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ACC 421 Final Exam Guide (New) 98% Score
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Transactions for Mehta Company for the month of May are presented
below. Prepare journal entries for each of these transactions.
On July 1, 2014, Crowe Co. pays $15,000 to Zubin Insurance Co. for a
3-year insurance policy. Both companies have fiscal years ending
December 31. For Crowe Co., journalize the entry on July 1 and the
adjusting entry on December 31.
Dresser Company’s weekly payroll, paid on Fridays, totals $8,000.
Employees work a 5-day week. Prepare Dresser’s adjusting entry on
Wednesday, December 31, and the journal entry to record the $8,000
cash payment on Friday, January 2
Side Kicks has year-end account balances of Sales Revenue $808,900;
Interest Revenue $13,500; Cost of Goods Sold $556,200; Administrative
Expenses $189,000; Income Tax Expense $35,100; and Dividends
$18,900. Prepare the year-end closing entrie
To convert cash receipts from customers to revenue on an accrual basis,
the following adjustments are made:
Cash receipts from customers

Subtract beginning A/R
Add ending A/R
Add beginning Unearned Service Revenue
Subtract ending Unearned Service Revenue
At the time a company prepays a cost
Starr Co. had sales revenue of $540,000 in 2014. Other items
recorded during the year were
Portman Corporation has retained earnings of $675,000 at January 1,
2014. Net income during 2014 was $1,400,000, and cash dividends
declared and paid during 2014 totaled $75,000. Prepare
On January 1, 2014, Richards Inc. had cash and common stock of
$60,000. At that date, the company had no other asset, liability, or equity
balances. On January 2, 2014, it purchased for cash $20,000 of equity
securities that it classified as available-for-sale. It received cash
dividends of $3,000 during the year on these securities.
Harding Corporation has the following accounts included in its
December 31, 2014, trial balance: Accounts Receivable $110,000;
Inventory $290,000; Allowance for Doubtful Accounts $8,000; Patents
$72,000; Prepaid Insurance $9,500; Accounts Payable $77,000; Cash
$30,000.
Patrick Corporation’s adjusted trial balance contained the
following asset accounts at December 31, 2014: Prepaid Rent $12,000;
Goodwill $50,000; Franchise Fees Receivable $2,000; Franchises
$47,000; Patents $33,000; Trademarks $10,000

Hawthorn Corporation’s adjusted trial balance contained the following
accounts at December 31, 2014: Retained Earnings $120,000; Common
Stock $750,000;
Keyser Beverage Company reported the following items in the most
recent year.
Ames Company reported 2014 net income of $151,000. During 2014,
accounts receivable increased by $13,000 and accounts payable
increased by $9,500. Depreciation expense was $44,000.
Martinez Corporation engaged in the following cash transactions during
2014.
2014.
A comparative balance sheet for Shabbona Corporation is presented
below.
Chris Spear invested $15,000 today in a fund that earns 8%
compounded annually. (Use the tables
below.)https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
Amy Monroe wants to create a fund today that will enable her to
withdraw $25,000 per year for 8 years, with the first withdrawal to take
place 5 years from today
Zach Taylor is settling a $20,000 loan due today by making 6 equal
annual payments of $4,727.53. (Use the tables below.)

Alan Jackson invests $20,000 at 8% annual interest, leaving the money
invested without withdrawing any of the interest for 8 years. At the end
of the 8 years, Alan withdraws the accumulated amount of money.
Guillen, Inc. began work on a $7,000,000 contract in 2014 to construct
an office building. Guillen uses the completed-contract method. At
December 31, 2014, the balances in certain accounts were Construction
in Process $1,715,000; Accounts Receivable $240,000; and Billings on
Construction in Process $1,000,000.
Lazaro Inc. sells goods on the installment basis and uses the
installment-sales method. Due to a customer default, Lazaro repossessed
merchandise that was originally sold for $800, resulting in a gross profit
rate of 40%. At the time of repossession, the uncollected balance is
$520, and the fair value of the repossessed merchandise is $275
Morlan Corporation is preparing its December 31, 2014, financial
statements. Two events that occurred between December 31, 2014, and
March 10, 2015, when the statements were issued, are described below.
Foley Corporation has seven industry segments with total
revenues as follows.
Operating profits and losses for the seven industry segments of Foley
Corporation are:
Heartland Company’s budgeted sales and budgeted cost of goods sold
for the coming year are $144,000,000 and $99,000,000, respectively.
Short-term interest rates are expected to average 10%. If Heartland can
increase inventory turnover from its present level of 9 times a year to a
level of 12 times per year.
The payout ratio is calculated by dividing

Presented below are four segments that have been identified by Haley
Productions:
At December 31, 2014, Grinkov Corporation had the following
account balances.
Indicate how these accounts would be reported in Grinkov’s December
31, 2014, balance sheet. The 2013 accounts are collectible in 2015, and
the 2014 accounts are collectible in 2016.
Brief Exercise 3-1
Brief Exercise 3-3
Brief Exercise 3-7
Brief Exercise 3-11
Practice Question 41
Multiple Choice Question 56
Brief Exercise 4-1
Brief Exercise 4-10
Brief Exercise 4-11
Brief Exercise 5-1
Brief Exercise 5-6
Brief Exercise 5-10
Brief Exercise 5-12
Brief Exercise 5-13

Brief Exercise 5-14
Brief Exercise 5-16
Exercise 5-16
Brief Exercise 6-1
Brief Exercise 6-14
Brief Exercise 6-17
Exercise 6-2
Brief Exercise 18-10
Brief Exercise 24-3 (Essay)
Brief Exercise 24-5
Brief Exercise 24-6
Brief Exercise 24-9
===============================================
ACC 421 Final Exam Guide (New)

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Number of Questions 30
Score atleast 90% easily with our EXCEL SHEET for any values
(EVEN IF VALUES CHANGES) of below mentioned Question
Exercise 129 Prepare the necessary adjusting journal entries indicated
by each item for the year ended December 31, 2017.
Exercise 132
1. An income statement.
2. A retained earnings statement.
3. A balance sheet.
Brief Exercise 3-2Splish Repair Shop had the following transactions
during the first month of business as a proprietorship. Journalize the
transactions
Brief Exercise 3-8 Included in Novak Company’s December 31 trial
balance is a note receivable of $12,360. The note is a 4-month, 10% note
dated October 1. Prepare Novak’s December 31 adjusting entry to record
$309 of accrued interest, and the February 1 journal entry to record
receipt of $12,772 from the borrower.

