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Study Resources (Accounting)

119.  The actual cash received during the week ended June 6 for cash sales was $8,276 and the amount indicated by thecash register total was $8,262. Journalize the entry to record the cash receipts and cash sales. Journal Date Description Post. Ref. Debit Credit 120.  The actual cash received during the week ended October 31 for cash.
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119.  Journalize the entries to record the following: March 1   Established a petty cash fund of $300. March 31 The amount of cash in the petty cash fund is now $64.  The fund is replenished basedon the following receipts: office supplies, $137; selling expenses, $112. Record any discrepancy in the cash short and.
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Match each situation to its impact (a–c) on the current year's net income. a.  Net income for the current year will be overstated. b.  Net income for the current year will be understated. c.  There will be no error effect on net income. 148.  Purchased merchandise was shipped FOB shipping point on the last.
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119.  The actual cash received during the week ended June 7 for cash sales was $18,632, and the amount indicated bythe cash register total was $18,628.  Journalize the entry to record the cash receipts and cash sales. Journal Date Description Post.Ref. Debit Credit 120.  Consider the following journal entry made by Jones Company for one day's sales.
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11.A customer's check received in settlement of an account receivable is considered cash. a.True b.False 12.Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledgeraccount for each type of cash. a.True b.False 13.For a strong internal control system over cash, it is important to have the duties related to.
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96.Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). Thecompany prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be$31,900.  Which of the following adjusting entries is needed to record the Bad Debt Expense for the.
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112.A $200 petty cash fund has cash of $20 and receipts of $177.  The journal entry to replenish the account wouldinclude a credit to a.Cash for $20 b.Cash Over and Short for $3 c.Petty Cash for $190 d.Cash for $180 113.Cash equivalents include a.checks b.coins and currency c.money market accounts and commercial paper d.stocks and short-term bonds 114.Cash equivalents a.are illegal.
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31.The maturity value of a 12%, 60-day note for $5,000 is $5,600. a.True b.False 32.The maturity value of a note receivable is always the same as its face value. a.True b.False 33.The interest on a 6%, 60-day note for $5,000 is $300. a.True b.False 34.The party promising to pay a note at maturity is the maker. a.True b.False 35.In computing the maturity.
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119.  The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31.  After the journals for Octoberhad been posted, the cash account had a balance of $8,998. (a)          Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495. (b)         Deposits in transit not recorded.
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119.  Green Valley Bank sent Comstock Industries its end-of-month bank statement for July. The end of month balanceby the bank is $11,237. The statement shows that a deposit for $4,250 is in transit at the end of the statementperiod. The statement also revealed that checks for $87, $105, and $95.
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119.  Two features of internal control are presented in the following sections.  Each is followed by a list of fourirregularities that occurred in processing data.  Identify the one irregularity from each list that would be discoveredor prevented by the feature of internal control described. (a)          The sum of the balances of.
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119.  You are trying to explain debit and credit memos that appear on bank statements and whether these will increase ordecrease your company’s bank account balance.  Complete the following table to help your new staff understand. ITEM DebitorCreditMemo Increases orDecreases theCompany’s BankAccount Balance EFT payment Bank correction of an error due to posting another customer’s check.
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119.  On April 3, Snappy Sales decides to establish a $135.00 petty cash fund to relieve the burden on Accounting. (a)    Journalize the establishment of the fund. (b)    On April 11, 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,.
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86.At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760.  During the year,$120 of previously written off accounts are reinstated and accounts totaling $740 are written-off asuncollectible.  The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be a. $760 b. $120 c. $140 d..
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Match each description to the appropriate inventory system (a or b). a.  Perpetual b.  Periodic 148.  This system can be costly and time consuming if not computerized. 149.  Average cost is rarely used with this system. 150.  Under this system, only revenue is recorded when sales are made. 151.  When using this system, a physical inventory.
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76.Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is$390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of theoutstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance forDoubtful Accounts has a credit.
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119.  On August 3, Sonar Sales decides to establish a $275.00 Petty Cash Account to relieve the burden on Accounting. (a)   Journalize the establishment of this fund. (b)  On August 11, the petty cash fund has receipts for mail and postage of $124.75, contributions and donationsof $53.25, meals and entertainment of $63.85,.
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46.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 47.The receivable that is usually evidenced by a formal, written instrument of credit is a(n) a.trade receivable b.note receivable c.accounts receivable d.income tax receivable 48.Which of the following receivables would notbe classified as an "other receivable”? a.advance to.
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21.The bank often informs the company of bank service charges by including a credit memo with the monthly bankstatement. a.True b.False 22.Bank customers are considered creditors of the bank so the bank shows their accounts with credit balances on thebank's records. a.True b.False 23.Depositing all cash, checks, etc. in a bank and paying with checks is.
