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G - 1 Subsidiary Ledgers and Special Journals COMPLETION STATEMENTS               82.The accounts receivable _____________ provides detailed information about customer accounts which is summarized in one ______________ account in the general ledger. Ans: N/A, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC: None,.
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G - 1 Subsidiary Ledgers and Special Journals Ex. 74 Sadat Company uses a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. Record the following transactions in the appropriate journals. The cost of all merchandise sold was 70% of the sales price. July2Sold merchandise for $18,000.
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H-1 Accounting for Partnerships               31.Leon and Betty are forming a partnership. Leon will invest a truck with a book value of $9,000 and a fair market value of $14,000. Betty will invest a building with a book value of $30,000 and a fair market value of $90,000 with a mortgage of.
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Ex. 180 Kasper Company purchased 42,000 shares of common stock of the Ikerd Corporation as an investment for $1,000,000. During the year, Ikerd Corporation reported net income of $400,000 and paid dividends of $100,000. Instructions (a)Assuming that the 42,000 shares represent a 15% interest in Ikerd Corporation: 1.Prepare the journal entry to record the.
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Ex. 176 Templeton Company had the following transactions pertaining to debt securities held as an investment. Jan.1Purchased 60, 8%, $1,000 Ritter Company bonds for $60,000 cash plus brokerage fees of $1,100. Interest is payable semiannually on July 1 and January 1. July1Received semiannual interest on Ritter Company bonds. Sept.1Sold 30 Ritter Company bonds for.
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Ex. 182 Salazar Company had these transactions pertaining to stock investments: Feb1Purchased 2,400 shares of TGY common stock (2% of outstanding shares) for $16,000 cash plus brokerage fees of $500. July1Received cash dividends of $1 per share on TGY common stock. Sept.1Sold 800 shares of TGY common stock for $8,000 less brokerage fees of.
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G - 1 Subsidiary Ledgers and Special Journals               11.The cash payments journal only has one column because all entries recorded in this journal require a credit to the Cash account. Ans: F, SO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC: None,.
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Ex. 178 Ellerman Company had the following transactions pertaining to its short-term stock investments. Jan.1Purchased 900 shares of Elam Company stock for $10,800 cash plus brokerage fees of $1,080. June1Received cash dividends of $0.50 per share on the Elam Company stock. Sept.15Sold 450 shares of the Elam Company stock for $5,300 less brokerage fees.
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              21.FICA taxes do not provide workers with a.life insurance. b.supplemental retirement. c.employment disability. d.medical benefits.               22.Employees claim allowances for income tax withholding on a.Form W-4. b.Form W-2. c.Form 1040. d.Schedule A.               23.The journal entry to record the payroll for a period will include a credit to Wages and Salaries Payable for the gross a.amount less all payroll deductions. b.amount.
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SHORT-ANSWER ESSAY QUESTIONS   S-A E 203 1.What are the reasons that corporations invest in securities? S-A E 204 (a)When should a long-term investment in common stock be accounted for by the equity method? (b)When is revenue recognized under the equity method? S-A E 205 If a company has a stock investment that is properly accounted for.
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Exercises Ex. 175 Patterson Company had the following transactions pertaining to debt securities held as an investment. Jan.1Purchased 90, 6%, $1,000 Marks Company bonds for $90,000 cash plus brokerage fees of $950. Interest is payable semiannually on July 1 and January 1. July1Received semiannual interest on Marks Company bonds. Oct.1Sold 45 Marks Company bonds for.
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COMPLETION STATEMENTS               190.The purchase of a company in the same industry that does the same activity is called a ______________ acquisition.               191.Debt investments are investments in government and _____________ bonds.               192.When an investor owns between 20% and 50% of the common stock of a corporation, it is generally presumed that.
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G - 1 Subsidiary Ledgers and Special Journals Be 68 Landrum Electronics uses both special journals and a general journal. The company accountant made the following errors during July. 1.Incorrectly added the credit entries in a customer's account in the accounts receivable subsidiary ledger. The total was listed as $3,600; it should have been.
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G - 1 Subsidiary Ledgers and Special Journals MULTIPLE CHOICE QUESTIONS               21.The balance of a control account in the general ledger a.must always be zero. b.must equal the amount of total assets. c.is always greater than the composite balance of individual accounts in a related subsidiary ledger. d.must equal the composite balance of individual accounts in.
