Intermediate Accounting 1- D103: Units 2-4 Pre- Assessment

Intermediate Accounting 1- D103: Units 2-4 Pre-

Assessment

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Students also studied Terms in this set (108) Western Governors UniversityD 089 Save D103 - Intermediate Accounting - O...100 terms SpicyAccounting Preview D103 Units 5-7 Pre Assessment 35 terms brandy_stahura Preview WGU D104 Intermediate Accounting...144 terms kristineburrow Preview WGU D 50 terms kris Report a $3500 sale on accountDebit: Accounts Receivable $3500; Credit: Service Revenue $3500 Journalize depreciation for the equipment that is $5,000 Debit: Depreciation Expense $5000; Credit: Accumulated-Depreciation Equipment $5000 Journalize the adjusting entry for an employer that owes $1300 for payroll on Jan 10, 2021, for the payroll period ending December 31, 2020.Debit: Salaries and Wages Expense $1300; Credit: Salaries and Wages Payable $1300 Calculate and journalize the annual adjusting entry to be made after a six-month insurance policy was purchased on September 1, 2020, for $3,600. Period ending Dec

31.2020

Debit: Insurance Expense $2400; Credit: Prepaid Insurance $2400 Sales RevenueSales-Income Statement Accounts ReceivableSales-Income Statement Sales DiscountsSales-Income Statement Sales Returns and AllowancesSales-Income Statement (revenue section) Advertising ExpenseSelling Expense-Income Statement Salaries-SalesSelling Expense-Income Statement

Travel & Entertainment for Sales PersonnelSelling Expense-Income Statement Insurance ExpenseAdministrative Expense-Income Statement Salaries-OfficersAdministrative Expense-Income Statement Legal and Professional ServicesAdministrative Expense-Income Statement Rent Revenueother revenues and gains-income statement Gain on sale of landother revenues and gains- income statement Interest on bonds and notesother expenses and losses-income statement Supplies Inventorycurrent asset-balance sheet Prepaid Insurancecurrent asset-balance sheet investments available for salecurrent asset-balance sheet Equity Investmentlong-term asset-balance sheet equipmentproperty, plant, and equipment-balance sheet cashcurrent asset-balance sheet Accumulated Depreciation - Equipmentproperty, plant, and equipment-balance sheet Trademarkintangible asset-balance sheet Accounts Payablecurrent liabilities-balance sheet Salaries and Wages Payablecurrent liabilities-balance sheet Unearned Service Revenuecurrent liabilities-balance sheet bonds payable (due more than a year from now) long-term liabilities-balance sheet Notes Payable (due more than a year from now) long-term liabilities-balance sheet common stockStockholders' Equity, Balance Sheet retained earningsStockholder's Equity, Balance Sheet Gain on Sale of Investmentsnegative for operating activities-statement of cash flows Accounts Receivable (statement of cash flows) negative for operating activities

Depreciation expense (statement of cash flows) positive for operating activities sale of investmentsinvesting activities purchase of landinvesting activities (negative) Issuance of common stockfinancing activity Payment of cash dividendsfinancing activity (negative) Retirement of notes payablefinancing activity (negative) Which basic objective is associated with the conceptual framework for financial reporting?Decision-Usefulness What entity requires that members prepare financial statements in accordance with GAAP?AICPA's Code of Professional Conduct What is addressed in Rule 203 of the Code of Professional Conduct?Financial statements being based on generally accepted accounting principles What organization provides implementation guidance within the framework of the Codification to reduce diversity in practice on a timely basis?AAA (American Accounting Association) The "why"-purpose of accountingObjective of financial reporting The conceptual framework for financial reporting consists of how many levels?3 Qualitative Characteristics of Accounting Information and elements of financial statements Bridge level-2nd level "the how" - the implementation of accountingMeasurement, recognition and disclosure concepts such as assumptions, principles, and constraints ComparabilityEnhancing quality VerifiabilityEnhancing quality TimelinessEnhancing quality UnderstandabilityEnhancing quality

Relevancea fundamental quality of useful information: accounting information is considered relevant if it would make a difference in a business decision Faithful Representationthe numbers and descriptions match what really existed or happened predictive valueingredient of relevance Confirmatory Valueingredient of relevance Materialityingredient of relevance Completenessingredient of faithful representation Neutralityingredient of faithful representation Free from erroringredient of faithful representation implies that a company can divide its economic activities time periods such as monthly, quarterly, or yearly.periodicity assumption economic activity can be identified with a particular unit of accountability economic entity assumption According to the revenue recognition principle, at which point should revenue be recognized?When the performance obligation is satisfied What are the enhancing qualities of accounting information?Comparability, Verifiability, Timeliness, and Understandability Which organization enforces appropriate accounting practices for publicly traded companies?

SEC Which ingredient supports faithful representation? Completeness Deferralsprepaid expenses and unearned revenues accrualsaccrued revenues and accrued expenses an adjusting entry for prepaid expensesdebit expenses, credit assets an adjusting entry for unearned revenuesdebit liability, credit revenue deferrals understate or overstate net income?understate deferrals understate or overstate liabilities?overstate deferrals understate or overstate stockholder's equity? understate