# ANSWERS TO SAMPLE TEST #4

Save this PDF as:

Size: px
Start display at page:

## Transcription

1 ANSWERS TO SAMPLE TEST #4 PART A: 1 F 21 C 41 B 2 T 22 D 42 A 3 T 23 D 43 A 4 F 24 A 44 C 5 T 25 B 45 B 6 F 26 A 46 D 7 F 27 C 47 C 8 T 28 B 48 A 9 T 29 B 49 C 10 F 30 C 50 A 11 T 31 A 12 F 32 D 13 F 33 A 14 T 34 C 15 T 35 B 16 F 36 C 17 T 37 A 18 F 38 C 19 T 39 D 20 T 40 D

2 PART B: PROBLEMS (various points - see below - total of 50 pts): 1. During one week, three employees of the Snowshoe Lodge worked the number of hours shown below. All these employees receive overtime for any hours worked beyond 40 in a week. Compute regular earnings, overtime earnings, and gross pay for each employee (10 points). Employee Name Regular Hourly Rate Hours Worked Regular Earnings Overtime Earnings Gross Pay Janet Jones \$ \$ \$ \$ Miguel Rodriguez \$ \$ \$72.00 \$ Melanie Young \$ \$ \$63.75 \$ The monthly salaries for December and the year-to-date earnings as of November 30 for the three employees of the Lakeview Medical Center are listed below. Compute the amount of social security tax and Medicare tax to be withheld from each employee's gross pay for December (10 points). Employee Name December Gross Pay Cumulative Earnings through Nov. 30 Social Security Tax for Dec.* Medicare Tax for Dec. Vince Kim \$5,500 \$90,500 0 \$79.75 Adriana Greitas 7,000 87,600 \$ \$ Andy Smitsky 6,500 85,500 \$ \$94.25 At the time the test was given, the cap for Social Security was at \$90,000

3 3. The Rollins Company has two office employees and two shipping employees. A summary of their earnings and deductions for the week ended June 14, 2004, is shown below. On page 6 of a general journal (use the form below), record the June 14 payroll and the entry on June 16 to issue the paychecks (10 pts). Earnings and Deductions Office Employees Shipping Employees Gross Earnings \$1, \$ Social Security Tax Medicare Tax Income Tax Health Insurance Net Pay for Week \$ \$ GENERAL JOURNAL Page 6 DATE DESCRIPTION POST. REF. DEBIT CREDIT Jun 14 Office Salary Expense Shipping Wages Expense Social Security Tax Payable Medicare tax Payable Income Tax Payable Health Insurance Premium Payable Salaries and Wages Payable To record payroll for week ended Jun Salaries and Wages Payable Cash To record the issue of paychecks

4 4. On July 31, 2004, after one month of operation, the general ledger of Dakota Consulting contained the following accounts and balances. The firm adjusts losses from uncollectible accounts only at the end of the fiscal year. Monthly adjustments are listed below. Journalize the following adjustments (a-e). ACCOUNT BALANCE ACCOUNT BALANCE Cash \$13,425 Dr Interest Payable -- Accounts Receivable 9,500 Dr. Salaries Payable \$600 Cr. Allowance for Doubtful Accts 125 Cr. Key Dakota, Capital 22,800 Cr. Supplies 650 Dr. Key Dakota, Drawing 2,600 Dr. Prepaid Insurance 3,000 Dr. Fees Incomes 16,500 Cr. Office Equipment 14,500 Dr. Salaries Expense 11,050 Dr. Accum Depr - Office Equipment -- Supplies Expense -- Notes Payable 14,000 Cr. Insurance Expense -- Accounts Payable 700 Cr. Depr Exp - Office Equipment -- Interest Expense -- Adjustments (mark both a debit and a credit with the corresponding letter): (a) On July 31, an inventory of the supplies showed that items costing \$250 were on hand. (b) On July 31, one month of a 3-month prepaid insurance expired. (c) On July 1, the firm issued a 3-month, 9 percent note for \$4,000. (d) On July 1, the firm purchased office equipment for \$14,500. The office equipment is expected to have a useful life of 5 years and a salvage value of \$1,000. (e) On July 31, accrued salaries to part-time employees were \$2,000. The salaries will not be paid until August 2. ANSWERS: 7/31 Supplies Expense Dr 400 Supplies Cr 400 7/31 Insurance Expense Dr 1000 Ppd Insurance Cr /31 Interest Expense Dr 30 Interest Payable Cr 30 7/31 Depr Exp Office Equipment Dr 225 Accumulated Depreciation Office Eq Cr 225 7/31 Salaries Expense Dr 2000 Salaries Payable Cr 2000

