Intermediate Accounting ISee attached. I attached all in one document. Please answer each from 1-8 in separate documents. I am unable to attach 8 documents.
One I. Questions 1. What is GAAP in other countries other than the U.S. based on? 2. What are the four sections of the codification? 3. What is the difference between managerial and financial accounting? 4. What is the step 1 and 4 in the accounting cycle? 5. What is the codification number that addresses “earnings per share?” 6. What are the Statements of Financial Accounting Concepts intended to establish? 7. Name two of the four special purpose frameworks other than GAAP or IFRS. 8. What are the 10 key elements that make up all the financial statements? 9. A business purchased a piece of land for $70,000 ten years ago. Even though the land can be now sold for more than this, it is not revalued in the financial statements. It remains recorded at $70,000. Which accounting principle is being applied in this case? 10. What organization develops the International Financial Reporting Standards (IFRS)? II. Exercises 1. Calculate the missing amounts for companies A to E A B C D E Cash $2,100 $ 800 $ ? $5,400 $3,000 Equipment 5,600 4,800 4,400 6,300 ? Accounts Payable 2,800 ? 1,650 2,700 5,400 Share capital 1,400 2,400 3,300 3,600 600 Retained earnings ? 800 550 ? 1,200 2. Calculate the net income earned during the year. Assume that the change to shareholders’ equity results only from net income earned during the year. Assets Liabilities Balance Jan. 1, 2015 $112,500 $ 90,000 Balance Dec. 31, 2015 90,000 45,000 3. If total assets increased $25,000 and total liabilities decreased $7,000, what was the change in shareholders’ equity? 4. On January 1, 2012, Benson Company purchased a machine for $1,200,000 and depreciated it by the straight-line method with an estimated list of ten years and a salvage value of $100,000. On January 1, 2017 Benson determined that the machine had a useful life of eight years from the date of acquisition and will have a salvage value of $200,000. An accounting change was made in 2017 to reflect these additional data. What is the accumulated depreciation credit balance for this machine as of December 31, 2017? 5. A cash flow of $500,000 may be received by Cynthia Bennett Company in one year, two years, or three years, with probabilities of 30%, 50%, and 20%, respectively. The rate of interest on default risk-free investments is 8%. Required: What is the expected present value of Cynthia Bennett' cash flow? Round your answers to the nearest whole dollar. 6. During 2017, Rand Inc. discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2016 $40,000 understated 2017 $50,000 overstated Rand uses the periodic inventory system to ascertain year-end quantities that are converted to dollar amounts using the FIFO cost method. Assume that there weren’t any adjustments made for the 2016 understatement and the 2017 overstate, ignoring income taxes, what would be the amount of the overstatement or understatement in retained earnings at January 1, 2018? Assume the only type of transaction involving retained earnings was net income; there were no dividends paid in 2016 and 2017. Two Exercises 1. An extract from the trial balance of Armstrong Corp. at June 30, 2016 is reproduced below: Account Amount in unadjusted trial balance Amount in adjusted trial balance 1 Prepaid insurance $1,200 $ 800 2 Salaries payable $ 650 $ 950 3 Interest payable $ 0 $ 470 4 Unearned revenue $2,500 $1,800 5 Accumulated depreciation $ 875 $1,150 6 Unused office supplies $ 280 $ 75 Required: Prepare in general journal format the entries that were posted, including a plausible description. General ledger account numbers are not necessary. 2. The following account balances in the unadjusted trial balance at November 30, 2015 are presented below: Unearned commissions revenue $1,875 Prepaid insurance 600 Office supplies 875 Prepaid rent 750 Salaries expense 6,240 Additional information: a. The prepaid rent consisted of a payment for three months’ rent at $250 per month for November 2015, December 2015 and January 2016. b. Office supplies on hand at December 31, 2015 amounted to $375. c. On July 1, 2015 a one year insurance policy was purchased for $600. d. All but $625 in the Unearned Commissions account has been earned in 2015. e. The last three days of December 2015 salaries were earned but not paid, and have not been recorded. The total salaries for one day is $125. Required: 1. Prepare the adjusting entries at December 31, 2015. Descriptions of the journal entry and account numbers are not required. 2. If the adjusting entries were not recorded, what affect would this have on the net income for 2015 to include the amount understated or overstated? 