Brief Exercise 4-3 Kingbird Corporation had net sales of $2,423,900
and interest revenue of $39,100 during 2017. Expenses for 2017 were
cost of goods sold $1,464,800, administrative expenses $218,000, selling
expenses $283,500, and interest expense $54,200. Kingbird’s tax rate is
30%. The corporation had 103,100 shares of common stock authorized
and 72,670 shares issued and outstanding during 2017. Prepare a
condensed multiple-step income statement for Kingbird Corporation.
Exercise 4-2 Presented below is information related to Windsor
Company at December 31, 2017, the end of its first year of operations.
(a) Income from operations
(b) Net income
(c) Comprehensive income
(d) Retained earnings balance at December 31, 2017
Brief Exercise 4-7 Sheffield Company has recorded bad debt expense
in the past at a rate of 1.5% of accounts receivable, based on an aging
analysis. In 2017, Sheffield decides to increase its estimate to 2%. If the
new rate had been used in prior years, cumulative bad debt expense
would have been $383,900 instead of $298,500. In 2017, bad debt
expense will be $132,400 instead of $96,720. If Sheffield’s tax rate is
29%, what amount should it report as the cumulative effect of changing
the estimated bad debt rate?
Exercise 104 Presented below are changes in the account balances
of Wenn Company during the year, except for retained earnings.
(a) Compute the net income for the current year.

Question 13 The Marin, Inc. sold 10,350 season tickets at $2,040
each. By December 31, 2017, 16 of the 40 home games had been played.
What amount should be reported as a current liability at December 31,
2017?
Brief Exercise 5-2 Martinez Corporation’s adjusted trial balance
contained the following asset accounts at December 31, 2017: Cash
$9,750, Land $45,600, Patents $17,100, Accounts Receivable $94,270,
Prepaid Insurance $5,640, Inventory $39,400, Allowance for Doubtful
Accounts $4,500, and Equity Investments (trading) $11,570.Prepare the
current assets section of the balance sheet
Brief Exercise 5-8 Included in Sunland Company’s December 31,
2017, trial balance are the following accounts: Accounts Payable
$221,400, Pension Liability $380,600, Discount on Bonds Payable
$31,100, Unearned Rent Revenue $43,600, Bonds Payable $406,600,
Salaries and Wages Payable $29,000, Interest Payable $13,460, and
Income Taxes Payable $30,460.
Brief Exercise 5-9 Included in Windsor Company’s December 31,
2017, trial balance are the following accounts: Accounts Payable
$249,600, Pension Liability $376,400, Discount on Bonds Payable
$29,400, Unearned Rent Revenue $47,100, Bonds Payable $409,200,
Salaries and Wages Payable $27,100, Interest Payable $13,990, and
Income Taxes Payable $36,700.
Brief Exercise 5-13 Sarasota Company reported 2017 net income of
$152,800. During 2017, accounts receivable increased by $14,580 and
accounts payable increased by $9,723. Depreciation expense was
$46,700.
Brief Exercise 5-14 Compute the net cash provided (used) by investing
activities.

Brief Exercise 5-15 Compute the net cash used (provided) by
financing activities. 7.
Brief Exercise 6-2 What amount must he invest today if his
investment earns 12% compounded annually? What amount must he
invest if his investment earns 12% annual interest compounded
quarterly?
Brief Exercise 6-6 How much must he invest at the end of each year,
at 8% interest, to meet his needs?
Brief Exercise 6-15 What amount will Pearl receive when it issues the
bonds?
Exercise 6-12 In which building would you recommend that The
Sheridan Inc. locate, assuming a 12% cost of funds?
Brief Exercise 18-2 On May 10, 2017, Swifty Co. enters into a
contract to deliver a product to Greig Inc. on June 15, 2017. Greig
agrees to pay the full contract price of $2,060 on July 15, 2017. The cost
of the goods is $1,350. Swifty delivers the product to Greig on June 15,
2017, and receives payment on July 15, 2017. Prepare the journal entries
for Swifty related to this contract. Either party may terminate the
contract without compensation until one of the parties performs.
Brief Exercise 18-8 Presented below are three revenue recognition
situations.

(a) Groupo sells goods to MTN for $932,000, payment due
at delivery.
(b) Groupo sells goods on account to Grifols for $753,000,
payment due in 30 days.
(c) Groupo sells goods to Magnus for $537,000, payment
due in two installments, the first installment payable in 18 months and
the second payment due 6 months later. The present value of the future
payments is $499,700.
Brief Exercise 18-10(a) Prepare the journal entries for Kingbird on
March 1, 2017.
(b) Prepare the journal entries for Kingbird on
December 31, 2017.
Brief Exercise 18-13 Prepare Carla’s journal entries to record (a)
the sale on July 10, 2017, and (b) $84,200 of returns on October 11,
2017, and on October 31, 2017. Assume that Carla prepares financial
statement on October 31, 2017.
Question 17 Classify the following items as (1) operating, (2)
investing, (3) financing, or (4) significant noncash investing and
financing activities, using the direct method.
Brief Exercise 23-1 Novak Corporation is preparing its 2017 statement
of cash flows, using the indirect method. Presented below is a list of
items that may affect the statement. Using the code below, indicate how
each item will affect Novak’s 2017 statement of cash flows.
Brief Exercise 23-7 Whispering Corporation had January 1 and
December 31 balances as follows.