5 5. Calculate the cost of goods section of the income statement (for the period of the year ended December 31, 2005), using those of the following account balances, which are required (10 pts): Cash \$10,180 Accounts Receivable 26,420 Merchandise Inventory, January 1, ,160 Merchandise Inventory, December 31, ,300 Equipment 38,000 Accounts Payable 41,200 Mortgage Payable 9,000 Purchases 81,300 Freight In 600 Purchase Returns and Allowances 2,900 Purchase Discounts 1,510 Sales 141,800 COST OF GOODS SOLD: Beginning Inventory, January 1, ,160 Net Delivered Cost of Purchases Purchases 81,300 Plus Freight In +600 Delivered Cost of Purchases 81,900 Less Purchase R&A 2,900 Purchases Discounts 1,510-4,410 Net Delivered Cost of Purchases +77,490 Total Merchandise Available for Sale Less Ending Inventory, December 31, ,300 Cost of Goods Sold 75,350

6 6. The following accounts appear on the worksheet of East Bay Pet Clinic. Indicate the section of the classified income statement or classified balance sheet in which each account will be reported (10 points). Sections of Classified Income Statement or Balance Sheet: A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses F. Current Assets G. Plant and Equipment (Fixed Assets) H. Current Liabilities I. Long-Term Liabilities J. Owner s Equity Letter(s) Accounts: A 1. Sales Returns and Allowances F 2. Office Supplies J 3. Olga Ramirez, Capital B 4. Purchase Discounts H 5. Medicare Tax Payable G 6. Truck A 7. Sales Discounts G 8. Accumulated Depreciation Medical Equipment C 9. Salaries Expense F & B 10. Merchandise Inventory F 11. Prepaid Advertising D 12. Rent Income I 13. Notes Payable (on 2- and 3-year notes) F 14. Accounts Receivable C 15. Depreciation Expense Medical Equipment B 16. Purchases G 17. Building E 18. Interest Expense C 19. Truck Expense F 20. Petty Cash Fund

### PART A: TRUE/FALSE (1 point each):

CHABOT COLLEGE General Accounting (BUS-7) Dmitriy Kalyagin PART A: TRUE/FALSE (1 point each): EXAM #4 (Chapters 10, 12, 13) 1. Employees who are exempt from the FLSA are entitled for overtime pay for hours

### The Statement of Cash Flows Direct Method

23 The Statement of Cash Flows Direct Method DEMONSTRATION PROBLEM The financial statements of Bolero Corporation follow. Copyright Houghton Mifflin Company. All rights reserved. 1 Bolero Corporation Income

### CHAPTER 12 ACCRUALS, DEFERRALS, AND THE WORKSHEET

CHAPTER 12 ACCRUALS, DEFERRALS, AND THE WORKSHEET Chapter Opener: Thinking Critically Students may assess that an unexpected decline in sales would mean surplus inventory which would have to be reduced

### Closing Entries and the Postclosing Trial Balance

6-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter Closing Entries and the Postclosing Trial Balance 6 Section 1: Closing Entries Section Objectives 1. Journalize and post

### Sample Test for entrance into Acct 3110 and Acct 3310

Sample Test for entrance into Acct 3110 and Acct 3310 1. Which of the following financial statements could properly have the following in the date line: For the Year Ended December 31, 2010"? a. Balance

### CHAPTER 5. Accounting for Merchandising Operations ASSIGNMENT CLASSIFICATION TABLE. Brief. B Problems. A Problems 2, 3, 4 1 1

CHAPTER 5 Accounting for Merchandising Operations ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems *1. Identify the differences between service