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Ex. 188 Sauder Corporation has the following trading portfolio of stock investments as of December 31, 2011. Security    Cost Fair Value A$17,000$16,000 B23,00025,000 C  32,000  28,000 $72,000$69,000 On January 22, 2012, Sauder Corporation sold security C for $30,000. Instructions (a)Prepare the adjusting entry for Sauder Corporation on December 31, 2011 to report the portfolio at fair value. (b)Indicate the balance sheet.
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TRUE-FALSE STATEMENTS               1.Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks.               2.A good internal control feature is to have a written hiring authorization form completed before a new employee is added to the payroll.               3.A good.
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S-A E 208 The Market Adjustment account is a balance sheet account. Identify the asset account it is related to. Explain how this account is increased and describe the procedure followed when its related asset account is disposed of. S-A E 209 When a year-end adjustment is made to reduce the trading securities.
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G - 1 Subsidiary Ledgers and Special Journals Exercises Ex. 72 After Crown Candy Company had completed all posting for the month of December, the sum of the balances in the following accounts payable subsidiary ledger did not agree with the balance of the control account in the general ledger. NameLawton Address286 Buck Avenue —————————————————————————————————————————— DateItemPost. Ref.DebitCreditBalance —————————————————————————————————————————— Dec.2P252,4002,400 NameLeno’s Company Address818.
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Ex. 35 The following payroll liability accounts are included in the ledger of Ferguson Company on January 1, 2012: FICA Taxes Payable$1,800 Federal Income Taxes Payable4,100 State Income Taxes Payable726 Federal Unemployment Taxes Payable498 State Unemployment Taxes Payable1,200 Union Dues Payable500 Health Insurance Premium Payable6,000 Christmas Club Savings Payable800 In January, the following transactions occurred: Jan.9Sent a check for $6,000 to.
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G - 1 Subsidiary Ledgers and Special Journals Ex. 78 Sirius LLC uses four special journals, (cash receipts, cash payments, sales, and purchases journal) in addition to a general journal. On November 1, 2011, the control accounts in the general ledger had the following balances: Cash $12,000, Accounts Receivable $200,000 and Accounts Payable.
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G - 1 Subsidiary Ledgers and Special Journals Ex. 77 Listed below are various column headings that may appear in special journals. Using the following code letters, identify for each column heading (1) the special journal where the column heading would appear, and (2) whether the amounts entered under the column heading would.
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H-1 Accounting for Partnerships MULTIPLE CHOICE QUESTIONS               21.The ability of a partner to act on behalf of the partnership when engaging in business is called: a.voluntary association. b.mutual agency. c.the partnership agreement. d.unlimited liability.               22.Claim to the partners’ personal assets by creditors if the partnership cannot pay its debts refers to: a.mutual agency. b.dissolution. c.liquidation. d.unlimited liability.               23.Which of the.
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G - 1 Subsidiary Ledgers and Special Journals Ex. 73 On October 1, the accounts receivable control account balance in the general ledger of Helms Company was $9,000. The accounts receivable subsidiary ledger contained the following detailed customer balances: Able $2,000, Bravo $1,600, Charlie $3,600, and Gamma $1,800. The following information is available.
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BRIEF Exercises Be. 28 Match the codes assigned to the following payroll functions to the procedures listed below: H = Hiring EmployeesPRE = Preparing the Payroll T = TimekeepingPAY = Paying the Payroll               1.____Distribution of checks by the treasurer.               2.____Supervisor approves hours worked.               3.____Posting job openings.               4.____Maintenance of payroll records.               5.____Verification of payroll calculations.              .
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Ex. 32 Assume that the payroll records of Zephyr Oil Company provided the following information for the weekly payroll ended November 26, 2011. Year-to-Date HourlyFederalEarnings Through EmployeeHours WorkedPay RateIncome TaxUnion Dues  Previous Week  A. Yoke43$50$296$9$101,000 B. Bell431063523,200 C. Call371689—5,100 D. Dyke 4322175749,500 Additional information: All employees are paid overtime at time and a half for hours worked in excess.
