ACC291T Week 2 Apply Exercise SCORE 100 PERCENT

Question 1

Lewis Corporation engaged in the following transactions during June.

 

DATE			TRANSACTIONS
2019
June	4		Purchased merchandise on account from Salinas Company; Invoice 100 for $1,055; terms n/30.
	15		Recorded purchases for cash, $1,540.
	30		Paid amount due to Salinas Company for the purchase on June 4.

Record these transactions in a general journal.

 

Question 2
During the year, a firm purchased $256,700 of merchandise and paid freight charges of $41,770. If the total purchases returns and allowances were $16,040 and purchase discounts were $8,500 for the year, what is the net delivered cost of purchases?

Multiple Choice

    $298,470
    $273,930
    $323,010
    $190,390

Question 3
Tune Tones Instrument Tuning Company owes Mandy Lynn's Music Studio $5,046 as of November 1. During November, Tune Tones purchased merchandise from Mandy Lynn totaling $8,685 and made payments on account to Mandy Lynn in the amount of $7,440. The amount Tune Tones owes Mandy Lynn on November 30 is:

Multiple Choice

    $6,291.
    $3,801.
    $11,079.
    $7,440.

Question 4
During March a firm purchased $22,730 of merchandise and paid freight charges of $1,800. If the net delivered cost of purchases for the March is $21,980, what is the total purchase returns for March?

Multiple Choice

    $0
    $1,050
    $2,550
    $3,600

Question 5
Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019:
Bushard Company
DATE         TRANSACTIONS
2019          
Feb.    10         Purchased merchandise for $6,700 from Schmidt, Inc., Invoice 1980, terms 2/10, n/30.
     13         Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $370 that was returned; the goods were purchased on Invoice 1980, dated February 10.
     19         Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
 
Schmidt, Inc.
DATE         TRANSACTIONS
2019          
Feb.    10         Sold merchandise for $6,700 on account to Bushard Company, Invoice 1980, terms 2/10, n/30. The cost of merchandise sold was $3,850.
     13         Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $370 that was returned; the goods were purchased on Invoice 1980, dated February 10. The cost of the returned goods was $290.
     19         Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
 
Both companies use the perpetual inventory system. Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc. (Round final answers to the nearest whole dollar value.)

Question 6

Assume the following account balances at January 1, 2019, for Bioplast Jewelry, Inc.:

  

Accounts Payable (control account)	$	7,500
Accounts Payable—Evans Enterprises		1,900
Accounts Payable—Stamos Distributors		3,400
Accounts Payable—Tonetta Company		2,200

  

GENERAL JOURNAL
DATE		DESCRIPTION	POST. REF.	DEBIT			CREDIT
2019
Jan.	8	Accounts Payable/Stamos Distributors			330
		Cash						330
		Made partial payment
		on account, Check 1240
	10	Accounts Payable/Evans Enterprises			230
		Purchases Returns and Allowances						230
		Received Credit Memorandum
		123 as allowance for
		discolored merchandise

 

1. Use the final balances of the vendor accounts to prepare a schedule of accounts to payable for Bioplast Jewelry, Inc., as of January 31, 2019.
2. Does the total of your accounts payable schedule agree with the balance of the accounts payable account in the general ledger at January 31, 2019?

 

Question 7

Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019:

Bushard Company

DATE			TRANSACTIONS
2019
Feb.	10		Purchased merchandise for $1,100 from Schmidt, Inc., Invoice 1980, terms 1/10, n/30.
	13		Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
	19		Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.

 

Schmidt, Inc.

DATE			TRANSACTIONS
2019
Feb.	10		Sold merchandise for $1,100 on account to Bushard Company, Invoice 1980, terms 1/10, n/30.
	13		Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
	19		Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.

 

Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc.

 

Question 8

Post the entries in the general journal below to the accounts payable account in the general ledger and to the appropriate accounts in the accounts payable ledger.

