ASSIGNMENT #2 - CHAPTERS 13, 14, 15, 17 - DUE DECEMBER 11, 2013
Please answer all 8 questions in this assignment. Only one attempt is allowed. This assignment is out of 63
marks and car
Problem 14-1A (60 minutes)
Part 1 Calculate the missing amounts
Costs and expenses.
Income from continuing operations.
Gain/(Loss) on discontinued operations.
Net income (loss).
FINANCIAL ACCOUNTING 2
MIDTERM TEST #1 -SOLUTIONS
TEXT: FUNDAMENTAL ACCOUNTING PRINCIPALS - 14TH EDITION
TOTAL MARKS - 100%
CHAPTERS: 9, 10, 11, 12
PART 1 - 25 MARKS
CHAPTER 10 - QUIZ - SOLUTIONS
1) Property, plant and equipment are:
Tangible assets used in the operation of a business having a useful life of more than one accounting period.
Intangible assets used in the operatio
CHAPTER 9 - QUIZ - SOLUTIONS
1) Accounts receivable accounts for specific customers are important because they show:
How much each customer purchases.
How much each customer has paid.
How much each customer still owes.
The basis for sending bills to custo
CHAPTER 12 - QUIZ - SOLUTIONS
1) Disadvantages of a partnership include:
Co-ownership of property.
All of these answers are correct.
2) Unlimited liability of partners is:
The agreement between partners t
CHAPTER 11 - QUIZ - SOLUTIONS
1) On December 31, 2015, Peligrino Co. has a long term note payable of $800,000. Of that balance, $100,000 will be paid within one year from the balance sheet
date. How much of the note payable should Peligrino Co. report as
Problem 11-2A (45 minutes)
Date of the note.
Term of the note.
Problem 12-1A (50 minutes)
To close Income Summary.
To close Income Summary.*
CHAPTER 13 PRACTICE QUESTIONS TO BE DONE IN CLASS
1. The following account balances for Katherine Corporation are for the year ended October 31, 2015. Complete an Income Statement for the
year assuming the income tax rate is 20%.
2. Sheryl Inc. is au
Corporate Form of Organization
An entity created by law that is separate from its owners. Owners are called shareholders. Each unit
of ownership is called a share. A publicly held corporation offers its shares for public sale (organized
Please note that Chapter 9 is not included in the textbook, the chapter is available through this link
Recognizing Accounts Receivable
From direct company sales on creditdebit accounts receivable for the full amo
Property, plant and equipment
Property, plant and equipment may be tangible or intangible. Assets used in the operations to help
generate revenue and have a useful life of more than one accounting period are property, plant and
Alpha Co paid $180,000 to purchase a piece of land on which to build a new building.
Additional costs incurred were:
What dollar amount of the above costs should be allocated to Land and what amount should be
allocated to the new Building?
A future payment of assets or services that a company is presently obligated to make as a result of
past transactions or events. Note three crucial factors:
1. Due to past transaction or event.
2. Present obligation.
PARTNERSHIP FORM OF ORGANIZATION
An unincorporated association of two or more people to pursue a business for profit as co-owners.
Characteristics of General Partnerships
1. Partnership Agreementshould be in writing but may be expressed orally.
Problem 13-3A (25 minutes)
Apr. 1 Preferred Shares.
To record the conversion of 1,000 preferred /
shares into 8,000 common shares;
$600,000 2,500 shares = $240 average issue
price per preferred share; $240 x 1,000 = $240,000
Problem 13-2A (20 minutes)
Retained earnings December 31, 2014.
Reductions in retained earnings due to transactions:
Cash dividends declared:
March 16, on 96,000 shares (96,000 $0.20).
June 15, on 96,000 shares.
Sept. 5, on 96,000 shares.
Nov. 22, on 115,
Problem 9-4A (35 minutes)
a. Accounts Receivable.
Cost of Goods Sold.
Allowance for Doubtful Accounts.
Bad Debt Expe