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G - 1 Subsidiary Ledgers and Special Journals Ex. 79 Wood Furnishings Inc. began business on April 1. The sales journal, as it appeared at the end of the month, follows: SALES JOURNALPage 1 ——————————————————————————————————————————— InvoicePost. DateAccount DebitedNumberRef.Amount ——————————————————————————————————————————— Apr.5Jack Sago10001475 11Leo Lauer10002535 16Jack Sago10003818 19Christy Sage10004447 26Irene Walz100051,184 3,459 1.Open general ledger T-accounts for Accounts Receivable (No. 112) and Sales (No. 401) and an.
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Ex. 185 Fredrickson Inc. obtained significant influence over Unruh Corporation by buying 40% of Unruh 30,000 outstanding shares common stock at a total cost of $11 per share on January 1, 2012. On June 15 Unruh declared and paid a cash dividend of $35,000. On December 31 Unruh reported a net.
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G - 1 Subsidiary Ledgers and Special Journals APPENDIX G subsidiary ledgers and special journals TRUE-FALSE STATEMENTS               1.A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company. Ans: F, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective,.
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G - 1 Subsidiary Ledgers and Special Journals Ex. 75 Lighthouse Ltd. uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals. Transactions Oct.5Purchased merchandise on account for $30,000 from O’Connor Company. Terms: 2/10, n/30; FOB.
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Ex. 179 Garrison Company had the following transactions pertaining to its short-term stock investments. Jan.1Purchased 2,000 shares of Harlan Company stock for $100,000 cash plus brokerage fees of $1,100. June1Received cash dividends of $3.00 per share on the Harlan Company stock. Sept.15Sold 1,000 shares of the Harlan Company stock for $49,800 less brokerage fees.
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Exercises Ex. 31 Caroline Vogt had earned (accumulated) salary of $98,000 through November 30. Her December salary amounted to $9,200. Diane Sago began employment on December 1 and will be paid her first month's salary of $3,800 on December 31. Income tax withholding for December for each employee is as follows: Caroline VogtDiane.
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H-1 Accounting for Partnerships Be. 50 The Fran & Mary Co. reports net income of $28,000.  Interest allowances are Fran $3,000 and Mary $5,000; partner salary allowances are Fran $18,000 and Mary $10,000 and the remainder is shared equally. Instructions Indicate the division of net income to each partner, and prepare the entry to distribute.
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G - 1 Subsidiary Ledgers and Special Journals Ex. 76 Below are some typical transactions incurred by Kuo Company. ____              1.Purchase of merchandise on account. ____              2.Collection on account from customers. ____              3.Payment of employee's wages. ____              4.Sales of merchandise for cash. ____              5.Close Income Summary to Retained Earnings. ____              6.Adjusting entry for depreciation on machinery. ____              7.Payment of creditors.
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MATCHING 202.Match the items below by entering the appropriate code letter in the space provided. A.Available-for-sale securities              F.              Consolidated financial statements B.Subsidiary company              G.              Controlling interest C.Equity method              H.              Market Adjustment D.Unrealized Gain or Loss—Equity              I.              Vertical acquisition E.Fair value              J.              Long-term investments ____              1.Valuation allowance account. ____              2.Amount for which a security could be sold. ____              3.Ownership of.
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G - 1 Subsidiary Ledgers and Special Journals BRIEF Exercises Be. 66 Presented below is information related to Walnut Company for its first month of operations. Identify the balances that appear in the accounts receivable subsidiary ledger and the accounts receivable balance that appears in the general ledger at the end of January. _____________Credit Sales_______________Cash.
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G - 1 Subsidiary Ledgers and Special Journals               41.If a company purchases merchandise for cash, the transaction should be recorded in the a.purchases journal. b.general journal. c.cash payments journal. d.sales journal. Ans: C, SO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: Business Applications              .
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Ex. 187 On January 5, 2012, Jensen Company purchased the following stock investments: 300 shares Glenn Corporation common stock for $4,800. 500 shares Kiley Corporation common stock for $10,000. 600 shares Riggs Corporation common stock for $18,000. Assume that Jensen Company cannot exercise significant influence over the activities of the investee companies and that the.
