ACG 2021 Exam 2 TA Review

Announcements Assignments – Due 3/20/16 (back to the regular Sunday Schedule) Chapter 7 Homework (Connect) – unlimited attempts Participation questions for Chapter 7 (Webcourses) – 1 attempt Learn Smart Extra Credit for Block 2 (All 4 100%) Exam 2: 3/21 – 3/23 Exam Review information contained in Exam 2 module pages in Webcourses 52 questions – Multiple choice, including 2 extra credit questions College of Business Accounting Tutoring Lab - BA 1 – Room 355 Monday 10:30 AM – 9:00 PM Tuesday 10:00 AM – 1:15 PM; 2:45 PM – 6:00 PM Wednesday 10:00 AM – 12:45 PM; 1:20 PM – 5:50 PM Thursday 8:20 AM – 1:20 PM; 3:00 PM – 5:45 PM UCF Student Academic Resource Center (SARC) – Howard Phillips Hall – Room 115. Friday 10:00 AM – 1:00 PM & 2:00 PM – 5:00 PM 3. UCF Veteran’s Academic Resource Center (VARC) – UCF Arena (next to Jimmy John's). Tutoring is open to all UCF students. Monday 2:00 PM – 4:00 PM

Wendy Sellers Managing Partner of Human Capital at BlackRain Partners Wednesday, March 23rd, :00 a.m.- 12:00 p.m. BA1 Rm 148 (The EXCHANGE) Register: coba.bus.ucf.edu/pass “What Employers Are Looking For”

Apple Chapter 4 – Cash Reconciliation Business Transactions Measurement and Impact to Individual Accounts Chapter 5 – Sales and A/R Chapter 6 – Inventory Chapter 7 – Long-term Assets

Bonus Questions – Chapter 7 Items 1 & 2 are Conceptual only and will not be on Exam 2 1.) The purchase and recording of the bicycle air pump for $10,000 in cash in Check-in #2 on 1/1/16 will impact which financial statement(s) on 1/1/16 (Slide 38 in Chapter 7 PPT’s) ? A.) Balance Sheet; B.) Income Statement; C.) Balance Sheet and Income Statement; D.) No impact 2.) The sale of an asset for cash that resulted in a gain will impact the financial statements as follows (See slide 53 in Chapter 7 PPT’s): A.) Increase in net profit and a decrease in assets B.) Increase in net profit and an increase in assets C.) Decrease in net profit and a decrease in assets D.) Decrease in net profit and an increase in assets UCF College of Engineering purchased a patent on 10/1/16 for $50,000. The remaining legal life of the patent is 5 years but the firm only expects to benefit from the patent for 2.5 years. No residual value is expected. Assuming the straight-line method is used, what is the amortization expense, if any, for 2016? A.) $20,000; B.) $10,000; C.) $5,000 UCF athletics purchased land for a new figure skating rink for 10,000 cash. They also incurred commissions of $1,000, fencing for $5,000, back property taxes of $2,000, and title insurance of $1,000. What is the total amount to be recorded in the land account as the cost of the land? A.) $14,000; B.) $19,000; C.) $10,000; D.) $17,000

Review of Chapters This power point review is only an OVERVIEW of the MAIN concepts we learned in these chapters. This is not a COMPREHENSIVE review of the material for the exam.

1.NSF Check $350 2.EFT Payment of Utilities $160 3.Interest earned on bank deposits of $30 4.Checks outstanding $2,500 5.Deposits Outstanding $750 6.ERROR: A check written for $1,000 is recorded incorrectly by the company as $1,400 Bank BalanceBook Balance Beg. Balance $20,950Beg. Balance $19,280

1.NSF Check $350 2.EFT Payment of Utilities $160 3.Interest earned on bank deposits of $30 4.Checks outstanding $2,500 5.Deposits Outstanding $750 6.ERROR: A check written for $1,000 is recorded incorrectly by the company as $1,

Ending balance in accounts receivable is $100,000. Sales for the period total $1,500,000. The allowance for AR account has a Credit balance of $300. Management estimates that $2,000 of receivables will prove to be uncollectible. Record the journal entry for bad debt expense using the % aging of receivables method In the next year, a customer with a $1,000 AR balance due declares bankruptcy. Record the write off of the receivable

Outstanding receivables total $1,000,000 for the period. Sales for the year are $15,000,000. The allowance for AR Account has a $2,000 debit balance. $40,000 of receivables are estimated to be uncollectible. Record the estimate for bad debts using the % of aging method What is the net AR at the end of the year? Record the entry to write off a $12,000 account

On August 1 st, 2014 our company lends $10,000 to an employee. The note is to be paid in full in 3 years With 6% interest due annually (paid every Aug. 1 st ) Record issuance of note on August 1 st Record adjusting entry for interest on December 31 st

Record adjusting entry for interest on a 6 month, $50,000 note receivable issued on October 1 st at 8% Interest. All interest is due at maturity of the note.

DateNumber of UnitsCost per UnitTotal Beginning Inventory20$10.00$200 2/1/201450$12.00$600 5/15/201440$13.00$520 Sales for the period total 80 units at $20.00 each. Calculate cost of goods sold and gross profit using the FIFO method

DateNumber of UnitsCost per UnitTotal Beginning Inventory20$10.00$200 2/1/201450$12.00$600 5/15/201440$13.00$520 Sales for the period total 80 units at $20.00 each. Calculate cost of goods sold and gross profit using the LIFO method

On January 1 st, purchase a piece of equipment of $12,000 with a salvage value of $3,000 and a 3 year useful life. The equipment is expected to be used for a total of 1,000 hours. Actual usage throughout the year totaled 200 hours. Calculate depreciation using the straight line method

On January 1 st, purchase a piece of equipment of $12,000 with a salvage value of $3,000 and a 3 year useful life. The equipment is expected to be used for a total of 1,000 hours. Actual usage throughout the year totaled 200 hours. Calculate depreciation using the activity-based method

On January 1 st, purchase a piece of equipment of $12,000 with a salvage value of $3,000 and a 3 year useful life. The equipment is expected to be used for a total of 1,000 hours. Actual usage throughout the year totaled 200 hours. Calculate depreciation using the double-declining balance method

On August 31 st, purchase a machine for $100,000. The machine has an expected residual value of $10,000 and an expected useful life of 10 years. The machine is estimated to be used a total of 45,000 hours. Actual usage for the year totals 10,000 hours. Calculate depreciation on the machine using the straight line method. What is the book value?

On August 31 st, purchase a machine for $100,000. The machine has an expected residual value of $10,000 and an expected useful life of 10 years. The machine is estimated to be used a total of 45,000 hours. Actual usage for the year totals 10,000 hours. Calculate depreciation on the machine using the activity-based method. What is the book value?

Purchase a patent for $12,000 on January 1 st, The patent has a legal life of 20 years and a useful life of 12 years Record the purchase of the patent on January 1 st, 2016 Record the amortization expense recorded on December 31 st, 2016