Assume the following account balances at January 1, 2019, for Bioplast Jewelry, Inc.:

  

Accounts Payable (control account)	$	7,200
Accounts Payable—Evans Enterprises		1,800
Accounts Payable—Stamos Distributors		3,300
Accounts Payable—Tonetta Company		2,100

  

GENERAL JOURNAL
DATE		DESCRIPTION	POST. REF.	DEBIT			CREDIT
2019
Jan.	8	Accounts Payable/Stamos Distributors			340
		Cash						340
		Made partial payment
		on account, Check 1240
	10	Accounts Payable/Evans Enterprises			240
		Purchases Returns and Allowances						240
		Received Credit Memorandum
		123 as allowance for
		discolored merchandise

  Question 9
On April 1, Moloney Meat Distributors sold merchandise on account to Fronke's Franks for $3,550 on Invoice 1001, terms 1/10, n/30. The cost of merchandise sold was $2,100. Payment was received in full from Fronke's Franks, less discount, on April 10.
Record the transactions for Moloney Meat Distributors on April 1 and April

10. The company uses the perpetual inventory system. (Round final answers to the nearest whole dollar value.)
Question 10
Record the following transactions of J. Min Designs in a general journal. The company uses the perpetual inventory system.
 
DATE         TRANSACTIONS
2019          
April    1         Purchased merchandise on credit from O'Rourke Fabricators, Invoice 885, $3,450, terms 1/10, n/30; freight of $65 prepaid by O'Rourke Fabricators and added to the invoice (total invoice amount, $3,515).
     9         Paid amount due to O'Rourke Fabricators for the purchase of April 1, less the 2 percent discount, Check 457.
     15         Purchased merchandise on credit from Kroll Company, Invoice 145, $1,700, terms 1/10, n/30; freight of $120 prepaid by Kroll and added to the invoice.
     17         Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $95.
     24         Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 1 percent discount, Check 470.

Record these transactions in a general journal. (Round final answers to the nearest whole dollar value.)

ACC291T Week 1 Apply Exercise

Question 1

The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales:

 

DATE		TRANSACTIONS
2019
May	1	Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
	15	Recorded cash sales, $3,200 plus 8 percent sales tax.
	31	Received payment on account due from Bill Gomez for the sale on May 1.

 Question 2
A wholesale business sells goods with a list price of $980 and a trade discount of 25 percent. The net sales price is
Multiple Choice
    $245.00.
$735.00.
    $980.00.
    $1,005.00.

Question 3
Hour Place Clock Shop sold a grandfather clock for $2,450 subject to a 7% sales tax. The entry in the general journal will include a credit to Sales for
Multiple Choice
    $2,450.00.
    $2,229.50.
    $2,670.50.
    $2,441.00.

Question 4
If Lacy's Department Store charges 8 percent sales tax, the amount of sales tax collected on a $275 sale would be
Multiple Choice
    $22.00.
    $220.00.
    $34.38.
    $3.44.

Question 5
Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?
 
1.    List price of $620 and trade discount of 40 percent.
2.    List price of $720 and trade discount of 30 percent.
3.    List price of $300 and trade discount of 20 percent.

Question 6

Record the following transactions of Lisa's Fashion Boutique in a general journal. Lisa's Fashion Boutique operates in a state with 8% sales tax.(Round yourintermediate calculations and final answers to 2 decimal places):
 

DATE		TRANSACTIONS
2019
Feb.	2	Sold merchandise for cash totaling $3,400 to customers using bank credit cards. Record the 21 percent discount on credit card sales at time of sale.
	15	Sold merchandise totaling $2,900 to customers using American Express.
	20	Received amount due from American Express, less their 22 percent discount, for sales made by customers using American Express on February 15. Question 7 If a firm had sales of $44,000 during a period and sales returns and allowances of $3,400, its net sales were Multiple Choice     $47,400.     $44,000. $40,600.     $3,400. Question 8 Post the entries in the general journal below to the Accounts Receivable account in the general ledger and to the appropriate accounts in the accounts receivable ledger for Calderone Company. Assume the following account balances at January 1, 2019:     Accounts Receivable (control account)    $    8,160      Accounts Receivable—John Gibrone         5,000      Accounts Receivable—Jim Garcia         2,120      Accounts Receivable—June Lin         1,040      ________________________________________   GENERAL JOURNAL      DATE    DESCRIPTION    POST. REF.         DEBIT         CREDIT      2019                                                        Jan.     8    Cash                   500                                         Accounts Receivable/John Gibrone                                       500                     Received partial payment on                                                             account from John Gibrone                                                                                                                      20    Sales Returns and Allowances                   300                                         Sales Tax Payable                   24                                         Accounts Receivable/Jim Garcia                                       324                     Accept return of defective                                                             merchandise, Credit                                                             Memorandum 121; original sale                                                             made on Sales Slip 11102 of                                                             December 27, 2018                                                   ________________________________________   1.    Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019. 2.    Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019? Question 9 On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $5,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable. Multiple Choice     $5,152     $6,048     $5,600     $5,592 Question 10 Kay Sadia sold merchandise for $9,000 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for: Multiple Choice     $9,720.00.     $8,460.00.     $9,000.00.     $8,994.00.