Brief Exercise 23-8 In 2017, Martinez Corporation had net cash
provided by operating activities of $511,000, net cash used by investing
activities of $992,000, and net cash provided by financing activities of
$570,000. At January 1, 2017, the cash balance was $330,000.
Brief Exercise 23-9 Teal Corporation had the following 2017 income
statement.
(a) Prepare Teal’s cash flows from operating activities
section of the statement of cash flows using the direct method.
(b) Prepare Teal’s cash flows from operating activities section of the
statement of cash flows using the indirect method.
Brief Exercise 24-8 (a) The current ratio of a company is 5:1 and its
acid-test ratio is 1:1. If the inventories and prepaid items amount to
$530,000, what is the amount of current liabilities?
(b) A company had an average inventory last year of $209,000 and its
inventory turnover was 6. If sales volume and unit cost remain the same
this year as last and inventory turnover is 8 this year, what will average
inventory have to be during the current year?
(c) A company has current assets of $90,000 (of which
$44,000 is inventory and prepaid items) and current liabilities of
$44,000. What is the current ratio? What is the acid-test ratio? If the
company borrows $14,000 cash from a bank on a 120-day loan, what
will its current ratio be? What will the acid-test ratio be?
(d) A company has current assets of $628,000 and current
liabilities of $255,000. The board of directors declares a cash dividend

of $195,000. What is the current ratio after the declaration but before
payment? What is the current ratio after the payment of the dividend?
Exercise 24-3 Kingbird Company is involved in four separate
industries. The following information is available for each of the four
industries.
(a) Revenue test.
(b) Operating profit (loss) test.
(c) Identifiable assets test.
===============================================
ACC 421 Final Exam Guide
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Question 1
below.
May 1 B.D. Mehta invests $3,054 cash in exchange for common stock of
Mehta Company, a small welding corporation.
3 Buys equipment on account for $1,547.
Question 2

3-year insurance contract. Both companies have fiscal years ending
December 31. For Crowe Co.
Question 3
Dresser Company's weekly payroll, paid on Fridays, totals $12,000.
Employees work a 5-day week. Prepare Dresser's adjusting entry on
Wednesday, December 31, and the
Question 4
Side Kicks has year-end account balances of Sales $876,990; Interest
Revenue $17,650; Cost of Goods Sold $577,500; Operating Expenses
$200,240; Income Tax Expense
Question 5
Financial information exhibits the characteristic of consistency when:
Question 6
What is the relationship between the Securities and Exchange
Commission and accounting standard setting in the United States?
Question 7
Starr Co. had sales revenue of $609,500 in 2012. Other items recorded
during the year were:
Cost of goods sold $326,100 Wage expense 125,100 Income tax
expense 28,000
Question 8

declared and paid during 2012 totaled
Question 9
$63,640. At that date the company had no other asset, liability or equity
dividends of $3,300 net of tax during the year on these securities. In
Question 10
Armstrong Corporation reported the following for 2012: net sales
$1,249,000; cost of goods sold $757,900; selling and administrative
expenses $325,400; and an unrealized
Question 11
December 31, 2012, the
Question 12
Lazaro, Inc. sells goods on the installment basis and uses the
installment-sales method. Due to a customer default, Lazaro repossessed
merchandise that was originally sold for
Question 13
Inventories $296,950; Allowance for Doubtful

Question 14
Patrick Corporation's adjusted trial balance contained the following asset
accounts at December 31, 2012: Prepaid Rent $16,220; Goodwill
$59,100; Franchise Fees Receivable
Question 15
Hawthorn Corporation's adjusted trial balance contained the following
Stock $700,260; Bonds
Question 16
recent year.
Net income $45,190 Dividends paid 5,770 Increase in accounts
receivable 10,140
Question 17
Linden Corporation is preparing its December 31, 2012, financial
statements. Two events thatoccurred between December 31, 2012, and
March 10, 2013, when the
Question 18
Roder Corporation has seven industry segments with total revenues as
follows.
Penley $1,827 Cheng $609 Konami 2,088 Takuhi 522 KSC 696 Molina
2,175 Red Moon
Question 19

Operating profits and losses for the seven industry segments of Roder
Corporation are:
Penley $234 Cheng $(54)
Question 20
Which of the following events will appear in the cash flows from
financing activities section of the statement of cash flows?
Question 21
Heartland Company's budgeted sales and budgeted cost of goods sold
for the coming year are $146,550,000 and $35,397,000 respectively.
Short-term interest rates are expected to average 10%.
Question 22
The financial statement which summarizes operating, investing, and
financing activities of an entity for a period of time is the:
Question 23
increased by $9,930.
Question 24
2012.
Sale of land and building $191,970
Purchase of treasury stock 45,020
Question 25

2012.
Sale of land and building $184,990
Purchase of treasury stock 42,320
Purchase of land 46,050
Question 26
A comparative balance sheet for Orozco Corporation is presented below.
Question 27
compounded annually. To what amount will the investment grow in 3
years? To what amount would the
Question 28
place 4 years from today. If the fund
Question 29
annual payments of $6025.15.
Question 30
Lyle O 'Keefe invests $30,000 at 8% annual interest, leaving the money
of the 8 years, Lyle withdrew the
===============================================