### TRANSACTIONS ANALYSIS EXAMPLE. Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations:

TRANSACTIONS ANALYSIS EXAMPLE Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations: 1. Billings to clients for services provided: \$350,000

### CHAPTER 6. Accounting for retailing CONTENTS

CHAPTER 6 Accounting for retailing CONTENTS 6.1 Journal entries periodic inventory system 6.2 Journal entries involving discounts, closing entries and statements of financial performance both perpetual

### Adjusting Entries and the Work Sheet

Heintz & Parry th Edition Chapter 5 th Edition College Accounting Adjusting Entries and the Work Sheet 1 Prepare end-of-period adjustments. END-OF-PERIOD ADJUSTMENTS Changes occur that affect the business

### ACCOUNTING 105 CONCEPTS REVIEW

ACCOUNTING 105 CONCEPTS REVIEW A note from the tutors: This handout is designed to help you review important information as you study for your cumulative final exam. While it does cover many important

### CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives

CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting

### PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8)

COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) Page 137 NAME ANSWER KEY PROFESSOR S NAME SECTION SCORE ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) INSTRUCTIONS: COMPLETE ALL

### CHAPTER 4. Adjusting the accounts and preparing financial statements CONTENTS

CHAPTER 4 Adjusting the accounts and preparing financial statements CONTENTS Demonstration problem 4.1 Adjusting entries and corrections 4.2 Adjusting centries and effect on financial statements 4.3 Adjusting

### Bookkeeping Quiz = + For each account listed below, indicate whether it normally has a debit or a credit balance: III.

ookkeeping Quiz I. Match the account titles with the appropriate financial statement classification: A Current Assets Sales Property, Plant and Equipment Cash in Checking C Other Assets Accumulated Depreciation

### Chapter 5 Accounting for Merchandising Operations

Chapter 5 Accounting for Merchandising Operations Purchase Transactions Purchaser records goods at cost. When goods are returned, purchaser reduces Inventory. On September 5, De La Hoya Company buys merchandise

### 7 Accounting for Sales and Accounts Receivable

7-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Accounting for Sales and Accounts Receivable Section 1: Merchandise Sales Section Objectives 1. Record credit sales in

### Accumulated Depreciation Equipment

Chapter 4 Completing the Accounting Cycle > DO IT! Worksheet Balance sheet: Extend assets to debit column. Extend liabilities to credit column. Extend contra assets to credit column. Extend drawings account

### Vol. 1, Chapter 3 - Accounting Adjustments

Vol. 1, Chapter 3 - Accounting Adjustments Problem 1 1. (\$20,000 2,000) 48 = \$375 per month 2. Jan. 31 Depreciation Expense \$375 Accumulated Depreciation Van \$375 To record depreciation expense for January

### Study Guide - Final Exam Accounting I

Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger

### Objective Evidence. Unit of Measurement. Accounting Period Cycle. Business Entity. Going Concern. Adequate Disclosure. Matching Expenses with Revenue

Accounting Concept: A source document is prepared for each transaction Objective Evidence Accounting Concept: Business transactions are stated in numbers that have common values; that is, using a common

### Time Period Assumption

ILLUSTRATION 3-1 GUIDELINES TO REPORT REVENUE AND EXPENSES Time Period Assumption Economic life of business can be divided into artificial time periods Revenue Recognition Principle Revenue recognized

### PART 5. External Reporting and Performance Evaluation. Statements of financial performance and position. Statement of cash flows 19

PART 5 External Reporting and Performance Evaluation Statements of financial performance and position 18 Statement of cash flows 19 Analysis and interpretation of financial statements 20 CHAPTER 18 Statements

### Self-test Comprehensive Problems II 综 合 自 测 题 II

Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制

### Chapter 13 Financial Statements and Closing Procedures

Chapter 13 - Financial Statements and Closing Procedures Chapter 13 Financial Statements and Closing Procedures TEACHING OBJECTIVES 13-1) Prepare a classified income statement from the worksheet. 13-2)

### Accounting 300A-10A The Operating Cycle: Worksheet/Closing Entries Page 1

Accounting 3A-1A The Operating Cycle: Worksheet/Closing Entries Page 1 THE WORKSHEET and CLOSING ENTRIES I. Review of Key Concepts and Terms: A. The purpose of the worksheet 1. To show that the accounts

