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Study Resources (Accounting)

62) Indicate which adjustments would require a journal entry during the completion of the bank reconciliation. Place an "X" on the respective line(s). ________  a. Deposit in transit ________  b. Bank service charge ________  c. NSF cheque ________  d. Cheque written for $19 recorded as $91 ________  e. Outstanding cheques ________  f. Cheque written for $42.
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11) A list of creditors with ending balances is called A) a Schedule of Accounts Receivable. B) a Schedule of Accounts Payable. C) a list of suppliers. D) a trade list. 12) Discounts which reduce the price for customers who buy items for resale or to produce other goods are A) purchase discounts. B) purchases returns and.
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6.2   Preparing, journalizing, and posting a credit memorandum. 1) If a credit memorandum is issued, what account will be increased on the seller's books? A) Accounts Receivable B) Accounts Payable C) Sales Discount D) Sales Returns and Allowances 2) If a credit memorandum is issued, what account will be decreased on the seller's books? A) Accounts Receivable B).
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42) Petty Cash________________________________________________ 43) Misc. Expense________________________________________________ 44) Cash Short & Over________________________________________________ 45) Change Fund________________________________________________ 46) Delivery Expense________________________________________________ .
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61) Indicate what effect each situation will have on the bank reconciliation process. Place the number of your choice beside the items listed. 1. Add to bank balance 2. Deduct from bank balance 3. Add to chequebook balance 4. Deduct from chequebook balance ________  a. Deposit in transit ________  b. Bank service charge ________  c. NSF cheque ________ .
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35) The following are transactions for Brian for the month of October. Indicate how the following transactions would be recorded by completing the necessary journal entries as appropriate (omit explanations). Oct. 1Brian invested $15,000 in his business. Oct. 3Sold $2,500 of merchandise on account to H. Holand, sales invoice No. 1, terms.
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31) July 16 Sold merchandise with an invoice price of $6,000 to the Taylor Co. _____________________________________________________________________ _____________________________________________________________________ 32) July 20 Taylor Co. returned merchandise with an invoice price of $1,000. _____________________________________________________________________ _____________________________________________________________________ 33) July 25 Received full payment from Carter and Co. _____________________________________________________________________ _____________________________________________________________________ 34) July 28 Received full payment from Taylor Co. _____________________________________________________________________ _____________________________________________________________________ .
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6.3   Recording and posting cash receipts transactions. 1) Net purchases are A) Purchases + Purchases Returns and Allowances. B) Purchases - Purchases Discount - Purchases Returns and Allowances. C) Purchases - Freight - Purchases Returns and Allowances. D) Purchases + Freight-in. 2) When merchandise is bought for resale, which of the following accounts would be increased? A).
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35) Nov. 3 Purchased merchandise with a price of $1,000 from the Bartkowski Inc. _____________________________________________________________________ _____________________________________________________________________ 36) Nov. 5 Purchased merchandise from the Thiesman and Co. with a price of $3,000. _____________________________________________________________________ _____________________________________________________________________ 37) Nov. 7 Purchased merchandise with a price of $1,500 from the Montana Supply Co. _____________________________________________________________________ _____________________________________________________________________ 38) Nov. 10 Paid the amount due to Bartkowski.
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41) Match the following to the six journal entries. Each entry may have more than one number and each number can be used more than once. 1. journalize to purchase journal 2. journalize to cash payments journal 3. record immediately to the subsidiary ledger 4. journalize to general journal 5. record and post immediately to.
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59) Construct the bank reconciliation for Mitter Company as of July 31, 2013 from the following information: a. Balance per bank statement$10,150 b. Deposit in transit 705 c. Chequebook balance 10,250 d. Outstanding cheques 800 e. NSF cheque (debit memo)220 f. Service charges 115 g. Interest earned on account 140 60) Prepare a.
