AC 107 Genuine Education / snaptutorial.com

1. AC 107 Entire Course For more classes visit www.snaptutorial.com AC 107 Week 1 Unit 1 Assignment (Score 49.5/50) AC 107 Week 1 Discussion AC 107 Week 2 Unit 2 Assignment (Score 47/50) AC 107 Week 2 Discussion AC 107 Week 3 Unit 3 Assignment (Score 40/50) AC 107 Week 4 Unit 4 Key Assessment AC 107 Week 4 Discussion AC 107 Week 5 Unit 5 Assignment (Score 48/50) AC 107 Week 5 Discussion AC 107 Week 6 Unit 6 Assignment (Score 45/50) AC 107 Week 7 Discussion

2. AC 107 Week 7 Unit 7 Key Assessment CLO 3 AC 107 Final Exam Guide (100% Score) AC 107 Week 1 Quiz (100% Score) AC 107 Week 2 Quiz (100% Score) AC 107 Week 3 Quiz (100% Score) AC 107 Week 4 Midterm Exam (100% Score) AC 107 Week 5 Quiz (100% Score) AC 107 Week 6 Quiz (100% Score) ************************************************************* AC 107 Final Exam Guide (100% Score) For more classes visit www.snaptutorial.com

3. Question 1 On any given day, it is unlikely that the balance in the Cash account in the depositor's general ledger will be the same as the bank balance. Question 2 In the journal entry to record the daily cash receipts for sales, a cash shortage in a change fund is entered as a debit to Cash Short and Over for the amount of the shortage. Question 3 To reconcile the bank statement, which of the following amounts would be added to the bank statement ending balance? Question 4 The check written to establish the petty cash fund is recorded in the journal by entering a debit to Petty Cash and a credit to Cash for the amount of the check written.

4. Question 5 Part of the Sarbanes-Oxley Act (SOX) requires that management of publicly traded companies provide a statement that they understand their responsibility for maintaining adequate internal controls as well as a report on the effectiveness of the current controls. 6 The control activities of internal controls include the following: Question 7 Management creates the control environment for a business by setting the ethical and professional norms. Question 8 The Sales Returns and Allowance account is credited for the selling price of any merchandise returned by a customer. Question 9 Sales Revenue less sales returns and allowances and less sales discounts equals net sales. Question 10

5. The amount of sales tax collected is recorded in the Sales Tax Revenue account. Question 11 A customer returns merchandise that was delivered in poor condition and that does not meet specifications. The account that the customer would credit for the amount of the return is Question 12 Merchandise is sold on account for $90, and the sale is subject to sales tax of $5.40. The Sales Revenue account should be credited for Question 13 A list showing the amount due from each customer as of a specified date is known as a Question 14 Cash discounts off the invoice price of goods sold may be granted by the seller to encourage early payment of the invoice.

6. Question 15 When a business uses the perpetual inventory system the balance in the Inventory account is updated every time that merchandise is acquired or sold. Question 16 For merchandising businesses using the periodic inventory system, the account "Purchases" is used only to record the cost of merchandise acquired for resale. Question 17 The discount terms on an invoice are 3/15, n/30. This means that Question 18 Postings to the accounts payable ledger and the accounts receivable ledger should be completed daily.

7. Question 19 Which of the following indicates that the buyer must pay the transportation costs for items purchased? Question 20 An invoice of $300 dated April 2 is subject to credit terms of 2/10, n/30. If the invoice is paid on April 10, the amount to be paid would be Question 21 When a business uses a subsidiary accounts receivable ledger, there is no need to keep a summary, controlling accounts receivable account in the general ledger. Question 22 If a business sells its products first-in, first-out so that perishable items do not spoil, the accounting department is required to use the FIFO method of valuing ending inventory and cost of goods sold on the financial statements. Question 23

8. Understating ending inventory causes the net income to also be understated. Question 24 If the market value (replacement cost) of inventory is less than the inventory value reported in the ledger, the lower-of-cost-or-market rule requires that we record a loss as soon as we are aware of it. Question 25 When merchandise is purchased on account and the PERPETUAL inventory system is used, the journal entry for the purchase would include: Question 26 Under the PERIODIC inventory system, the merchandise inventory and the cost of goods sold for the current period are determined Question 27

