1. Question #3
FlipCorp.hasthefollowinginformationregardingitsallowanceforu
ncollectibleaccounts.
BalanceDecember31, 2014 $28,000
Write-offsduring2015 (27,000)
Recoveriesduring2015 7,000
RequiredallowanceatDecember31, 2015 31,000
Prepare t he journal entries for the write-offs and recoveries for
2015, and for the provision for
Uncollectible accounts expense at December 31,2015. Do not
provide any journal explanations. If no entry is necessary, write
"no
entry." (please be sure to fill the date, account name and
debit/credit)
General Journal:
Write-offs:
Date Account Debit Credit
Question#2
On January 1, 2014, Floppy enters into an agreement with State
Finance Corporation to sell a group of receivables without
recourse. The total face value of the receivables is $150,000.
State Finance Corp. will charge 15%interest on the weighted-
average
time to maturity of the receivables of 95 days plus a 2%fee. Do
not provide any journal explanations. If no entry is necessary,
write "no entry."

2. Date Account Debit Credit
Question #3
Floopy uses the periodic inventory method for inventories.
Prepare the journal entries for each of the following
transactions. Do not
provide any journal explanations. If no entry is necessary, write
"no entry." Floopy uses the net method for recording inventory
transactions.
>> On January 5, year 2, purchased $17,000 of garden tillers on
account fromFlip, terms 2/10, n/30, FOB destination.
Freight charges were $200.
>> On January 10, year 2, returned garden tillers worth $2,000
to Flip due to defects.
>> On January 24, year 2, paid for tillers purchased fromFlip.
>> On January 28, year 2, purchased $30,000 of lawn mowers
fromFlam, terms 3/10, n/30, FOB shipping point. The
freight charges were $820.
>> On February 6, year 2, paid for the lawn mowers purchased
on January 28, year 2, fromFlam.
AllowanceforUncollectibleAccountsandProvisionforUncollectibl
eAccounts
Date Account Debit Credit
Question#4
On January 2, 2014, Floppy Co. issued 6% bonds with a face
value of $440,000 when the market interest rate was 8% for
$380,208.
The bonds are due in ten years, and interest is payable every
June 30 and December 31. Floppy does not elect the fair value
option
for reporting its financial liabilities. Do not provide any journal
explanations. If no entry is necessary, write "no entry." Round

3. all
numbers to the nearest dollar.
Required:
a. Prepare the journal entries for the bond issue on January 2,
2014.
b. Prepare the journal entry for the interest payment on June 30,
2014.
c. Prepare any required end of 2014 adjusting entry.
General Journal:
Date Account Debit Credit
Question#5
January 1, 2014, Frick Co. issued 3,000 of its 9%, $1,000 face
value bonds at 101 1/2. In connection with the sale of these
bonds,
Frick paid the following expenses:
Promotion costs $ 20,000
Engraving and printing 35,000
Legal fees & commissions 200,000
What amount should Frick record as:
a. bond issue costs to be amortized over the termof the bonds?
b. bond premium or discount?
Question#6
On July 1, 2014, Day Co. received $103,288 for $100,000 face
amount, 12%bonds, a price that yields 10%. Assuming
management
does not elect the fair value option, interest expense & carrying
value of the bond at December 31, 2014, should be? Round
answers
to the nearest dollar.
Interest expense?
Carrying value of the bond at Dec 31,2014?
Question#7
For the issuer of a ten-year termbond, the amount of
amortization using the interest method would increase each year

4. if the bond was sold at a
a. Discount Premium
No Yes
b. Discount Premium
No No
c. Discount Premium
d. Yes No
Discount Premium
Yes Yes
Question#8
On July 1, 2014, Frick Co. purchased as a held-to-maturity
investment $1,000,000 of Frack Inc.'s 8%bonds for $946,000,
including accrued interest of $40,000. The bonds were
purchased to yield 10%interest. The bonds mature on January 1,
2022, and pay
interest annually on January 1. Frick uses the effective interest
method of amortization. In its December 31, 2015 balance sheet,
what amount should Frick report as investment in bonds? Round
all numbers to nearest dollar.
Question #9
On March 31, year 1, Frick, Inc.'s bondholders exchanged their
convertible bonds for common stock. The carrying amount of
these bonds on Frick's books was less than the market
value but greater than the par value of the common stock issued.
If Frick used the book value method of accounting for the
conversion, which of the following statements correctly states
an effect of this conversion?
a. Additional paid-in capital is decreased.
b. Retained earnings is increased.
c. An extraordinary loss is recognized.
d. Stockholders' equity is increased.
Question #10

