TRADITIONAL HOMEWORK ITEMS – Fall 2023 – ACT 3391
General Instructions for the Traditional Homework Items:
A.
B.
C.
D.
Prepare your answers using some type of computer software program, e.g., Microsoft Word, Excel.
Upload your answers through Canvas. Do NOT upload any type of hand-written documents.
You will NOT receive ANY CREDIT FOR LATE HOMEWORK.
When completing your homework assignments DO NOT use abbreviations for phrases, e.g. state Financial Accounting
Standards Board and not simply FASB.
E. You can work on these homework assignments in groups or as an individual. If you work in a group, have one person upload
the group’s answers making sure all individual names are on the uploaded assignment.
F. For ANY problem involving a calculation, CLEARLY SHOW HOW you performed the calculation.
G. For ANY problem involving an entry, identify EACH account that you debited and credited as either a(an):
1) Asset (includes contra-assets)
You can abbreviate with an A
2) Liability (includes contra-liabilities)
You can abbreviate with an L
3) Equity (includes contra-equities)
You can abbreviate with an EQ
4) Revenue (includes contra-revenues AND gains)
You can abbreviate with an R
5) Expense (includes losses)
You can abbreviate with an EX
For example, if you make the following entry:
Cash
$100
Place an “A” to the left of “Cash”
Sales revenue
$100
Place an “R” to the left of “Sales Revenue”
Thus, your final answer would look like this:
A
Cash
$100
R
Sales revenue
$100
UNACCEPTABLE ENTRY FORMATS. Format your entries like the example above. DO NOT give me entries that look like the
following:
A
Cash
$100
R
Sales revenue
$100
or
A
Cash
$100
R
Sales revenue
$100
or
A
Cash
$100
R
Sales revenue
$100
or
A
Cash
$100
R
Sales revenue
$100
1. (5 points) Write the best accounting word/phrase that is defined. Write ONLY ONE word/phrase next to each item. DO
NOT ABBREVIATE.
a. The term used to describe the financial-related report that a publicly
traded firm files annually with the SEC.
b. This characteristic of financial information allows users to identify
similarities and differences in economic events between companies.
c. The term used to describe the one place in which all authoritative
accounting pronouncements, i.e., GAAP, reside.
d. The organization that was established by the U.S. federal government
to standardize financial information that is presented to stockholders.
e. The organization that currently establishes GAAP in the U.S.
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TRADITIONAL HOMEWORK ITEMS – FALL 2023 – ACT 3391
General Instructions for the Traditional Homework – refer to the instructions for traditional item no. 1.
2. (1 point) Write the best accounting word/phrase that is defined. Write ONLY ONE word/phrase next to each item.
DO NOT ABBREVIATE.
They are made at the end of an accounting period to bring all accounts up to date on
an accrual basis so that the company can then prepare financial statements.
3. (10 points) Prepare the Adjusting Journal Entries (AJEs) that should be made on December 31, 2018, the end of the accounting
year, for each of the following independent situations. If no AJE is required, indicate “none.” Assume the firm only makes AJEs at
the end of the accounting year.
a.
On March 1, 2018, the firm collected $6,000 of rent for 6 months in advance. The journal entry to record the receipt included a
credit to a temporary account.
b.
On May 31, 2018, the firm collected $12,000 of rent for 12 months in advance. The journal entry to record the receipt included a
credit to a balance sheet account.
c.
On November 1, 2018, the firm collected $5,000 of rent for 5 months in advance. The journal entry to record the receipt
included a credit to a permanent account.
d.
On October 31, 2018, the firm collected $4,000 of rent for 4 months in advance. The journal entry to record the receipt included
a credit to an income statement account.
e.
On August 1, 2018, the firm paid $6,000 for a 12-month insurance policy. The journal entry to record the payment included a
debit to a permanent account.
f.
On September 1, 2018, the firm paid $15,000 for a 3-month rental of a machine. The journal entry to record the payment
included a debit to a balance sheet account.
g.
On April 1, 2018, the firm paid $6,000 for a 6-month rental of a machine. The journal entry to record the payment included a
debit to an income statement account.
h.
On August 31, 2018, the firm paid $14,000 for an 7-month rental of a machine. The journal entry to record the payment included
a debit to a temporary account.
i.
On March 31, 2018, the company borrowed $120,000 at 3%. The principle is due on March 31, 2019. The interest is due every
six months and the first interest payment took place on September 30, 2018.
j.
On October 31, 2016, the company borrowed $5,000,000 for five years at 6%. The interest is due and payable every year and the
first interest payment took place on October 31, 2017. The principle is due and payable in five equal installments and the first
principal payment took place on October 31, 2017. The company makes its interest and principal payments on a timely basis.
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