9. The following data applies to a particular item of merchandise. The first numeric column shows the quantity purchased and the second numeric column shows the purchase price of each unit. On hand at the start of the period 300 $5.10 1st purchase 500 $5.20 2nd purchase 700 $5.30 3rd purchase 600 $5.50 Number of units available for sale 2,100 On hand at the end of the period - 500 Number of units sold during the period 1,600 Calculate the cost of goods sold using the FIFO method for the 1,600 units sold. Question 28 The following data applies to a particular item of merchandise. The first numeric column shows the quantity purchased and the second numeric column shows the purchase price of each unit. On hand at the start of the period 300 $5.10 1st purchase 500 $5.20 2nd purchase 700 $5.30 3rd purchase 600 $5.50

10. Number of units available for sale 2,100 On hand at the end of the period - 500 Number of units sold during the period 1,600 Calculate the cost of goods sold using the LIFO method for the 1,600 units sold. Question 29 When a business uses the periodic inventory system, the first adjusting entry to Merchandise Inventory will close the beginning balance to zero with a credit. The second entry to Merchandise Inventory will add the balance counted during the physical count with a debit. Question 30 Under the accrual basis of accounting, revenue is recorded when earned regardless of when cash is received. Question 31 Unearned revenue is reported as a(n)

11. Question 32 Sports, Inc. plans to sell season football tickets for the 10 games played from September through November. The tickets sell for $45 per season package On April 30, the office reports that it has sold 200 season ticket packages. The correct entry to record the sale of the season tickets is Question 33 The journal entry to record a cash shortage in the change drawer will include a credit to the account "Cash Over and Short". Question 34 The consistency principle states that, in general, accountants should use the same accounting methods from one period to the next. Question 35 The cost of goods available for sale minus the cost of goods sold = Question 36

12. The lower-of-cost-or-market rule is based on which accounting principle? Question 37 The FIFO method of accounting for inventory and cost of goods sold assumes that the oldest items are the first ones sold and the newest goods are still in ending inventory. Question 38 Unearned revenue is a liability account. Question 39 A business using the perpetual inventory system reports $125,000 in the Inventory asset account at the end of the accounting period. A physical count of inventory shows that there is $130,000 actually on hand. The journal entry to adjust the accounting records will include a debit to Inventory Short and Over for $5,000. Question 40

13. Which of the following statements about the expanded income statement for a business using the periodic inventory method is FALSE? ************************************************************* AC 107 Week 1 Discussion For more classes visit www.snaptutorial.com Discussion Questions 1. Who's Who in Accounting: o Who is the SEC? What is their role in the financial markets of the United States?

14. o Who is the FASB? What is their role in accounting and the preparation of financial reports? o In your own words explain what is meant by Generally Accepted Accounting Principles. o Who is the IASB? Do you think that the United States should change its rules for accounting in order to meet the goal of requiring uniform financial statements throughout the world? o In light of the recession of 2008/2009 and economic problems created during that time, do you think that the SEC was doing a good job? Why or why not? 2. What is the Purpose of Accounting: o What is the purpose of Accounting? o Identify and describe the four user groups normally interested in financial information. What kind of information is needed by each of these groups? o There are several professional certifications available to accountants. Explain the roles of the Certified Public Accountant (CPA), Certified Management Accountant (CMA), and Certified Internal Auditor (CIA). o If you were planning a career in accounting which of these certifications would you be interested in earning? Why? 3. Would you Like to Own your Own Business (Optional for secondary posting): Have you ever considered owning your own business? If so, what business would it be? Would it be a service, merchandising, or manufacturing business? Explain what form of ownership structure you would prefer and why. 4. 5.

