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Exercise 1: Venee Corporation uses a job-order costing system. The following transactions occurred in Ociober 2019: ACCThoo Snady canle (i) 1) Raw materiak had a beginning balance of $100000; work-ian-process had a beginning balance of $7,000; finished goods had a beginning balance of $25,000. 2) Vence Corporation acquired additional nww nuterials of $60,000 an credit. 3) Raw materials used in production, $90,000 ( $75,000 direct matcrials to Job 2019 , and $15,000 indirect materials). 4) Accrued direct labor cost to Job 2019at $120,000, and indirect labar cost of $160,000. 5) Oher manufacturing overhead costs (incleding machinery depreciation of $50,000 and ofher incurred and paid overtead costs of $65,500) totaled $115,500. 6) The company applies masufacturing overhead cost to production using a predetermined overhcad mate of $5 per machine-hours. A total of 16,000 machinc-hours were used in October on Job 2019. 7) Jobs costing $270,000, according to Job 2019's job cost shects were completed during October and transferred to Fineshed Goods. 8) Jobs that had cost $285,000 to complete, according to their job cost shects, were shipped to customers during the month. These jobs were sold on atcount at price of $400,000. Roduizements: 1. Fill out the related Traccounts to deseribe the cost flows in the manafacturing job, Jot 2019. 2. Prepare (1) schedule of cost of goods manufactured, and (2) sehedule of cost of goods sold for Job 2019 . Exercise 2.1: Accoanting policy for acquisition of fixed assets. The Keyboard Hero Company acquired fived assed - equipment for its business operation. Compute the acquisition cost of the equipment with the following expenditures: Beguinement, Based on above information, prepare a journal entry to recoed the company's asquisition of equipmen. Exercise 2.2: Accounting policy for fixed asset depreciation. The Keyboand Hero Coenpany acquired the above equipment in Exereise 2 on January 1, Year 1. The asset has an eslimated salvage value of 51,700 at the end of its 6 -year useful life. The company has a Docember 31 fiscal year end. Requinements: 1. Compute annual depreciation for each of the six years of the asset's life ander the straightline nethod. And prepare journal entries. 2. Prepare the fixed asset section of the balance sheet on December 31, Year 1, or 12/31/Year2, or 12/31/ Year 3 , or 12/31/ Year 4 , or 12/31/Year5, or 12/31/Yearh. Exercise 2.3: Accounting policy for assets disposal. Suppose the asset in above Exercise 3 was sold for $2,000 on June 30 , Year 6 . Requirements: For the straight-line depreciation method, 1. Determine the amount of gain or loss on the sale. 2. Prepare journal entries to reflect the impact of above disposal transaction. Exercise 3: Another example for fixed asset depreciation and disposal. Little Caesar's Pizza bought a used Nissan delivery van on January 1, 2001, for $15,000. The van was expected to remain in service 4 years (100,000 miles). At the end of its useful life, Little Caesar's officials estimated that the van's residual value would be $3,000. The van traveled 34,000 miles the first year, 28,000 the second year, 18,000 the third year, and 20,000 in the fourth year. Requirements: 1. Prepare a schedule of depreciation expense per year for the van under the following depreciation methods: (1) straight line and (2) unit-of-production. Show your computation. 2. Which of the above methods best tracks the wear and tear on the van? 3. On January 1, 2005, Little Caesar sold the van for $3,600 on credit. Prepare journal entries for the sales of the van on January 1, 2005. Exercise 4: Financial Statements. Jennifer Consulting Company uses accrual accounting. The following amounts (in dollars) were taken from its pre-closing trial balance as of October 2011. Requirement: Prepare its income statement and statement of retained earnings for the month of October 2011, and its classified balance sheet as of October 31, 2011. Exercise 5: Analyze business transactions and prepare journal entries. Requirement: Joumalize the following transactions for Jennifer Consulting Company in the month of October 2011 . Assume that the company uses the accrual basis of accounting. 1) On October 1, Jennifer invested $10,000 in the business in exchange for the company's common stock. 