3. The following information is provided for the Ramsey Corporation as of December 31, 2016: Account Debit Credit Cost of goods sold $78,460 Delivery expenses 3,250 Depreciation sales equipment 4,500 Depreciation office equipment 6,500 Sales basic salaries + commission 9,250 Office salaries 6,890 Sales revenue 125,000 Interest revenue 2,500 Interest expense 1,225 Income tax 30% Required: 1) Prepare a multi-step income statement 2) Prepare a single-step income statement 4. The Tansian Company had 200,000 shares outstanding on January 1, 2016. On March 1 Tansian issued 125,000 shares. On June 1 Tansian issued a 12% stock dividend. On 8/1 Tansian repurchased 24,000 shares of treasury stock. On December 31, 2016 Tansian declared a 1.5 to 1 stock split. Required: What are the weighted average shares at December 31, 2016? Note: I have included an illustration, with different amounts and dates, to help in completing exercise 4. Three Exercises 1. Crimpson Company had the following petty cash transaction during January 2016: Jan. 1 Established a petty cash fund of $200 12 Reimbursed the fund for the following expenses: Supplies expense $65.00 Postage expense 45.00 Miscellaneous expenses 25.00 Petty cash on hand prior to reimbursement was $68.00 28 Reimbursed the fund for the following expenses: Supplies expense $75.00 Miscellaneous expenses 35.00 Petty cash on hand prior to reimbursement was $86.00 31 Reduced the amount of the fund to $150.00 Required: Prepare the journal entries for the above January petty cash fund transactions. Exercise 2 on Next Page Three Continued: Page 2 of 4 2. Lexington Heating LLC records cash receipts deposited on a daily basis. All cash disbursements are made by checks. These disbursements are also recorded on a daily basis. The following information is provided for July 2016: Lexington general ledger checking account balance at July 31, 2016 was $4,634. The bank statement checking account balance was $4,884 at July 31, 2016. Cash receipts recorded for July 2016 in Lexington’s accounting records, but did not appear on the bank statement, totaled $487. Bank memos previously not available to Lexington are included in the bank statement. These memos includes a NSF check received from a customer for $143. Also, the were bank services charges of $11 for new checks ordered. Another memo advices Lexington that $543 has been deposited in their checking account ($550 less the bank charge of $7). This represents the net proceeds of a collection the bank had made on behalf of Lexington on a $550 note receivable. Checks written and recorded during July in Lexington’s accounting, but not included in the bank statement includes the following checks: Ck no. 1311 $ 59 Ck no. 1312 $ 91 Ck no. 1313 $120 Ck no. 1314 $ 74 Ck no. 1315 $ 35 Check 1146 was recorded in Lexington’s accounting recordings at $345 and listed in the bank statement at $543. This was not a bank error. Checks that were outstanding as of 30 June 2016 included check no. 1115 $167 and check no. 1118 $197. Check no. 1118 was paid in the bank statement and check 1115 was not. Required: Prepare a bank reconciliation at July 31, 2016. Three Continued: Page 3 of 4 3. Timken Inc. made $900,000 in sales during 2016. Twenty-five percent of these were cash sales. During the year, $22,500 of accounts receivable were written off as being uncollectible. In addition, $13,500 of the accounts that were written off in 2015 were unexpectedly collected. At its’ year-end December 31, 2016, Timken had $225,000 of accounts receivable. The balance in the Allowance for Doubtful Accounts general ledger account was $13,500 credit at December 31, 2015. Age (days) Accounts Receivable 1-30 $ 90,000 31-60 45,000 61-90 22,500 91-120 54,000 Over 120 13,500 Total $225,000 Required: 1) Prepare journal entries to record the following 2016 transactions: a. The write-off of $22,500 b. The recovery of $13,500 2) Recalculate the balance in the Allowance for Doubtful Accounts general ledger account at December 31, 2016. 3) The estimated uncollectible accounts at December 31, 2016 are calculated as follows: Age (days) Estimated Loss percentage 1-30 1.5% 31-60 3% 61-90 4% 91-120 9% Over 120 45% Required: Prepare the adjusting entry required at December 31, 2016. 4. Zinc Inc. worksheet for the preparation of its 2016 statement of cash flows included the following: 2016 December 31 January 1 Accounts receivable $32,000 $25,000 Allowance for uncollectible accounts 1,100 880 Prepaid rent expense 9,020 13,640 Accounts payable 24,640 21,340 Zinc’s 2016 net income is $165,000. What amount should Zinc include as net cash provided by operating activities in the statement of cash flows? Three Concluded: Page 4 of 4 5. In preparing its cash flow statement