15. 6. ************************************************************* AC 107 Week 1 Quiz (100% Score) For more classes visit www.snaptutorial.com Question 1 Stockholders own which type of business? Question 2 A business that purchases products from another business to sell to customers is called a

16. Question 3 An example of an expense is Question 4 The financial statement that shows the amount of the company's assets, liabilities, and owner's equity on a specific date is called a(an) Question 5 Increases in owner's equity may come from Question 6

17. The accounting equation may be expressed as Question 7 Jason purchased office equipment for $4,800 on account. This transaction would Question 8 GAAP are the procedures and guidelines to be followed in the accounting and reporting process. Question 9 Since supplies last for several months, they are recorded as assets. Question 10

18. According to the business entity concept, a proprietor may include nonbusiness assets and liabilities in the business entities accounting records. ************************************************************* AC 107 Week 1 Unit 1 Assignment (Score 49.5/50) For more classes visit www.snaptutorial.com UNIT 1 VOCABULARY MATCHING

19. IN THE BOX PROVIDED NEXT TO EACH VOCABULARY TERM RECORD THE LETTER OF ITS DEFINITION Term Definition 1. Account A. Three fundamental elements: Assets = Liabilities + Owner’s Equity 2. Accounts Payable B. Reports assets, liabilities, and owner’s equity on a specific date. Confirms that the accounting equation is in balance. 3. Accounts Receivable C. Concept that non-business assets and liabilities are not included in the business records. 4. Accounting Equation D. The costs of doing business. Costs incurred for the purpose of earning revenue.

20. 5. Assets E. Withdrawals by the owner that reduce capital by withdrawing cash or other assets for personal use. 6. Balance Sheet F. A business that makes a product to sell. 7. Business Entity Concept G. A record where we collect information that is similar. For example, all increases and decreases in the bank balance are recorded in the Cash account. 8. Corporation H. Ownership structure in which more than one person owns the business. 9. Expenses I. An act passed by Congress to help improve reporting practices of public companies. 10. GAAP J. Unwritten promise to pay a supplier for purchases or services received.

21. 11. Income Statement K. A type of ownership structure in which stockholders own the business. 12. Liabilities L. Generally Accepted Accounting Principles. Procedures and guidelines developed by FASB to be followed in the accounting and reporting process. 13. Manufacturing M. Business income or net loss. Reports revenue, expenses, and net 14. Merchandising Business N. A business that buys products to sell. 15. Net Income (Profit) O. Amount the business charges its customers for services or products sold. 16. Owner’s Name, Drawing P. A business that earns revenue by providing a service rather than a product.

22. 17. Owner’s Equity Q. (Capital) expenses. Revenues are greater than expenses. Excess of total revenues over total 18. Partnership R. Ownership structure in which only one person owns the business. 19. Revenue S. The category where we record amounts owed by a business to another business or individual (Debts). 20. Sarbanes-Oxley Act T. Reports beginning capital, plus net income, less withdrawals to compute ending capital for an accounting period 21. Service Business U. Amount owed to a business by its customers for the sale of goods or services. 22. Sole Proprietorship V. The amount by which business assets are greater than liabilities.

23. 23. W. Statement of Owner’s Items owned by the business that will provide Equity future benefits. ACCOUNTING ELEMENTS Click on the CLASSIFICATION box next to the account name, then click on the arrow to see the dropdown list and identify each of the accounts as an asset, iability, owner’s equity, revenue or expense account. Then click on the FINANCIAL STATEMENT box next to the account to see the dropdown list and identify the statement where this account is reported. The chart of account handout (tab in this assignment file) is an excellent resource to use to check your answers!

24. Asset Liability Income Statement Owner’s Equity Statement of Owner’s Equity Revenue Balance Sheet Expense ACCOUNT STATEMENT CLASSIFICATION FINANCIAL Cash Rent Expense Accounts Payable Accounts Receivable Service Fees Revenue Office Equipment

25. Supplies Wages Expense Wages Payable Prepaid Insurance John Smith, Drawing John Smith, Capital IDENTIFYING AFFECTED ACCOUNTS. Every business transaction will affect at least two accounts in the financial records. This

26. week each one will affect TWO and ONY TWO accounts. For each of the transactions below ************************************************************* AC 107 Week 2 Discussion For more classes visit www.snaptutorial.com Discussion Questions 1. Analyzing Financial Transactions: In Chapter 4 of your text, pages 90 – 93, carefully review the accounting transactions for Rohan's Campus Delivery and how they are entered in the general journal. Before you begin please watch the video demonstrations of the completion of these journal entries in the Week 2 Classroom. Once you understand how these journal entries are prepared, please select one transaction from the list of transactions for Barry Bird Basketball Camp in the Mastery Problem on pages 125-126 and answer the questions below for that transaction. There are 23

