepare journal entries to record Bad Debt (Uncollectible Accounts) Expense. Total points - 75 Final Examination Acct220: Principles of Accounting I - Section 1 of 2 Do not forget, this is only Section 1 of your Final Exam. Section 2 consists of the 25 multiple choice questions located in the Final Exam location. Section 2 is worth 25% (1 point per question). USE THE SEPARATE DOCUMENT, Final Exam Answer Sheet to complete and submit your answers. For this exam, omit all general journal entry explanations. Ensure to include correct dollar signs and commas. Question 1: 40% points: Flip Company's December 31, 2014 trial balance is as follows: Flip Corporation Trial Balance December 31, 2014 Account Cash Accounts Receivable Debit Credit $43,500 54,500 Allowance for Doubtful Accounts 500 Notes Receivable 30,000 Merchandise Inventory 55,000 Land 20,500 Building 150,000 Accumulated Depreciation, Building Equipment $15,000 50,000 Accumulated Depreciation, Equipment Goodwill 21,000 26,000 Accounts Payable 24,500 Long Term Notes Payable 75,000 Common Stock, $10 par, 2,000 shares authorized & outstanding 20,000 Retained Earnings 147,000 Sales Revenue 700,000 Salaries Expense 150,000 Utilities Expense 3,500 Cost of Goods Sold 350,000 Administrative Expenses 55,000 Sales Expenses 15,000 _______ $1,003,000 $1,003,000 Totals Flip is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded. Additional Information: a. Notes Receivable is a 3-months, 6% note accepted on December 1, 2014. b. Long Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2014. Interest is payable annually. c. Building is depreciated at 3% per year. There is no salvage value. d. Equipment is depreciated at 15% year. There is no salvage value. e. Flip discovered, on December 30th, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue. f. The year-end physical count for Merchandise Inventory reflected a value of $52,500. Any difference in value is treated as shrinkage, and is included as part of Cost of Goods Sold. g. Salaries for the last half of December, payable in January, amount to $6,500. h. Flip determined that the balance in the Allowance for Doubtful Accounts should be $2,650 after an aging of A/R schedule was completed. Required: 1a. Prepare in journal form, any required correcting entries for Flip Corporation (There is only one) (2 points) 1b. Prepare in journal form, all end-of-the period adjusting entries for Flip Corporation (There are 7) (14 points) 1c. Prepare a December adjusted trial balance for Flip Corporation (9 points) NOTE: Students are encouraged to prepare their own T-accounts, on a separate scratch sheet of paper, and track from the beginning balance thru all journal transactions to ending balances for all accounts used in this problem. Do not turn in your separate scratch sheet of paper - those are student personal working papers and not part of any solution required for this exam. Question 1 (continued) - New Company for Parts d and e Below is a Correct Adjusted Trial Balance for the year ended December 31, 2014, for Emily's Dress Shop, Inc. 1d. Prepare a classified balance sheet in good form, for the year ended December 31, 2014 for Emily's Dress Shop, Inc. (9 points) 1e. Prepare in journal form, the closing entries for the year ended December 31, 2014 (No Dividends) for Emily's Dress Shop, Inc. (6 points) Emily's Dress Shop, Inc. Adjusted Trial Balance December 31, 2014 Account Titles Cash Accounts Receivable Allowance for Doubtful Accounts Interest Receivable Notes Receivable (Due in 3 months) Merchandise Inventory Land Building Accumulated Depreciation, Building Equipment Accumulated Depreciation, Equipment Goodwill Accounts Payable Salaries Payable Interest Payable Long Term Notes Payable Common Stock Retained Earnings Sales Revenue Interest Revenue Cost of Goods Sold Salaries Expense Utilities Expense Administrative Expenses Sales Expenses Depreciation Expense Interest Expense Bad Debt Expense Totals Debit Credit 81,000 95,400 4,770 270 54,000 94,500 36,900 270,000 35,100 90,000 46,800 51,300 0 44,100 11,700 3,375 135,000 36,000 264,600 1,260,000 270 634,500 281,700 6,300 99,000 27,000 21,600 3,375 3,870 1,846,215 1,846,215 Question 2: 8 