FSA homework 2014
General information
1. Turn in a hard copy at the beginning of class.
2. “Consulting” solution manuals or prior years‟ assignments is academic dishonesty. So is discussing your homework assignments with any classmates.
3. Be prepared to explain your answers in class.
Homework #1. INCOME MEASUREMENT AND ACCRUAL ACCOUNTING
PRACTICE PROBLEMS
What is a synonym for unearned revenue?
Accumulated depreciation on the balance sheet equals depreciation expense for the year on the income statement. Do you agree? Why or why not?
Cycloanalysts is a store for cycling enthusiasts. It sells bikes, parts and accessories, in addition to providing maintenance and repair services. Indicate the amount of revenue (if any) that
Cycloanalysts records during the months of February, March and April for each of the following:
1) Collects $800 cash from a customer in March for a custom-made bicycle that will be delivered to the customer in April.
2) Collects $2,145 cash from customers for bike accessories sold in March.
3) Collects $300 from a customer in March for bike repairs completed in February.
4) Rents space in its store to a coffee kiosk for $500 per month effective March 1. Receives $1,000 cash on March 1 for two months rent.
Fed Up Deli uses accrual basis accounting. Indicate the amount of expense (if any) that Fed Up records during October for each of the following:
1) Pays $475 for ads that appeared in the local newspaper during September.
2) Pays $6,000 on October 6 for freezers that were delivered to the deli on September 30. Fed Up expects the freezers to last five years.
3) Pays $12,000 in property taxes for the period from October 1 this year to September 30 of the next year.
4) Pays $10,000 on October 20 as a deposit on land Fed Up plans to purchase for a second location.
1
Assume a company prepares financial statements once a year. Indicate the accounts affected and amounts at December 31, 2007 for each of the following:
1) A
1. Turn in a hard copy at the beginning of class.
2. “Consulting” solution manuals or prior years‟ assignments is academic dishonesty. So is discussing your homework assignments with any classmates.
3. Be prepared to explain your answers in class.
Homework #1. INCOME MEASUREMENT AND ACCRUAL ACCOUNTING
PRACTICE PROBLEMS
What is a synonym for unearned revenue?
Accumulated depreciation on the balance sheet equals depreciation expense for the year on the income statement. Do you agree? Why or why not?
Cycloanalysts is a store for cycling enthusiasts. It sells bikes, parts and accessories, in addition to providing maintenance and repair services. Indicate the amount of revenue (if any) that
Cycloanalysts records during the months of February, March and April for each of the following:
1) Collects $800 cash from a customer in March for a custom-made bicycle that will be delivered to the customer in April.
2) Collects $2,145 cash from customers for bike accessories sold in March.
3) Collects $300 from a customer in March for bike repairs completed in February.
4) Rents space in its store to a coffee kiosk for $500 per month effective March 1. Receives $1,000 cash on March 1 for two months rent.
Fed Up Deli uses accrual basis accounting. Indicate the amount of expense (if any) that Fed Up records during October for each of the following:
1) Pays $475 for ads that appeared in the local newspaper during September.
2) Pays $6,000 on October 6 for freezers that were delivered to the deli on September 30. Fed Up expects the freezers to last five years.
3) Pays $12,000 in property taxes for the period from October 1 this year to September 30 of the next year.
4) Pays $10,000 on October 20 as a deposit on land Fed Up plans to purchase for a second location.
1
Assume a company prepares financial statements once a year. Indicate the accounts affected and amounts at December 31, 2007 for each of the following:
1) A