27. journal entries in this problem, so each of you must select an entry that has not been completed by a classmate! First come, first served! Please be sure to identify your entry by the date of the transaction and provide your response in your own words. One helpful way to reach the minimum 250-word count requirement is to define any new terms or explain any new concepts that you are using. o What happened? (Describe the transaction) o Which two accounts are affected by this transaction? Are they increased or decreased? o What type of accounts is each of the two that are affected (assets, liabilities, owner's equity, revenue, expense)? o What is the normal balance of each of these two accounts? (Normal debit balance or normal credit balance?) o In the journal entry, which account is debited and which account is credited? 2. Ethics Question: Bob Jones owns a small business as a sole proprietor. One day he used the company debit card to fill up the gas tank in his wife’s car that was not used for business purposes. Using a debit card takes money out of his bank account immediately. He told his bookkeeper to record a debit for the $40 charge to the account “Auto Expense” and to record the credit to Cash. o What account should the gas have been debited to? o What account would be credited? o What accounting concept has been violated? (Hint: Check your vocabulary matching exercise in the Week 1 Assignment.) o How will this transaction affect the income statement for this month? o Do you think this is ethical? Why or why not?

28. Discussion Questions 1. Adjusting Journal Entries: Note: Before you answer this question be sure to review the information about these journal entries in your text and the video presentations and the supplementary materials. Select one of the four following types of adjustments and answer all of the questions below as they relate to the adjustment you have chosen. Remember, your primary posting must be a short answer essay of at least 250 words that fully explains each part of the question. 1. Record depreciation expense 2. Adjust for supplies usage 3. Adjust prepaid insurance 4. Accrue wages earned but not yet paid  Why is this adjusting journal entry prepared?  Which accounts are affected? Are they increased or decreased?  Which account is debited and which one is credited? How do we determine the amount of the adjustment debit and credit?  Are the affected accounts assets, liabilities, owner’s equity, revenue, or expense accounts?  Are these accounts reported on the income statement, statement of owner's equity, or the balance sheet? 2. Cash vs. Accrual Accounting: Explain the difference between the cash basis, modified cash basis, and the accrual basis measures of performance. Provide examples of accounts that are treated differently under the three methods. Be sure to review the related PowerPoint Presentation in the Unit 3 Presentations/Lectures and in the Supplementary Materials. o Why, in most cases, does accrual basis net income provide a better measure of performance than cash basis net income? o Explain the purpose of adjusting entries as they relate to the difference between cash and accrual accounting. Which

29. generally accepted accounting principle (GAAP) rule does accrual accounting fulfill Financial Statements: This question MAY NOT be used as your primary posting. It may be answered only as a secondary or reply post with a minimum 100-wordcount requirement. The three primary financial statements that we have seen so far are the Balance Sheet, Statement of Owner's Equity, and the Income Statement. Please describe which account categories belong on which statement and identify them as temporary or permanent accounts. These statements must be prepared in a particular order. Which statements are prepared first, second, and third? Why do we have to prepare them in this order? Generally Accepted Accounting Principles: This question MAY NOT be used as your primary posting. It may be answered only as a secondary or reply post with a minimum 100-word count requirement.This week we have learned about four of the generally accepted accounting principles – revenue recognition, expense recognition, the matching principle, and the historical cost principle. Briefly explain what is meant by each of these and how they are applied to accrual accounting. ************************************************************* AC 107 Week 2 Quiz (100% Score)

30. For more classes visit www.snaptutorial.com Question 1 If John Smith, the owner of Smith Accounting Services, deposits $10,000 in cash as the original investment into his business, the journal entry to record this transaction includes a debit to cash for $10,000 and a credit to John Smith, Capital for $10,000. 2 out of 2 points To debit an account means to enter an amount on the left side of the account in the t-account, the general journal, and the general ledger. Question 3 2 out of 2 points

31. At least two accounts are afffected by every transaction. Question 4 2 out of 2 points The purpose of a journal is to provide a chronological record of all transactions completed by the business. Question 5 2 out of 2 points Your business pays the monthly rent in the amount of $1,000. The journal entry to record this transaction includes a debit to the Cash account for $1,000 and a credit of $1,000 to the Rent Expense account. Question 6 2 out of 2 points