points: Inventory Flip uses the periodic method and had the following inventory events during January: Units Purchased Unit Cost Units Sold Unit Sales Price Jan. 1 150 $7.00 Jan. 2 100 $10.00 Jan. 5 225 7.25 Jan. 7 125 10.00 Jan. 10 100 7.50 Jan. 12 75 12.00 Jan. 15 150 7.50 Jan. 17 200 12.00 Jan. 20 200 7.75 Jan. 24 150 15.00 Jan. 25 150 8.00 Date Date Jan. 30 75 8.25 Note: January 1 amount was the beginning inventory and unit value. (Round all total dollar values to the nearest dollar. Round all unit values to the nearest penny.) Required: a. Calculate cost of goods available for sale. b. Calculate the dollar value of sales. c. Calculate the value of Ending Inventory and Cost of Goods Sold under the following independent assumptions: 1) LIFO method 2) FIFO method 3) Average-cost method Question 3: 7 points: Required: Prepare Flip's Supply Co. general journal entries for the following transactions: Jan. 1 Accepted a customer's (Franks Co) 120 day, 10% note, as settlement of an outstanding $15,000 account receivable for goods sold last year (assume 30 days in January) Jan. 15 Purchased $10,000 in equipment from Edwards Equipment, signing a 9 month, 12% note (15 days in January) Jan. 25 Loaned Douglas Co. $30,000 cash, accepting a 90 days, 10% note (6 days in January) Jan. 31 Prepared accrual adjusting entry for any interest revenue and interest expense. Use the 360day calendar. Apr. 25 Received payment in full from Douglas Co. for outstanding note & interest May 1 Received payment in full from Franks Co. for outstanding note & interest Oct. 15 Paid Edwards Equipment in full Question 4: 9 points: Flip Company purchased a refrigerated delivery truck for $65,000 on April 1, 2016. The plan is to use the truck for 4 years and then replace it. At the end of its useful life the truck is expected to have a salvage value of $10,000. a. Prepare the depreciation table for Flip's truck assuming that the company uses the straight-line method for depreciation. b. Prepare the depreciation table for Flip's truck assuming that the truck was purchased on January 1, 2016 and the company uses the double-decliningbalance depreciation method. c. Compute the depreciation expense for 2016 for Flip's truck assuming the truck has an expected life of 200,000 miles and during 2016 the truck was driven 24,540 miles. Round your depreciation expense per mile to three decimal places. Question 5: 7 points: Medina Company received its February bank statement on March 6. The statement showed a balance of $316,500. Included on the statement were memoranda showing collections from Medina customers (A/R), totaling $16,000. The statement also showed a returned check for a customer who paid the balance on his account, for $2,825. The bank charged a returned check fee of $75 for this NSF check. This $75 charge will be added to the customer's balance. There were other service charges for the monthly service charge and ATM fees, totaling $200. These are bank service charge expenses. Medina's accountant looked at her accounting records. At the end of February, the cash balance was $312,300. The statement did not reflect a deposit made late on February 28th, for $14,900. There were also some outstanding checks, totaling $6,200. Required: a. Determine the adjusted balance in the cash account after completing a bank reconciliation. b. Prepare three journal entries needed due to the reconciliation. Question 6: 4 points: Flip Company at the end of the fiscal 2014 year has the following information: Credit Sales, $2,500,000 Sales Returns & Allowances $25,000 Accounts Receivable $200,000 and Allowance for Doubtful Accounts with a credit of $1,500. Required: a. Prepare the general journal entry to record the end of the year adjusting entry if Flip uses 0.5% of Net Credit Sales as the basis for determining Bad Debt Expense. b. Prepare the general journal entry to record the end of the year adjusting entry if Flip uses 5% of Accounts Receivable as the basis for determining Bad Debt Expense. Do not forget, this is only Section 1 of your Final Exam. Section 2 consists of the 25 multiple choice questions located in the Final Exam location. Section 2 is worth 25% (1 point per question)