2) On October 1, Jennifer Consulting Company received $3,600 from RTY Company as rent for the use of Jennifer Consulting Company's vacant land as a parking lot from October 2011 through June 2012. 3) On October 1 , Jennifer Consulting Company paid $4,800 for an insurance premium on a twoyear liability policy. 4) On October 5 , Jennifer Consulting Company purchased supplies for $500 on account (i.e., Jennifer Consulting Company would pay for the supplies in future). 5) On October 10, Jennifer Consulting Company purchased $15,000 of office equipment, paying $3,000 cash down with the remainder due in six monthly installments of $2,100 beginning November 1 . 6) On October 12, Jennifer Consulting Company provided consulting services of $13,400 to customers on account (i.., the customers promised to pay in future). 7) On October 18, Jennifer Consulting Company provided consulting services of $11,500 to customers who paid in cash. 8) On October 22, Jennifer Consulting Company received $8,500 from customers who paid on their accounts from (6). 9) On October 25, Jennifer Consulting Company paid \$300 for supplies that it purchased in (4). 10) On October 31. Jennifer Consulting Company paid expenses during October as follows: wages, $5,100; rent, $1,700; utilities, $920; interest, $200; and income tax expenses, $710. 11) On October 31, Jennifer Consulting Company paid $2,500 dividends to its stockholders. In addition, by the end of October 2011, Jennifer Consulting Company had the following information for adjustments. Prepare journal entries and adjusting entries when necessary. A1.Its prepaid insurance expired for the month of October 2011. A2. For its office supplies, $240 of the $500 of purchased office supplies were used in October. A3. Assuming its equipment is depreciated at the rate of $500 per month, journalize its monthly depreciation for October 2011 . A4.Since Jennifer Consulting Company has provided one month's rental of its land to RTY Company in October 2011 , recognize its $400(=$3,600+9) of additional revenue eamed. A5. In October 2011, the wages still owed but not yet paid to employees totaled $280. Exercise 1: Venee Corporation uses a job-order costing system. The following transactions occurred in Ociober 2019: ACCThoo Snady canle (i) 1) Raw materiak had a beginning balance of $100000; work-ian-process had a beginning balance of $7,000; finished goods had a beginning balance of $25,000. 2) Vence Corporation acquired additional nww nuterials of $60,000 an credit. 3) Raw materials used in production, $90,000 ( $75,000 direct matcrials to Job 2019 , and $15,000 indirect materials). 4) Accrued direct labor cost to Job 2019at $120,000, and indirect labar cost of $160,000. 5) Oher manufacturing overhead costs (incleding machinery depreciation of $50,000 and ofher incurred and paid overtead costs of $65,500) totaled $115,500. 6) The company applies masufacturing overhead cost to production using a predetermined overhcad mate of $5 per machine-hours. A total of 16,000 machinc-hours were used in October on Job 2019. 7) Jobs costing $270,000, according to Job 2019's job cost shects were completed during October and transferred to Fineshed Goods. 8) Jobs that had cost $285,000 to complete, according to their job cost shects, were shipped to customers during the month. These jobs were sold on atcount at price of $400,000. Roduizements: 1. Fill out the related Traccounts to deseribe the cost flows in the manafacturing job, Jot 2019. 2. Prepare (1) schedule of cost of goods manufactured, and (2) sehedule of cost of goods sold for Job 2019 . Exercise 2.1: Accoanting policy for acquisition of fixed assets. The Keyboard Hero Company acquired fived assed - equipment for its business operation. Compute the acquisition cost of the equipment with the following expenditures: Beguinement, Based on above information, prepare a journal entry to recoed the company's asquisition of equipmen. Exercise 2.2: Accounting policy for fixed asset depreciation. The Keyboand Hero Coenpany acquired the above equipment in Exereise 2 on January 1, Year 1. The asset has an eslimated salvage value of 51,700 at the end of its 6 -year useful life. The company has a Docember 31 fiscal year end. Requinements: 1. Compute annual depreciation for each of the six years of the asset's life ander the straightline nethod. And prepare journal entries. 