ACC 421 Week 1 US GAAP Versus IFRS
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Write a 1,050- to 1,400-word paper that addresses the following scenario
and questions:
Your aunt recently received the annual report for a company in which
she has invested. The report notes that the statements have been
prepared in accordance with “generally accepted accounting principles.”
She has also heard that certain terms have special meanings in
accounting relative to everyday use. She would like you to explain the
meaning of terms she has come across related to accounting.
• Go to the FASB website and access the FASB Concepts Statements
and use the IASB website to respond to the following items. (Provide
paragraph citations.) When you have accessed the documents, you can
use the search tool in your Internet browser.
o Explain how “materiality” is defined by both FASB and IASB.
o The concepts statements provide several examples in which specific
quantitative materiality guidelines are provided to firms. Identity at least
two of these examples. Do you think the materiality guidelines should be
quantified? Why or why not?

o The concepts statements discuss the concept of “articulation” between
financial statement elements. Briefly summarize the meaning of this
term and how it relates to an entity’s financial statements.
Click the Assignment Files tab to submit your assignment.
below. Prepare journal entries for each of these transactions.
3-year insurance policy. Both companies have fiscal years ending
December 31. For Crowe Co., journalize the entry on July 1 and the
adjusting entry on December 31.
Dresser Company’s weekly payroll, paid on Fridays, totals $8,000.
Employees work a 5-day week. Prepare Dresser’s adjusting entry on
Wednesday, December 31, and the journal entry to record the $8,000
cash payment on Friday, January 2

Side Kicks has year-end account balances of Sales Revenue $808,900;
Interest Revenue $13,500; Cost of Goods Sold $556,200; Administrative
Expenses $189,000; Income Tax Expense $35,100; and Dividends
$18,900. Prepare the year-end closing entrie
To convert cash receipts from customers to revenue on an accrual basis,
the following adjustments are made:
Cash receipts from customers
Subtract beginning A/R
Add ending A/R
Add beginning Unearned Service Revenue
Subtract ending Unearned Service Revenue
At the time a company prepays a cost
Starr Co. had sales revenue of $540,000 in 2014. Other items recorded
during the year were
declared and paid during 2014 totaled $75,000. Prepare

$60,000. At that date, the company had no other asset, liability, or equity
dividends of $3,000 during the year on these securities.
Inventory $290,000; Allowance for Doubtful Accounts $8,000; Patents
$72,000; Prepaid Insurance $9,500; Accounts Payable $77,000; Cash
$30,000.
Patrick Corporation’s adjusted trial balance contained the following
asset accounts at December 31, 2014: Prepaid Rent $12,000; Goodwill
$50,000; Franchise Fees Receivable $2,000; Franchises $47,000; Patents
$33,000; Trademarks $10,000
Hawthorn Corporation’s adjusted trial balance contained the following
Stock $750,000;
recent year.

increased by $9,500. Depreciation expense was $44,000.
2014.
2014.
A comparative balance sheet for Shabbona Corporation is presented
below.
compounded annually. (Use the tables
below.)https://edugen.wileyplus.com/edugen/art2/common/pixel.gif
place 5 years from today
annual payments of $4,727.53. (Use the tables below.)

Alan Jackson invests $20,000 at 8% annual interest, leaving the money
of the 8 years, Alan withdraws the accumulated amount of money.
December 31, 2014, the balances in certain accounts were Construction
in Process $1,715,000; Accounts Receivable $240,000; and Billings on
Construction in Process $1,000,000.
Lazaro Inc. sells goods on the installment basis and uses the installment-
sales method. Due to a customer default, Lazaro repossessed
merchandise that was originally sold for $800, resulting in a gross profit
rate of 40%. At the time of repossession, the uncollected balance is
$520, and the fair value of the repossessed merchandise is $275
Morlan Corporation is preparing its December 31, 2014, financial
statements. Two events that occurred between December 31, 2014, and
March 10, 2015, when the statements were issued, are described below.
Foley Corporation has seven industry segments with total revenues as
follows.
Operating profits and losses for the seven industry segments of Foley
Corporation are:

Heartland Company’s budgeted sales and budgeted cost of goods sold
for the coming year are $144,000,000 and $99,000,000, respectively.
Short-term interest rates are expected to average 10%. If Heartland can
increase inventory turnover from its present level of 9 times a year to a
level of 12 times per year.
The payout ratio is calculated by dividing
Presented below are four segments that have been identified by Haley
Productions:
At December 31, 2014, Grinkov Corporation had the following account
balances.
Indicate how these accounts would be reported in Grinkov’s December
31, 2014, balance sheet. The 2013 accounts are collectible in 2015, and
the 2014 accounts are collectible in 2016.
Brief Exercise 3-1
Brief Exercise 3-3
Brief Exercise 3-7
Brief Exercise 3-11
Practice Question 41
Brief Exercise 4-1

Brief Exercise 4-10
Brief Exercise 4-11
Brief Exercise 5-1
Brief Exercise 5-6
Brief Exercise 5-10
Brief Exercise 5-12
Brief Exercise 5-13
Brief Exercise 5-14
Brief Exercise 5-16
Exercise 5-16
Brief Exercise 6-1
Brief Exercise 6-14
Brief Exercise 6-17
Exercise 6-2
Brief Exercise 24-5
Brief Exercise 24-6

Brief Exercise 24-9
===============================================
ACC 421 Week 1 WileyPlus Assignment Ex 2-4, Ex 2-6, Ex 3-
5, Ex 3-9, Ex 3-13 With Excel File
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This Tutorial contains Excel File which can be used to solve for any
values
• Exercise 2-4
• Exercise 2-6
• Exercise 3-5
• Exercise 3-9
• Exercise 3-13 (Part Level Submission)
Question 1
Identify the appropriate qualitative characteristic(s) to be used given the
information provided below.

