| Course | ACC-2010 Intermediate Accounting I |
|---|---|
| Module | Module 1 |
| Paper type | Written Assignment 1: conceptual framework and accounting cycle review |
| Length | About 727 words, 5 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | Bachelor of Science in Business Administration |
| Updated | October 2026 |
Free sample paper for ACC 2010 Module 1
Kittatinny Outdoor Gear, Inc.: Conceptual Framework Judgments, December Adjustments and Year-End Closing
Student Name
Bachelor of Science in Business Administration, Thomas Edison State University
ACC-2010: Intermediate Accounting I
Mentor Name
Month Day, Year
Kittatinny Outdoor Gear, Inc.: Conceptual Framework Judgments, December Adjustments and Year-End Closing
Introduction
Kittatinny Outdoor Gear, Inc. designs and sells tents, packs and trail equipment from a plant and showroom in Sussex County, New Jersey. Its fiscal year ends December 31, 2025. The exercises below follow the order of the module: first the concepts that decide what belongs in the statements, then the mechanics of adjusting and closing the accounts.
Part A: Conceptual Framework Questions
1. The controller proposes reporting the company's warehouse at its appraised value of $4,200,000 instead of its cost less depreciation of $2,900,000. U.S. GAAP does not permit writing property up to appraised value. The appraisal may be relevant, but the cost figure is verifiable from invoices and deeds, and the framework treats faithful representation as a fundamental quality alongside relevance (Financial Accounting Standards Board [FASB], 2018). International standards allow a revaluation model for property, but a U.S. company reporting under GAAP keeps historical cost.
2. A $40 stapler is charged to office expense even though it will last for years. This is acceptable because the amount is immaterial: no investor's decision would change if it were capitalized and depreciated, and tracking it would cost more than the information is worth.
3. The showroom sells gift cards. Revenue is not recognized when a card is sold, because Kittatinny has not yet transferred any goods. The cash creates a contract liability, and revenue follows when the card is redeemed, or, for the portion expected never to be used, in proportion to the pattern of redemptions.
4. A warehouse worker let go in the spring has filed suit, and Kittatinny's lawyer rates an adverse outcome as reasonably possible, short of probable. No liability is recorded, but the notes must describe the suit and estimate the possible loss or state that it cannot be estimated. Full disclosure lets users judge a risk the numbers do not yet show.
Part B: December Adjusting Entries
The unadjusted trial balance at December 31, 2025 omits the following:
The wage accrual covers three unpaid days at $1,500. The depreciation entry is one month of the $30,000 annual charge, since earlier months were recorded monthly. Interest on the note is $50,000 times 6% times two twelfths, for November and December.
| Item | Facts | Adjusting entry |
|---|---|---|
| Insurance | Paid $18,000 on December 1 for six months of coverage, debited to Prepaid Insurance | Insurance Expense 3,000; Prepaid Insurance 3,000 |
| Guided trip packages | Received $9,600 on December 1 for four monthly guided trips, credited to Deferred Revenue | Deferred Revenue 2,400; Service Revenue 2,400 |
| Wages | Staff earn $1,500 per working day, paid each Friday; December 31 falls on a Wednesday, and Monday through Wednesday are unpaid | Wages Expense 4,500; Wages Payable 4,500 |
| Depreciation | Showroom equipment cost $240,000, eight-year life, no residual value, straight-line | Depreciation Expense 2,500; Accumulated Depreciation 2,500 |
| Note receivable | A dealer signed a $50,000, 6% note on November 1, interest due at maturity | Interest Receivable 500; Interest Revenue 500 |
Part C: Closing Entries
After adjustment, revenue and gain accounts total $2,460,000 and expense and loss accounts, including income tax expense, total $2,242,500, so net income is $217,500. The board declared $40,000 of dividends.
Retained earnings therefore rise by $177,500 for the year, from $225,800 to $403,300. Balance sheet accounts are not closed; they carry into 2026.
| Closing entry | Debit | Credit |
|---|---|---|
| Close revenues and gains | Revenue and gain accounts 2,460,000 | Income Summary 2,460,000 |
| Close expenses and losses | Income Summary 2,242,500 | Expense and loss accounts 2,242,500 |
| Close Income Summary | Income Summary 217,500 | Retained Earnings 217,500 |
| Close dividends | Retained Earnings 40,000 | Dividends 40,000 |
Part D: Why the Adjustments Matter
Without the five adjustments, December expenses would be understated by $10,000 and revenues by $2,900, and the balance sheet would overstate prepaid insurance and deferred revenue while omitting wages owed and interest earned. Accrual accounting records the effects of transactions when they happen rather than when cash moves (Spiceland et al., 2020). That is why earnings, not cash receipts, are the figure investors watch. Ball and Brown (1968) showed decades ago that stock prices move in the direction of unexpected accounting earnings, evidence that the accrual figure carries information. More recently, chief financial officers surveyed by Dichev et al. (2013) told researchers that good earnings repeat and turn into cash, and they pointed to the estimates behind entries like these accruals as where reported profit becomes trustworthy or not.
