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171.Roper Electronics received its bank statement for the month of August with an ending balance of $11,740.00. Roper determined that check #613 for $155.00 and check #601 for $420.00 were both outstanding. Also, a $6,900.00 deposit for August 30th was in transit as of the end of the month. Northern.
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107.A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? A.$2,000 loss B.$1,500 loss C.$3,500 gain D.$2,000 gain 108.The Bacon Company acquired new machinery with a price of $15,200 by trading in similar.
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113.Other than accounts receivable and notes receivable, name other receivables that might be included in the general ledger. 114.Discuss the similarities and differences between accounts receivables, notes receivables and other receivables. 115.List at least three things that indicate a receivable may be uncollectible. 116.Discuss the two methods for recording bad-debt expense. What type.
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174.On April 3rd, Snappy Sales decides to establish a $135.00 Petty Cash Account to relieve the burden on Accounting. (a) Journalize this event. (b) On April 11th, the petty cash fund has receipts for mail and postage of $32.75, contributions and donations of $25.25, meals and entertainment of $68.00 and $9.75.
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61.Patents are exclusive rights to manufacture, use, or sell a particular product or process. 62.When a major corporation develops its own trademark and over time it becomes very valuable, the trademark may not be shown on their balance sheet due to lack of a material cost. 63.When a company establishes an outstanding.
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143.a) The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible. Est Uncollectible Accts Age Interval: Balance: Percentage: Amount: Not past due 850,000 3.50% 1~30 days past due: 47,500 5.00% 31~60 days past due: 21,750 10.00% 61~90 days past due: 11,250 20.00% 91~180 days past due: 5,065 30.00% 181~365 days past due: 2,500 50.00% Over 365 days.
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137.Posner Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2011: Customer Amount J. Jackson $10,000 L. Stanton 9,500 C. Barton 13,100 S. Fenton 2,400 Total $35,000 Required: (1) Journalize the write-offs for 2011 under the direct write-off method. (2) Journalize the write-offs for 2011 under the allowance method. Also, journalize the adjusting entry for.
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21.When using the analysis of receivables method for estimating uncollectible receivables, the amount computed in the analysis is usually the amount that would be recorded in the end-of-period adjusting entry. 22.The balance in the Allowance for Doubtful Accounts account at the end of the year includes the total of all accounts.
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140.Financial Statement data for the years ended December 31 for Parker Corporation is as follows: 2012 2011 Net Sales $2,595,600 $2,409,500 Accounts Receivable Beginning of the year $ 390,000 $400,000 End of the year 434,000 390,000 a) Determine the accounts receivable turnover for 2012 and 2011. b) Determine the number of days’ sales.
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11.When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated. 12.Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting.
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152.For the fiscal years 2009 and 2010, Apple Co. reported the following: Year Ended December 31, 2009 2010 Net Sales $44,123,486 $34,124,961 Accounts Receivable 749,321 719,365 a. Compute the accounts receivable turnover for 2010. b. Compute the number of days’ sales in receivable at the end of 2010. 153.Journalize the following transactions of Upton Drugs: July 8 Received a $180,000,.
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81.Allowance for Doubtful Accounts has a credit balance of $1,400 at the end of the year (before adjustment). The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $17,900. Which of the following adjusting entries would be made to record the Bad Debt Expense.
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51.Two methods of accounting for uncollectible accounts are the A.direct write-off method and the allowance method. B.allowance method and the accrual method. C.allowance method and the net realizable method. D.direct write-off method and the accrual method. 52.If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to.
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137.Computer equipment was acquired at the beginning of the year at a cost of $63,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. Determine the (a) depreciable cost (b) double-declining-balance rate, and (c) double-declining-balance depreciation for the first year. 138.An asset was purchased.
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131.Fellows Corporation has determined that the $1,500 accounts receivable due from Andrew Stevens is uncollectible. Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method. 132.Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12.
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61.When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when A.a customer's account becomes past due. B.an account becomes bad and is written off. C.a sale is made. D.management estimates the amount of uncollectibles. 62.A debit balance in the Allowance for Doubtful Accounts A.is the normal balance for that.
