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Study Resources (Accounting)

129.  The posting references in the following purchases journal are indicated by letters.  Identify each posting reference[(a) through (i)] as representing (1) a posting to a general ledger account, (2) a posting to a subsidiary ledgeraccount, or (3) that no posting is required. PURCHASES JOURNAL DateAccountPost. CreditedRef. AccountsPayableCr. OfficeSuppliesDr. StoreSuppliesDr. ) ) ) ) July  3 Morton Company (a) 1,150 ..... 1,150 ) 7 Jackson Co. (b) 4,800 4,800 ..... ) 14 Fallon Inc. (c) 7,000 7,000 ..... ) 26 Simpson Bros. (d) 2,350  .....   .
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129.  Two transactions were posted to the following customer account: NAME:Roswell Communications, Inc.Address:  345 Alien Way Date Item Post. Ref. Debit Credit Balance May   1 Balance √ 750 14 Invoice 522 CR230 625 125 25 Invoice 545 R115 3,500 3,625 Describe each transaction and the source of each posting. 130.  Two transactions were posted to the following supplier’s (creditor’s) account: NAME:Banner Computer Services, Inc.Address:  890 Novice Lane Date Item Post. Ref. Debit Credit Balance July     1 Balance √ 5,645 19 Invoice 45 P16 1,755 7,400 26 Invoice 39 CP36 3,500 3,900 Describe each transaction and.
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129.  Payton Company has the following segment revenues for the two most recent fiscal years. Current Year (in millions) Prior Year (in millions) China $  775.00 $   650.00 Canada 325.50 245.50 Other countries 215.50 168.50 Total revenues $1,316.00 $1,064.00 Prepare a vertical analysis of the segment data. 130.  Maximilian Corporation provided revenue disclosures for the current year by its major product segments in thenotes to its financial statements.
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144.The statement of owner's equity shows a.only net income, beginning and ending capital b.only total assets, beginning and ending capital c.only net income, beginning capital, and withdrawals d.beginning and ending capital and all the changes in the owner's capital as a result of net income (loss), andwithdrawals 145.Merchandise with an invoice price of $6,000 is.
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1.The most important differences between a service business and a retail business are reflected in their operatingcycles and financial statements. a.True b.False 2.In a merchandise business, sales minus operating expenses equal net income. a.True b.False 3.Cost of merchandise sold is the amount that the merchandising company pays for the merchandise it intends to sell. a.True b.False 4.Service businesses provide.
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129.  The following purchase transactions occurred during August for Backcountry Kayak Excursions. Aug. 1 Purchased kevlar kayaks (equipment) for $5,600 on account from Gear Inc. 6 Purchased kayaks paddles (supplies) for $3,250 on account from Southland Company. 14 Purchased life vests (supplies) for $2,500 on account from Gear Inc. Record these transactions in a.
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94.Which of the following accounts has a normal credit balance? a.Accounts Receivable b.Sales c.Merchandise Inventory d.Delivery Expense 95.The entry to record the return of merchandise from a customer would include a a.debit to Sales b.credit to Sales c.debit to Customer Refunds Payable d.debit to Estimated Returns Inventory 96.Sales to customers who use bank credit cards such as MasterCard and Visa.
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51.If the perpetual inventory system is used, an account entitled Cost of Merchandise Sold is included in the generalledger. a.True b.False 52.Purchased goods in transit should be included in the ending inventory of the buyer if the goods were shipped FOBshipping point. a.True b.False 53.On the income statement in the single-step form, the total of all.
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167.  Gadget Palace is a retailer selling unique hardware. Gadget Palace uses a perpetual inventory system. Journalizethe following transactions: On July 5, Gadget Palace purchases inventory for sale from Turbo Tools for $11,400.00with terms 2/10, n/30. On July 6, Gadget Palace pays Fast Truck Transport $75 for freight in on the July.
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11.Under the perpetual inventory system, when a sale is made, both the sale and cost of merchandise sold arerecorded. a.True b.False 12.If payment is due by the end of the month in which the sale is made, the invoice terms are expressed as n/30. a.True b.False 13.When merchandise that was sold is returned, a credit to.
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Match the transactions below with the journal or ledger in which it would be entered. purchases journal revenue journal cash receipts journal cash payments journal accounts receivable subsidiary ledger accounts payable subsidiary ledger general journal 130.  Monthly adjustment for supplies used 131.  Cash receipt posting to an individual customer account 132.  Record sale on account to customer 133.  Record purchase on.
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Match the following types of journal transactions with the journal in which it would be entered. cash receipts journal cash payments journal revenue journal Match each subsidiary ledger and general ledger posting to one of the descriptions of activities (a−e). a.  Purchases on account b.  Collections from customers on account c.  Adjustment for expired insurance d.  Payments to.
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21.A seller may grant a buyer a reduction in selling price and this is called a customer discount. a.True b.False 22.A customer discount encourages customers to pay accounts more quickly than if a discount were not available. a.True b.False 23.Merchandise Inventory normally has a debit balance. a.True b.False 24.A buyer who acquires merchandise under credit terms of 1/10, n/30.
