Name: ___________________________________ Circle Class Time: 8:00 9:30 12:30

Name: ___________________________________
Circle
Class Time: 8:00 9:30
12:30

Accounting 200
Financial Statement Homework Assignment
(10
points)
Due in class on April
22nd

Part 1: At December 31, 2012, Cohen Fencing
Company had the following trial balance.

Cohen Fencing Company
Unadjusted Trial Balance
12/31/12

Dr

Cr

Cash

203,203

Accounts Receivable

60,000

Allowance for Doubtful Accounts

600

Short Term Note Receivable

24,000

Interest Receivable

Prepaid Insurance

11,000

Supplies

6,000

Inventory

65,000

Equipment

175,000

Accumulated Depreciation

75,000

Copyright

48,000

Accounts Payable

35,000

Wages Payable

Interest Payable

Bonds Payable

200,000

Premium on Bonds Payable

11,103

Common Stock

90,000

Retained Earnings

5,000

Dividends

5,200

Sales

923900

Sales Returns & Allowances

4,000

Sales Discounts

9,000

Cost of Goods Sold

375,000

Bad Debts Expense

Depreciation Expense

Wages Expense

260,000

Rent Expense

65,000

Insurance Expense

16,000

Supplies Expense

7,000

Interest Revenue

800

Interest Expense

9,000

Gain on Sale of Equipment

5,000

Income Tax Expense

4,000

Total

1,346,403

1,346,403

Instructions: You must turn in the work performed on
the sheets printed with this page. Your
assignment will NOT BE ACCEPTED ON PLAIN PAPER.

1.
Write the journal entries required for each of the 5 events
described below on the General page provided. Use ONLY
the accounts listed on the trial balance for your journal entries.
2.
Post the journal entry transactions to
individual T-accounts and prepare an adjusted trial balance for The Cohen
Fencing Company as of December 31, 2012.

Information
for the necessary adjustments or calculations as of December 31, 2012:

1.
The
company last received interest on the note receivable on October 30, 2012. Interest will next be paid on April 30, 2013,
when the note matures. Record the accrued
interest revenue for the last 2 months of 2012.
The annual interest rate is 6%. Round to nearest whole dollar.

2.
The
Equipment was purchased prior to 2012.
The company uses the straight-line method, assumed a $5,000 salvage
value and an estimated useful life of 10 years.
Record depreciation expense for the full year of 2012.

3.
The
company uses the allowance method to estimate its uncollectible accounts. The new Chief Financial Officer (CFO) decided
to use the percent of receivables method and estimated that 3% of Accounts
Receivables at December 31, 2012, will be uncollectible. Record the adjusting entry for bad debt expense
for 2012.

4.
The
company issued 8%, 10-year bonds when the market rate for similar investments
is 5%. The company pays interest each
year on January 1st. Using
the effective interest method of amortizing the premium on bonds payable,
accrue the interest expense as of December 31, 2012. Round
to nearest whole dollar for your interest expense calculation.

5.
Employees
were last paid on December 24, 2012.
Several employees worked through December 31st and wages due
but not yet paid are $5,500. These wages
will be paid in early January. An
adjusting entry needs to be recorded to reflect this liability.

GENERAL JOURNAL

DATE

ACCOUNT
NAME

DEBIT

CREDIT

Use the space below for T-accounts (REQUIRED FOR GRADING). For each account
in the journal entries, you will need to adjust the balance from the
preliminary trial balance with the debit or credit from the journal entry. (You only need to provide T-accounts for
those that change)
Cohen Fencing Company

ADJUSTED TRIAL BALANCE
12/31/12

DEBIT

CREDIT

Cash

Accounts
Receivable

Allowance
for Doubtful Accounts

Short-term
Note Receivable

Interest
Receivable

Prepaid
Insurance

Supplies

Inventory

Equipment

Accumulated
Depreciation

Copyright

Accounts
Payable

Wages
Payable

Interest
Payable

Bonds
Payable

Premium
on Bonds Payable

Common
Stock

Retained
Earnings

Dividends

Sales

Sales
Returns & Allowances

Sales
Discounts

Cost
of Goods Sold

Bad
Debts Expense

Depreciation
Expense

Wages
Expense

Rent
Expense

Insurance
Expense

Supplies
Expense

Interest
Revenue

Interest
Expense

Gain
on sale of equipment

Income
Tax Expense

Totals

1,380,898

1,380,898

Part 2: Using the
trial balance below for Rochman Water Company (this is a different company and
new problem), prepare a multi-step income
statement and prepare the Statement of Retained Earnings and Classified Balance
Sheet on the pages which follow. To
get full credit you must include all critical subtotals (see class
announcements).

Rochman
Water Company
Adjusted
Trial Balance
December
31, 2012

DEBIT

CREDIT

Cash

2,517

Accounts Receivable

1,560

Allowance for Uncollectible Accounts

17

Short term Note Receivable

76

Interest Receivable

2

Supplies

35

Inventory

1,019

Prepaid Expenses

15

Equipment

8,725

Accumulated Depreciation

975

Copyrights

98

Accounts Payable

370

Interest Payable

2

Unearned Revenue

40

Long Term Note Payable

3,400

Common Stock

6,600

Addl Paid-in-Capital

800

Retained Earnings (1/1/12)

2,000

Dividends

100

Sales

34,900

Sales Returns & Allowances

34

Sales Discounts

65

Cost of Goods Sold

30,200

Bad debt expense

34

Depreciation Expense

276

Amortization Expense

11

Wages Expense

2,000

Rent Expense

500

Office Expense

79

Supplies Expense

100

Selling Expense

816

Interest Expense

100

Interest Revenue

8

Income Tax Expense

750

Totals

49,112

49,112

Rochman Water
Company
Multi Step Income
Statement
For the year
ended December 31, 2012

