1-The following information was made available from the income statement and banace sheet of laurence Company

LAUREN COMPANY
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2010
CASH FLOWS FROM OPERATING ACTIVITY:
Sale / $ 243,000.00
Collect from Customer A/R / $ 53,000.00
Interest Received / $ 5,600.00
Inventory / $ 85,000.00
$ 143,600.00 / $ 386,600.00
Payment:
Account Payable / $ 35,600.00
Salary expenses / $ 28,000.00
Interest Expenses / $ 3,600.00
Expense Tax / $ 12,300.00
COGS / $ 65,000.00
Operating Expense / $ 28,500.00
$ 173,000.00 / $ 213,600.00
CASH FLOW FROM INVESTING ACTIVITIES:
CAH FLOWS FROM FINANCING ACTIVITIES:
Dividend Revenue / $ 1,200.00 / $ 1,200.00
NET INCREASE IN CASH:
Cash Balance December 31, 209
Cash Balance December 31, 2010 / $ 417,200.00

Complete the cash flow from operationf activity section for Lauren 31, 2010.

2. Given the following balance sheet complete a horizontal analysis. Compute the percentage to the nearest tenth of a percent.

Jill's Bikes
Compatative Balance Sheet
For Years Ended December 31, 2011, 2011 and 2010
(In Thousands) / 2011 / 2010 / Difference / Percentage
Assets
Current Assets
Cash and Equivalents / 72 / 94 / -22 / -23%
Account Receivable, net / 122 / 104 / 18 / 17%
Inventory / 288 / 232 / 56 / 24%
total Current Assets / 482 / 430 / 52 / 12%
Property, Plant and Equipment / 638 / 358 / 280 / 78%
Total Assets / 1120 / 788 / 332 / 42%
Liabilities
Current Liabilities
Account Payable / 242 / 148 / 94 / 64%
Accrued Liabilities / 48 / 66 / -18 / -27%
Total Current Liabilities / 290 / 214 / 76 / 36%
Long - Term Liabilities / 346 / 208 / 138 / 66%
Total Liabilities / 636 / 422 / 214 / 51%
Stocholders Equity
Common stock / 70 / 60 / 10 / 17%
Retained Earnings / 414 / 306 / 108 / 35%
Total Stockholders Equity / 484 / 366 / 118 / 32%
Total Liabilities and Stockholders' equity / $ 1,120.00 / $ 788.00 / 332 / 42%

1.Record the following transaction using the accounting equation.

Example Assets= Liability + Equity

  1. Amanda invests 17000 cash into her merchandising business.
  2. She buys 6,500 of office equipment and 3, 000 of office supplies with cash from office depot.
  3. Additional purchases were supplies for 35000 on account from various suppliers.

Asset / Liability / (+) / Stockholder's Equity
Office / Office / Account
Cash / (+) / Supplies / Equipment / Payable / Common Stock / (+) / Retain Earning
Common / Service / (-) / Salary / (-) / Dividends
Stock / Reveneu / Expenses
a) / Inventing / $ 17,000.00 / (+) / $ 17,000.00
b) / Buy OS / $ 8,600.00 / $ 3,000.00 / $ 5,600.00
$ 8,400.00 / $ 3,000.00 / $ 5,600.00 / $ - / $ 17,000.00
d) / As / $ 35,000.00 / $ 35,000.00
$ 8,400.00 / $ 38,000.00 / $ 5,600.00 / (=) / $ 35,000.00 / - / $ 17,000.00
$ 52,000.00 / $ 52,000.00

2-Journalize the following transactions and omit the explanations..

A ABC Corporation purchased 15,000 of office furniture by putting 7,000 down in cash adn the rest on account on April 8th.

B.The corporation paid 60,000 for a two year lease on April 19th.

C. The corporation had sale of 45,000, of which 35,000 were on account on April 20th.

D. The corporation borrowed 25,000 by signing a note payable on April 26th.

3. Prepare a trial balance from the following information for learn a new language, Inc. For December 31, 2012

Learn a New Language, Inc.
Trial balance
For the Period Ended DECEMBER 31, 2012
Debit / Credit
Cash / $3,928
Accounts Receivable / $1,142
Inventory / $8,074
Equipment / $8,345
Accounts Payable / $5,012
Notes Payable / $1,439
Common stock / $9,692
Sales (Revenue) / $6,616
Marketing Expense / $493
Wage expense / $777
$22,759 / $22,759

4. Compute the missing information from this post closing trial balance.

Post Closing Trial Balance
Cash / $ 34,689.00
Account Receivable / $ 9,467.00
Prepaid Rent / $ 5,000.00
Prepaid Insurance / $ 2,256.00
Supplies / $ 944.00
Account Payable / $ 5,389.00
Wages Payable / $ 1,684.00
Common Stock / $ 37,049.00
Retained Eranings / $ 8,234.00
Total / $ 52,356.00 / $ 52,356.00

5- Journalize the following transaction using the perpetual inventory method.