### 2-8. Identify whether each of the following items increases or decreases cash flow:

Problems 2-8. Identify whether each of the following items increases or decreases cash flow: Increase in accounts receivable Increase in notes payable Depreciation expense Increase in investments Decrease

### Account Numbering. By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order.

Chart of Accounts The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number. To set up a chart of accounts, one first needs to define

### SOLUTIONS. Learning Goal 15

Learning Goal 15: Prepare a Classified S1 Learning Goal 15 Multiple Choice 1. b 2. c 3. a 4. b 5. d 6. a 7. c Their importance in paying current liabilities is the main reason current assets are shown

### CHAPTER 3 ADJUSTING THE ACCOUNTS

CHAPTER 3 ADJUSTING THE ACCOUNTS TIME PERIOD ASSUMPTION The time period (or periodicity) assumption assumes that the economic life of a business can be divided into artificial time periods generally a

### Financial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS

Financial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS Name: Selected information from the financial statements of Miller Company for the year ended December 31, 2012, appears below: 2012 Current

EXERCISES Ex. 3 1 1. Prepaid expense 2. Accrued revenue 3. Unearned revenue 4. Accrued expense 5. Unearned revenue 6. Prepaid expense 7. Accrued expense 8. Accrued expense Ex. 3 2 Account Accounts Receivable...

### CHAPTER 4. Completing the Accounting Cycle ASSIGNMENT CLASSIFICATION TABLE. Brief. A Problems. B Problems 1, 2, 3 1, 2, 3, 5, 6, 17 1B, 2B, 3B, 4B, 5B

CHAPTER 4 Completing the Accounting Cycle ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems *1. Prepare a worksheet. 1, 2, 3, 4, 5 1, 2, 3 1, 2,

### Classifying assets, liabilities, and owner s equity

Drill 1-D1 Classifying assets, liabilities, and owner s equity Classify each item listed below as an asset, liability, or owner s equity by placing a check mark in the Asset, Liability, or Owner s Equity

### Review of the Accounting Process THE BASIC MODEL

THE BASIC MODEL The accounting information system is designed to collect and organize data into information that is useful for stakeholders. The Accounting Equation The basic accounting equation is what

### SOLUTIONS. Learning Goal 16

Learning Goal 16: Prepare Closing Entries S1 Learning Goal 16 Multiple Choice 1. d 2. a 3. b 4. d Because drawing is closed directly into the capital account, not into income summary. 5. c 6. b This a

### Accounting Skills Assessment Practice Exam Page 1 of 10

NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +

### COMPONENTS OF THE STATEMENT OF CASH FLOWS

ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling

### b. Do not recognize revenue until steel is shipped. c. Do not recognize revenue until next year after the games are played.

CHAPTER FOUR SE4-2 Revenue recognition a. Recognize revenue from car sales for 12,000. Notes receivable \$12,000 Sales revenue \$12,000 b. Do not recognize revenue until steel is shipped. c. Do not recognize

### Bookkeeper's Hiring Test

Basic Test Payroll Option Depreciation Option Inventory-Perpetual Option Test Name: AIPB Hiring Test Test Form: 8 Test Points: 25.00 Name: Bookkeeper's Hiring Test Date: Form: 8 [1]BASIC BANK01 - BAT 007

### Assessment Schedule 2010 Accounting: Prepare financial statements and related accounting entries for sole proprietors (90224)

NCEA Level 2 Accounting (90224) 2010 page 1 of 7 Assessment Schedule 2010 Accounting: Prepare financial statements and related accounting entries for sole proprietors (90224) Evidence Statement ONE Part

### COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries -

COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries - Worksheet Overview Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Debit Credit Debit Credit Debit

### The Measurement of the Business Income. 1 by recording revenues when earned and expenses when incurred. 2 by adjusting accounts

Recap from Week 3 The Measurement of the Business Income The primary objective of accounting is measuring the net income of the businesses according to the generally accepted accounting principles. Net

