“Name:_____________________

Accounting
200
Comprehensive
Homework

Part 1: At December 31, 2014, Cohen Fencing Company had
the following trial balance.

Cohen
Fencing Company
Unadjusted
Trial Balance
12/31/14

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, 2014.

Information
for the necessary adjustments or calculations as of December 31, 2014:

1.
The company last received interest on the
note receivable on October 30, 2014.
Interest will next be paid on April 30, 2015, when the note
matures. Record the accrued interest
revenue for the last 2 months of 2014.
The annual interest rate is 6%. Round to nearest whole dollar.

2.
The Equipment was purchased prior to 2014. 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 2014.

3.
The company uses the allowance method to record
its uncollectible accounts. The new
Chief Financial Officer (CFO) estimated that 3% of Accounts Receivables at
December 31, 2014, will be uncollectible.
Record the adjusting entry for bad debt expense for 2014.

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, 2014. Round to nearest whole dollar for your interest expense calculation.

5.
Employees were last paid on December 24,
2014. 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 at Dec 31, 2014.

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 unadjusted trial balance with the
debit or credit from the journal entry. (You
only need to provide T-accounts for those that change)
Example:

Interest
Receivables

Unadj.
Bal.

0

240

End
Bal.

240

Cohen
Fencing Company
ADJUSTED
TRIAL BALANCE
12/31/14

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 (1) a Multi-step Income Statement
and prepare (2) the Statement of Retained Earnings and (3) Classified Balance Sheet on the pages which follow. To get full credit you must include all
critical subtotals.

Rochman
Water Company
Adjusted
Trial Balance
December
31, 2014

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

(Tips: see
the illustration 5-11 on Page 245 in your textbook)

Rochman Water Company
Multi-step
Income Statement
For
the year ended December 31, 2014

Rochman
Water Company
Statement
of Retained Earnings
For the year ended December 31, 2014

(Tips:
look at the presentation of illustration 2-2 on Page 49 in your textbook)

Rochman
Water Company
Classified
Balance Sheet
December
31, 2014

Part
3: Long –
term liabilities

1. Green Glove Corporation issued $600,000, 9%,
20-yr bonds on Jan 1, 2014, for $___________at 8%.

PV of 600,000 x __________=______________
PV of
interest payment (600,000 x ___ %) ______ x __________=______________
=______________

This price resulted
in an effective-interest rate of 8% on the bonds. Interest is payable annually
on January 1. Green Glove uses the effective-interest method to amortize bond
premium or discount.

Prepare
the journal entries for:
The
issuance of the bonds on Jan 1, 2014.

ACCOUNT NAME / (descriptions)

DEBIT

CREDIT

The
accrual of interest and the discount amortization on December 31, 2014.

ACCOUNT NAME / (descriptions)

DEBIT

CREDIT

The payment of
interest on January 1, 2015.

ACCOUNT NAME / (descriptions)

DEBIT

CREDIT

2. Ankle Construction
takes out a loan of $550,000 for a building on December 31, 2013. The mortgage
payable terms are 8.2%. The terms provide for semiannualinstallment payments of $30,275 on June 30 and
December 31.
Prepare the journal
entries to record the mortgage loan and the first two installment payments.

ACCOUNT NAME / (descriptions)

DEBIT

CREDIT

6/30/ 2014

ACCOUNT NAME / (descriptions)

DEBIT

CREDIT

12/31/ 2014

Part
4: Stockholders
Equity

1) The following
items were shown on the balance sheet of Martin Corporation on December 31,
2014:

Stockholders
Equity
Paid-In Capital
Capital Stock
Common stock, $5 par value,
750,000 shares
authorized; ______ shares issued and
______ outstanding ………….. $3,000,000
Additional paid-in capital
In excess of par value ……………………………………………………………….. 180,000
Total paid in capital ………………………………………………………………. 3,180,000
Retained Earnings ……………………………………………………………………………….. 500,000
Total paid-in capital and
retained earnings ……………………………….. 3,680,000
Less:
Treasury stock (20,000 shares) ………………………………………………….. 280,000
Total stockholders equity ………………………………………………………….. $3,400,000

Instructions
Complete
the following statements and show your computations.

(a) The number of shares of common stock issued
was ________________.

(b) The number of shares of common stock
outstanding was ______________.

(c) The total sales price of the common stock
when issued was ______________.