Aug 6 Purchased 830 of inventory on account from Johnston with terms of 2/10, n/30.

Aug 8Purchased 2,611 of inventory for cash from Pillner company

Aug 15 Paid for Augst 6 purchase from Johnston

Aug 17. Purchased 1,743 of merchandise on account from Luis Company with term of 3/15, n/45

Date / Accounts / Post REF. / DR / CR
6-Aug / Inventory / $ 830.00
Account Payable - Johnston / $ 830.00
8-Aug / Inventory / $ 2,611.00
Cash - Pillner Company / $ 2,611.00
15-Aug / Account Payable to Johnston / $ 830.00
Cash / $ 813.40
Inventory / $ 16.60
Record payment of inventory Purchase within the discount period
17-Aug / Account Payable to Luis Company / $ 1,743.00
Cash / $ 1,690.71
Inventory / $ 52.29
Record payment of inventory Purchase within the discount period

6- given the following information, prepare a balance sheet for Isaiah’s tools shed for the year ending December 31, 2012.

Isaiah's Tool Shed
Balance Sheet
Ending December 31st. 2012.
ASSETS / Liabilities
Current Asset / Current Liability
Cash / $65,750 / Accounts Payable / $29,450
Accounts Receivable / $11,478
Prepaid Supplies / $7,357
Inventory / $78,311
Prepaid Insurance / $8,250
Office Computers / $11,345
$182,491
STOCKHOLDER’S EQUITY
Long term Assets / Common Stock / $35,000
Land / $30,000 / Retained Earning / $179,319
Equipment / $27,500
Less: Accumulated
Depreciation / $23,459 / $4,041
Other PP&E / $31,446
$65,487
TAX / -$4,209
Total Asset / $243,769 / Total Liabilities and Shareholders Equity / $243,769

7- Rick Company’s beginning inventory and purchases during the fiscal year ended Dec 31, 2012, where as follows;(Note: the company uses a perpetual system of inventory)

Purchase / COGS / Inventory on Hand
Unit / Unit Price / Total Cost / Unit / Unit Price / Total Cost / Unit / Unit Price / Total Cost
January 1- Beginning Inventory / 18 / $ 24.00 / $ 432.00
March 12-Sold / 13 / $ 24.00 / $ 312.00 / 5 / $ 24.00 / $ 120.00
April 11-Purchase / 45 / $ 29.00 / $ 1,305.00 / 45 / $ 29.00 / $ 1,305.00
June 20-Sold / 33 / $ 29.00 / $ 957.00 / 12 / $ 29.00 / $ 348.00
Aug 16-Purchase / 35 / $ 27.00 / $ 945.00 / 35 / $ 27.00 / $ 945.00
Sept 11- Sold / 29 / $ 27.00 / $ 783.00 / 6 / $ 27.00 / $ 162.00
Total cost of inventory is 23 units / 80 / $ 2,250.00 / 75 / $ 2,052.00 / 23 / $ 3,312.00

What is the cost of goods sold for Risk Copany for 2012 using LIFO?

$2052.00

8- Assume that in Year 1, the ending merchandise inventory is overstated by $30,000. If this is the only error in Year 1 and Year 2, fill in the items below, indicting which items will be understated, overstated, or correctly stated for year 1 and 2.

Iteam / Year 1 / Year 2
Ending Inventory / Overstated / Onverstated
Beginnning Inventory / Overstated / Understated
Cost of Goods Sold / Overstated / Understated

9. Below is a list of treatment of accounting topics, Please GAAP on the line if the treatment is GAAP-based and place IFRS on the line if the treatment is IFRS-based

  1. Interest and dividend inco,e are reported in the investing section of the cash flow statement. (GAAP)
  2. Interest expense is reported in the financing section of the cash flow statement. (IFRS)
  3. The use of LIFO is prohibited, (IFRS)

