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Study Resources (Accounting)

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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12) Payroll Tax Expense or Employee Benefits Expense are possible account titles employers use for the employer's payroll taxes (EI and CPP). 13) The account credited for the employer's portion of CPP is CPP Payable. 14) Businesses with payroll deductions under $15,000 must remit payroll withholdings quarterly. 15) The employer's EI contribution is.
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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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  10.1   Recording sales that include PST, GST, and HST in the sales journal. 1) Provincial Sales Tax Payable is a A) liability account with a debit balance. B) liability account with a credit balance. C) contra-asset account with a debit balance. D) contra-asset account with a credit balance. 2) The liability account used to record HST.
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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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8.4   How to maintain an individual’s earnings record. 1) The amount of Gross Earnings, Income Tax, CPP and EI deducted is reported to the employee at the end of the year on a(n) A) Record of Employment. B) Payroll Summary. C) T4. D) Employee Earnings Record. 2) The amount deducted for CPP is reported at the.
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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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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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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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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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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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39) Match the following terms with their definitions or descriptions. 1.________ Accounts receivable subsidiary ledger 2.________ Cash receipts journal 3.________ Controlling account - Accounts Receivable 4.________ Credit memorandum 5.________ Credit period 6.________ Crossfooting 7.________ Discount period 8.________ Gross sales 9.________ Sales Returns and Allowances 10.________ Sales Tax Payable a. The revenue earned from the sale of merchandise to customers. b. The process.
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21) The debit amount to Payroll Tax Expense represents A) the employer's portion of the payroll taxes. B) the employees' portion of the payroll taxes. C) the employer's and employees' portion of the payroll taxes. D) None of the above are correct. 22) The information needed to make the journal entries to record the wages.
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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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19) Prepare a general journal payroll entry for Manitoba Market using the following information: CumulativeWeekly Salary EarningsBefore PayrollDepartment Sam Schmidt35,000700Office Marianne Saul 40,000800Sales Jay Bachal50,0001,000Office Assume the following: a) CPP 4.95%; EI 1.8% b) Income Tax (including Federal and Provincial Income Tax) is 22% of gross pay c) Each employee pays $10 per week for medical insurance. 20) Using the.
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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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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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  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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For each of the following identify - in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported. Column 1Column 2Column 3 19) Sales____________________________________ 20) Professional Fees Earned____________________________________ 21) Sales Returns and.
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9.2   How employers remit and record their employees’ deductions to the Canada Revenue Agency. 1) When remitting CPP, the entry would be A) debit Cash, credit CPP Payable. B) debit CPP Expense, credit Cash. C) debit CPP Payable, credit Cash. D) debit Cash, credit CPP Expense. 2) When remitting EI, the entry would be A) debit EI.
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10.2   Creating, recording and posting a credit memorandum for returned sales when PST, GST, or HST is included. 1) Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The invoice included HST at 13% and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The.
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33) April 25 Received full payment from Dana Carter. ________________________________________________________________________ ________________________________________________________________________ 34) April 30 Paid the amount of HST owing for April sales. ________________________________________________________________________ ________________________________________________________________________ Electronic Accessories Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to HST at 13% and have.
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  9.1   How to calculate and record the employer’s expenses associated with payroll. 1) Employment Insurance premiums are paid by A) the employer. B) the employee. C) both the employer and employee. D) the Provincial Government. 2) Which of the following is a payroll tax paid by both employee and employer? A) CPP & EI B) EI only C) CPP.
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8.3   How to record a typical payroll from a summary. 1) The payroll register does NOT contain A) gross pay. B) deductions. C) net pay. D) ledger accounts for payroll. 2) The payroll register does NOT contain A) payroll information for the payroll period. B) net pay. C) gross pay. D) all cumulative payroll information for each individual employee. 3) To.
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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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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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36) Using the information below, determine the amount of the payroll benefits expense for Paul's Parrots. Employee Gross PayCPP Deducted EI Deducted J. Gross 1,000 46.17 18.00 P. James 500 21.42 9.00 Q. Quan 600 26.37 10.80 37) The Famous Pizza Company had made the following entry to record the payroll: Salaries Expense10,000.00 CPP Payable385.00 EI Payable 210.00 Income.
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26) The account credited for all payroll deductions is Payroll Deductions Expense. 27) The employer must contribute 1.4 times the employee's CPP contributions. 28) The employer's EI contribution is 1.4 times that of the employee's deduction. 29) The Employee Benefits Expense entry is recorded at the time the payroll is recorded. 30) The employer.
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8.2   How to prepare a company’s payroll summary. 1) The posted payroll entry is based on information obtained from A) the payroll register. B) the general journal. C) each employee's earnings record. D) a TD-1 form. 2) The Office Salaries Expense account would be used to record A) net earnings for the office workers. B) a credit for.
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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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The Dairy Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to a 13% HST. 28) April 13 Sold merchandise priced at $400 to Jan Ellsworth on account. ________________________________________________________________________ ________________________________________________________________________ 29) April 14 Sold merchandise priced at $300 to a.
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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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7) Singh Company received payment in full within the credit period for goods sold for $400 plus 13% HST. Terms of the sale were n/30. Which entry records this transaction? A) Debit Accounts Receivable $420, credit Sales, $420 B) Debit Cash, $452, credit Sales, $452 C) Debit Cash, $400, credit Accounts Receivable, $400 D).
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9.3   Employers’ annual responsibilities for filing the T4 Summary form. 1) The form that contains information about gross earnings given to the employee by February 28 of the year following is the A) T4 Summary. B) ROE. C) T4. D) TD1. 2) A T4 Summary is filed A) annually. B) quarterly. C) monthly. D) depends on the amount owed. 3) The.
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11) Workers' compensation provides insurance for employees who are A) unemployed due to an economic downturn. B) unemployed due to a plant closing. C) injured while on the job. D) not paid enough. 12) Net pay and gross pay mean the same. 13) Payroll Tax Payable is credited for the amount of net pay. 14) Regular earnings.
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10.4   Creating, recording, and posting a debit memorandum for purchase returns when GST or HST is included. 1) All controlling accounts must have a A) revenue ledger. B) general ledger. C) subsidiary ledger. D) journal. 2) The ledger containing all the balance sheet and income statement accounts is the A) general ledger. B) accounts payable subsidiary ledger. C) accounts.
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