Posted: May 28th, 2024

Accounting 200 Financial Statement Homework Assignment

Name: ___________________________________
Circle
Class Time: 8:00 9:30
12:30
Accounting 200
Financial Statement Homework Assignment
(10
points)
Due in class on April
22ndPart 1: At December 31, 2012, Cohen Fencing
Company had the following trial balance.Cohen Fencing Company
Unadjusted Trial Balance
12/31/12DrCrCash203,203Accounts Receivable60,000Allowance for Doubtful Accounts600Short Term Note Receivable24,000Interest ReceivablePrepaid Insurance11,000Supplies6,000Inventory65,000Equipment175,000Accumulated Depreciation75,000Copyright48,000Accounts Payable35,000Wages PayableInterest PayableBonds Payable200,000Premium on Bonds Payable11,103Common Stock90,000Retained Earnings5,000Dividends5,200Sales923900Sales Returns & Allowances4,000Sales Discounts9,000Cost of Goods Sold375,000Bad Debts ExpenseDepreciation ExpenseWages Expense260,000Rent Expense65,000Insurance Expense16,000Supplies Expense7,000Interest Revenue800Interest Expense9,000Gain on Sale of Equipment5,000Income Tax Expense4,000Total1,346,4031,346,403Instructions: You must turn in the work performed on
the sheets printed with this page. Your
assignment will NOT BE ACCEPTED ON PLAIN PAPER.
1.
Write the journal entries required for each of the 5 events
described below on the General page provided. Use ONLY
the accounts listed on the trial balance for your journal entries.
2.
Post the journal entry transactions to
individual T-accounts and prepare an adjusted trial balance for The Cohen
Fencing Company as of December 31, 2012.Information
for the necessary adjustments or calculations as of December 31, 2012:1.
The
company last received interest on the note receivable on October 30, 2012. Interest will next be paid on April 30, 2013,
when the note matures. Record the accrued
interest revenue for the last 2 months of 2012.
The annual interest rate is 6%. Round to nearest whole dollar.2.
The
Equipment was purchased prior to 2012.
The company uses the straight-line method, assumed a $5,000 salvage
value and an estimated useful life of 10 years.
Record depreciation expense for the full year of 2012.3.
The
company uses the allowance method to estimate its uncollectible accounts. The new Chief Financial Officer (CFO) decided
to use the percent of receivables method and estimated that 3% of Accounts
Receivables at December 31, 2012, will be uncollectible. Record the adjusting entry for bad debt expense
for 2012.4.
The
company issued 8%, 10-year bonds when the market rate for similar investments
is 5%. The company pays interest each
year on January 1st. Using
the effective interest method of amortizing the premium on bonds payable,
accrue the interest expense as of December 31, 2012. Round
to nearest whole dollar for your interest expense calculation.5.
Employees
were last paid on December 24, 2012.
Several employees worked through December 31st and wages due
but not yet paid are $5,500. These wages
will be paid in early January. An
adjusting entry needs to be recorded to reflect this liability.
GENERAL JOURNALDATEACCOUNT
NAMEDEBITCREDITUse the space below for T-accounts (REQUIRED FOR GRADING). For each account
in the journal entries, you will need to adjust the balance from the
preliminary trial balance with the debit or credit from the journal entry. (You only need to provide T-accounts for
those that change)
Cohen Fencing CompanyADJUSTED TRIAL BALANCE
12/31/12DEBITCREDITCashAccounts
ReceivableAllowance
for Doubtful AccountsShort-term
Note ReceivableInterest
ReceivablePrepaid
InsuranceSuppliesInventoryEquipmentAccumulated
DepreciationCopyrightAccounts
PayableWages
PayableInterest
PayableBonds
PayablePremium
on Bonds PayableCommon
StockRetained
EarningsDividendsSalesSales
Returns & AllowancesSales
DiscountsCost
of Goods SoldBad
Debts ExpenseDepreciation
ExpenseWages
ExpenseRent
ExpenseInsurance
ExpenseSupplies
ExpenseInterest
RevenueInterest
ExpenseGain
on sale of equipmentIncome
Tax ExpenseTotals1,380,8981,380,898Part 2: Using the
trial balance below for Rochman Water Company (this is a different company and
new problem), prepare a multi-step income
statement and prepare the Statement of Retained Earnings and Classified Balance
Sheet on the pages which follow. To
get full credit you must include all critical subtotals (see class
announcements).Rochman
Water Company
Adjusted
Trial Balance
December
31, 2012DEBITCREDITCash2,517Accounts Receivable1,560Allowance for Uncollectible Accounts17Short term Note Receivable76Interest Receivable2Supplies35Inventory1,019Prepaid Expenses15Equipment8,725Accumulated Depreciation975Copyrights98Accounts Payable370Interest Payable2Unearned Revenue40Long Term Note Payable3,400Common Stock6,600Add’l Paid-in-Capital800Retained Earnings (1/1/12)2,000Dividends100Sales34,900Sales Returns & Allowances34Sales Discounts65Cost of Goods Sold30,200Bad debt expense34Depreciation Expense276Amortization Expense11Wages Expense2,000Rent Expense500Office Expense79Supplies Expense100Selling Expense816Interest Expense100Interest Revenue8Income Tax Expense750Totals49,11249,112Rochman Water
Company
Multi Step Income
Statement
For the year
ended December 31, 2012Rochman Water Company
Statement of Retained Earnings
For the year ended
December 31, 2012Rochman Water Company
Classified Balance Sheet
December 31, 2012

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