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27) S.W.I.F.T. codes in modern banking make moving funds internationally a quick and accurate process. 28) External control includes control over the assets as well as ways of monitoring the company's operations. 29) Using correct cash handling procedures, deposits should be made by the end of the week. 30) A signature card is.
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11) Advantages of on-line banking include A) convenience. B) transaction speed. C) effectiveness. D) All of the above are correct. 12) A deposit received by the bank will include A) a debit to the company's bank account. B) a credit to the company's bank account. C) no increase or decrease is made to the company's bank account. D) a.
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11) Determine the adjusted cash balance per bank for Santa's Packaging on November 30, from the following information: Cash balance on the bank statement$2,500 Customer's cheque returned–NSF500 Customer's note collected by the bank600 Deposits in transit, November 301,400 Outstanding cheques, November 302,650 A) $1,250 B) $1,100 C) $1,550 D) $1,350 12) Information to calculate the adjusted cash balance for Sue's.
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7.1   Depositing, writing, and endorsing cheques for a chequing account. 1) Internal control over a company's assets should include the following policy: A) Responsibilities and duties of employees will be divided. B) All cash receipts will be deposited into the bank the same day they arrive. C) All cash payments will be made by.
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  8.1   How to calculate gross pay, routine deductions, and net pay for an employee. 1) Net pay is the same as A) gross pay. B) take home pay. C) before taxes pay. D) pay before deductions. 2) The form used to determine an employee's net claim code is called a A) T4. B) Record of Employment. C) TD1. D) Employee.
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46) Below are listed several books of original entry. Indicate the journal in which each transaction should be recorded by placing the letters representing the appropriate journal in the space provided. CP Cash payments journal CR Cash receipts journal P Purchases journal GJ General journal 0.     CP   Paid weekly salaries. a) ________ Purchased merchandise on.
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7.3   Establishing and replenishing a petty cash fund; setting up an auxiliary petty cash record. 1) What type of an account is the petty cash fund? A) Revenue B) Expense C) Asset D) Liability 2) A petty cash fund is set up A) to pay for large expenses. B) to pay for small expenses. C) for the owner to.
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31) Bank statements show all the following EXCEPT A) deposits received and cheques paid. B) the beginning and ending balances shown on the bank's records. C) the beginning and ending balances shown on the depositor's general ledger. D) items debited and credited to the chequing account. 32) When a cheque is presented for payment, the.
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7.4   Establishing and replenishing a change fund. 1) A company would use a change fund if A) there are cash transactions daily. B) they want to pay the postage expense without writing a cheque. C) the owner wants to make personal withdrawals easily. D) None of these are correct. 2) The change fund is what type.
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42) On a bank reconciliation, outstanding cheques are deducted from the balance per books. 43) Canceled cheques are negotiable at the bank for the face value. 44) Deposits that have been added to the bank balance but not the chequebook balance are called deposits in transit. 45) Deposits in transit result because of.
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6.4   Recording to the accounts receivable subsidiary ledger. 1) If a display rack was purchased for the store, which of the following accounts would be increased? A) Store Equipment B) Purchases C) Cash D) Capital 2) When merchandise is bought for resale, which of the following accounts would be decreased? A) Store Equipment B) Purchases C) Cash D) Capital 3) An.
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31) The term used when the purchaser is responsible for the cost of freight is A) F.O.B. shipping point. B) F.O.B. destination. C) Freight-In. D) Purchases. 32) The term used when the seller is responsible for the cost of freight is A) F.O.B. shipping point. B) F.O.B. destination. C) Freight-In. D) Purchases. 33) Hardware Restoration had net purchases of $40,000..
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66) Prepare the required journal entries from the bank reconciliation below as of the end of January: The balance per general ledger is $200 There is a debit memo for interest expense, $100 There is a debit memo for a customer's NSF cheque $375 Outstanding cheques amount to $2,000 This month's service charge amounts to.
