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    ACC2101 Midterm Review

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    albert
    This document provides a review of accounting concepts covered on a midterm exam. Key points include: - Deferred revenue arises when assets are received before performance is provided. - Stockholder's equity does not report revenue. - The accounting equation can be used to calculate net income given beginning and ending balances. - Interest revenue for a lender is interest expense for a borrower. - LIFO and FIFO inventory methods calculate cost of goods sold differently. - Adjusting entries do not involve cash transactions. - Perpetual and periodic inventory systems calculate cost of goods sold at different times.

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    ACC2101 Midterm Review

    Uploaded by

    albert
    55 views3 pages
    This document provides a review of accounting concepts covered on a midterm exam. Key points include: - Deferred revenue arises when assets are received before performance is provided. - Stockholder's equity does not report revenue. - The accounting equation can be used to calculate net income given beginning and ending balances. - Interest revenue for a lender is interest expense for a borrower. - LIFO and FIFO inventory methods calculate cost of goods sold differently. - Adjusting entries do not involve cash transactions. - Perpetual and periodic inventory systems calculate cost of goods sold at different times.

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    Financial Accounting T Accounts Review

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    This document provides a review of accounting concepts covered on a midterm exam. Key points include: - Deferred revenue arises when assets are received before performance is provided. - Stockholder's equity does not report revenue. - The accounting equation can be used to calculate net income given beginning and ending balances. - Interest revenue for a lender is interest expense for a borrower. - LIFO and FIFO inventory methods calculate cost of goods sold differently. - Adjusting entries do not involve cash transactions. - Perpetual and periodic inventory systems calculate cost of goods sold at different times.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    55 views3 pages

    ACC2101 Midterm Review

    Uploaded by

    albert
    This document provides a review of accounting concepts covered on a midterm exam. Key points include: - Deferred revenue arises when assets are received before performance is provided. - Stockholder's equity does not report revenue. - The accounting equation can be used to calculate net income given beginning and ending balances. - Interest revenue for a lender is interest expense for a borrower. - LIFO and FIFO inventory methods calculate cost of goods sold differently. - Adjusting entries do not involve cash transactions. - Perpetual and periodic inventory systems calculate cost of goods sold at different times.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Accounting Midterm Review

    2. Timing
    3. Assets before performance = deferred revenue
    4. Stockholder’s equity doesn’t report revenue
    5.
    6. Beg + NI – Div = End
    NI = End – Big +Div
    =15k – 12k +1k
    = 4k
    7. Oct. 15
    Dr. Cash 50,000
    Cr. Deferred/Unearned Revenue 50,000
    Nov. 20
    Dr. Deferred Revenue 50,000
    Cr. Service Revenue 50,000
    8. Company lends out money, interest = interest revenue for lender, for borrower it is interest
    expense  B
    LENDER
    July 1
    Dr. Notes Receivable 9,000
    Cr. Cash 9,000
    December 31
    Dr. Interest Receivable 450
    Cr. Interest Revenue 450
    Interest  10%/12 x 6 x 9,000 = 450
    April 1
    9,000 + 10%/12 x 9 x 9,000
    =9,000 + 675 = 9675
    675 = 450 (6 months) + 225 (3 months)
    Dr. Cash 9,675
    Cr. Notes Receivable 9,000
    Cr. Interest Receivable 450
    CR. Interest Revenue 225
    For Borrower, change receivable to payable, change revenue to expense
    9. Draw T-account
    Allowance Dr. 950
    Cr. 1,000
    1000+?-950 = 1,320
    ? = 1,270
    10.
    Dr. Cash 1,000
    Cr. Sales Revenue 1,000
    Dr. Cost of Goods Sold 800
    Cr. Inventory 800
     Matching Principle
    12.
    A/R  Dr. 311,000
    Allowance  2% x 311,000 = 6,220
    13.
    LIFO  start w/ purchases
    FIFO  start w/ beginning inventory
    100 x $16 + 350 x $20
    = 8,600
    LIFO
    400 x $20 + $50 x $16
    = 8,800
    14. Rotan Corp.
    Adjusting Entries don’t have CASH  C
    15.
    Which increases assets, decreases liabilities
    B  purchases inventory on account
    16.
    A.
    17.
    Shoeless Joe Inc.
    Gross Profit = Sales/Revenue – COGS
    Gross Profit = 25 x $7 – (15 x 3 +10 x 2)
    Gross Profit = 175 - 65
    Perpetual – calculate COGS immediately
    Periodic – calculate COGS at the end of a period for everything
    18.
    A/R Beginning Balance = $471K (Debit)
    Debit 315K
    Credit 319k
    Credit 1720
    A/R Ending Balance = 465,280
    Allowance Beginning Balance = $1,650 (Credit)
    Debit 1720
    19.
    Ending Balance = .5% x 465,280 = 2,326
    20,
    2,326 = 1,650 – 1,720 +?
    ? = 2,396  C
    21.
    Adjusting Entry  NO CASH  A
    23.
    Net Realizable Value
    Compare cost and NRV from market
    A. Cost = 650, NRV = 685
    B. Cost = 625, NRV = 550
    625 – 550 = 75
    we must reduce $75 from our inventory
    Dr. COGS 75
    Cr. Inventory 75  this is the only we need from C6
    24.
    D
    25.
    Average beginning, purchase 1, purchase 2
    40 + 18 + 24 – 20 = 62 Units Sold
    Gross Profit = Sales – COGS
    = 62 x 20 –
    C

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