course ra

7/28/2015 Coursera

https://class.coursera.org/whartonaccounting002/quiz/feedback?submission_id=15272&sig_reload=1 1/9

Help CenterFeedback — Homework #2

Thank you. Your submission for this homework was received.

You submitted this homework on Tue 28 Jul 2015 12:07 AM IST. You got ascore of 7.40 out of 10.00. You can attempt again, if you'd like.

You may attempt the homework two times. The higher of the two scores will be entered as yourgrade for the homework.

You will see the solution as soon as you submit your homework. Please review your incorrectanswers carefully and, if needed, rewatch the appropriate videos before making your secondattempt.

The deadline for completing the homework is 11:59:00 pm U.S. Eastern Time on July 27, 2015.

Good luck!

Question 1

Which of these transactions would produce $10,000 of revenue in December? (check all that

apply)

Your Answer Score Explanation

BOC delivered $10,000 of goods in December to customersthat ordered them and have 30 days to pay for them.

0.20

BOC collected $10,000 of cash in December fromcustomers who received goods in November.

0.20

BOC signed a contract to deliver $10,000 of goods to acustomer in January.

0.20

BOC delivered $10,000 of goods in December to acustomer that paid a $10,000 cash deposit in November.

0.00

BOC collected a $10,000 deposit in December for goods itwill ship in January.

0.20

http://www.dessci.com/en/products/mathplayer/

https://class.coursera.org/whartonaccounting-002/quiz/start?quiz_id=51

https://accounts.coursera.org/i/zendesk/courserahelp?return_to=https://learner.coursera.help/hc/articles/201523125-Quizzes

7/28/2015 Coursera


Total 0.80 /1.00

Question Explanation

The two revenue recognition criteria are earned and realized. Choices 1 and 4 satisfy thosecriteria in December. Choice 2 satisfied those criteria in November (booking all of the revenuethem). Choices 3 and 5 won't satisfy those criteria until January.

Question 2

Which of these transactions would produce $10,000 of expenses in December? (check all that

apply)


BOC buys $10,000 of copper in December. 0.00

BOC uses copper to make batteries at a total cost of$10,000 in December.

0.20

BOC sells batteries costing $8,000 in December for $10,000cash.

0.20

BOC sells batteries costing $10,000 in December for$12,000 cash.

0.00

BOC signs a contract in December to buy $10,000 ofcopper.

0.20

Total 0.60 /1.00


These are product costs, which will become expenses when the batteries are sold. Choice 4 isthe only correct answer; the $10,000 cost of the batteries becomes Cost of Goods Soldexpense in December.

Question 3

7/28/2015 Coursera


Which journal entry reflects the following transaction?:

BOC receives $2,000 cash from a customer, of which $1,000 was for goods delivered now

and $1,000 was a deposit on custom goods that will be delivered next month.


Dr. Revenue 2,000

Cr. Cash 2,000

Dr. Cash 2,000

Cr. Revenue 1,000

Cr. Advances from Customers 1,000

1.00

Dr. Cash 2,000

Cr. Inventory 2,000

Dr. Cash 2,000

Cr. Advances from Customers 2,000

Dr. Cash 2,000

Cr. Revenue 2,000

Total 1.00 / 1.00


We debit Cash to increase it. We credit Revenue for the $1,000 of goods delivered now. Wecredit Advances from Customers (L) for $1,000 to create a liability for the obligation to delivergoods in January.

Question 4

7/28/2015 Coursera


Which journal entry(s) reflects the following transaction?:

BOC received $5,000 of cash from a customer who took delivery of goods that originally cost

BOC $4,000 to acquire.


Dr. Cash 5,000

Cr. Revenue 5,000

Dr. Cash 5,000

Cr. Inventory 5,000

Dr. Cash 5,000

Cr. Revenue 5,000

Dr. Accounts Payable 4,000

Cr. Inventory 4,000

Dr. Cash 5,000

Cr. Revenue 5,000

Dr. Cost of Goods Sold 4,000

Cr. Inventory 4,000

Dr. Cash 5,000

Cr. Inventory 4,000

Cr. Revenue 1,000

0.00

Total 0.00 / 1.00


We need two entries: (1) debit Cash and credit Revenue for the cash received for the deliveryof goods and (2) debit Cost of Goods Sold and credit Inventory for the original cost of the

7/28/2015 Coursera


goods delivered to the customer.

Question 5How much annual depreciation expense would be recognized for a truck that originally cost

$30,000 and has an estimated useful life of 5 years with a $5,000 salvage value?


$5,000 1.00

$10,000

$3,333

$6,000

$7,000

Total 1.00 / 1.00


Under straightline depreciation, the annual expense would be:(30,000 5,000) / 5 = 5,000.

Question 6

Which journal entry reflects the adjusting entry needed on December 31?:

It is December 31, the end of the fiscal year. During December, employees earned $800,000 in

salaries, but paychecks do not get issued until January 2.


No entry is needed.

Dr. Salaries Payable 800,000

7/28/2015 Coursera


Cr. Cash 800,000

Dr. Salary Expense 800,000

Cr. Cash 800,000

Dr. Salary Expense 800,000

Cr. Salaries Payable 800,000

1.00

Dr. Cash 800,000

Cr. Salaries Payable 800,000

Total 1.00 / 1.00


We recognize (debit) Salary Expense based on the employees working for us and we credit theliability Salaries Payable to record our obligation to pay them in January.

Question 7


Last year, BOC purchased software for $10,000. The expected life of the software is 2 years

and it has no expected salvage value. Now, it is December 31, the end of the fiscal year. No

other entries were recorded for this software during the year.


Dr. Software Amortization Expense 5,000

Cr. Software 5,000

No entry needed.

0.00

7/28/2015 Coursera



Cr. Software Revenue 5,000


Cr. Cash 5,000


Cr. Accumulated Depreciation 5,000

Total 0.00 / 1.00


The journal entry for an Intangible Asset amortization is Dr. Software Amortization Expenseand Cr. Software. The amount is (10,000 0) / 2 = 5,000.

Question 8


In November, BOC received a $5,000 cash deposit from a customer for custombuild goods

that will be delivered in January (BOC recorded an entry for this $5,000 in November). Now, it

is December 31, the end of the fiscal year.


Dr. Unearned Revenue 5,000

Cr. Revenue 5,000

Dr. Unearned Revenue 5,000

Cr. Inventory 5,000

Dr. Cash 5,000

7/28/2015 Coursera


Cr. Revenue 5,000

No entry needed. 1.00

Dr. Advances from Customers 5,000

Cr. Revenue 5,000

Total 1.00 / 1.00


Assuming the $5,000 was properly recorded in November (Dr. Cash, Cr. Unearned Revenue),no entry is needed now. BOC has still not earned the revenue; it won't until it delivers thegoods.

Question 9

Which item would not appear on the Income Statement?


SG&A Expense

Gross Profit

Pretax Income

Operating Income

Dividends 1.00

Total 1.00 / 1.00


Dividends do not show up on the Income Statement!

Question 10

7/28/2015 Coursera


Which of the following are temporary accounts? (check all that apply)


Cost of Goods Sold 0.20

Retained Earnings 0.20

Income Tax Expense 0.20

Sales Revenue 0.20

Dividends Payable 0.20

Total 1.00 / 1.00


Retained Earnings (SE) and Dividends Payable (L) are permanent accounts; the others appearon the Income Statement and, thus, are temporary accounts.

course ra

Documents