32. The second set of debit and credit columns in the general ledger is used to show the new balance in the account after an entry has been posted from the journal. Question 7 2 out of 2 points Assets and expense accounts have a NORMAL Question 8 2 out of 2 points The Owner, Drawing account should be used to show Question 9 2 out of 2 points

33. The normal balance of the Owner's Capital account Question 10 2 out of 2 points The Posting Reference column of the journal provides a cross- reference between the ************************************************************* AC 107 Week 2 Unit 2 Assignment (Score 47/50)

34. For more classes visit www.snaptutorial.com VOCABULARY MATCHING IN THE BOX PROVIDED NEXT TO EACH VOCABULARY TERM RECORD THE LETTER OF ITS DEFINITION Term Definition 1. Account balance A. A day-by- day listing of the transactions of a business. 2. Chart of accounts B. The side of an account where an increase is recorded. 3. Credit C. This balance shows the ending amount calculated in an account. It is the difference between the footings of an account in a t-account

35. and also the ending balance in the general ledger. 4. Debit D. To post to the right side of an account. 5. General ledger E. A list of all accounts and their balances to prove the equality of debits and credits. 6. Journal F. A complete set of all accounts used by a business. It accumulates the complete record of the debits and credits made to the account. maintains the running balance. 7. Normal balance G. Any document that provides information about a business transaction. 8. Posting H. To post to the left side of an account.

36. 9. Source document I. A list of all accounts used by a business. 10. Trial balance J. Copying the debits and credits from the journal to the ledger. DEBIT AND CREDIT ANALYSIS Click on the debit/credit box next to the account change, then Select: click on the arrow to see the dropdown list and identify whether the change will be recorded with a debit or a credit. debit credit Hint: The Normal Balance Handout that is provided as a tab in this assignment

37. file and in the Week 2 Learning Activities folder is an excellent reference to help you with this assignment. (a) The asset account Cash is increased with a (b) The liability account Accounts Payable is increased with a (c) The asset account Cash is decreased with a (d) The revenue account Delivery Fees is increased with a (e) The owner's Drawing account is increased with a (f) The asset account Accounts Receivable is increased with a

38. (g) The Rent Expense account is increased with a (h) The owner's Capital account is increased with a (i) The Prepaid Insurance asset account is increased with a EXERCISES 4-4A & 4- 5A Complete Exercises 4-4A and 4-5A found on pp. 115 & 116 of your textbook. Post the account names and the debit and credit amounts. Some of the account names are provided. Fill in the names of the missing accounts and the account numbers as the

39. posting reference. You will find these in the question on page 117. The dates and descriptions have also been provided. After the journal is completed, post the transactions to the general ledger in the 'Ledger' tab, and then prepare the trial balance in the Trial Balance' tab. The first journal entry has been completed as an example for you to follow. Please note the following formatting rules: 1. In this exercise two accounts are affected by each transaction. One account is given to &nb ************************************************************* AC 107 Week 3 Discussion

40. For more classes visit www.snaptutorial.com Discussion Questions 1. Adjusting Journal Entries: Note: Before you answer this question be sure to review the information about these journal entries in your text and the video presentations and the supplementary materials. Select one of the four following types of adjustments and answer all of the questions below as they relate to the adjustment you have chosen. Remember, your primary posting must be a short answer essay of at least 250 words that fully explains each part of the question. 1. Record depreciation expense 2. Adjust for supplies usage 3. Adjust prepaid insurance 4. Accrue wages earned but not yet paid  Why is this adjusting journal entry prepared?  Which accounts are affected? Are they increased or decreased?  Which account is debited and which one is credited? How do we determine the amount of the adjustment debit and credit?  Are the affected accounts assets, liabilities, owner’s equity, revenue, or expense accounts?  Are these accounts reported on the income statement, statement of owner's equity, or the balance sheet?