 

ACC290 Week 3 Apply Exercise SCORE 100 PERCENT

Question 1

Selected activity of Mason Consulting Services follow.
 

DATE			TRANSACTIONS
2019
Sept.		1	Zack Mason invested $44,000 in cash to start the firm.
		4	Purchased office equipment for $4,900 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
		16	Purchased an automobile that will be used to visit clients; issued Check 1001 for $12,900 in full payment.
		20	Purchased supplies for $360; paid immediately with Check 1002.
		23	Returned damaged supplies for a cash refund of $90.
		30	Issued Check 1003 for $2,600 to Den, Inc., as payment on account for Invoice 9823.
		30	Withdrew $1,400 in cash for personal expenses.
		30	Issued Check 1004 for $900 to pay the rent for September.
		30	Performed services for $3,050 in cash.
		30	Paid $355 for monthly telephone bill, Check 1005.

Prepare journal entries for the transactions incurred during September of 2019.

 

Question 2

Selected activity of Mason Consulting Services follow.
 

DATE			TRANSACTIONS
2019
Sept.		1	Zack Mason invested $54,000 in cash to start the firm.
		4	Purchased office equipment for $5,900 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
		16	Purchased an automobile that will be used to visit clients; issued Check 1001 for $13,900 in full payment.
		20	Purchased supplies for $460; paid immediately with Check 1002.
		23	Returned damaged supplies for a cash refund of $140.
		30	Issued Check 1003 for $3,400 to Den, Inc., as payment on account for Invoice 9823.
		30	Withdrew $2,400 in cash for personal expenses.
		30	Issued Check 1004 for $1,400 to pay the rent for September.
		30	Performed services for $2,450 in cash.
		30	Paid $405 for monthly telephone bill, Check 1005.

Post the above transactions into the appropriate Ledger accounts.

Question 3

The following transactions took place at the Cook Employment Agency during November 2019.
 

DATE			TRANSACTIONS
Nov.	5		Performed services for Job Search, Inc., for $28,000; received $13,000 in cash and the client promised to pay the balance in 60 days.
	18		Purchased a graphing calculator for $365 and some supplies for $515 from Office Supply; issued Check 1008 for the total.
	23		Received Invoice 1602 for $1,500 from Automotive Technicians Repair for repairs to the firm's automobile; issued Check 1009 for half the amount and arranged to pay the other half in 30 days.

 
Prepare journal entries for the above transactions.

Question 4

On June 10, 2019, an employee of Williams Corporation mistakenly debited Telephone Expense rather than Utilities Expense when recording a bill of  $985 for the May utility service. The error was discovered on June 30. Prepare a general journal entry to correct the error.

 

Question 5

On August 22, 2019, an employee of Bell Company mistakenly debited the Repair Expense account rather than the Truck Expense account when recording a bill of $725 for repairs. The error was discovered on October 1. Prepare a general journal entry to correct the error.

Question 6


The journal entry to record the purchase of equipment for a $210 cash down payment and a balance of $620 due in 30 days would include

Multiple Choice
a debit to Equipment for $210 and a credit to Accounts Payable for $620.
debit to Equipment for $830 and a credit to Cash for $830.
a debit to Equipment for $830, a credit to Cash for $210, and a credit to Accounts Payable for $620.
a debit to Equipment for $210 and a credit to Cash for $210.

Question 7
The Accounts Payable account has a $4,700 credit balance. An entry for the payment of $1,850 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is

Multiple Choice
a $6,550 debit balance.
a $2,850 debit balance.
a $6,550 credit balance.
a $2,850 credit balance.
Question 8
Bertrand Inc. performed services for clients in the amount of $2,000 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Multiple Choice
    Debit Cash $2,000; credit Accounts Receivable $2,000
    Debit Accounts Receivable $2,000; credit Fees Income $2,000
    Debit Fees Income $2,000; credit Cash $2,000
    Debit Accounts Receivable $2,000; credit Cash $2,000

Question 9
Bertrand Inc. purchased some shop equipment for $6,100 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Multiple Choice
    Debit Cash $6,100; credit Shop Equipment $6,100
Debit Shop Equipment $6,100; credit Office Equipment $6,100
    Debit Office Equipment $6,100; credit Shop Equipment $6,100
    Debit Office Equipment $6,100; credit Cash $6,100