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17) The Schedule of Accounts Payable is listed alphabetically. 18) The accounts payable subsidiary ledger should equal the control account in the general ledger. 19) Schedule of Accounts Payable is a list of customer accounts that owe the company money. 20) The Accounts Receivable and Accounts Payable are both controlling accounts. 21) A list.
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11) Purchases Discount A) is a contra-cost account. B) has a normal debit balance. C) decreases Net Income. D) All of the above are correct. 12) F.O.B. shipping point means A) the buyer pays for the freight. B) the seller pays for the freight. C) the title passes at time of shipment. D) both A and C are correct. 13).
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15) Accounts in the accounts receivable subsidiary ledger are listed in order of how much is owed. 16) The balance in the Accounts Receivable account is $2,100 debit. Therefore, the balances in the subsidiary ledger should be $2,100. 17) The accounts receivable subsidiary ledger shows the amount owed from each customer. 18) The.
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Indicate which effect(s) each situation will have: New cheque written Recorded in the general journal Recorded in auxiliary petty cash record Petty cash voucher prepared 33) ________________ Establishment of petty cash 34) ________________ Bought Equipment on account 35) ________________ Bought a book of stamps 36) ________________ Filled up the company's van with gas 37) ________________ Owner withdrew money from.
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41) The account used to record the buyer's shipping costs is A) Purchase Discounts. B) Purchase Returns and Allowances. C) Freight-In. D) Accounts Payable. 42) Which special journal is used to record merchandise or other items bought on account? A) Sales journal B) Cash Receipts journal C) Purchases journal D) Cash Payments journal 43) Amounts are posted to the Accounts.
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39) Prepare journal entries for the following petty cash fund transactions: Sept. 1Established a $100 petty cash fund. 30Replenished the petty cash fund. Currency and coins remaining was $28; approved paid vouchers were: $12 donation expense; $18 postage; $24 office supplies expense; and $26 miscellaneous expense. 40) Prepare journal entries for the following.
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52) The Purchases Discount account normally has a debit balance and is a contra-cost account. 53) The account Freight-In accumulates the shipping costs to the seller. 54) When the terms are F.O.B. shipping point, the buyer is responsible for the cost of shipping from the seller's shipping point to the purchaser's location.
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62) If a debit memorandum is issued, the buyer will reduce their accounts receivable. 63) The account Freight-In accumulates the shipping costs to the buyer. 64) When the terms are F.O.B. shipping point, the purchaser is responsible for the cost of shipping from the seller's shipping point to the purchaser's location. 65) Shipping.
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36) Use the following information to answer the question below: Sales$20,000 Sales Discount 200 Sales Returns and Allowances 1,000 Purchases Returns and Allowances50 The Net Sales are __________. 37) The following are selected transactions for P. Pratt Company. For each transaction, indicate the account(s) to be debited and the account(s) to be credited. Also indicate in.
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7.2   Reconciling a bank statement. 1) The bank statement shows A) the beginning bank balance of the cash at the start of the month. B) the cheques the bank has paid and any deposits received. C) any other charges or additions to the bank balance. D) All of these answers are correct. 2) Scotch Services received.
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57) Construct the bank reconciliation for Kendra's Tutoring, as of October 31, from the following information: Ending chequebook balance $840 Ending bank statement balance 640 Deposits in transit 440 Outstanding cheques 280 Bank service charge (debit memo)40 58) From the following information, prepare the bank reconciliation for Paul's Photography Studio for June.
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63) List the various steps and procedures included in the bank reconciliation process. What are the advantages in preparing a monthly bank reconciliation? 64) Determine the reconciled bank balance given the following: The balance per bank statement is $ 108 The balance per general ledger is $105 There is a credit memo for a.
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42) Prepare journal entries for the following petty cash fund transactions: Aug. 1Established a $50 petty cash fund. 31Replenished the petty cash fund. Currency and coins remaining were $8. Approved paid vouchers were $6 donation expense, $9 postage expense, $12 office supplies expense, and $13 miscellaneous expense. 43) Prepare journal entries for the.
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