Week Two Exercise Assignment

Revenue and Expenses

 

1. Recognition of concepts. Jim Armstrong operates a small company that books enter­tainers for theaters, parties, conventions, and so forth. The company’s fiscal year ends on June 30. Consider the following items and classify each as either (1) pre­paid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing.

a              Interest owed on the company’s bank loan, to be paid in early July                         

b             Professional fees earned but not billed as of June 30                     

c              Office supplies on hand at year-end                       

d             An advance payment from a client for a performance next month at a convention          

e             The payment in part (d) from the client’s point of view                 

f              Amounts paid on June 30 for a 1-year insurance policy                  

g              The bank loan payable in part (a)                             

h             Repairs to the firm’s copy machine, incurred and paid in June                    

 

2. Understanding the closing process. Examine the following list of accounts:

Note Payable	Accumulated Depreciation: Building
Alex Kenzy, Drawing	Accounts Payable
Product Revenue	Cash
Accounts Receivable	Supplies Expense
Utility Expense

 

Which of the preceding accounts

a. appear on a post-closing trial balance?

b. are commonly known as temporary, or nominal, accounts?

c. generate a debit to Income Summary in the closing process?

d. are closed to the capital account in the closing process?

 

3. Adjusting entries and financial statements. The following information pertains to Sally Corporation:

·         The company previously collected $1,500 as an advance payment for services to be rendered in the future. By the end of December, one half of this amount had been earned.

·         Sally Corporation provided $1,500 of services to Artech Corporation; no billing had been made by December 31.

·         Salaries owed to employees at year-end amounted to $1,000.

·         The Supplies account revealed a balance of $8,800, yet only $3,300 of supplies were actually on hand at the end of the period.

·         The company paid $18,000 on October 1 of the current year to Vantage Property Management. The payment was for 6 months’ rent of Sally Corporation’s headquarters, beginning on November 1.

Sally Corporation’s accounting year ends on December 31.

Instructions

Analyze the five preceding cases individually and determine the following:

a. The type of adjusting entry needed at year-end (Use the following codes: A, adjust­ment of a prepaid expense; B, adjustment of an unearned revenue; C, adjustment to record an accrued expense; or D, adjustment to record an accrued revenue.)

b. The year-end journal entry to adjust the accounts

c. The income statement impact of each adjustment (e.g., increases total revenues by $500)

 

4. Adjusting entries. You have been retained to examine the records of Mary’s Day Care Center as of December 31, 20X3, the close of the current reporting period. In the course of your examination, you discover the following:

·   On January 1, 20X3, the Supplies account had a balance of $1,350. During the year, $5,520 worth of supplies was purchased, and a balance of $1,620 remained unused on December 31.

·   Unrecorded interest owed to the center totaled $275 as of December 31.

·   All clients pay tuition in advance, and their payments are credited to the Unearned Tuition Revenue account. The account was credited for $65,500 on August 31. With the exception of $15,500 all amounts were for the current semester ending on December 31.

·   Depreciation on the school’s van was $3,000 for the year.

·   On August 1, the center began to pay rent in 6-month installments of $24,000. Mary wrote a check to the owner of the building and recorded the check in Pre­paid Rent, a new account.

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

·   Mary’s Day Care paid insurance premiums as follows, each time debiting Pre­paid Insurance:

 

Date Paid	Policy No.	Length of Policy	Amount
Feb. 1, 20X2	1033MCM19	1 year	$540
Jan. 1, 20X3	7952789HP	1 year	912
Aug. 1, 20X3	XQ943675ST	2 years	840

Instructions

 

The center’s accounts were last adjusted on December 31, 20X2. Prepare the adjusting entries necessary under the accrual basis of accounting.

 

5. Bank reconciliation and entries. The following information was taken from the accounting records of Palmetto Company for the month of January:

Balance per bank	$6,150
Balance per company records	3,580
Bank service charge for January	20
Deposits in transit	940
Interest on note collected by bank	100
Note collected by bank	1,000
NSF check returned by the bank with the bank statement	650
Outstanding checks	3,080

 

Instructions:

a. Prepare Palmetto’s January bank reconciliation.

b. Prepare any necessary journal entries for Palmetto.

