Prepare general journal entries to record the following transactions for the Harris Company

GRADED PROJECT Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length; refer to the “Assignment Format” page for specific format requirements. Part A (30 points) Prepare general journal entries to record the following transactions for the Harris Company. (The company uses the balance sheet approach for recording bad debts expense.) 2010 Dec. 31 Recorded Bad Debts Expense, $800 2011 Jan. 3 Wrote off Jal’s account as uncollectible, $60 Mar. 4 Wrote off Hall’s account as uncollectible, $75 Jul. 5 Recovered $45 from Hall Aug. 19 Wrote off M. Wilson’s account as uncollectible, $100 Nov. 7 Recovered $25 from Jal Part B (10 points each for a possible total of 40 points) For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account’s nature (temporary/permanent). PRINCIPLES OF ACCOUNTING 1 109 (1) Column 1 Column 2 Column 3 Column 4 Column 1 Column 2 Column 3 Column 4 Column 1 Column 2 Column 3 Column 4 Column 1 Column 2 Column 3 Column 4 Interest payable (2) Interest receivable (3) Discount on notes payable (4) Store equipment Part C (15 points each for a possible total of 30 points) A computer server system, which had cost $210,000 and had accumulated depreciation of $147,000, was traded for a new system with a fair market value of $235,000. The old system and cash of $180,000 were given for the new system. Prepare the journal entry for the exchange of these similar assets. Prepare journal entries for the following for Bartz, Inc. 110 May 11 Replaced the engine in a Van #1, paying cash of $5,400 May 18 Paid cash for a tune-up of the engine in Van #2 of $570 May 29 Paid cash to add a lift to Van #2 of $3,700 PRINCIPLES OF ACCOUNTING 1 PROJECT UPLOAD Once you’ve completed this assignment, login to the student portal at https://students.ashworthcollege.edu. To log in, you’ll need the username and password that you received via email. From the Student Portal page, enter your username and password (Figure 1). Then click Login. Figure 1 The Home or Dashboard page of the Student Portal displays. Prepare general journal entries to record the following transactions for the Harris Company

To access your courses, click Courses in the upper right-hand banner (Figure 2). Figure 2 PRINCIPLES OF ACCOUNTING 1 111 Click on Lessons to access your My Courses page and navigate to the final segment of your program using the My Sites button on the top right of the My Courses page (Figure 3). Figure 3 Click on Assignments under Quick Links on the left-hand navigation menu (Figure 4). Figure 4 112 PRINCIPLES OF ACCOUNTING 1 Click on the link for your graded project under Assignment title in the center of your screen (Figure 5). Figure 5 Click on the Browse button at the bottom of the page to locate and attach your finished project. When you have attached your file, check the Honor Pledge box to confirm that you’re submitting your own work for the assignment. Then click Submit (Figure 6). Figure 6 PRINCIPLES OF ACCOUNTING 1 113 You’ll see a confirmation message that tells you your project has been successfully submitted to the school (Figure 7). Figure 7 114 PRINCIPLES OF ACCOUNTING 1 GRADED PROJECT Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length; refer to the “Assignment Format” page for specific format requirements. Assignment Details: This assignment will include the three-part graded project described below and 30 multiple choice exam questions (Exam 5) covering this lesson, Corporations and Bonds Payable and the next lesson Investments and Cash Flow. The combined project and exam portions of this Assignment total 100 points. You should complete your work for this project at this time and submit it with the exam questions (available at the Assignments tool) after your next lesson. Part A (5 points each for a possible total of 10 points) 1. After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances. Cash 18,000 Inventory 73,000 Other assets 157,000 Accounts Payable 61,000 Abel, Capital 50,000 Barney, Capital 50,000 Cole, Capital 87,000 Noncash assets are sold for $275,000. Profits and losses are shared equally. After all liabilities are paid, divide the remaining cash amongst the partners. PRINCIPLES OF ACCOUNTING 2 75 2. The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before liquidation, their balance sheet balances are as follows: Cash Other Assets Liabilities Brandon, Capital Ryan, Capital $10,000 8,000 4,000 7,000 7,000 a. Prepare general journal entries to record the following transactions for the Harris Company

If the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining assets? b. If the Other Assets are sold for $8,000, how much will each partner receive before paying liabilities and distributing remaining assets? Part B (10 points each for a possible total of 20 points) 1. Simon Brothers pays $47,000 into a bond sinking fund each year to redeem the future maturity of its bonds. During the first year, the fund earned $3,825. At the time of bond redemption, the fund has a balance of $417,000. Of this, $400,000 was used to redeem the bonds. Journalize the following entries. a. Initial deposit b. The first year’s interest c. The redemption of the bonds 2. On January 1, Auctions Online issued $300,000, 9%, 10-year bonds to lenders at the contract rate. Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries. a. Issued the bonds b. Paid first semiannual interest payment c. 76 Retired the bonds at maturity PRINCIPLES OF ACCOUNTING 2 Part C (10 points each for a possible total of 20 points) 1. Prepare a statement of retained earnings in proper form for White Corporation for the year ended December 31, 2012, from the following: Retained Earnings, January 1, 2012 $2,000 Dividends paid during the year 800 Net income for the year 3,000 Correction of prior year error. Purchase of land recorded as rent expense 1,000 2. Curtis Corporation’s balance sheet included the following: Common Stock, $5 par value, 5,000 shares issued and outstanding $25,000 Retained Earnings Total Stockholders’ Equity 20,000 $45,000 Prepare journal entries for the following transactions. May 3 Issued 500 shares at $6 per share 9 Reacquired 100 shares at $4 per share 15 Reissued 50 of the Treasury shares at $7 per share 17 Reissued 10 of the Treasury shares at $3 per share PRINCIPLES OF ACCOUNTING 2 77 …