5. Flip Co. had the following balances at December 31, 2015:
Cash in checking account $35,000
Cash in money market account 75,000
US Treasury bill, purchased 12/1/2015, maturing 3/31/2016
350,000
US Treasury bill, purchased 11/1/2015, maturing 1/31/2016
400,000
Flip's policy is to treat as cash equivalents all highly liquid
investments with a maturity of three months or less when
purchased.
What amount should Flip report as cash and cash equivalents in
its December 31, 2015 balance sheet?
Question#11
In preparing its August 31, 2015 bank reconciliation, Floppy
Corp. has available the following information:
Balance per bank statement, 8/31/15 $18,050
Outstanding checks, 8/31/15 3,250
Return of customer's check for insufficient funds,
8/31/15
600
Deposit in transit, 8/31/15 2,750
Bank service charges for August 100
At August 31, 2015, Floppy's correct cash balance is?
Question # 12
On the December 31, 2015 balance sheet of Flip Co., the current
receivables consisted of the following:
Trade accounts receivable $ 93,000
Allowance for uncollectible accounts (3,000)
Claim against shipper for goods lost in transit (November 2015)
2,000
Selling price of unsold goods sent by Flap on consignment at

6. 130%of cost
(not included in Flip's ending inventory) 26,000
Security deposit on lease of warehouse used for storing some
inventories 30,000
Total $150,000
At December 31, 2015, the correct total of Filp's current net
receivables was?
Question#13
Flip Co. has an 8% note receivable dated June 30, 2014, in the
original amount of $150,000. Payments of $50,000 in principal
plus
accrued interest are due annually on July 1, 2015, 2016, and
2017. In its June 30, 2017 balance sheet what amount should
Flip report as a current asset for interest on the note receivable?
Question # 14
At December 31, 2014, Filp Co. had a balance sheet credit
balance of $260,000 in its allowance for uncollectible accounts.
Based on
past experience, 2%of Filp's credit sales have been
uncollectible. During 2015 Filp wrote off $325,000 of
uncollectible accounts.
Credit sales for 2015 were $9,500,000. In its December 31,
2015 balance sheet, what amount should Filp report as
allowance for uncollectible accounts?
Question # 15
Floppy Corp. factored $600,000 of accounts receivable to
Floozy Corp. on October 1, 2015. Control was surrendered by
Floppy.

7. Floozy accepted the receivables subject to recourse for
nonpayment. Floozy assessed a fee of 3%and retains a holdback
equal to
5%of the accounts receivable. In addition, Floozy charged
15%interest computed on a weighted-average time to maturity
of the
receivables of fifty-four days. The fair value of the recourse
obligation is $9,000. Floppy will record:
a. cash of ?
b. a loss of ?
Question # 16
In its 2015 financial statements, FlamCo. reported interest
expense of $85,000 in its income statement and cash paid for
interest of
$68,000 in its cash flow statement. There was no prepaid
interest or interest capitalization either at the beginning or end
of 2015.
Accrued interest at December 31, 2014, was $5,000.What
amount should Flamreport as accrued interest payable in its
December 31, 2015 balance sheet?
Question #17
FlamCo. salaried employees are paid biweekly. Advances made
to employees are paid back by payroll deductions. Information
relating to salaries follows:
12/31/14 12/31/15
Employee advances $24,000 $36,000
Accrued salaries payable 40,000 ?
Salaries paid during 2015 (gross) 420,000
Salaries expense during 2015 390,000
In Flam's December 31, 2015 balance sheet, accrued salaries
payable was?
Question #18

8. FlamCo.'s payroll for the month ended January 31, 2015, is
summarized as follows:
Total wages $10,000
Federal income tax withheld 1,200
All wages paid were subject to FICA. FICAtax rates were 8%
each for employee and employer. Flamremits payroll taxes on
the 15th
of the following month. In its financial statements for the month
ended January 31, 2015, what amounts should Flam report as
a. total payroll tax liability?
b. payroll tax expense?
Question #19
Floozy Co. sells its products in reusable containers. The
customer is charged a deposit for each container delivered and
receives a
refund for each container returned within two years after the
year of delivery. Floozy accounts for the containers not returned
within the time limit as being retired by sale at the deposit
amount. Information for 2016 is as follows:
Container deposits at December 31, 2015 from deliveries in
2014
$150,000
2015
430,000 $580,000
Deposits for containers delivered in 2016
870,000
Deposits for containers returned in 2016 from deliveries in
2014 $ 90,000

9. 2015 250,000
2016 286,000
626,000
In Floozy's December 31, 2016 balance sheet, the liability for
deposits on returnable containers should be?
Individual Project Rubric
Grading Criteria
Percentage
Deliverable requirements addressed; understanding of material
and writer's message and intent are clear.
35%
Scholarly research supports the writer's position and is properly
acknowledged, and cited direct quotations may not exceed 10%
of the word count of the body of the assignment deliverable
(excluding title page, abstract, table of contents, tables,
exhibits, appendices, and reference pages). Inclusion of
plagiarized content will not be tolerated and may result in
adverse academic consequences.
20%
Critical thinking: Position is well-justified, there is logical
flow, and there are examples.
20%
Structure: Includes introduction and conclusion, proper
paragraph format, and reads as a polished, academic paper or
professional presentation, as appropriate for the required
assignment deliverable.
10%
Mechanical: No spelling, grammatical, or punctuation errors.
10%
APA: Deliverable is cited properly according to the APA
Publication Manual (6th ed.).

10. 5%