### Statements MAKEorBREAK Sample Questions

Castle 2.3 Statements Got the answer? Be the first to stand with your group s flag. Got it correct? MAKE or BREAK a castle, yours or any other group s. The group with the most castles wins. Enjoy! Question

### Accounting for a Merchandising Business

Chapter 11 Accounting for a Merchandising Business ANSWERS TO SECTION 11.1 REVIEW QUESTIONS (text p. 428) The Merchandising Business 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 1. 2. 3. 4. 14. 15. Copyright

### Chapter 6 Statement of Cash Flows

Chapter 6 Statement of Cash Flows The Statement of Cash Flows describes the cash inflows and outflows for the firm based upon three categories of activities. Operating Activities: Generally include transactions

### Accounting II Second Semester Final

Name: Class: Date: Accounting II Second Semester Final Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Profit is the difference between:

### She Wears A Bullet-Proof Vest:

She Wears A Bullet-Proof Vest: Detailed Solving Steps for the 2014 Regional Accounting Exam s Work Sheet Problems Prepared by: LaVerne Funderburk, CPA UIL Accounting State Contest Director 2014 UIL Capital

### Chapter. Skyline College 7-1

Chapter 7 Skyline College 7-1 The three types of business operations are: A service business is a business that sells services. A merchandising business is a business that sells goods purchased for resale.

### Century 21 Accounting, 8e General Journal Chapter Outlines

Century 21 Accounting, 8e General Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting

### Student Solutions Manual to Accompany. Introduction to Financial Accounting. David Annand. Based on International Financial Reporting Standards

Student Solutions Manual to Accompany Introduction to Financial Accounting Based on International Financial Reporting Standards David Annand Copyright 2014 David Annand Published by David Annand 4910C

### Assignment 6: Adjusting Journal Entries and

Name: Due Date: December 12, 2011 Score: out of a possible 47 Course value: 7.5% Assignment 6: Adjusting Journal Entries and Worksheets A series of transactions are presented and their journal entries

### DRAFT. Accounting for a Merchandising Business. SECTION 10.1 REVIEW QUESTIONS (page 401) 1. 5. 6. 7. 8. 10. 11. 12. 13. 14. 15. 16. 17.

CHAPTER 10 Accounting for a Merchandising Business SECTION 10.1 REVIEW QUESTIONS (page 401) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 324 Accounting 1 Student Workbook Copyright 2013 Pearson

### In the event of a tie, the score on the last ten questions will be used as a tie-breaker.

NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING II 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the

### Cash in bank checking account \$22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total \$30,690 Requirement 2

Chapter 7 Solutions EXERCISES Exercise 7 2 Cash and cash equivalents includes: Cash in bank checking account \$22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total

### CENTURY 21 ACCOUNTING, 8e General Journal Key Terms and Definitions

CENTURY 21 ACCOUNTING, 8e General Journal Key Terms and Definitions Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation account: a record summarizing all the information pertaining

### Chapter 5. Accounting for merchandising operations. Appendix 5A: Periodic inventory system

1 Chapter 5 Accounting for merchandising operations Appendix 5A: Periodic inventory system 2 Learning objectives 1. Record purchase and sales transactions under the periodic inventory system 2. Prepare

### CHAPTER 16. Non-current assets: Revaluation, disposal and other aspects CONTENTS

CHAPTER 16 Non-current assets: Revaluation, disposal and other aspects CONTENTS 16.1 Non-current asset disposals 16.2 Revaluation and disposal 16.3 Intangibles and natural resources 16.4 Goodwill and discount

### \$101,114 \$40,915 = 2.47

SOLUTION (concluded) 4. Working Capital = \$101,114 \$40,915 = \$60,199 Current Ratio = \$101,114 \$40,915 = 2.47 DISCUSSION QUESTIONS Suggested Responses 1. Current assets are listed in the order of their

### CHAPTER 23. Statement of Cash Flows 1, 2, 7, 8, 12 3, 4, 5, 6, 16, 17, 19 9, 20 4, 5, 9, 10, 11 10, 13, 15, 16. 7. Worksheet adjustments.

CHAPTER 23 Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Format, objectives purpose, and source of statement.