41. 2. Cash vs. Accrual Accounting: Explain the difference between the cash basis, modified cash basis, and the accrual basis measures of performance. Provide examples of accounts that are treated differently under the three methods. Be sure to review the related PowerPoint Presentation in the Unit 3 Presentations/Lectures and in the Supplementary Materials. o Why, in most cases, does accrual basis net income provide a better measure of performance than cash basis net income? o Explain the purpose of adjusting entries as they relate to the difference between cash and accrual accounting. Which generally accepted accounting principle (GAAP) rule does accrual accounting fulfill Financial Statements: This question MAY NOT be used as your primary posting. It may be answered only as a secondary or reply post with a minimum 100-wordcount requirement. The three primary financial statements that we have seen so far are the Balance Sheet, Statement of Owner's Equity, and the Income Statement. Please describe which account categories belong on which statement and identify them as temporary or permanent accounts. These statements must be prepared in a particular order. Which statements are prepared first, second, and third? Why do we have to prepare them in this order? Generally Accepted Accounting Principles: This question MAY NOT be used as your primary posting. It may be answered only as a secondary or reply post with a minimum 100-word count requirement.This week we have learned about four of the generally accepted accounting principles – revenue recognition, expense recognition, the matching principle, and the historical cost principle. Briefly explain what is meant by each of these and how they are applied to accrual accounting.

42. ************************************************************************************************************************** AC 107 Week 3 Quiz (100% Score) For more classes visit www.snaptutorial.com Question 1 2 out of 2 points Stockholders own which type of business? Question 2 2 out of 2 points A business that purchases products from another business to sell to customers is called a

43. Question 3 2 out of 2 points An example of an expense is Question 4 2 out of 2 points The financial statement that shows the amount of the company's assets, liabilities, and owner's equity on a specific date is called a(an) Question 5 2 out of 2 points Increases in owner's equity may come from Question 6 2 out of 2 points

44. The accounting equation may be expressed as Question 7 0 out of 2 points Jason purchased office equipment for $4,800 on account. This transaction would Question 8 2 out of 2 points GAAP are the procedures and guidelines to be followed in the accounting and reporting process. Question 9 2 out of 2 points Since supplies last for several months, they are recorded as assets. Question 10

45. 2 out of 2 points According to the business entity concept, a proprietor may include nonbusiness assets and liabilities in the business entities accounting records. ************************************************************* AC 107 Week 3 Unit 3 Assignment (Score 40/50) For more classes visit www.snaptutorial.com

46. journal Entires This comprehensive problem is intended to serve as a mini- practice set without the source documents. As such, students should plan on about three to four hours to complete this problem. The following transactions took place during April 20-- . Journal the following April entires in the general jouranl provided in colums M-Q Requried; Apr. $90,000. 1 Night invested cash in business, 1 Paid insurance premium for six-month camping season, $9,000. Paid rent for lodge and campgrounds for the month of April, $40,000. 2

47. 2 Deposited registration fees, $35,000. Purchased 10 fishing boats on account for $60,000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. Arrangements were made to pay for the boats in July. 2 3 Purchased food supplies from Acme Super Market on account, $7,000. 5 Purchased office supplies from Gordon Office Supplies on account, $500. 7 Deposited registration fees, $38,600.

48. 10 Purchased food supplies from Acme Super Market on account, $8,200. 10 Paid wages to fishing guides, $10,000. 14 Deposited registration fees, $30,500. Apr. account, $9,000. 16 Purchased food supplies from Acme Super Market on 17 Paid wages to fishing guides, $10,000. 18 Paid postage, $150.

49. 21 Deposited registration fees, $35,600. 24 Purchased food supplies from Acme Super Market on account, $8,500. 24 Paid wages to fishing guides, $10,000. 28 Deposited registration fees, $32,000. 29 Paid wages to fishing guides, $10,000. 30 Purchased food supplies from Acme Super Market on account, $6,000.

50. 1 ledger accounts below. Post the transaction from General Journal in Tab 1 in the 2 posted everything correctly Go to tab 3 and see if Col b and C balance. If they do you have If they do not balance, you will need to find your posting error in the general ledger below. When you balance go to step 3 3 Go to Tab 4 and journal the adjusting entries 4 Come back to Tab 2 and post adjusting entries in the orange rows. 5 and E Post the adjusting entries in the worksheet in Tab 3 in col D 6 In the Worksheet (Tab 3) create an Adjusted Trial Balance. by netting the debits and credits from the trial balance and the adjusting entries in the adjusted trail balance columns.