Rochman Water Company
Statement of Retained Earnings
For the year ended
December 31, 2012

Rochman Water Company
Classified Balance Sheet
December 31, 2012

Name: ___________________________________ Circle
Class Time: 8:00 9:30
12:30 Accounting 200 Financial Statement Homework Assignment (10
points) Due in class on April
22nd Part 1: At December 31, 2012, Cohen Fencing
Company had the following trial balance.
Unadjusted Trial Balance12/31/12DrCrCash203,203Accounts Receivable60,000Allowance for Doubtful Accounts600Short Term Note Receivable24,000Interest Receivable Prepaid Insurance11,000Supplies6,000Inventory65,000Equipment175,000Accumulated Depreciation75,000Copyright48,000Accounts Payable35,000Wages PayableInterest PayableBonds Payable200,000Premium on Bonds Payable11,103Common Stock90,000Retained Earnings5,000Dividends5,200Sales923900Sales Returns & Allowances4,000Sales Discounts9,000Cost of Goods Sold375,000Bad Debts ExpenseDepreciation ExpenseWages Expense260,000Rent Expense65,000Insurance Expense16,000Supplies Expense7,000Interest Revenue800Interest Expense9,000Gain on Sale of Equipment5,000Income Tax Expense4,000Total1,346,4031,346,403 Instructions: You must turn in the work performed on
the sheets printed with this page. Your
assignment will NOT BE ACCEPTED ON PLAIN PAPER. 1.
Write the journal entries required for each of the 5 events
described below on the General page provided. Use ONLY
the accounts listed on the trial balance for your journal entries.2.
Post the journal entry transactions to
individual T-accounts and prepare an adjusted trial balance for The Cohen
Fencing Company as of December 31, 2012.Information
for the necessary adjustments or calculations as of December 31, 2012:1.
The
company last received interest on the note receivable on October 30, 2012. Interest will next be paid on April 30, 2013,
when the note matures. Record the accrued
interest revenue for the last 2 months of 2012.
The annual interest rate is 6%. Round to nearest whole dollar.2.
The
Equipment was purchased prior to 2012.
The company uses the straight-line method, assumed a $5,000 salvage
value and an estimated useful life of 10 years.
Record depreciation expense for the full year of 2012.3.
The
company uses the allowance method to estimate its uncollectible accounts. The new Chief Financial Officer (CFO) decided
to use the percent of receivables method and estimated that 3% of Accounts
Receivables at December 31, 2012, will be uncollectible. Record the adjusting entry for bad debt expense
for 2012.4.
The
company issued 8%, 10-year bonds when the market rate for similar investments
is 5%. The company pays interest each
year on January 1st. Using
the effective interest method of amortizing the premium on bonds payable,
accrue the interest expense as of December 31, 2012. Round
to nearest whole dollar for your interest expense calculation.5.
Employees
were last paid on December 24, 2012.
Several employees worked through December 31st and wages due
but not yet paid are $5,500. These wages
will be paid in early January. An
adjusting entry needs to be recorded to reflect this liability. GENERAL JOURNALDATEACCOUNT
NAMEDEBITCREDITUse the space below for T-accounts (REQUIRED FOR GRADING). For each account
in the journal entries, you will need to adjust the balance from the
preliminary trial balance with the debit or credit from the journal entry. (You only need to provide T-accounts for
those that change)
Cohen Fencing Company
ADJUSTED TRIAL BALANCE12/31/12DEBITCREDITCashAccounts
ReceivableAllowance
for Doubtful AccountsShort-term
Note ReceivableInterest
ReceivablePrepaid
InsuranceSuppliesInventoryEquipmentAccumulated
DepreciationCopyrightAccounts
PayableWages
PayableInterest
PayableBonds
PayablePremium
on Bonds PayableCommon
StockRetained
EarningsDividendsSalesSales
Returns & AllowancesSales
DiscountsCost
of Goods SoldBad
Debts ExpenseDepreciation
ExpenseWages
ExpenseRent
ExpenseInsurance
ExpenseSupplies
ExpenseInterest
RevenueInterest
ExpenseGain
on sale of equipmentIncome
Tax ExpenseTotals1,380,8981,380,898Part 2: Using the
trial balance below for Rochman Water Company (this is a different company and
new problem), prepare a multi-step income
statement and prepare the Statement of Retained Earnings and Classified Balance
Sheet on the pages which follow. To
get full credit you must include all critical subtotals (see class
announcements).Rochman
Water CompanyAdjusted
Trial BalanceDecember
31, 2012DEBITCREDITCash2,517Accounts Receivable1,560Allowance for Uncollectible Accounts17Short term Note Receivable76Interest Receivable 2Supplies35Inventory1,019Prepaid Expenses15Equipment8,725Accumulated Depreciation975Copyrights98Accounts Payable370Interest Payable2Unearned Revenue40Long Term Note Payable3,400Common Stock6,600Addl Paid-in-Capital800Retained Earnings (1/1/12)2,000Dividends100Sales34,900Sales Returns & Allowances34 Sales Discounts65Cost of Goods Sold30,200 Bad debt expense34Depreciation Expense276Amortization Expense11Wages Expense2,000
Rent Expense500Office Expense79Supplies Expense100Selling Expense816Interest Expense100Interest Revenue8Income Tax Expense75049,11249,112Rochman Water
CompanyMulti Step Income
StatementFor the year
ended December 31, 2012Rochman Water CompanyStatement of Retained EarningsRochman Water CompanyClassified Balance SheetDecember 31, 2012