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H-1 Accounting for Partnerships TRUE-FALSE STATEMENTS               1.A partnership has a limited life, because any change in the relationship of the partners dissolves the partnership.               2.Each partner is personally liable for all debts of the partnership.               3.A partnership agreement must be in writing.               4.An advantage of the partnership form of business is that.
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H-1 Accounting for Partnerships               11.When a loss is closed into the partners’ capital accounts, Income Summary is credited.               12.When salary and interest allocations exceed net income, a net loss has occurred.               13.It is possible for a partner’s capital account to increase as a result of the allocation of a net loss.              .
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G - 1 Subsidiary Ledgers and Special Journals               51.Wiggins Inc. uses a sales journal. An entry in this journal represents a a.debit to Cash; credit to Sales. b.debit to Accounts Receivable; credit to Sales. c.debit to Sales Discounts; credit to Cash. d.debit to Accounts Payable; credit to Sales Returns and Allowances. Ans: B, SO: 3, Bloom:.
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COMPLETION STATEMENTS               36.Two federal taxes which are levied against employees' wages that must be deducted in arriving at net pay are (1) ________________ taxes and (2) _______________ taxes.               37.The employer incurs a payroll tax expense equal to the amount contributed by each employee for ______________ taxes.               38.A payroll tax expense.
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H-1 Accounting for Partnerships BRIEF Exercises Be. 46 Randy and John decide to organize a partnership.  Randy invests $15,000 cash, and John contributes $8,000 and equipment having a book value of $3,500 and a fair market value of $7,000 Instructions Prepare the entry to record each partner’s investment. Be. 47 Poncho and Chico decide to merge their proprietorships.
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Ex. 177 The following transactions were made by White Company. Assume all investments are short-term. June2Purchased 600 shares of Brock Corporation common stock for $45 per share. July1Purchased 210 Damon Corporation bonds for $231,000. 30Received a cash dividend of $2 per share from the Brock Corporation. Sept.15Sold 120 shares of Brock Corporation stock for $50.
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MULTIPLE CHOICE QUESTIONS               11.Changes in pay rates during employment should be authorized by the a.personnel department. b.payroll department. c.treasurer's department. d.timekeeping department.               12.Which of the following employees would likely receive a salary instead of wages? a.Store clerk b.Factory employee c.Sales manager d.Manual laborer               13.Control over timekeeping does not include a.having one employee punch the time cards for several employees.
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G - 1 Subsidiary Ledgers and Special Journals               31.A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a a.single-column purchases journal. b.multiple-column purchases journal. c.cash payments journal. d.general journal. Ans: C, SO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN:.
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G - 1 Subsidiary Ledgers and Special Journals Ex. 80 CASH PAYMENTS JOURNALPage 45 ——————————————————————————————————————————— OtherAccountsMerchandise Ck.AccountPost.AccountsPayableInventoryCash DateNo.DebitedRef.Dr.Dr.Cr.Cr. ——————————————————————————————————————————— 2011 Jan.4659N & R Inc,(a)4,000403,960 11660Prepaid Rent(b)2,0002,000 13661Merch. Inv.(c)565565 14662Dividends(d)1,0001,000 18663Keene(e)2,3002,300 20664Merch. Inv.(f)450450 29665Equipment(g)2,400      2,400 6,4156,3004012,675 (h)(i)(j)(k) Using the cash payments journal above, identify each of the posting references indicated by a letter, as representing: (1)a posting to a general ledger account. (2)a posting to a subsidiary ledger account. (3)that no posting is required. Ans:.
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G - 1 Subsidiary Ledgers and Special Journals SHORT-ANSWER ESSAY S-A E 89 At the end of the month, the accountant for Golden Company prepared a schedule of accounts receivable from the accounts receivable subsidiary ledger. Its total did not agree with the balance in the Accounts Receivable control account in the general ledger..
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G - 1 Subsidiary Ledgers and Special Journals Be. 70 Circle the correct answer to each situation. (a)A sales journal will be used for: Credit SalesCash SalesSales Discounts YesNoYesNoYesNo (b)A single-column purchases journal will be used for: Purchase Returns Cash PurchasesPurchases on Accountand Allowances YesNoYesNoYesNo (c)A multiple-column purchases journal will be used for: Supplies PurchasedEquipment Purchases Cash Purchaseson Accounton Account YesNoYesNoYesNo .
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