Exam 3: The Measurement Framework and Mechanics of Financial Accounting

On October 1, 2010, $18,000 of annual magazine subscriptions were sold by Dog World Magazines.The subscribed magazines are delivered on the first day of each month beginning on October 1, 2010.The total cost of the subscribed magazines is $9,600, equal to $800 per month.What is the amount of revenue to be recognized during 2010?

For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all. -Provided computer services to customers for cash

Ramos Company ordered 500 toy wagons from Lamar, Inc.on May 1, 2010.Ramos Company paid for them on May 20 at a cost of $2 each.Ramos sold 50 of them on June 2, 2010, for $5 each to Gilloz Company.Gilloz Company paid Ramos on June 10. - How much revenue should Ramos Company recognize at the preferred point of revenue recognition?

For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all. -Received cash in exchange for the issuance of common stock

Jackson Construction built a levee for the state of Mississippi over a three-year period.The contracted price for the levee was $1,200,000.The costs incurred by Jackson and the payments from the state over the three year period are as follows: -If revenue is recognized in proportion to the costs incurred by Jackson, how much net income is reported in 2011?

For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all. -Recognize part of the cost of the service potential of the company's computer

For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all. -Paid an account payable

For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all. -Declared and paid dividends to the owners of common stock

Dakota Company, a corporation, began operations on December 1, 2010.During January of 2011, the following transactions occurred: ·Billed customers $12,000 for services performed during January. ·Received payment from customers in the amount of $6,000 for services performed and billed in December. ·Received cash of $7,000 for services performed during January for customers who paid cash immediately.(No bills were mailed.) A. How much total Revenue should Dakota Company report for January, 2011? B. Determine the increase in cash during January of 2011 as a result of these transactions.

Match the descriptions listed in letters a through e below with the proper assumption numbered from below. -Going concern assumption

During April, Giselle Corp.paid $3,000 on account for supplies that were purchased, recorded, and used during March.In recording this transaction, Giselle will

Ramos Company ordered 500 toy wagons from Lamar, Inc.on May 1, 2010.Ramos Company paid for them on May 20 at a cost of $2 each.Ramos sold 50 of them on June 2, 2010, for $5 each to Gilloz Company.Gilloz Company paid Ramos on June 10. - Which amount represents Ramos Company's input markets related to this sale?

For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all. -Received cash in exchange for the issue of a note payable

On October 1, 2010, $36,000 of annual magazine subscriptions were sold by Bikers Monthly Magazines.The subscribed magazines are delivered on the first day of each month beginning on October 1, 2010.The total cost of the subscribed magazines is $15,000 or $1,250 per month.Determine the amount of revenue and the cost of the magazines to be recognized during 2010 and 2011, respectively.How much profit will the company recognize during 2010 and 2011?

For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all. -Purchased building and land in exchange for a mortgage note payable

For each financial concept listed in below, identify in which category (listed in a through f) it should be matched.You may use each letter more than once or not at all. -Objectivity

For each financial concept listed in below, identify in which category (listed in a through f) it should be matched.You may use each letter more than once or not at all. -Matching concept

For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all. -Secured a large contract with Allegheny Company to provide computer services during the forthcoming year

Liabilities are $2,000, retained earnings are $1,000, and contributed capital is $3,000.Assets must be

On October 1, 2010, $18,000 of annual magazine subscriptions were sold by Dog World Magazines.The total cost of the subscribed magazines is $9,600, equal to $800 per month.The subscribed magazines are delivered on the first day of each month beginning on October 1, 2010.What is the amount of the cost of the magazines to be recognized during 2010?