(a) Qualitative characteristic being employed when companies in the
same industry are using the same accounting principles.
(b) Quality of information that confirms users’ earlier expectations.
(c) Imperative for providing comparisons of a company from period to
period.
(d) Ignores the economic consequences of a standard or rule.
(e) Requires a high degree of consensus among individuals on a given
measurement.
(f) Predictive value is an ingredient of this fundamental quality of
information.
(g) Four qualitative characteristics that are related to both relevance and
faithful representation.
(h) An item is not recorded because its effect on income would not
change a decision.
(i) Neutrality is an ingredient of this fundamental quality of accounting
information.
(j) Two fundamental qualities that make accounting information useful
for decision-making purposes.
(k) Issuance of interim reports is an example of what enhancing quality
of relevance?
Question 2
Identify the accounting assumption, principle, or constraint that
describes each situation. Do not use an answer more than once.
(a) Allocates expenses to revenues in the proper period.

(b) Indicates that fair value changes subsequent to purchase are not
recorded in the accounts. (Do not use revenue recognition principle.)
(c) Ensures that all relevant financial information is reported.
(d) Rationale why plant assets are not reported at liquidation value. (Do
not use historical cost principle.)
(e) Indicates that personal and business record keeping should be
separately maintained.
(f) Separates financial information into time periods for reporting
purposes.
(g) Assumes that the dollar is the “measuring stick” used to report on
financial performance.
Question 3
The ledger of Flint Rental Agency on March 31 of the current year
includes the following selected accounts before adjusting entries have
been prepared.
Debit Credit
Prepaid Insurance $3,912
Supplies 2,576
Equipment 23,910
Accumulated Depreciation-Equipment $8,799
Notes Payable 19,490
Unearned Rent Revenue 4,650
Rent Revenue 64,390

Interest Expense –0–
Salaries and Wages Expense 15,370
An analysis of the accounts shows the following.
1. The equipment depreciates $243 per month.
2. One-third of the unearned rent was earned as revenue during the
quarter.
3. Interest of $510 is accrued on the notes payable.
4. Supplies on hand total $703.
5. Insurance expires at the rate of $326 per month.
Prepare the adjusting entries at March 31, assuming that adjusting
entries are made quarterly. Additional accounts are Depreciation
Expense, Insurance Expense, Interest Payable, and Supplies Expenses
Question 4
Selected accounts of Pharoah Company are shown below.
From an analysis of the T-accounts, reconstruct the October transaction
entries

From an analysis of the T-accounts, reconstruct the adjusting journal
entries that were made on October 31, 2017.
Question 5
The adjusted trial balance of Shamrock Company shows the following
data pertaining to sales at the end of its fiscal year, October 31, 2017:
Sales Revenue $808,400, Delivery Expense $11,930, Sales Returns and
Allowances $22,790, and Sales Discounts $12,350
Prepare the revenues section of the income statement.
Prepare separate closing entries for (1) sales and (2) the contra accounts
to sales.
===============================================
ACC 421 Week 2 DQs
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1. What are different criteria for recognizing revenue?

2. What are the different revenue recognition methods? Why are
there so many revenue recognition methods?
3. Why are the methods subjective, and what are the implications on
income statement quality?
4. What are the differences between regular and irregular items on an
income statement?
5. What are the requirements for items to qualify as irregular? What
are some examples of irregular items?
===============================================
ACC 421 Week 2 Individual BE 4-2, BE 4-3, BE 4-10, Ex 4-5,
Ex 18-3, Ex 18-7, Ex 18-12
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values
Complete the following assignments in WileyPLUS:
• Brief Exercise 4-2

• Exercise 4-5
• Exercise 18-3
• Exercise 18-7 (Part Level Submission)
• Exercise 18-12
Brief Exercise 4-2
Brisky Corporation had net sales of $2,400,000 and interest revenue of
$31,000 during 2014. Expenses for 2014 were cost of goods sold
$1,450,000; administrative expenses $212,000; selling expenses
$280,000; and interest expense $45,000. Brisky’s tax rate is 30%. The
corporation had 100,000 shares of common stock authorized and 70,000
shares issued and outstanding during 2014. Prepare a single-step income
statement for the year ended December 31, 2014. (Round earnings per
share to 2 decimal places, e.g. 1.48.)
Brief Exercise 4-3
Marigold Corporation had net sales of $2,401,300 and interest revenue
of $36,200 during 2017. Expenses for 2017 were cost of goods sold
$1,460,400, administrative expenses $214,900, selling expenses
$287,300, and interest expense $50,800. Marigold’s tax rate is 30%. The
corporation had 103,300 shares of common stock authorized and 73,710
shares issued and outstanding during 2017. Prepare a condensed
multiple-step income statement for Marigold Corporation.
Exercise 4-10

Cheyenne Corporation has retained earnings of $715,700 at January 1,
2017. Net income during 2017 was $1,567,700 and cash dividends
declared and paid during 2017 totaled $83,500. Prepare a retained
earnings statement for the year ended December 31,2017. Assume an
error was discovered and costing $88,840 (net of tax) was charged to
maintenance and repairs expense in 2014
Exercise 18-3
Exercise 18-3
On May 1, 2017, Monty Inc. entered into a contract to deliver one of its
specialty mowers to Kickapoo Landscaping Co. The contract requires
Kickapoo to pay the contract price of $890 in advance on May 15, 2017.
Kickapoo pays Monty on May 15, 2017, and Monty delivers the mower
(with cost of $532) on May 31, 2017.
Exercise 18-7
1. Blossom Biotech enters into a licensing agreement with Pang
Pharmaceutical for a drug under development. Blossom will receive a
payment of $7,900,000 if the drug receives regulatory approval. Based
on prior experience in the drug-approval process, Blossom determines it
is 70% likely that the drug will gain approval and a 30% chance of
denial.
(a) Determine the transaction price of the arrangement for Blair Biotech
(b) Assuming that regulatory approval was granted on December 20,
2017, and that Blossom received the payment from Pang on January 15,
2018, prepare the journal entries for Blossom. The license meets the
criteria for point-in-time revenue recognition.
===============================================

