ACC 205 Week 2 Exercise Assignment Revenue and Expenses/ UOPHELP
For more course tutorials visit www.uophelp.com 1. Recognition of concepts. Ron Carroll operates a small company that books entertainers for theaters, parties, conventions, and so forth. The company’s fiscal year ends on June 30. Consider the following items and classify each as either (1) prepaid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing. a. Amounts paid on June 30 for a 1-year insurance policy b. Professional fees earned but not billed as of June 30 c. Repairs to the firm’s copy machine, incurred and paid in June d. An advance payment from a client for a performance next month at a convention e. The payment in part (d) from the client’s point of view f. Interest owed on the company’s bank loan, to be paid in early July g. The bank loan payable in part (f) h. Office supplies on hand at year-end
For more course tutorials visit
www.uophelp.com
1. Recognition of concepts. Ron Carroll operates a small company that books entertainers for theaters, parties, conventions, and so forth. The company’s fiscal year ends on June 30. Consider the following items and classify each as either (1) prepaid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing.
a. Amounts paid on June 30 for a 1-year insurance policy
b. Professional fees earned but not billed as of June 30
c. Repairs to the firm’s copy machine, incurred and paid in June
d. An advance payment from a client for a performance next month at a convention
e. The payment in part (d) from the client’s point of view
f. Interest owed on the company’s bank loan, to be paid in early July
g. The bank loan payable in part (f)
h. Office supplies on hand at year-end
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a. Estimate the amount of Uncollectible Accounts as of December 31, 20X2.<br />
b. What is the company’s Uncollectible Accounts expense for 20X2?<br />
c. Compute the net realizable value of Accounts Receivable at the end of 20X1 <strong>and</strong> 20X2.<br />
d. Compute the net realizable value at the end of 20X1 <strong>and</strong> 20X2 as a percentage of<br />
respective year-end receivables balances. Analyze your findings <strong>and</strong> comment on the<br />
president’s decision to close the credit evaluation department.
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