Handy Hardware Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 13,832.96 
Accrued interest income                                                          630.00
Merchandise inventory                                                        162,569.00 
Supplies inventory                                                             3,695.00 
Value of prepaid insurance                                                     8,360.00
Annual depreciation expense equipment                                         13,034.00
Accrued interest expense                                                         600.00 
Prepaid rent income earned                                                     4,000.00

Handy Hardware Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 13,832.96 
Accrued interest income                                                          630.00 
Merchandise inventory                                                        162,569.00
Supplies inventory                                                             3,695.00
Value of prepaid insurance                                                     8,360.00
Annual depreciation expense equipment                                         13,034.00 
Accrued interest expense                                                         600.00 
Prepaid rent income earned                                                     4,000.00

The cash payments journal for White Cleaners is given in the Working Papers.

Instructions:

Journalize the following transactions completed during the current year. Use page 1 of a cash payments journal. The abbreviation for a check is C.

Transactions:

Jan.  4. Paid cash for office computer, $600.00. C226.
      5. Paid cash for a pressing machine,$4,200.00. C230.
Feb. 24. Paid property taxes on real property with an assessed value of $360,000.00. The tax rate in the city where the property is located is 1.2% of assessed value. C278.
May  12. Paid cash for office desk (office equipment) and display rack (store equipment),$3,800.00. The office desk has an estimated value of $1,000.00, and the display rack has an estimated value of$3,000.00. C354.

Ramel Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 11,020.00
Accrued interest income                                                          160.00
Merchandise inventory                                                        581,489.16 
Supplies inventory                                                               620.01
Value of prepaid insurance                                                     4,000.00
Annual depreciation expense-office equipment                                  10,960.00 
Annual depreciation expense-store equipment                                   10,120.00
Accrued interest expense                                                         625.00
Prepaid rent income earned                                                     6,000.00

What basis is used to prepare the statement of cash flows?

Williams Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

    Estimated uncollectible accounts based on aging
        accounts receivable                                 $ 3,796.00
    Accrued interest income                                      80.00
    Merchandise inventory                                    98,996.13
    Supplies inventory                                          401.25
    Value of prepaid insurance                                  600.00
    Annual depreciation expense-equipment                     7,345.00
    Accrued interest expense                                    150.00
    Prepaid rent income earned                                2,000.00
   

Handy Hardware Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 13,832.96 
Accrued interest income                                                          630.00 
Merchandise inventory                                                        162,569.00
Supplies inventory                                                             3,695.00
Value of prepaid insurance                                                     8,360.00
Annual depreciation expense equipment                                         13,034.00 
Accrued interest expense                                                         600.00 
Prepaid rent income earned                                                     4,000.00

Use the accounting forms and financial statements from the previous exercise to complete this problem. General journal pages are given in the Working Papers.

Instructions:

1. For the current year, journalize the closing entries using page 13 of a general journal.

As a class, identify a local business or government agency that has an information technology department. Choose a student to contact that organization to arrange an interview with a member of that department and two or three class representatives.

JPMorgan Chase (JPM) is one of the oldest and largest financial services companies in the country, tracing its roots back to 1799. According to its website, JPM operates in more than 100 countries, has over 240,000 employees, and has assets of $2.5 trillion.

The recession that began in 2008 had a dramatic impact on financial institutions. One hard-hit area was the housing market. Housing prices plummeted, and many home mortgages were higher than the value of the mortgaged home. A mortgage that has a balance higher than the value of the property mortgaged is called an underwater mortgage. By the end of the first quarter of 2011, approximately 22.7% of all U.S. home mortgages were estimated to be underwater.

With a high percentage of mortgages underwater, mortgage lenders were faced with a greatly increased risk that homeowners would stop making their mortgage payments. Not making payments on a loan when they are due is called defaulting on the loan. When a mortgage is in default, the bank or finance company has the right to take possession of the property. When the bank or finance company takes possession of mortgaged property, it is called a foreclosure.

Foreclosures usually mean a loss for the mortgage holder, who must sell the property at a price less than the amount owed on the property. What is the impact of these foreclosures on the financial statements of the mortgage holder? Remember that GAAP requires a business to estimate the amount of receivables that will not be collected. Mortgages financed by JPM are listed as receivables on its balance sheet. Therefore, JPM must estimate the amount of these receivables that will not be paid in the future. This estimate is recorded in an account titled allowance for Loan Losses.

JPM reported the following balances on its balance sheet:

    2016: Loans,$894,765,000,000; Allowance for loan losses, $13,776,000,000
    2015: Loans,$837,299,000,000; Allowance for loan losses, $13,555,000,000

1. For 2016 and 2015, calculate what percent the allowance account is of the loans and leases account.

The cash payments journal for White Cleaners is given in the Working Papers.

Instructions:

Journalize the following transactions completed during the current year. Use page 1 of a cash payments journal. The abbreviation for a check is C.

Transactions:

Jan.  4. Paid cash for office computer, $600.00. C226.
      5. Paid cash for a pressing machine,$4,200.00. C230.
Feb. 24. Paid property taxes on real property with an assessed value of $360,000.00. The tax rate in the city where the property is located is 1.2% of assessed value. C278.
May  12. Paid cash for office desk (office equipment) and display rack (store equipment),$3,800.00. The office desk has an estimated value of $1,000.00, and the display rack has an estimated value of$3,000.00. C354.

Timberlake Company owns equipment with a cost of $165,000 and accumulated depreciation of$60,000 that can be sold for $82,000 less a 6% sales commission. Alternatively, Timberlake Company can lease the equipment to another company for five years for a total of$84,600, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Timberlake Company on the equipment would total $7,950 over the five years. Prepare a differential analysis on March 23 as to whether Timberlake Company should lease (Alternative 1) or sell (Alternative 2) the equipment.

A physician performs medical services for a patient on October 20; the total bill for the medical services was $200. The patient makes a co-pay of$20 on October 20, and the insurance company pays the remaining balance of $180 on November 19. On what date(s) will the physician record the revenue for those medical services provided on October 20?

a.$200 of revenue on October 20 b. $20 of revenue on October 20 and$180 of revenue on November 19 c. $200 of revenue on November 19 d.$180 of revenue on October 20 and the remaining $20 on November 19

Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have their normal debit or credit balance. Supplies, $1,000; Buildings,$55,000; Salaries Payable, $500; Common Stock,$35,000; Accounts Payable, $2,200; Utilities Expense,$3,700; Prepaid Insurance, $1,200; Service Revenue,$19,500; Accounts Receivable, $4,200; Cash,$3,500; Salaries Expense, $6,400; Retained Earnings,$17,800. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.