Ashford University ACC205 Week Two Assignment

| March 29, 2017

Question
Change Account to:
Based Upon Course Start Date
Exercise/
Problem
Ch 3 Ex 4

Account to
be changed

Original
Amount

Jan-Feb
125
150
72,000
78,000

Fish Trip
Boat rental

Mar-Apr
175
84,000

May-Jun
200
90,000

Jul-Aug
225
96,000

Sept-Oct
250
102,000

Nov-Dec
275
108,000

YOUR ANSWERS
BASED UPON
COURSE START
DATE

Questions

Prepare journal entries to record (1) the collection of monies
from tourists and (2) the revenue generated during January.
Cash
Unearned Fish Trips
Unearned Fish Trips
Earned Fish Trips

Calculate Hawaii-Blue’s total obligation to tourists at the end
of January

On what financial statement and in which section would this
amount appear?

What section of the financial statement would this amount
appear?

Prepare journal entries to record (1) the payment to Pacific
Yacht Supply and (2) the subsequent adjustment on January
31.
Prepaid Boat Rental
Cash
Boat Rental Expense
Prepaid Boat Rental

On what financial statement would HawaiiBlue’s January boat rental cost appear?

Account to
be changed
Ch 3 Ex 8
Miguel Gomez, Drawing
Service Revenue
Rent Expense

Original
Amount
2,500
38,000
9,000

3000
39000
9500

3500
40000
10000

4000
41000
10500

3500
47000
17000

5000
49000
17500

5500
50000
18000

YOUR ANSWERS
BASED UPON
COURSE START
DATE
Service Revenue
Capital
Capital
Rent Expense
Insurance Expense
Advertising Expense
Utilities Expense

Capital
Drawing

Account to
be changed

Original
Amount

Ch 4 Ex 3
Balance per bank
Note collected by bank

6150
1000

$6,252
1,102

$6,354
1,204

$6,456
1,306

$6,558
1,408

$6,660
1,510

$6,762
1,612

0.06

0.07

0.08

0.09

0.1

0.11

0.15

0.16

0.17

0.18

0.19

0.2

YOUR ANSWERS
BASED UPON
COURSE START
DATE
Balance per bank
Deposits in transit
Outstanding checks
Adjusted Bank Balance
Balance per company records
Bank service charge for January
Interest on note collected by bank
Note collected by bank
NSF check returned by the bank with
the bank statement
Adjusted Book Balance

Ch 4 Ex 6

Account to
be changed
5% of credit sales
14% of accounts receivable

(1) Uncollectible accounts are
estimated to be 5% of Credit
Sales.

Original
Amount
0.05
0.14
YOUR ANSWERS
BASED UPON
COURSE START
DATE

Uncollectible Accounts Expense
Allowance for Uncollectible
Accounts
(2) Uncollectible accounts are
estimated to be 14% of Accounts
Receivable.
Uncollectible Accounts Expense
Allowance for Uncollectible
Accounts
How would Maverick’s Accounts
Receivable appear on the
December 31 balance sheet under
assumption (1) of part (a)?
Accounts Receivable
Less: Allowance for
Uncollectible Accounts
How would Maverick’s Accounts
Receivable appear on the
December 31 balance sheet under
assumption (2) of part (a)?
Accounts Receivable
Less: Allowance for
Uncollectible Accounts
Net Receivables

Ch 4 Pb 3

Account to
be changed
Percentage of Accounts
Expected to Be Collected

Original
Amount
0.99

96%

93%

90%

87%

84%

81%

YOUR ANSWERS
BASED UPON
COURSE START
DATE
What is the company’s
Uncollectible Accounts expense
for 20X2?
Compute the net realizable
value of Accounts Receivable at
the end of 20X1 and 20X2.
Net Realizable value 20X1

Net Realizable
value 20X2

Accounts receivable
Less: Allowance for Uncollectible Accounts
Net Realizable Value

Compute the net realizable value
at the end of 20X1 and 20X2 as a
percentage of respective yearend receivables balances.
Analyze your findings and
comment on the president’s
decision to close the credit
evaluation department.

20X1

20X2

Ch 3 Pb 3

Account to
be changed
Unrecorded interest
Total Tuition in advance
Depreciation
Rent
Salaries
Feb 1 20X2

Original
Amount
275
60000
3000
21000
400
540

Jan-Feb
Mar-Apr
May-Jun
Jul-Aug
Sept-Oct
Nov-Dec
300
325
350
370
376
377
70000
71000
74000
75000
79000
83000
4000
4100
4200
4300
4400
4500
24000
30000
36000
42000
48000
54000
500
600
700
800
900
950
600
610
620
640
650
660

Jan 1 20X3

912

YOUR ANSWERS BASED UPON COURSE
START DATE
Debits
Credits
Unrecorded interest owed to the
center totaled $275 as of
December 31.

Interest Expense
Interest Payable

All clients pay tuition in
advance, and their payments are
credited to the Unearned Tuition
Revenue account. The account was
credited for $75,500 on August
31. With the exception of
$15,500, which represented
prepayments for 10 months’
tuition from several well-to-do
families, all amounts were for
the current semester ending on
December 31.

Unearned Tuition Revenue
Tuition Revenue
Depreciation on the school’s van
was $3,000 for the year.

Depreciation Expense
Accumulated Depreciation

1000

1050

1060

1070

1090

1095

On August 1, the center began to
pay rent in 6-month installments
of $21,000. Kathy wrote a check
to the owner of the building and
recorded the check in Prepaid
Rent, a new account.

Rent Expense
Prepaid Rent

Two salaried employees earn $400
each for a 5-day week. The
employees are paid every Friday,
and December 31 falls on a
Thursday.

Salary Expense
Salaries Payable
Kathy’s Day Care paid insurance
premiums as follows, each time
debiting Prepaid Insurance:
Date
Feb.
Jan.
Aug.

Paid
1, 20X2
1, 20X3
1, 20X3

Policy No.
1033MCM19
7952789HP
XQ943675ST

Insurance Expense
Prepaid Insurance

Length of Polic
Amount
1 year
$540
1 year
912
2 years
840

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