Exam 3: Transactions, Adjustments, and Financial Statements

Question

Select accounts of Burger Express are shown below as of December 31, 2017, before any accounts have been adjusted for the current fiscal year. $Select accounts of Burger Express are shown below as of December 31, 2017, before any accounts have been adjusted for the current fiscal year. Your analysis reveals additional information as follows: \bullet On June 1, 2017, the company prepaid rent of $8,640 per month for a 12-month lease on its building. \bullet The company bought the van on January 1, 2015 for the cost of $132,000. The van is expected to last eight years. The company's policy is to record depreciation evenly over the asset's useful life. No depreciation has been recorded during fiscal year 2017. \bullet When purchased on January 1, 2014, the stoves had expected lives of 10 years. The company's policy is to record depreciation evenly over the asset's useful life. No depreciation has been recorded on the stoves during fiscal 2017. \bullet The company sells numbered gift certificates in $60 denominations. At year-end there were 30 unredeemed gift certificates. Prepare journal entries for any required accounting adjustments.$ Your analysis reveals additional information as follows:

\bullet

On June 1, 2017, the company prepaid rent of $8,640 per month for a 12-month lease on its building.

\bullet

The company bought the van on January 1, 2015 for the cost of $132,000. The van is expected to last eight years. The company's policy is to record depreciation evenly over the asset's useful life. No depreciation has been recorded during fiscal year 2017.

\bullet

When purchased on January 1, 2014, the stoves had expected lives of 10 years. The company's policy is to record depreciation evenly over the asset's useful life. No depreciation has been recorded on the stoves during fiscal 2017.

\bullet

The company sells numbered gift certificates in $60 denominations. At year-end there were 30 unredeemed gift certificates. Prepare journal entries for any required accounting adjustments.

Financial Accounting for MBAS

Introducing Financial Statements

Analyzing and Interpreting Financial Statements

Revenues, Receivables, and Operating Expenses

Inventory, Accounts Payable, and Long-Term Assets

Current Liabilities and Long-Term Liabilities

Stock Transactions, Dividends, and EPS

Intercorporate Investments

Leases, Pensions, and Income Taxes

Cash Flows

Forecasting Financial Statements

Using Financial Statements for Valuation

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