exam1Bsolution - NAME INTERMEDIATE ACCOUNTING 131A,WINTER...

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NAME INTERMEDIATE ACCOUNTING 131A,WINTER 2014 EXAM 1 1) SMITH HAS THE FOLLOWING TWO TRANSACTIONS: - PURCHASED 500 UNITS OF INVENTORY AT $7.50/UNIT - SOLD 350 UNITS OF INVENTORY FOR $18/UNIT ASSUME UNITS PURCHASED ON CREDIT. ASSUME UNITS SOLD ON CREDIT. ASSUME BEGINNING INVENTORY IS ZERO. REQUIRED: PREPARE ALL CORRESPONDING JOURNAL ENTRIES UNDER THE PERPETUAL METHOD. (5 POINTS) INVENTORY 3,750 AP 3,750 AR 6,300 REVENUE 6,300 COGS 2,625 INVENTORY 2,625 2) JONES HAS THE FOLLOWING DATA REGARDING BAD DEBT EXPENSE AND THE ALLOWANCE FOR DOUBTFUL ACCOUNTS: BEGINNING ALLOWANCE 5,000 ENDING ALLOWANCE 5,375 BAD DEBT EXPENSE 5,600 REQUIRED: WHAT IS THE AMOUNT OF AR WRITTEN OFF DURING THE ACCOUNTING PERIOD? (5 POINTS) BEGINNING ALLOWANCE 5,000 BAD DEBT EXPENSE 5,600 ENDING ALLOWANCE (5,375) AR WRITTEN-OFF 5,225 3) JOHNSON HAS THE FOLLOWING DATA REGARDING AN AVAILABLE FOR SALE SECURITY: YEAR ONE PURCHASE PRICE 8,800 12/31/01 FMV 9,400 YEAR TWO SALES PRICE 9,850 REQUIRED: PREPARE ALL JOURNAL ENTRIES ASSOCIATED WITH THIS SECURITY. (10 POINTS) SECURITY 8,800 CASH 8,800 SECURITY 600 OCI 600 CASH 9,850 OCI 600 SECURITY 9,400 REALIZED GAIN 1,050
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4) WILSON HAS THE FOLLOWING DATA: (A) SECURITY ABC - BOUGHT JULY 15TH YEAR 1 COST 6,800 DECEMBER 31ST YEAR 1 FMV 7,700 SOLD YEAR TWO BEGINNING BALANCES YEAR 1: RETAINED EARNINGS 172,000 ACCUMULATED OCI 24,000 COMMON STOCK 250,000 YEAR ONE ACTIVITY: NET INCOME 75,000 UNREALIZED GAINS SEE (A) DIVIDENDS DECLARED 25,000 REQUIRED: PREPARE THE YEAR ONE STATEMENT OF STOCKHOLDERS' EQUITY (10 POINTS) ACCUMULATED OTHER COMPRE-
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