10. Record the necessary journal entries from the following bank reconciliation information for July31, 2011.

Journal
DATE / ACCOUNTS / POST.
REF. / Dr. / Cr.
31-Jul-13 / Cash / $ 36,739.00
Bank Balance / $ 36,739.00
31-Jul-13 / Cash / $ 36,444.00
Check book balance / $ 36,444.00
Cash / $ 1,365.00
Note Receivable / $ 1,200.00
Interest / $ 165.00
Bank Collation of note Receivable
Micellaneous Expense / $ 35.00
Cash / $ 35.00
Bank Service Charge
Deposti / $ 2,400.00
Cash / $ 2,400.00
Acount Receivable - Check / $ 1,245.00
Cash / $ 1,245.00
Outstanding Check
Account Receivable - Customer / $ 330.00
Cash / $ 330.00
NSF Check from Customer
Account Receviable Add it / $ 450.00
Cash / $ 450.00
Check Correction #456

11. Journalize the following transactionfor Tommy Company

Sept. 1, Sold $3,500 of merchandise to Jim on account

Oct. 1, Exchanged Jim’s account receivable for a four month, 8% note for 3,500

Dec. 31, Recorded accrued interest on Jims note

Feb 1 Jim paid off his note with interest (round to nearest dollar)

Journal
DATE / ACCOUNTS / POST.
REF. / Dr. / Cr.
Sept / 1 / Account Receivable to Jim / $ 3,500.00
Sale Revenue / $ 3,500.00
Record Sale in Account
Oct / 1 / Note Receivable - Jim / $ 3,500.00
Account Receivable - Jim / $ 3,500.00
Record note receivable for account
Dec / 1 / Cash ($3500 + $93.34) / $ 3,593.34
Exchange note (3500 x .08 x 4/12) / $ 3,500.00
Interest reveneu / $ 93.34
Record collection of note receivable
Feb / 1 / Account receivable to Jim / $ 3,593.00
Cash / $ 3,593.00

12. A truck was purchased on January 2 at a cost of $60,000. It’s expected to be used for five years and to have a residual value of $5,000 after 120,000 miles of services. The Truck was driven for 23,000 miles the first year and 25,000 miles the second year. Calculate the depreciation expense to the nearest dollar for the first and second years.

Method YEAR 1 YEAR 2

Straight-line $ 11,000 $11,000

Double-declining balance $22,000 $22,000

Units-of – production $10,534 $11,450

13. Prepare the genreal journal entries for the following transaction.

Jan. 2, 2011 Purchase land with a building on it for $750,000. The land is worth $300,000 paid $ 150,000 cash down and signed a mortgage payable for the balance.

Dec. 31, 2011 Depreciation is computed using the straight-line method. The estimated salvage value of the building is $75,000 and has an estimated life of 20 years.

July 1, 2012 the building and land are sold for $825,000 cash.

Journal
DATE / ACCOUNTS / POST.
REF. / Dr. / Cr.
2-Jan-11 / Building / $ 450,000.00
Land / $ 300,000.00
Cash / $ 150,000.00
Note Payable / $ 600,000.00
Record purchase of land, a building
31-Dec-11 / Depreciation / $ 33,750.00
Accummulated Depreciation / $ 33,750.00
Record Depreciation of land, and building
1-Jul-13 / Sale Land / $ 825,000.00
Cash / $ 825,000.00
Gain on Sale / $ 75,000.00
Cash / $ 75,000.00
Record Sale of Building

14. Journalize the following treasury stock transactions:

June 3 Reacquired 350 share of $12 par common stock at $10 per share

June 7 Sold 180 shares of treasury stock for $16 per share

June 8 Sold 150 shares of treasury stock for $9 per share.

Journal
DATE / ACCOUNTS / POST.
REF. / Dr. / Cr.
Jun / 3 / Common Stock / $ 3,500.00
Cash (350 share x $10) / $ 3,500.00
Reacquire 350 shares
Jun / 7 / Cash (180 SHARE x $9) / $ 2,880.00
Treasury Stocks / $ 2,880.00
Issued no-par Treasury Stocks
Jun / 8 / Cash (150 share x $9) / $ 1,350.00
Treasury Stocks / $ 1,350.00
Issued no-par Treasury Stocks

15. Lowry Landscapes had net income of $50,000 for 2012. Land was sold for $40,000, of which $3000 was a gain. The beginning cash balance was $53,000, and the ending cash balance was 151,000. Depreciation expenses were $11,000. Prepare a statement of cash flows for the year ended Decemeber 31, 2010, for lowry landscapes using the indirect method.