ACC291T Week 3 Apply Exercise SCORE 100 PERCENT

Question 1

On January 2, Jasmine's Beauty Supplies Inc. issued Check 3100 for $300 to establish a petty cash fund. On January 31, Check 3159 was issued to replenish the petty cash fund. An analysis of payments from the fund showed these totals: Supplies, $57; Delivery Expense, $98; and Miscellaneous Expense, $33.

Indicate how these transactions would be recorded in a general journal.

Question 2

On January 2, The Public Legal Clinic issued Check 2108 for $430 to establish a petty cash fund. Indicate how this transaction would be recorded in a general journa

l.

Question 3

Read the following transactions.

Lourdes LLC. keeps a $100 change fund in its cash register. At the end of the day, cash sales per the register tape were $3,280. The cash count was $3,700.

Calculate the amount over or short.

Question 4

Di Stefano Office Supply Company received a bank statement showing a balance of $68,105 as of March 31, 2019. The firm's records showed a book balance of $69,499 on March 31. The difference between the two balances was caused by the following items.

 

1. A debit memorandum for $52, which covers the bank's collection fee for the note (item 6).
2. A deposit in transit of $3,800.
3. A check for $250 issued by another firm that was mistakenly charged to Di Stefano's account.
4. A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.
5. Outstanding checks: Check 3782 for $2,300; Check 3840 for $153.
6. A credit memorandum for a $6,400 noninterest-bearing note receivable that the bank collected for the firm.

 
Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.

Question 5

On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,850. The balance in the firm's checkbook and Cash account on the same date was $10,500. The difference between the two balances is caused by the items listed below.

 

1. A $2,975 deposit made on March 30 does not appear on the bank statement.
2. Check 358 for $535 issued on March 29 and Check 359 for $1,750 issued on March 30 have not yet been paid by the bank.
3. A credit memorandum shows that the bank has collected a $1,100 note receivable and interest of $110 for the firm.
4. A service charge of $35 appears on the bank statement.
5. A debit memorandum shows an NSF check for $575. (The check was issued by Dane Jaris, a credit customer.)
6. The firm's records indicate that Check 341 of March 1 was issued for $800 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $750.
7. The bank made an error by deducting a check for $610 issued by another business from the balance of Home Decorating Pavilion's account.

 

Required:

1. Prepare a bank reconciliation statement for the firm as of March 31, 2019.
2. Record entries for any items on the bank reconciliation statement that must be journalized.

 Question 6
A firm's bank reconciliation statement shows a book balance of $16,000, an NSF check of $490, and a service charge of $29. Its adjusted book balance is
Multiple Choice
    $16,519.
    $15,539.
    $15,481.
    $16,461.

Question 7
Florence Company received a bank statement showing a balance of $12,300 on November 30, 2019. During the bank reconciliation process, Florence's accountant noted the following bank errors:
 
1.    A check for $146 issued by Florentine, Inc., was mistakenly charged to Florence Company's account.
2.    Check 2782 was written for $200 but was paid by the bank as $1,200.
3.    Check 2920 for $80 was paid by the bank twice.
4.    A deposit for $680 on November 22 was credited by the bank for $860.
 
Assuming outstanding checks total $1,650, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation.

Question 8
During the month a company paid $44.75 for office supplies and $53.22 for miscellaneous expenses from the petty cash fund. The entry to replenish the petty cash fund at the end of the month would include
Multiple Choice
a debit to Petty Cash for $97.97.
a credit to Cash for $97.97.
a debit to Cash for $97.97.
a credit to Office Supplies for $44.75.

Question 9
Read each of the following transactions.
1.    A) The cash sales per a register tape were $567. The cash count is $546.
B) The cash sales per a register tape were $8,100. The cash count is $7,740.
 
Prepare the general journal entries to record the above transactions.

Question 10

Teng Corporation received a bank statement showing a balance of $14,450 as of October 31, 2019. The firm's records showed a book balance of $14,057 on October 31. The difference between the two balances was caused by the following items.
 

1. A debit memorandum for an NSF check from Richard Wolf for $419.
2. Three outstanding checks: Check 7017 for $119, Check 7098 for $50, and Check 7107 for $1,510.
3. A bank service charge of $15.
4. A deposit in transit of $852.

Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement. Prepare the necessary journal entries for the year 2019.

 

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.)