 

6. Direct write-off method. Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was  $550 for a sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that Mattingly had filed for personal bankruptcy. Harrisburg uses the direct write-off method to account for uncollectibles.

 

a. Prepare the journal entry needed to write off Mattingly’s account.

b. Comment on the ability of the direct write-off method to value receivables on the year-end balance sheet.

 

7. Allowance method: analysis of receivables. At a January 20X2 meeting, the presi­dent of Sonic Sound directed the sales staff “to move some product this year.” The president noted that the credit evaluation department was being disbanded be­cause it had restricted the company’s growth. Credit decisions would now be made by the sales staff.

By the end of the year, Sonic had generated significant gains in sales, and the president was very pleased. The following data were provided by the accounting department:

20X2		20X1
Sales	$23,987,000		$8,423,000
Accounts Receivable, 12/31	12,444,000		1,056,000
Allowance for Uncollectible Accounts, 12/31	?		23,000 cr.

 

The $12,444,000 receivables balance was aged as follows:

Age of Receivable	Amount	Percentage of Accounts Expected to Be Collected
Under 31 days	$4,321,000	99%
31-60 days	4,890,000	90
61-90 days	1,067,000	80
Over 90 days	2,166,000	60

 

Assume that no accounts were written off during 20X2.

Instructions

 

a. Estimate the amount of Uncollectible Accounts as of December 31, 20X2.

b. What is the company’s Uncollectible Accounts expense for 20X2?

c. Compute the net realizable value of Accounts Receivable at the end of 20X1 and 20X2.

 

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

What is the molarity of an HC2H3O2 solution if 35.000 ml of 0.250 M NaOHsolution is needed to neutralize a 15.00 ml sample of theHC2h3O2 solution

The U.S. government’s expansive role in public policy is caught in a swirl of conflicting cross-currents. On the one hand, popular expectations about government’s responsibility to solve problems often exceed the capacity of state and local authorities to respond effectively. On the other hand, policies developed at the national level may not sufficiently reflect the great diversity of interests across the US to be effective at the local level. Moreover, the search for effective policy is further complicated by theoretical debates about the constitutional framework of federalism (e.g., what limits on national power can be derived from the 10th Amendment?).

Select a policy issue that is in the middle of these cross-currents between national, state, and local authority. It must be a policy area other than education (the focus of Discussion One in Week Two). Some examples include: federal health care policy (e.g., Obamacare, Medicaid–not Medicare); federal transportation policy (e.g., federal transportation subsidies); federal highway policy (e.g., federal rules about the minimum drinking age, speed limits, or safety); federal urban planning and renewal policy; federal poverty, welfare and unemployment policies; national security policies that intersect/conflict with local police power; and federal disaster planning and relief. These are only examples. The policy area that you select must have a significant federalism component that requires national, state, and local interaction. It should also involve issues with a strong potential for tension or conflict among different levels of government.

Research and write an essay on a specific policy in the area that you select. (Note: The word “policy” is used interchangeably with the word “program.”) Your essay must:

1. Clearly identify a specific federal policy (the policy must raise issues of federalism because it requires national, state, and local interaction and invites tension across different levels of government), and summarize the elements of the policy, including the problem it is supposed to solve or improve.
2. Summarize the history of the policy. In your summary, explain how the policy raises issues of federalism.
3. Analyze the main pros and cons in debates about the policy.
4. Evaluate the pros and cons from two perspectives:
   • The policy’s effectiveness. In your evaluation, clearly explain your definition of effectiveness and how it should be measured or determined.
   • The policy’s consistency with the constitutional framework of federalism. In your evaluation, clearly explain your interpretation of American federalism’s constitutional framework and why the federal policy is or is not consistent with it.