ACC 421 Week 2 Individual Revenue Recognition standards (2
PPT)
www.newtonhelp.com
This Tutorial contains 2 Presentation
Create a 7- to 12-slide presentation.
Describe the new Revenue Recognition standards.
Project the impact of these new standards on financial reporting.
===============================================
ACC 421 Week 2 Team Coca-Cola PepsiCo Comparative
Analysis Cases p. 72 and 145
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Complete, as a team, the Coca-Cola/PepsiCo Comparative Analysis
Cases on p. 72 and 145. Your responses should be approximately one to
two sentences for each segment (a-d, a-c).
Compile all team member’s input.
(a) What are the primary lines of business of these two companies as
shown in their notes to the financial statements?
(b) Which company has the dominant position in beverage sales?
(c) How are inventories for these two companies valued? What cost
allocation method is used to report inventory? How does their
accounting for inventories affect comparability between the two
companies?
(d) What accounting policy changes do the companies discuss?
Comparative Analysis Case P.145
(a) Which company had the greater percentage increase in total assets
from 2013 to 2014?
(b) Using the Selected Financial Data section of these two companies,
determine their 5-year average growth rates related to net sales and
income from continuing operations.
(c) Which company had more depreciation and amortization expense for
2014? Provide a rationale as to why there is a difference in these
amounts between the two companies.
===============================================

ACC 421 Week 3 Assignment CA 4-2, Problem 18-3, Problem
18-2
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Complete the following individually and discuss your individual
answers as a team:
CA 4-2, p. 190
Problem 18-3, p. 1043
Problem 18-2, p. 1047
After discussing your answers, compile each into a team response.
CA4-2 GROUPWORK (Earnings Management) Bobek Inc. has
recently reported steadily increasing income. The company reported
income of $20,000 in 2014, $25,000 in 2015, and $30,000 in 2016. A
number of market analysts have recommended that investors buy the
stock because they expect the steady growth in income to continue.
Bobek is approaching the end of its fiscal year in 2017, and it again
appears to be a good year. However, it has not yet recorded
(a) What is earnings management?

(b) Assume income before warranty expense is $43,000 for both 2017
and 2018 and that total warranty expense over the 2-year period is
$10,000. What is the effect of the proposed accounting in 2017? In
2018?
(c) What is the appropriate accounting in this situation?
P18-2 (LO2,3,4) (Allocate Transaction Price, Modification of Contract)
Refer to the Tablet Bundle A revenue arrangement in P18-1.
In response to competitive pressure for Internet access for Tablet Bundle
A, after 2 years of the 3-year contract, Tablet Tailors offers a modified
contract and extension incentive. The extended contract services are
similar to those provided in the first 2 years of the contract.
(a) Prepare the journal entries when the contract is signed on January 2,
2019, for the 40 extended contracts. Assume the modification does not
result in a separate performance obligation.
(b) Prepare the journal entries on December 31, 2019, for the 40
extended contracts (the first year of the revised 3-year contract).
P18-3 (LO2,3,4) (Allocate Transaction Price, Discounts, Time Value)
Grill Master Company sells total outdoor grilling solutions, providing
gas and charcoal grills, accessories, and installation services for custom
patio grilling stations.
(a) Grill Master offers contract GM205, which is comprised of a free-
standing gas grill for small patio use plus installation to a customer's gas
line for a total price $800. On a standalone basis, the grill sells for $700
(cost $425), and Grill Master estimates that the standalone selling price
of the installation service (based on cost-plus estimation) is $150

(b) The State of Kentucky is planning major renovations in its parks
during 2017 and enters into a contract with Grill Master to purchase 400
durable, easy maintenance, standard charcoal grills during 2017. The
grills are priced at $200 each (with a cost of $160 each), and Grill
Master provides a 6% volume discount if Kentucky purchases at least
300 grills during 2017
(d) On October 1, 2017, Grill Master sold one of its super deluxe
combination gas/charcoal grills to a local builder. The builder plans to
install it in one of its “Parade of Homes” houses. Grill Master accepted a
3-year, zero-interest-bearing note with face amount of $5,324
===============================================
ACC 421 Week 3 Individual BE 5-1, Ex 5-3, Ex 5-9, Pr 5-2, BE
2-1, BE 24-8, Pr 24-3 (With Excel File)
www.newtonhelp.com
values
Exercise 5-1:
Pronghom corporation has the following accounts included in its
December 31, 2017, trial balance: Accounts receivable $110,600,
Inventory $293,500, Allowance for Doubtful Accounts $9,450, Patents

$72,500, prepaid insurance $9,590, Accounts payable $81,200 and cash
$30,200. Prepare the current assets section of the balance sheet.
Exercise 5-3:
For Fielder Enterprises, indicate how each of the following usually
should be classified. If an item should appear in a note to the financial
statements, select “note to Financial Statement” to indicate this fact. If
an item need to be reported on the balance sheet, select “Balance Sheet”
and if an item need not be reported at all, select “Not to be Reported”
Exercise 5-9 (Part Level Submission)
The current assests and current liabilities sections of the balance sheet of
Cheyenne company appear as follows.
a) calculate following adjusted balances.
Problem 5-2
Presented below are a number of balance sheet items for waterway, Inc.,
for the current year, 2017.
An annual report of Crestwood Industries states, “The company
subsidiaries have long-term leases expiring on various dates after
December 31,2017. Amounts payables under such commitments,
without reduction for related rental income, are expected to average
approximately $5,711,000 annually for the next 3 years. Related rental

income from certain subleases to others is estimated to average
$3,094,000 annually for the next 3 years”.
What information is provided by this note?
Brief Exercise 24-8
Answer each of the questions in the following unrelated situations
a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1.
If the inventories and prepaid items amount to $485,500, what is the
amount of current liabilities?
b) A company had an average inventory last year of $196,000 and its
this year as last inventory turnover is 8 this year, what will average
c) A company has a current assest of $89,000 (of which $42,000 is
inventory and prepaid items) and current liabilities of $42,000. What is
the current ratio? What is the acid-test ratio? If the company borrows
$14,000 cash from bank on a 120 day loan, what will its current ratio
be? What will the acid test ratio be?
d) A company has a current assest of $570,000 and current liabilities
of $250,000. The board of directors declares a cash dividend of
$196,000.What is the current ratio? what is the current ratio after the
declaration but before payment? What is the current ratio after payment
of the dividend?

