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

ACC290 Week 2 Apply Exercise SCORE 100 PERCENT

Question 1
On a statement of owner's equity, beginning capital is $45,000, Net Income for the year is $18,500 and Drawing for the year is $7,500, the ending capital amount would be:

Multiple Choice
    $45,000
    $71,000
$56,000
    $34,000

Question 2
Derrick Wells decided to start a dental practice. The first five transactions for the business follow. 
 
1.    Derrick invested $77,000 cash in the business.
2.    Paid $17,000 in cash for equipment.
3.    Performed services for cash amounting to $7,700.
4.    Paid $2,500 in cash for advertising expense.
5.    Paid $1,700 in cash for supplies.

(1) Select which two accounts are affected in each of the above transactions.
(2&3) Post the above transactions into the appropriate T accounts.
Requirement 1
Select which two accounts are affected in each of the above transactions

Req 2 and 3
Post the above transactions into the appropriate T accounts.

Question 3

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals.  

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals.   
 

Cash
(a)	182,000	(b)	38,000
(d)	22,000	(e)	620
(g)	2,200	(h)	10,200
		(i)	4,200
Equipment
(c)	72,000

 

Accounts Receivable
(f)	8,400	(g)	2,200
Accounts Payable
		(c)	72,000

 

Supplies
(b)	38,000
Wade Wilson, Capital
		(a)	182,000

 

Fees Income
		(d)	22,000
		(f)	8,400
Telephone Expense
(e)	620

 

Wade Wilson, Drawing
(i)	4,200
Salaries Expense
(h)	10,200

Required:
Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the income statement is for the month ended December 31, 2019.

 

Question 4

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the letter (a), the entries for the second transaction with the letter (b), and so on.

 

Question 5
The total of the figures on the left side of a Cash account is $35,800. The total of the figures on the right side is $16,100. The balance of this account:
Multiple Choice
is $19,700 and would be recorded on the right side of the account.
is $51,900 and would be recorded on the left side of the account.
is $19,700 and would be recorded on the left side of the account.
is $51,900 and would be recorded on the right side of the account.

Question 6

Required information

[The following information applies to the questions displayed below.]

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below.
 

Cash	19,650		Fees Income	-0-
Accounts Receivable	850		Rent Expense	-0-
Office Equipment	2,500		Utilities Expense	-0-
Supplies	250		Salaries Expense	-0-
Accounts Payable	1,500
Kelly Connor, Capital	21,750
Kelly Connor, Drawing	-0-

The following transactions occurred during the month of November.
 

1. Collected $350 from credit customers.
2. Issued a check for $760 for November's rent.
3. Paid $1,700 for salaries.
4. The owner withdrew $560 in cash for personal expenses.
5. Issued a check for $200 to pay the monthly utility bill.
6. Received $2,725 in cash for services performed.
7. Purchased office equipment for $1,350 on credit.

 

Post the above transactions into the appropriate T accounts.

Question 9

Required information

[The following information applies to the questions displayed below.]

The T account balances for the accounts of Rya's Planning Services as of January 31, 2019 are listed below.
 

Cash	$	22,100
Accounts Receivable		18,100
Office Supplies		850
Equipment		15,000
Accounts Payable		5,160
Rya Page, Capital		29,100
Rya Page, Drawing		6,200
Planning Fees Income		34,250
Office Supplies Expense		320
Rent Expense		920
Salaries Expense		4,200
Utilities Expense		820

Prepare a Trial Balance as of January 31, 2019.

Question 10

Required information

[The following information applies to the questions displayed below.]

The T account balances for the accounts of Rya's Planning Services as of January 31, 2019 are listed below.
 

Cash	$	22,100
Accounts Receivable		18,100
Office Supplies		850
Equipment		15,000
Accounts Payable		5,160
Rya Page, Capital		29,100
Rya Page, Drawing		6,200
Planning Fees Income		34,250
Office Supplies Expense		320
Rent Expense		920
Salaries Expense		4,200
Utilities Expense		820

1. Prepare an income statement for the Rya's Planning Services for the month ended January 31, 2019.
2. Prepare a statement of owner's equity for Rya's Planning Services for the month ended January 31, 2019.
3. Prepare a balance sheet for Rya's Planning Services as of January 31, 2019.