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119.  The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The March bank statement indicatedan ending balance of $25,645.  Comparing the bank statement, the canceled checks, and the accompanying memoswith the records revealed the following reconciling items: a.          Checks outstanding totaled $5,975. b.          A deposit of $3,796.
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119.  Identify each of the following as relating to (a) the control environment, (b) risk assessment, or (c) controlprocedures. 1.    Mandatory vacations 2.    Personnel policies 3.    Report of outside consultants on future market changes 120.  List the objectives of internal control and give an example of how each is implemented. 121.  You began your new.
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119.  The Scharf Company is a retailer located in a state without sales tax.  The following data was given to you tocomplete the transactions for the day’s sales to be recorded.  All cash drawers start with $100 in change. Reg. #1Reg. #2Reg. #3Reg.#4 Cash in drawer974.501,383.66939.461,137.91 Sales reading  879.50    1,298.16      839.46     1,030.33 Difference Record the journal entries for.
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1.SALESNotes Receivable and Accounts Receivable can also be called trade receivables. a.True b.False 2.Receivables notcurrently collectible are reported in the investments section of the balance sheet. a.True b.False 3.Trade receivables occur when two companies trade or exchange notes receivables. a.True b.False 4.Other receivables include nontrade receivables such as loans to company officers. a.True b.False 5.Both Accounts Receivable and Notes Receivable represent claims.
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11.The direct write­off method records bad debt expense when an account is determined to be uncollectible. a.True b.False 12.Generally accepted accounting principles do notnormally allow the use of the direct write-off method ofaccounting for uncollectible accounts. a.True b.False 13.The direct write-off method records bad debt expense in the year the specific account receivable is determined tobe.
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21.When the allowance method for accounting for uncollectible receivables is used, net income is reduced when aspecific receivable is written off. a.True b.False 22.At the end of a period (before adjustment), Allowance for Doubtful Accounts has a credit balance of $250.  Thenet credit sales for the period total $500,000.  If the company estimates.
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119.  Journalize the entries to record the following: Sept. 1 Established a petty cash fund of $350. 30 The amount of cash in the petty cash fund is now $130.  The fund is replenished based on the followingreceipts: office supplies, $116; postage, $100. Journal Date Description Post. Ref. Debit Credit 162.(a)  Where are cash equivalents disclosed in the financial.
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31.The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that isshown on the balance sheet for that date. a.True b.False 32.All bank memos reported on the bank reconciliation require entries in the company's accounts. a.True b.False 33.The bank reconciliation is an important part of the system.
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92.Accompanying the bank statement was a debit memo for an NSF check received from a customer.  What entry isrequired in the company's accounts? a.debit Other Income; credit Cash b.debit Cash; credit Other Income c.debit Cash; credit Accounts Receivable d.debit Accounts Receivable; credit Cash 93.The amount of cash to be reported on the balance sheet at.
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148.  The following data were taken from Castle, Inc. Cost of merchandise sold$894,000 Inventory, end of year78,000 Inventory, beginning of the year92,000 Determine the inventory turnover ratio and the number of days’ sales in inventory for Castle Inc.  Round to two decimal places. 149.  Based on the following information, compute (a) inventory turnover; (b) average daily.
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119.  The following data were gathered to use in reconciling the bank account of Savannah Company: Balance per bank $16,750 Balance per company records 16,125 Bank service charges 80 Deposit in transit 2,195 NSF check 950 Outstanding checks 3,850 What is the adjusted balance on the bank reconciliation? 120.  The following data were gathered to use in reconciling the bank statement of Build-A-Lot: Balance per.
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163.  Why would a bank require a company to maintain a compensating balance? 164.  The Garden Gate, Inc. reported the following data in its August 31 annual report. Cash and cash equivalents $485 625 Cash flow from operations Required: (630,000) (1)  What is the company’s “cash burn” per month? (2)  What is the company’s ratio of cash to.
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56.The direct write-off method of accounting for uncollectible accounts a.emphasizes balance sheet relationships b.is often used by small companies and companies with few receivables c.emphasizes cash realizable value d.emphasizes the matching of expenses with revenues 57.Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited a.at the end of each accounting.
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148.  On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method. Cost Retail March 1 Merchandise inventory $250,000 $  350,000 March 1–31 Purchases (net) 850,000 1,650,000 March 1–31 Sales 845,000 149.  On the basis of the following data, determine the estimated cost of the inventory as of March 31 by the retailmethod, presenting.