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144.For each of the following scenarios, indicate the Bad Debt Expense to be recorded in 2011, the balance in the Allowance for Doubtful Accounts Account at December 31, 2011, and the net realizable value of the Accounts Receivable at December 31, 2011: a) An analysis of Simmon’s Company’s $830,000 balance in.
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41.Regardless of the depreciation method, the amount that will be depreciated during the life of the asset will be the same. 42.Revising depreciation estimates does affect the amounts of depreciation expense recorded in past periods. 43.Capital expenditures are costs that are charged to Stockholders' Equity accounts. 44.Though a piece of equipment is still.
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135.Blackwell Industries received a 120-day, 9% note for $150,000, dated August 13 from a customer on account. OK Required: 1. Determine the due date of the note. 2. Determine the maturity value of the note. 3. Journalize the entry to record the receipt of the payment of the note at maturity. 136.Based on the following data and using.
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129.What is the cost of the land, based upon the following data? Land purchase price $178,000 Broker's commission 15,000 Payment for the demolition and removal of existing building 5,000 Cash received from the sale of materials salvaged from the demolished building 2,000 130.Comment on the validity of the following statements. "As an asset loses its ability to provide services,.
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77.A capital expenditure results in a debit to A.an expense account B.a capital account C.a liability account D.an asset account 78.Which of the following below is an example of a capital expenditure? A.cleaning the carpet in the front room B.tune-up for a company truck C.replacing an engine in a company car D.replacing all burned-out light bulbs in the.
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157.On April 2nd, Granger Sales decides to establish a $125.00 Petty Cash Account to relieve the burden on Accounting. (a) Journalize this event. (b) On April 10th, the petty cash fund has receipts for mail and postage of $43.50, contributions and donations of $29.50, meals and entertainment of $38.25 and $13.55.
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***********************************************************************8169.Two features of internal control are presented in the following sections. Each is followed by a list of four irregularities that occurred in processing data. Identify the one irregularity from each list that would be discovered or prevented by the feature of internal control described. (a) The sum of the balances.
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31.Residual value is not incorporated in the initial calculations for double-declining-balance depreciation. 32.The double-declining-balance method is an accelerated depreciation method. 33.The double declining balance depreciation method calculates depreciation each year by taking twice the straight line rate times the book value of the asset at the beginning of each year. 34.When minor errors.
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97.The formula for depreciable cost is A.initial cost + residual value B.initial cost - residual value C.initial cost - accumulated depreciation D.depreciable cost = initial cost 98.Expected useful life is A.calculated when the asset is sold. B.estimated at the time that the asset is placed in service. C.determined each year that the depreciation calculation is made. D.none of.
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101.When referring to a note receivable or promissory note A.the maker is the party to whom the money is due. B.the note is not considered a formal credit instrument. C.the note cannot be factored to another party. D.the note may be used to settle an accounts receivable. 102.When a company receives an interest-bearing note receivable,.
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111.Match each of the following terms associated with the best description of that term. 1.Measures how frequently during the year accounts receivables are being turned into cash. Accounts Receivable 2.A receivable created from selling merchandise or services on account. Aging Report 3.A list of customer accounts sorted by age classes. Allowance for Doubtful Accounts 4.All money claims.
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160.Journalize the entries to record the following: Sept 1 Established a petty cash fund of $350 Sept 30 The amount of cash in the petty cash fund is now $130. The fund is replenished based on the following receipts: office supplies, $116; postage $100. Record any discrepancy in the cash.
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31.If a promissory note is dishonored, the payee should still record interest revenue. 32.The equation for computing interest on an interest-bearing note is as follows: interest equals maturity value times interest rate times time. 33.If the maker of a note fails to pay the debt on the due date, the note is.
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126.At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000. Determine (a) the amount of the adjusting entry for bad.
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1.Long-lived assets that are intangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets. 2.The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs to get the asset in place.
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175.Present entries to record the following transactions: (a) Established a petty cash fund of $235.00. (b) The petty cash fund now has a balance of $42.80. Replenished the fund, based on the following disbursements as indicated by a summary of the petty cash receipts: office supplies, $74.50; miscellaneous administrative expense, $92.75; and miscellaneous.