### The worksheet for Hancock Company shows the following in the financial statement

Chapter 4 Do it! Susan Elbe is preparing a worksheet. Explain to Susan how she should extend the following adjusted trial balance accounts to the financial statement columns of the worksheet. Cash Accumulated

### Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.

0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting

### Accounting Cycle. Matching Principle

CHAPTER 3 Accounting Cycle Analyze and record the transactions Post the transactions and prepare trial balance Adjust the accounts and prepare trial balance Prepare the financial statements Close the accounts

### CHAPTER 6 ACQUISITIONS AND PAYMENT: INVENTORY AND LIABILITIES

CHAPTER 6 ACQUISITIONS AND PAYMENT: INVENTORY AND LIABILITIES Acquiring Merchandise for Sale Purchases (pp. 214-16) Purchase Discounts When a company takes advantage of a purchase discount, it reduces

### Vol. 1, Chapter 5 The Balance Sheet

Vol. 1, Chapter 5 The Balance Sheet Problem 1: Solution Assets Construction in progress Cash advance to affiliated co. Petty cash Trade receivables Building Cash surrender value of life insurance Notes

### Chapter 5: Adjustments and the Worksheet

Chapter 5: Adjustments and the Worksheet Chapter Opener: Thinking Critically Students should suggest that accountants estimate the amount of wear and tear on the equipment. This expense should be charged

### ACCOUNTING 30S WORKSHEET ON ADJUSTING ENTRIES

ACCOUNTING 30S WORKSHEET ON ADJUSTING ENTRIES Put on your thinking caps and sharpen your pencils boys and girls it's time to practice with adjusting entries! 1. Give in general journal form the year-end

### Assessment Schedule 2013 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176)

NCEA Level 2 Accounting (91176) 2013 Page 1 of 7 Assessment Schedule 2013 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176) Evidence Part A Question One

### ADVANCED ACCOUNTING (02) REGIONAL 2006

13 Pages Contestant Number Time Rank ADVANCED ACCOUNTING (02) REGIONAL 2006 Objective Questions (30 @ 2 points each) Job 1 Income Statement Job 2 Statement of Retained Earnings Job 3 Balance Sheet (60

### Chapter 3. Adjusting the accounts. Appendix 3A: An alternative method of recording deferrals

1 Chapter 3 Adjusting the accounts Appendix 3A: An alternative method of recording deferrals 2 Learning objectives 1. Prepare adjusting entries for prepaid expenses originally recorded in an expense account

### NCEA Level 2 Accounting (91176) 2012 page 1 of 8. Sales 990 000 P. Cost of goods sold 586 000 P. Gross profit 404 000 S* Rent (received) 24 000 V

Assessment Schedule 2012 NCEA Level 2 Accounting (91176) 2012 page 1 of 8 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176) Evidence Statement Question

### COURSE GUIDELINE--Accounting

COURSE GUIDELINE--Accounting Grade: 9- (Elective Course, offered one semester at a time) SUBJECT: Accounting TEACHER: Reimer STANDARD QTR. RESOURCES STRATEGIES ASSESSMENTS. Define accounting and explain

### CHAPTER 3 THE ADJUSTING PROCESS

1. a. Under cash-basis accounting, revenues are reported in the period in which cash is received and expenses are reported in the period in which cash is paid. b. Under accrual-basis accounting, revenues

### ANSWERS TO QUESTIONS FOR GROUP LEARNING

Accounting for a 5 Merchandising Business ANSWERS TO QUESTIONS FOR GROUP LEARNING Q5-1 A merchandising business has a major revenue reduction called cost of goods sold. The computation of cost of goods

### Gold Run Snowmobile. Adjusting Entries and Closing Entries For The Quarter Ended December 31. Final Project Evaluation. 5 th Edition.

Gold Run Snowmobile 5 th Edition Adjusting Entries and Closing Entries For The Quarter Ended December 31 and the Final Project Evaluation Page 1 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the December

### Chapter 4. Completing the accounting cycle. Appendix 4A: Reversing entries

1 Chapter 4 Completing the accounting cycle Appendix 4A: Reversing entries 2 Learning objective 1. Prepare reversing entries and describe their purpose 3 Reversing entries Reversing entries are optional

Learn Accounting Understand Business: Course Review Answers 1. What type of accounting measures the activity of the company by looking at economic events regardless of when cash transactions occur? A.