(d) How much did the treasury stock cost per
share? $____________

(e) What was the average issue price of the
common stock? $____________

2) On January 1,
2014, Browning Corporation had 75,000 shares of $1 par value common stock
issued and outstanding. During the year, the following transactions occurred:
Mar. 1 Issued 90,000 shares of common stock for
$675,000
June 1 Declared a cash dividend of $2.00 per
share to stockholders of record on June 15
June 15 Determine which shareholders are eligible
to receive a dividend
June 30 Paid the $2.00 cash dividend
Dec. 1 Purchased 5,000 shares of common stock for
the treasury for $18 per share

Instructions
Prepare
journal entries to record the above transactions. If no entry is required for a
particular transaction, write down “”No journal entry required””.

ACCOUNT NAME /
(descriptions)

DEBIT

CREDIT

x/xx

Part
5: Statement
of Cash Flows

1)
Fill in the table:
Indicate
if it is an increasing or decreasing transaction with a plus or minus sign.
Indicate
if it is operating (O), financing (F) or investing activity (I). +/- O, F, I

Cash
collection of accounts receivable

340,000

Cash
collection of interest revenue

12,500

Cash
collection of dividend revenue

10,500

Cash
proceeds from sale of equipment

12,000

Cash
proceeds from sale of common stock

52,000

Cash
payment of dividends

2,500

Cash
payment for inventory

120,630

Cash
payment for expenses

61,650

Cash
payment for wages

45,250

Cash
payment for interest expense

925

Cash
payment for purchase of equipment

25,250

Cash
payment for repayment of debt

15,000

2)
Use the information in the table above, prepare a Statement of Cash Flows using the direct method (list the
transaction and the amount under each section.
Be sure to indicate if it is increasing or decreasing (+ or -).).

Cash
from operating Activity

Amount

Net cash ____________ by operating
activity
(provided or used)

Cash from investing activity

Net cash ____________ by investing
activity
(provided or used)

Cash from Financing Activity

Net cash ___________ by financing
activity
(provided or used)

Net __________
in cash
(increase or decrease)

Cash at
beginning of period

100,000

Cash at
end of period

3) Calculate the
Current Cash Debt Coverage Ratio and the Cash Debt Coverage Ratio for this
company using the Statement of Cash Flows prepared above.
Additional
information: the beginning balance of current liabilities is $70,000 and the
ending balance of current liabilities is $67,000; the beginning balance of
total liabilities is $520,000 and the ending balance of total liabilities is $620,000.