Problem 24-3 (Essay)
Bradbum Corporation was Formed 5 years age through a public
subscription of common stock. Daniel Brown, who owns 15% of the
common stock, was one of the organizers of Bradburn and is its current
president. The company has been successful, but it currently is
experiencing a shortage of funds. On june 10, 2018, Daniel Brown
approached the Topeka National Bank, asking for a 24-month extension
on two $35,000 notes, which are due on June 30,2018, and September
30,2018. Another notes of $6,000 is due on March 31,2019, but he
expects no difficulty in paying this note on its due date. Brown
explained that Bradburn’s.
The commercial loan officer of Topeka National Bank requested the
following reports for last 2 fiscal years.
Identify and explain what other financial reports and/or financial
analysis might be helpful to the commercial loan officer of Topeka
National Bank in evaluating Daniel Brown’s request for a time extension
on Bradburn’s notes.
Assume that the percentage changes experienced in fiscal year 2018 as
compared with fiscal year 2017 for sales and cost of goods sold will be
repeated in each of the next 2 years. Is Bradburn’s desire to finance the
plant expansion from internally generated funds realistic? Discuss.
Should Topeka National Bank grant the extension on Bradburn’s notes
considering Daniel Brown’s statement about financing the plant
expansion through internally generated funds? Discuss
===============================================

ACC 421 Week 3 Individual BE 24-1 (Essay) (with Excel File)
www.newtonhelp.com
values
An annual report of Crestwood Industries states, “The company
subsidiaries have long-term leases expiring on various dates after
December 31,2017. Amounts payables under such commitments,
without reduction for related rental income, are expected to average
approximately $5,711,000 annually for the next 3 years. Related rental
income from certain subleases to others is estimated to average
$3,094,000 annually for the next 3 years”.
What information is provided by this note?
===============================================
ACC 421 Week 3 Individual BE 24-8 (with Excel File)

www.newtonhelp.com
values
Brief Exercise 24-8
Answer each of the questions in the following unrelated situations
a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1.
If the inventories and prepaid items amount to $485,500, what is the
amount of current liabilities?
b) A company had an average inventory last year of $196,000 and its
this year as last inventory turnover is 8 this year, what will average
c) A company has a current assest of $89,000 (of which $42,000 is
inventory and prepaid items) and current liabilities of $42,000. What is
the current ratio? What is the acid-test ratio? If the company borrows
$14,000 cash from bank on a 120 day loan, what will its current ratio
be? What will the acid test ratio be?
d) A company has a current assest of $570,000 and current liabilities
of $250,000. The board of directors declares a cash dividend of
$196,000.What is the current ratio? what is the current ratio after the
declaration but before payment? What is the current ratio after payment
of the dividend?
===============================================

ACC 421 Week 3 Individual Brief Exercise 5-1 (with Excel
File)
www.newtonhelp.com
values
Exercise 5-1:
Pronghom corporation has the following accounts included in its
December 31, 2017, trial balance: Accounts receivable $110,600,
Inventory $293,500, Allowance for Doubtful Accounts $9,450, Patents
$72,500, prepaid insurance $9,590, Accounts payable $81,200 and cash
$30,200. Prepare the current assets section of the balance sheet.
===============================================
ACC 421 Week 3 Individual Exercise 5-3
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Exercise 5-3:
For Fielder Enterprises, indicate how each of the following usually
should be classified. If an item should appear in a note to the financial
statements, select “note to Financial Statement” to indicate this fact. If
an item need to be reported on the balance sheet, select “Balance Sheet”
and if an item need not be reported at all, select “Not to be Reported”
===============================================
ACC 421 Week 3 Individual Exercise 5-9 (with Excel File)
www.newtonhelp.com
values
Exercise 5-9 (Part Level Submission)
The current assests and current liabilities sections of the balance sheet of
Cheyenne company appear as follows.
a) calculate following adjusted balances.
===============================================
ACC 421 Week 3 Individual Problem 5-2 (with Excel File)

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values
Problem 5-2
Presented below are a number of balance sheet items for waterway, Inc.,
for the current year, 2017.
===============================================
ACC 421 Week 3 Individual Problem 24-3 (Essay)
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Problem 24-3 (Essay)
Bradbum Corporation was Formed 5 years age through a public
subscription of common stock. Daniel Brown, who owns 15% of the
common stock, was one of the organizers of Bradburn and is its current

president. The company has been successful, but it currently is
experiencing a shortage of funds. On june 10, 2018, Daniel Brown
approached the Topeka National Bank, asking for a 24-month extension
on two $35,000 notes, which are due on June 30,2018, and September
30,2018. Another notes of $6,000 is due on March 31,2019, but he
expects no difficulty in paying this note on its due date. Brown
explained that Bradburn’s.
The commercial loan officer of Topeka National Bank requested the
following reports for last 2 fiscal years.
Identify and explain what other financial reports and/or financial
analysis might be helpful to the commercial loan officer of Topeka
National Bank in evaluating Daniel Brown’s request for a time extension
on Bradburn’s notes.
Assume that the percentage changes experienced in fiscal year 2018 as
compared with fiscal year 2017 for sales and cost of goods sold will be
repeated in each of the next 2 years. Is Bradburn’s desire to finance the
plant expansion from internally generated funds realistic? Discuss.
Should Topeka National Bank grant the extension on Bradburn’s notes
considering Daniel Brown’s statement about financing the plant
expansion through internally generated funds? Discuss
===============================================
ACC 421 Week 3 Team Assignment Comparative Analysis
Case (Coca Cola Pepsi Co)