References
Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 6(2), 159-178. https://doi.org/10.2307/2490232
Dichev, I. D., Graham, J. R., Harvey, C. R., & Rajgopal, S. (2013). Earnings quality: Evidence from the field. Journal of Accounting and Economics, 56(2-3), 1-33. https://doi.org/10.1016/j.jacceco.2013.05.004
Financial Accounting Standards Board. (2018). Conceptual framework for financial reporting: Chapter 3, qualitative characteristics of useful financial information (Statement of Financial Accounting Concepts No. 8, as amended).
Spiceland, J. D., Nelson, M. W., & Thomas, W. B. (2020). Intermediate accounting (10th ed.). McGraw-Hill Education.
Reading the ACC 2010 Module 1 assignment instructions
In ACC-2010 your mentor corrects six homework sets drawn from the textbook's chapter-end exercises and problems, one for each module. Label every answer with the textbook's chapter and item number, list exercises ahead of problems and show each step; the syllabus suggests Word or Excel and a heading with your name, the course and the semester. Written Assignment 1 covers Module 1: the environment and theoretical structure of financial accounting and a review of the accounting process. Everything below was written fresh in the textbook's style; the numbered items in your own set will come from your mentor.
Inside the ACC 2010 Module 1 example
The assignment is laid out the way the syllabus asks, in labeled parts that move from concepts to mechanics. Part A answers four framework questions, each naming the concept that decides it and stating the treatment briefly. Part B presents every adjustment in a table with its source facts and entry, then shows the arithmetic beneath, so the mentor can trace each amount. Part C closes the year through Income Summary and reconciles the change in retained earnings, a check that catches errors. Part D steps back to explain what the adjustments do to the statements and why accrual earnings matter to users, citing two research studies. Using one composite company throughout keeps the numbers consistent across all six assignments.
Reading the ACC 2010 Module 1 grading rubric
A third of ACC-2010's grade, 33 percent, comes from the six homework sets: five split 30 percent and the balance sheet set counts 3 percent alone. A correct figure earns full marks only with its working beside it; the syllabus is explicit on that point. On a framework and cycle assignment, they look for the right concept named in each conceptual answer, entries with the correct accounts and amounts, adjustments computed from the facts rather than guessed, and closing entries that leave revenue, expense and dividend accounts at zero. Clear labeling by part and item, tidy tables and an explanation where the item asks for one all make the work easier to grade and earn credit for understanding as well as arithmetic.
ACC 2010 Module 1 help from the desk
The errors that cost the most points on the first written assignment are small: accruing wages for the wrong number of days, depreciating a full year in a month that needs one month, or computing interest for the whole year instead of the months outstanding. Count days and months on a calendar before computing. In conceptual answers, avoid quoting definitions; name the concept and apply it to the case. Remember that balance sheet accounts are never closed. Lay out entries consistently, with debits first. If your mentor marks an answer wrong, rework it before the exam, since the midterm draws on the same skills. Our writers can rework your own assigned exercises the same way, and the first custom sample costs nothing.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Thomas Edison State University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
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ACC 2010 Module 1 questions, answered
Where can I find a free ACC 2010 Module 1 sample paper?
This page reproduces Written Assignment 1 in full: four conceptual framework questions, five December adjusting entries with the arithmetic shown, closing entries and a short explanation of why accruals matter.
What is in ACC-2010 Written Assignment 1?
End-of-chapter exercises and problems on the conceptual framework and a review of the accounting cycle, including adjusting and closing entries, with all work shown.
Can a company write its building up to appraised value under GAAP?
No. U.S. GAAP keeps property at historical cost less depreciation; international standards allow a revaluation model.
How do you compute accrued wages at year end?
Multiply the daily wage by the number of working days earned but not yet paid between the last payday and the end of the period.
Which accounts are closed at year end?
Revenues, expenses, gains, losses and dividends are closed to retained earnings, usually through Income Summary; balance sheet accounts carry forward.