1. Current cash
debt coverage =

2. Cash debt
coverage =

Name:_____________________ Accounting
200 Comprehensive
Homework Part 1: At December 31, 2014, Cohen Fencing Company had
the following trial balance. Unadjusted
Trial Balance12/31/14DrCrCash203,203Accounts
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, 2014.Information
for the necessary adjustments or calculations as of December 31, 2014:1.
The company last received interest on the
note receivable on October 30, 2014.
Interest will next be paid on April 30, 2015, when the note
matures. Record the accrued interest
revenue for the last 2 months of 2014.
The annual interest rate is 6%. Round to nearest whole dollar.2.
The Equipment was purchased prior to 2014. 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 2014.3.
The company uses the allowance method to record
its uncollectible accounts. The new
Chief Financial Officer (CFO) estimated that 3% of Accounts Receivables at
December 31, 2014, will be uncollectible.
Record the adjusting entry for bad debt expense for 2014.4.
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, 2014. Round to nearest whole dollar for your interest expense calculation.5.
Employees were last paid on December 24,
2014. 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 at Dec 31, 2014. 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 unadjusted trial balance with the
debit or credit from the journal entry. (You
only need to provide T-accounts for those that change)Example:Interest
ReceivablesUnadj.
Bal.0240End
Bal.240Cohen
Fencing CompanyADJUSTED
TRIAL BALANCE12/31/14DEBITCREDITCashAccounts
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 (1) a Multi-step Income Statement
and prepare (2) the Statement of Retained Earnings and (3) Classified Balance Sheet on the pages which follow. To get full credit you must include all
critical subtotals.Rochman
Water CompanyAdjusted
Trial BalanceDecember
31, 2014DEBITCREDITCash2,517Accounts
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 Expense75049,11249,112(Tips: see
the illustration 5-11 on Page 245 in your textbook)Rochman Water CompanyMulti-step
Income StatementFor
the year ended December 31, 2014Rochman
Water CompanyStatement
of Retained Earnings(Tips:
look at the presentation of illustration 2-2 on Page 49 in your textbook)Rochman
Water CompanyClassified
Balance SheetDecember
31, 2014 Part
3: Long –
term liabilities1. Green Glove Corporation issued $600,000, 9%,
20-yr bonds on Jan 1, 2014, for $___________at 8%.
PV of 600,000 x __________=______________PV of
interest payment (600,000 x ___ %) ______ x __________=______________ =______________This price resulted
in an effective-interest rate of 8% on the bonds. Interest is payable annually
on January 1. Green Glove uses the effective-interest method to amortize bond
premium or discount.Prepare
the journal entries for:The
issuance of the bonds on Jan 1, 2014.ACCOUNT NAME / (descriptions)DEBITCREDITThe
accrual of interest and the discount amortization on December 31, 2014.ACCOUNT NAME / (descriptions)DEBITCREDITThe payment of
interest on January 1, 2015.ACCOUNT NAME / (descriptions)DEBITCREDIT2. Ankle Construction
takes out a loan of $550,000 for a building on December 31, 2013. The mortgage
payable terms are 8.2%. The terms provide for semiannualinstallment payments of $30,275 on June 30 and
December 31.Prepare the journal
entries to record the mortgage loan and the first two installment payments.ACCOUNT NAME / (descriptions)DEBITCREDIT6/30/ 2014ACCOUNT NAME / (descriptions)DEBITCREDIT12/31/ 2014Part
4: Stockholders
Equity1) The following
items were shown on the balance sheet of Martin Corporation on December 31,
2014:Stockholders
Equity Paid-In Capital Capital Stock Common stock, $5 par value,
750,000 shares authorized; ______ shares issued and
______ outstanding ………….. $3,000,000 Additional paid-in capital In excess of par value ……………………………………………………………….. 180,000 Total paid in capital ………………………………………………………………. 3,180,000 Retained Earnings ……………………………………………………………………………….. 500,000 Total paid-in capital and
retained earnings ……………………………….. 3,680,000 Less:
Treasury stock (20,000 shares) ………………………………………………….. 280,000 Total stockholders equity ………………………………………………………….. $3,400,000InstructionsComplete
the following statements and show your computations.(a) The number of shares of common stock issued
was ________________. (b) The number of shares of common stock
outstanding was ______________. (c) The total sales price of the common stock
when issued was ______________. (d) How much did the treasury stock cost per
share? $____________ (e) What was the average issue price of the
common stock? $____________ 2) On January 1,
2014, Browning Corporation had 75,000 shares of $1 par value common stock
issued and outstanding. During the year, the following transactions occurred:Mar. 1 Issued 90,000 shares of common stock for
$675,000June 1 Declared a cash dividend of $2.00 per
share to stockholders of record on June 15June 15 Determine which shareholders are eligible
to receive a dividend June 30 Paid the $2.00 cash dividendDec. 1 Purchased 5,000 shares of common stock for
the treasury for $18 per shareInstructionsPrepare
journal entries to record the above transactions. If no entry is required for a
particular transaction, write down “”No journal entry required””.ACCOUNT NAME /
(descriptions)DEBITCREDITx/xxPart
5: Statement
of Cash Flows1)
Fill in the table: Indicate
if it is an increasing or decreasing transaction with a plus or minus sign.Indicate
if it is operating (O), financing (F) or investing activity (I). +/- O, F, I Cash
collection of accounts receivable340,000Cash
collection of interest revenue12,500Cash
collection of dividend revenue10,500Cash
proceeds from sale of equipment12,000Cash
proceeds from sale of common stock52,000Cash
payment of dividends2,500Cash
payment for inventory120,630Cash
payment for expenses61,650Cash
payment for wages45,250Cash
payment for interest expense925Cash
payment for purchase of equipment25,250Cash
payment for repayment of debt15,0002)
Use the information in the table above, prepare a Statement of Cash Flows using the direct method (list the
transaction and the amount under each section.
Be sure to indicate if it is increasing or decreasing (+ or -).).Cash
from operating ActivityAmount Net cash ____________ by operating
activity (provided or used)Cash from investing activity Net cash ____________ by investing
activity (provided or used)Cash from Financing Activity Net cash ___________ by financing
activity (provided or used)Net __________
in cash (increase or decrease)Cash at
beginning of period100,000Cash at
end of period3) Calculate the
Current Cash Debt Coverage Ratio and the Cash Debt Coverage Ratio for this
company using the Statement of Cash Flows prepared above.Additional
information: the beginning balance of current liabilities is $70,000 and the
ending balance of current liabilities is $67,000; the beginning balance of
total liabilities is $520,000 and the ending balance of total liabilities is $620,000.1. Current cash
debt coverage =2. Cash debt
coverage =”