Follow these requirements when writing the short essay:

1. The body of the essay (excluding the title page and reference page) must be at least 750 words long.
2. The essay must start with a short introductory paragraph which includes a clear thesis statement. The thesis statement must tell readers what the essay will demonstrate.
3. The essay must end with a short paragraph which includes a conclusion. The conclusion and thesis must be consistent.
4. The essay must logically develop the thesis in a way that leads to the conclusion, and must be supported by facts, fully explained concepts or assertions, and persuasive reasoning.
5. The essay must address all subtopics outlined above. At least 20% of the essay must focus on subtopic six, listed above (your evaluation of the various pros and cons about the policy).
6. Your essay must cite at least one academic article found in the Ashford Online Library and at least three other kinds of sources (e.g., Supreme Court opinions, magazine or newspaper articles, the course textbook, and reliable websites).
7. Use your own words. While brief quotes from sources may be used, altogether the total amount of quoted text must be less than five percent of the body of your essay.
8. When you use someone else’s words, they must be enclosed in quotation marks followed by an APA in-text short citation (author, year, and page) to your source. The in-text citation must correspond to a full APA citation for the source on the reference page at the end of the essay.
9. When you express someone else’s ideas, arguments, or facts in your own words, your statement must be followed by an APA in-text short citation (author, year, and page) to your source. The in-text citation must correspond to a full APA citation for the source in the reference page.
10. The form of the title page, the body pages, and the reference page must comply with APA style. Additionally, the title page must include the course number and name, the instructor’s name, and the date submitted.
11. The essay must use logical paragraph and sentence transitions, complete and clear sentences, and correct grammar, spelling, and punctuation.

when a medical examiner arrives at the scene of a homicide, he finds that the temperature of the dead body is 89.2 F. Determine the range of time that the victim has been dead.

5-7 sentence responses.

7)

Great Composers and Color Analysis

Determine whether you prefer Debussy or Mahler after listening to works by each at the Websites below or in this week’s Music Folder and after reading about them. Explain the reasons for your preference. Here we find musical composers inspired by poetry and by philosophy. Identify one (1) element within a work that you find interesting or intriguing by either composer, with regard to the manner in which the work is performed or conducted. Describe the types of things that inspire you to creativity.

Debussy and Mahler

• Chapter 33 (p. 1092), Debussy; (pp. 1103-1104), Mahler
• “Approaching Mahler and Debussy” – http://www.youtube.com/watch?v=QYZ1mUupG7k
• Musical selections for Mahler – http://www.youtube.com/watch?v=RONBzkthUjM (Symphony No. 2, Finale; Resurrection Symphony) or http://www.youtube.com/watch?v=kbRyttzUzjI (Symphony No. 1, 3rd Movement).
• Musical selection for Debussy — http://www.youtube.com/watch?v=F5A4CkUAazI (Prélude à l’après-midi d’un faune)

 

8)

“Streaming Live and Harlem Renaissance” 

• Write for one (1) minute using the stream of consciousness writing method (Note: You may also type it offline and copy it within this discussion thread). Describe your experience and your reaction to what you wrote. Of the samples of the stream of consciousness technique given in this week’s chapters, determine which you prefer and explain the reasons why.

Streaming Live

• Chapter 35 (pp. 1164-1166); Chapter 36 (p. 1189), stream of consciousness – background and samples
• Method and exploration of stream of consciousness writing at http://dversepoets.com/2012/05/24/stream-of-conscousness-writing/
• Writing a stream: http://thewritepractice.com/stream-of-consciousness/ and http://literarydevices.net/stream-of-consciousness/

9)

“Government and the Arts; Abstract Expressionism and Music” 

• Examine the U.S. Government’s support during the Great Depression for programs, such as the Federal Arts Project, the Federal Writers’ Project, and other such efforts. Determine whether or not such projects were good government investments during those hard times, and provide two (2) examples that support your viewpoint. Determine in what ways the U.S. government currently tries to support the arts.

Government and the Arts

• Chapter 37 (pp. 1228-1231), Federal support for the arts
• Government helping the arts in hard times at http://www.smithsonianmag.com/arts-culture/1934-Picturing-Hard-Times.html and http://www.pbs.org/speak/seatosea/powerprose/wpa/