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Complete the following deliverables as a team:
The Coca-Cola/PepsiCo Comparative Analysis Case on p. 192. Your
responses should be approximately one to two sentences for each
segment (a-c).
(a) What type of income format(s) is used by these two companies?
Identify any differences in income statement format between these two
companies.
(b) What are the gross profits, operating profits, net incomes, and net
incomes attributable to non-controlling interests for these two companies
over the 3-year period 2012-2014? Which company has had better
financial results over this period of time?
(c) What income statement format do these two companies use to report
comprehensive income?
===============================================
ACC 421 Week 4 Team Coca-Cola PepsiCo Assignment (p.255,
p.1458, CA 5-3, CA 24-12)
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1. The Coca-Cola/PepsiCo Comparative Analysis Case on p. 255. Your
segment (a, b, c,e).
2. The Financial Reporting Problem, The Procter & Gamble Company
on p. 1458. Your responses should be approximately one to two
sentences for each segment (a, b, c,).
answers as a team:
• CA 5-3, p. 252
• CA 24-12, p. 1457
===============================================
ACC 421 Week 4 Wileyplus BE 5-12, Ex 5-13, Ex 5-14, BE 23-
1, Ex 23-14
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values
Complete the following assignments in WileyPLUS:
• Exercise 5-13
• Exercise 5-14
• Exercises 23-13
• Exercise 23-14
Brief Exercise 5-12
Monty Beverage Company reported the following items in the most
recent year.
Net Income $43,400
Dividends paid 5,210
Increase in a/r 11,440
Increase in a/p 8,490
Purchase of equipment (capital expenditure) 8,720
Depreciation expense 5,490
Issue of notes payable 24,020

Compute net cash provided by operating activities, the net change in
cash during the year
Exercise 5-13
The major classifications of activities reported in the statement of cash
flows are operating, investing, and financing. Classify each of the
transactions
listed below as:
1.Operating activity-add to net income.
2.Operating activity-deduct from net income.
3.Investing activity.
4.Financing activity.
5.Reported as significant noncash activity
The transaction are as follows.
a) Issuance of common stock.
b) Purchase of land and building.
c) Redemption of bonds.
d) Sale of equipments.
e) Depreciation of machinery.
f) Amortization of patent.
g) Issuance of bonds for plant assets.
h) Payment of cash dividends.
i) Exchange of furniture for office equipments.

j) Purchase of treasury stock.
k) Loss on sale of equipment.
l) Increase in accounts receivable during the year.
m) Decrease in accounts payable during the year.
Exercise 5-14
The comparative balance sheets of Cheyenne Inc. at the beginning and
the end of the year 2017 are as follows.
Net income of $47,730 was reported, and dividends of $28,130 were
paid in 2017. New equipment was purchased and none was sold.
Prepare a statement of cash flows for the year 2017.
Brief Exercise 23-1
Novak Corporation is preparing its 2017 statement of cash flows, using
the indirect method. Presented below is a list of items that may affect the
statement. Using the code below, indicate how each item will affect
Novak’s 2017 statement of cash flows.
a) Purchase of land and building.
b) Decrease in accounts receivable.
c) Issuance of stock.
d) Depreciation expense.
e) Sale of land at book value.
f) Sale of land at a gain.
g) Payment of dividends.

h) Increase in accounts receivable.
i) Purchase of available-for-sale debt investment.
j) Increase in accounts payable.
k) Decrease in accounts payable.
l) Loan from bank by signing note.
m) Purchase of equipment using a note.
n) Increase in inventory.
o) Issuance of bonds.
p) Redemption of bonds payable.
q) Sale of equipment at a loss.
r) Purchase of treasury stock.
Exercise 23-13
Novak Inc., a greeting card company, had the following statements
prepared as of December 31, 2017.
Additional information:
1. Dividends in the amount of $6,000 were declared and paid during
2012.
2. Depreciation expense and amortization expense are included in
operating expenses.
3. No unrealized gains or losses have occurred on the investments during
the year.

4. Equipment that had a cost of $30,000 and was 70% depreciated was
sold during 2012
Instructions
Complete the statement of cash flows using the direct method. (Do not
prepare a reconciliation schedule.)
Exercise 23-14
Whispering Inc., a greeting card company, had the following statements
prepared as of December 31, 2017.
Prepare a statement of cash flows using the indirect method.
===============================================
ACC 421 Week 5 Analyzing Amazon document
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Resources: Analyzing Amazon document.
Write a 700- to 1,050-word paper.
The incredible growth of Amazon.com has put fear into the hearts of
traditional retailers. Amazon’s stock price has soared to amazing levels.
However, it is often pointed out in the financial press that it took the
company several years to report its first profit.

Calculate free cash flow for Amazon for the current and prior years.
Evaluate its ability to finance expansion from internally generated cash.
Thus far, Amazon has avoided purchasing large warehouses. Instead, it
has used those of others. It is possible, however, that in order to increase
customer satisfaction, the company may have to build its own
warehouses. If this happens:
Describe how your impression of its ability to finance expansion change.
Project any potential implications of the change in Amazon’s cash
provided by operations from the prior year to the current year.
===============================================
ACC 421 Week 5 Team Coca-Cola PepsiCo (p,1394, CA 5-5,
Problem 6-12)
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• The Coca-Cola/PepsiCo Comparative Analysis Case on p. 1394. Your
segment (a-f).

answers as a team:
• CA 5-5 Cash Flow Analysis, p. 254
• Problem 6-12, p. 309
===============================================

ACC 421 Expect Success/newtonhelp.com

ACC 421 Expect Success/newtonhelp.com

ACC 421 Expect Success/newtonhelp.com

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