Hm1030 week 2 test

 HM1030 : Week 3 Assignment Worksheet

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Before you begin, save this document to your computer.You will need to submit your answers in the area indicated below.

DIRECTIONS:

1. Read chapters 4 and 7 of your Principles of Financial Accounting textbook.

2. Answer the following SIX (6) questions.

3. Please remember toSAVE this document to your computer or “My Documents” on your computer.

4. Submit the saved file to your “Assignment Drop Box”.

Tips for answering questions:

· Read the question more than twice, if necessary, to make sure you understand what you are asked to do.

· Find the key words in each question and construct your answer to address those key words or phrases of the question.

· Your answer should be organized and to the point.

· Keep your sentences short and simple. Pay attention to the answer length requirements (if stated).

· If necessary, go the extra mile and give examples to illustrate your point.

Before you continue:

· Did you save this document to your computer?

· No: Please save this document to your computer now.

· Yes: Great! Let’s get to work!

(See next page for part 1)

Question 1:

How does the automated system improve the efficiency and timeliness of financial

statements?

8 points

Directions to complete Question1:

· TIP 1: Consider using an introductory paragraph explaining:

a. What is an automated accounting information system?

b. What are major benefits of an automated accounting information system?

· TIP 2: See page 184 (Paragraph 2, Control Principle)

· Use short responses, in complete sentences with proper grammar and spelling

· Your answer should be no less than 8 sentences.

Answer:

Type your answer here

OPTIONAL : Feel free to go the extra mile!

If you used resources to help you answer your question (for example: your textbook, a web page, or an article) please list the name and location of your source below. Be sure to rewrite your answer in your own words. Help is available! Contact your Instructor or Academic Coaching or visit the Student Success Center.

Optional:

Type your resources here…..

SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT

(See next page for part 2)

Question 2:

How does the automated system enhance the relevance of the information provided?

8points

Directions to complete Question2:

· TIP 1: See page 184 (Paragraph 3, Relevance Principle)

· Use short responses, in complete sentences with proper grammar and spelling

· Your answer should be no less than 8 sentences.

Answer:

Type your answer here

OPTIONAL : Feel free to go the extra mile!

If you used resources to help you answer your question (for example: your textbook, a web page, or an article) please list the name and location of your source below. Be sure to rewrite your answer in your own words. Help is available! Contact your Instructor or Academic Coaching or visit the Student Success Center.

Optional:

Type your resources here…..

SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT

(See next page for part 3)

Question 3: How does the automated system enhance the decision making process?

8 points

Directions to complete Question 3:

· TIP 1: See page 184 (Paragraph 1, Accounting Information Systems and Relevance Principle)

· Use short responses, in complete sentences with proper grammar and spelling

· Your answer should be no less than 8 sentences.

Answer: Type your answer here

OPTIONAL : Feel free to go the extra mile!

If you used resources to help you answer your question (for example: your textbook, a web page, or an article) please list the name and location of your source below. Be sure to rewrite your answer in your own words. Help is available! Contact your Instructor or Academic Coaching or visit the Student Success Center.

Optional:

Type your resources here…..

SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT

(See next page for part 4)

Question 4:

At the beginning of the year, a company’s balance sheet reported the following balances: Total Assets = $125,000; Total Liabilities = $75,000; and Owner’s Capital = $50,000. During the year, the company reported revenues of $46, 000 and expenses of $30, 000. In addition, owner’s withdrawals for the year totaled $20,000. Assuming no other changes to owner’s capital, the balance in the owner’s capital account at the end of the year would be:

9points

Directions to answer Question4:

· TIP: Page 14: Expanded Accounting Equation (Last paragraph)

· From the question, enter the “Owner’s Capital at the beginning of the year” in the “Type your answer here” cell in Line 1

· From the question, enter the “Reported Revenues” in the “Type your answer here” cell in Line 2

· From the question, enter the “Expenses during the year” in the “Type your answer here” cell in Line 3

· From the question, enter the “Owner’s Withdrawals during the year” in the “Type your answer here” cell in Line 4

· Enter theresult of the underlined portion of the “Expanded Accounting Equation” in the “Type your answer here” cell in Line 5

Line 1

Owner’s Capital at the beginning of the year

Type your answer here

Line 1

Line 2

Reported Revenues

Type your answer here

Line 2

Line 3

Expenses during the year

Type your answer here

Line 3

Line 4

Owner’s Withdrawals during the year

Type your answer here

Line 4

Line 5

Expanded Accounting Equation is:

Assets = Liabilities+ {Owner Capital (Line 1) – Owner Withdrawals (Line 4) +Revenues (Line 2) – Expenses (Line 3) }/ Equity

Type your answer here

Line 5

SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT

(See next page for part 5)

Question 5:

A company had average total assets of $982,450 and net income of $190,700 and reports various segment information. Segment A had average total assets of $437,800 and segment operating income of $98,230. Segment B had average assets of $151,200 and segment operating income of $16,190. Calculate the segment return on assets for Segment A.

9points

Directions to select/identify the CORRECT answer for Question5:

· TIP: Page 22, Return on Assets

· From the question, enter the “Net Income” in the “Type your answer here” cell in Line 1

· From the question, enter the “Average Total Assets” in the “Type your answer here” cell in Line 2

· Enter the “Return on Assets” in the “Type your answer here” cell in Line 3. The “/” symbol means divide.

Line 1

Net Income

Type your answer here

Line 1

Line 2

Average Total Assets

Type your answer here

Line 2

Line 3

Return on Assets = Net Income(Line 1) / Average Total Assets(Line 2)

Type your answer here

Line 3

SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT

(See next page for part 6)

Question6:

Use the information in the adjusted trial balance presented below for the Jones Company.

Account Title

Debit

Credit

Cash

23,000

Accounts receivable

16,000

Prepaid insurance

6,600

Equipment

100,000

Accumulated Depreciation‐Equipment

50,000

Land

95,000

Accounts payable

17,000

Interest payable

2,400

Unearned revenue

5,000

Long-term notes payable

30,000

J. Jones, Capital

136,200

Totals

240,600

240,600

What is the total current assets for Jones Company?

7points

Directions to complete Question6:

· HINT: See page 148: Current Assets

· From the question, enter the “Cash” in the “Type your answer here” cell in Line 1

· From the question, enter the “Accounts Receivable” in the “Type your answer here” cell in Line 2

· From the question, enter the “Prepaid Insurance” in the “Type your answer here” cell in Line 3

· Enter the “Total Current Assets” in the “Type your answer here” cell in Line 4

Line 1

Cash

Type your answer here

Line 1

Line 2

Accounts Receivable

Type your answer here

Line 2

Line 3

Prepaid Insurance

Type your answer here

Line 3

Line 4

Total Currents Assets are:

Cash(Line 1), Short term investments, accounts receivable(Line 2), short term note receivable, good for sale (called merchandise or inventory) and prepaid expenses(Line 3) . (Add: line 1 + line 2 + line 3)

Type your answer here

Line 4

SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT

You will earn additional points if you correctly submit the worksheet to the assignment dropbox.

1 point

You will earn additional points if you use proper sentence structure, grammar and spelling.

5 points

TOTAL POINTS

55 points

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