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1.Notes Receivable and Accounts Receivable can also be called trade receivables. 2.Receivables not currently collectible are reported in the investments section of the balance sheet. 3.Trade receivables occur when two companies trade or exchange notes receivables. 4.Other receivables include non trade receivables such as loans to company officers. 5.Both Accounts Receivable and Notes Receivable.
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163.Why would a bank require a company to maintain a compensating balance? 164.Farm Store, Inc. reported the following data in its December 31, 2011 annual report. Cash and cash equivalents $1,050,000 Negative cash flows from operations (420,000) Required: (1) What is the company’s “cash burn” per month? (2) What is the company’s ratio of cash to monthly.
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149.Journalize the following transactions (Assume a 360-day year when calculating interest.): Mar. 1 Received a 90-day, 10% note for $24,000, dated March 1, from Batson Co. on account. May 30 The note of March 1 was dishonored. 150.The following are the current assets from Hanes Co. as of December 31, 2011: Accounts Receivable 42,000 Allowance for Doubtful Accounts 3,000 Cash 79,000 Interest.
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151.For a business that uses the allowance method of accounting for uncollectible receivables: (a) Journalize the entries to record the following: (1) Record the adjusting entry at December 31, 2010, the end of the fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the.
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51.When exchanging equipment, if the trade-in allowance is greater than the book value a loss results. 52.If a fixed asset with a book value of $10,000 is traded for a similar fixed asset, and a trade-in allowance of $15,000 is granted by the seller, if the transaction is deemed to have.
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71.The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles A.will increase net income in the period it is collected. B.will decrease net income in the period it is collected. C.does not affect net income in the period it is collected. D.requires a correcting entry.
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119.Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables: Feb 20 Received $500 from Andrew Warren and wrote off the remainder owed of $2,500 as uncollectible. May 10 Reinstated the account of Andrew Warren and received $2,500 cash in full payment. 120.The following journal entries would be used.
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173.The cash account for Santiago Co. on May 31, 2011 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $4,820.00 b. A deposit of $3,796.00.
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41.A note receivable due in 18 months is listed on the balance sheet under the caption A.long-term liabilities B.fixed assets C.current assets D.investments 42.The receivable that is usually evidenced by a formal instrument of credit is a(n) A.trade receivable. B.note receivable. C.accounts receivable. D.income tax receivable. 43.Which of the following receivables would not be classified as an "other receivable”? A.Advance.
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11.Capital expenditures are costs of acquiring, constructing, adding, or replacing property, plant and equipment. 12.The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future. 13.Expenditures that increase operating efficiency or capacity for the remaining useful life of a fixed asset are betterments. 14.The cost.
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141.Journalize the following transactions for Solley Company that occurred during 2011 and 2012. November 14, 2011 Received a $4,800.00, 90-day, 9% note from Alan Hibbetts in payment of his account. December 31, 2011 Accrued interest on the Hibbetts note. February 12, 2012 Received the amount due from Hibbetts on his note. Date Description Post Ref Debit Credit 142.For each.
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67.A characteristic of a fixed asset is that it is A.intangible B.used in the operations of a business C.held for sale in the ordinary course of the business D.a long term investment 68.Land acquired so it can be resold in the future is listed in the balance sheet as a(n) A.fixed asset B.current asset C.investment D.intangible asset 69.Which.
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146.Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.) a. Determine the due date of the note. b. Determine the maturity value of the note. c. Journalize the entry to record the receipt of the payment of the note at.
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91.When a company uses the allowance method of accounting for uncollectible receivables, the entry to reinstate a previously written off account would include: A.A credit to Bad Debt Expense B.A debit to Bad Debt Expense C.A debit to Allowance for Doubtful Accounts D.A credit to Allowance for Doubtful Accounts 92.The amount of a promissory note.
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87.When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is A.declining-balance B.straight-line C.units-of-production D.MACRS 88.A machine with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 5 years.
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21.The normal balance of the accumulated depreciation account is debit. 22.As a company records depreciation expense for a period of time a corresponding cash inflow from investing activities is reported on the statement of cash flows. 23.All property, plant, and equipment assets are depreciated over time. 24.The book value of a fixed asset.
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