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62.A necessary element of internal control is a.database b.systems design c.systems analysis d.information and communication 63.Which of the following should notbe considered cash by an accountant? a.money orders b.bank checking accounts c.postage stamps d.travelers' checks 64.The cash account in the company's ledger is a(n) a.asset with a normal debit balance b.asset with a normal credit balance c.liability with a normal debit balance d.liability with.
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72.Consider the following information taken from the cash account. Assume cash payments were 80% of collections. Cash ??Beg. balance $115,375Collections ??Disbursements $80,275End balance How much was the beginning balance of the cash account?a. $57,200b. $92,300 c. $103,350d. $35,100 73.A bank statement a.is a credit reference letter written by the company's bank. b.lets a company know the financial position of the.
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119.  Using the following information, prepare a bank reconciliation for Miller Co. for August 31: (a)          The bank statement balance is $4,690 (b)         The cash account balance is $5,080. (c)          Outstanding checks amounted to $715. (d)         Deposits in transit are $1,020. (e)          The bank service charge is $40. (f)          A check for $72 for supplies was.
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52.Sarbanes­Oxley applies to a.publicly held companies b.not­for­profit organizations c.privately held businesses d.all of these 53."To maintain public confidence and trust in the financial reporting of companies" is the purpose of a.the FASB b.the IRS c.Sarbanes­Oxley d.GAAP 54.Which one of the following below is notan element of internal control? a.risk assessment b.monitoring c.information and communication d.cost-benefit considerations 55.Which one of the following is nota factor that.
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1.The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges. a.True b.False 2.Sarbanes­Oxley’s purpose is to maintain public confidence and trust in the financial reporting of companies. a.True b.False 3.There are three internal control objectives and they are to safeguard the company's reputation, ensure accuratefinancial reports, and ensure compliance with applicable laws. a.True b.False 4.The.
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Assign the letter to indicate whether the following items would be added or subtracted from the company’s booksor the bank statement during the construction of a bank reconciliation. a.    Added to the company’s books b.    Subtracted from the company’s books c. Addedtothebankstatementbalance d. Subtractedfromthebankstatementbalance 183.     Outstandingchecks 184.     Bankservicecharge 185.     Depositintransit 186.     NSFcheck 187.     EFTdepositfromacustomer 188.     Chargesforsomeothercompany’ssafedepositboxwerepostedtoyouraccount 189.     A$1,000notefromoneofyourcustomerswascollectedbythebank 190.     Interestrevenueearnedbythenoteabove .
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119.  The bank statement for Farmer Co. indicates a balance of $7,735.00 on June 30.  After the journals for June hadbeen posted, the cash account had a balance of $4,098.00.  Prepare a bank reconciliation on the basis of thefollowing reconciling items: (a)          Cash sales of $742 had been erroneously recorded in.
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Match the following elements of internal control: a.  provides reasonable assurance that business goals will be achieved b.  used by management for guiding operations and ensuring compliance with requirements c.  overall attitude of management and employees d.  used to locate weaknesses and improve controls e.  identify, analyze and assess likeliness of vulnerabilities DIFFICULTY:Easy Bloom’s: Remembering LEARNING OBJECTIVES:ACCT.WARD.16.08-02 -.
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106.The amount for which a promissory note is written is called the a.realizable value b.maturity value c.face value d.proceeds 107.The amount of the promissory note plus the interest earned on the due date is called the a.interest value b.maturity value c.face value d.issuance value 108.A 60-day, 12% note for $7,000, dated April 15, is received from a customer on account. .
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66.If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account isdebited to write off a customer's account as uncollectible? a.Uncollectible Accounts Receivable b.Accounts Receivable c.Allowance for Doubtful Accounts d.Bad Debt Expense 67.If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debitedto write.
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163.  Aspen, Inc. reported the following data in its annual report: Cash and cash equivalents $460,000Cash flow from operations (240,000) Required: (1)  What is the company’s “cash burn” per month? (2)  What is the company’s ratio of cash to monthly cash expenses? 164.  The following data is from the Autumn Company for the past four.
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Match each description to the appropriate document used for inventory control (a–c). a.  Receiving report b.  Vendor’s invoice c.  Purchase order 148.  last document in the chain, use to compare all three for accuracy 149.  authorizes the purchase of inventory from an approved vendor 150.  establishes an initial record of the receipt of inventory Match each description.
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102.Jamison Company gathered the following reconciling information in preparing its June bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for the Jamison Company. a. $8,065 b. $10,565 c. $15,065 d. $6,435 103.Thompson Company gathered the following reconciling information in preparing its October bank reconciliation: Cash balance per bank, 10/31$17,000 Note receivable collected.
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