### CORPORATE ACCOUNTING EXERCISES (these exercises can be used as tests if teachers wish to assess elements of this topic separately)

CORPORATE ACCOUNTING EXERCISES (these exercises can be used as tests if teachers wish to assess elements of this topic separately) 1 The Trial Balance of Samcat Holdings Ltd at the end of the last financial

### 1. \$45000 2. \$108000 3. \$63000 4. \$135000

For the last several years Monte Cristo Corp. has operated with a gross profit rate of 30%. On January 1 of the current year, the company had on hand inventory with a cost of \$150,000. Purchases of merchandise

### UNITED STATES BANKRUPTCY COURT NORTHERN & EASTERN DISTRICTS OF TEXAS REGION 6 MONTHLY OPERATING REPORT

ACCRUAL BASIS JUDGE: UNITED STATES BANKRUPTCY COURT NORTHERN & EASTERN DISTRICTS OF TEXAS REGION 6 MONTHLY OPERATING REPORT MONTH ENDING: MONTH YEAR IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED

### UIL ACCOUNTING REGIONAL 2011-R

GROUP 1 UIL ACCOUNTING REGIONAL 2011-R A--Current Asset--Assets that are either used up or converted to cash during the normal operating cycle of the business, usually 1 year. B--Plant Asset--Long-lived

### > DO IT! Chapter 3 Adjusting the Accounts. Timing Concepts. Adjusting Entries for Deferrals D-12. Solution

Chapter 3 Adjusting the Accounts Timing Concepts Review the glossary terms. Study carefully the revenue recognition principle, the expense recognition principle, and the time period assumption. Several

### Test 3 Review. Student:

Test 3 Review Student: 1. A credit sale of \$2,500 to a customer would result in: A. A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts

### Financial Statements Tutorial

Financial Statement Review: Financial Statements Tutorial There are four major financial statements used to communicate information to external users (creditors, investors, suppliers, etc.) - 1. Balance

### In the event of a tie, the score on the last ten questions will be used as a tie-breaker.

NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING I 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the

### Accounting for a Merchandising Business

CHAPTER 10 Accounting for a Merchandising Business SECTION 10.1 REVIEW QUESTIONS (page 401) 1. A service business sells a service to the general public but does not deal in merchandise. For example, a

### ACCT1115. Review Package - Midterm SOLUTION Fall 2013

ACCT1115 Review Package - Midterm SOLUTION Fall 2013 Part I Multiple Choice 1) How should you record the purchase of an expensive automobile? a) Decrease cash, increase assets b) Decrease cash, increase

### ACCOUNTING COMPETENCY EXAM SAMPLE EXAM. 2. The financial statement or statements that pertain to a stated period of time is (are) the:

ACCOUNTING COMPETENCY EXAM SAMPLE EXAM 1. The accounting process does not include: a. interpreting d. observing b. reporting e. classifying c. purchasing 2. The financial statement or statements that pertain

### Equity The remainder is the shareholders claim on the assets-equity. It is often referred to as residual equity.

ACT 1600 Fundamental of Financial Accounting Chapter 1 The Basic Accounting Equation Asset = Liabilities + Equity Asset Assets are resources a business owns. The common characteristic possessed by all

### Learning Goal 26. bal. 62,300 3,000

S1 Learning Goal 26 Multiple Choice 1. c Remember that any entry to the Accounts Receivable account also requires an entry to a subsidiary account. 2. b 3. d Only the direct write-off method debits an

### Accounting Notes. Purchasing Merchandise under the Perpetual Inventory system:

Systems: Perpetual VS Periodic " Keeps running record of all goods " Does not keep a running record bought and sold " is counted once a year " is counted at least once a year " Used for all types of goods

### BAT 4M: Chapter 3 ANSWERS TO QUESTIONS

BAT 4M: Chapter 3 ANSWERS TO QUESTIONS 01. (a) Under the time period assumption, an accountant is required to determine the relevance of each business transaction to specific accounting periods, and its