2. Prepare the fixed asset section of the balance sheet on December 31, Year 1, or 12/31/Year2, or 12/31/ Year 3 , or 12/31/ Year 4 , or 12/31/Year5, or 12/31/Yearh. Exercise 2.3: Accounting policy for assets disposal. Suppose the asset in above Exercise 3 was sold for $2,000 on June 30 , Year 6 . Requirements: For the straight-line depreciation method, 1. Determine the amount of gain or loss on the sale. 2. Prepare journal entries to reflect the impact of above disposal transaction. Exercise 3: Another example for fixed asset depreciation and disposal. Little Caesar's Pizza bought a used Nissan delivery van on January 1, 2001, for $15,000. The van was expected to remain in service 4 years (100,000 miles). At the end of its useful life, Little Caesar's officials estimated that the van's residual value would be $3,000. The van traveled 34,000 miles the first year, 28,000 the second year, 18,000 the third year, and 20,000 in the fourth year. Requirements: 1. Prepare a schedule of depreciation expense per year for the van under the following depreciation methods: (1) straight line and (2) unit-of-production. Show your computation. 2. Which of the above methods best tracks the wear and tear on the van? 3. On January 1, 2005, Little Caesar sold the van for $3,600 on credit. Prepare journal entries for the sales of the van on January 1, 2005. Exercise 4: Financial Statements. Jennifer Consulting Company uses accrual accounting. The following amounts (in dollars) were taken from its pre-closing trial balance as of October 2011. Requirement: Prepare its income statement and statement of retained earnings for the month of October 2011, and its classified balance sheet as of October 31, 2011. Exercise 5: Analyze business transactions and prepare journal entries. Requirement: Joumalize the following transactions for Jennifer Consulting Company in the month of October 2011 . Assume that the company uses the accrual basis of accounting. 1) On October 1, Jennifer invested $10,000 in the business in exchange for the company's common stock. 2) On October 1, Jennifer Consulting Company received $3,600 from RTY Company as rent for the use of Jennifer Consulting Company's vacant land as a parking lot from October 2011 through June 2012. 3) On October 1 , Jennifer Consulting Company paid $4,800 for an insurance premium on a twoyear liability policy. 4) On October 5 , Jennifer Consulting Company purchased supplies for $500 on account (i.e., Jennifer Consulting Company would pay for the supplies in future). 5) On October 10, Jennifer Consulting Company purchased $15,000 of office equipment, paying $3,000 cash down with the remainder due in six monthly installments of $2,100 beginning November 1 . 6) On October 12, Jennifer Consulting Company provided consulting services of $13,400 to customers on account (i.., the customers promised to pay in future). 7) On October 18, Jennifer Consulting Company provided consulting services of $11,500 to customers who paid in cash. 8) On October 22, Jennifer Consulting Company received $8,500 from customers who paid on their accounts from (6). 9) On October 25, Jennifer Consulting Company paid \$300 for supplies that it purchased in (4). 10) On October 31. Jennifer Consulting Company paid expenses during October as follows: wages, $5,100; rent, $1,700; utilities, $920; interest, $200; and income tax expenses, $710. 11) On October 31, Jennifer Consulting Company paid $2,500 dividends to its stockholders. In addition, by the end of October 2011, Jennifer Consulting Company had the following information for adjustments. Prepare journal entries and adjusting entries when necessary. A1.Its prepaid insurance expired for the month of October 2011. A2. For its office supplies, $240 of the $500 of purchased office supplies were used in October. A3. Assuming its equipment is depreciated at the rate of $500 per month, journalize its monthly depreciation for October 2011 . A4.Since Jennifer Consulting Company has provided one month's rental of its land to RTY Company in October 2011 , recognize its $400(=$3,600+9) of additional revenue eamed. A5. In October 2011, the wages still owed but not yet paid to employees totaled $280

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