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129.  Eastwood Publishing reports the following segment data regarding its textbook sales: Segment Current Year Prior Year College textbooks $ 78,000 $ 55,000 High school textbooks 129,000 115,000 Elementary school textbooks 105,000 121,000 Total textbook revenue $312,000 $291,000 Perform a horizontal analysis and a vertical analysis for Eastwood Publishing Company.  Round to one decimalplace.] 130.  What is a business segment?  How can business segments be.
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167.  Complete the following data taken from the condensed income statements for merchandising Companies A, B, andC. Company A Company B Company C Net income $315 $  ? $215 Sales ? 865 560 Gross profit 430 ? 325 Operating expenses ? 125 ? Cost of merchandise sold 545 320 ? 168.  Complete the following data taken from the condensed income statements for merchandising Companies X, Y, andZ. Company X Company Y Company Z Net income (loss) $220 $? $( 70) Sales ? 1,315 890 Gross profit 435 ? 465 Operating.
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167.  Based on the information below, journalize the entries for the Seller and the Buyer.  Both use a perpetual inventorysystem. (a)          Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shippingpoint.  The cost of the merchandise is $2,850.  The seller prepays the freight of $75. (b)         Buyer.
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41.The chart of accounts for a merchandising business would include an account called Delivery Expense. a.True b.False 42.There is no difference between the recording of cash sales and the recording of MasterCard or VISA sales. a.True b.False 43.When companies use a perpetual inventory system, the recording of the purchase of inventory will include a debit toPurchases. a.True b.False 44.Most.
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129.  Voyager Electronic Services has three customers in its accounts receivable subsidiary ledger with beginningbalances as follows: Fred Yao Ming, $1,150.00Kohl Townson, $850.00Chandra Jahi, $1,075.00 Record the following transactions in a general journal. Then post to the accounts receivable account in the generalledger and to the customer accounts in the accounts receivable.
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167.  Using the perpetual inventory system, journalize the entries for the following selected transactions: (a)          Sold merchandise on account, for $12,000, terms n/30.  The cost of the merchandise soldwas $6,500. (b)         Sold merchandise to customers who used MasterCard and VISA, $9,500.  The cost of themerchandise sold was $5,300. (c)          Sold merchandise to customers.
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129.  The posting references in the following revenue journal are indicated by letters.  Identify each posting reference[(a) through (h)] as representing (1) a posting to a general ledger account, (2) a posting to a subsidiary ledgeraccount, or (3) that no posting is required. REVENUE JOURNAL Post Acct. Rec. Dr. Date Invoice No. Account Debited Ref. Fees Earned Cr. April .
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61.In the merchandising income statement, sales will be reduced by administrative expenses to arrive at operatingincome. a.True b.False 62.As we compare a merchandise business to a service business, the financial statement that changes the most is thebalance sheet. a.True b.False 63.Cost of merchandise sold is often the largest expense on a merchandising company income statement. a.True b.False 64.When a.
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167.  Conquest Company uses a perpetual inventory system.  Conquest purchased $1,500 of merchandise on account andpayment was made within the discount period.  The credit terms were 2/10, n/30.  Journalize Conquest’s purchaseand payment. 168.  Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The.
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124.What type of company would normally offer trade discounts to its customers? a.service companies b.retailers c.wholesalers d.online retailers 125.Which of the following accounts will only be found in the chart of accounts of a merchandising company? a.Sales b.Accounts Receivable c.Merchandise Inventory d.Accounts Payable 126.Which of the following items would notaffect the cost of merchandise inventory acquired during the period? a.quantity discounts b.sales.
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167.  During the current year, merchandise is sold for $137,500 cash and $425,600 on account. The cost of themerchandise sold is $322,325. What is the amount of the gross profit? 168.  During the current year, merchandise is sold for $117,500 cash and $241,750 on account. The cost of themerchandise sold is.
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129.  Explain whether each of the following would usually be used in a computerized accounting system and why or whynot. 1.  special journals 2.  accounts receivable control accounts 3.  electronic invoice form 4.  month-end postings to the general ledger 130.  The discovery and correction of errors is important in a computerized system. What kinds of.
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129.  The Internet creates opportunities for improving the speed and efficiency of transactions. Name and describe threekey areas besides e-commerce where the Internet is being used for business purposes. 130.  Payton Company has the following segment revenues for the two most recent years. Current Year(in millions) Prior Year (in millions) United States $   825.00 $   600.00 Canada 325.50 345.50 Other countries 215.50 168.50 Total.
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129.  Down-Under, an aquatic supply store, makes the following five payments during August. Journalize them in the cashpayments journal as appropriate. (a)          On August 2, Down-Under paid Pondmaster, Inc. with check 6420 for 6 pumps at$435.00 each.  The pumps had been purchased in July on account. (b)          On August 10, Down-Under purchased.
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The transactions completed by Franklin Company during January, its first month of operations, are listedbelow.  Assume that Franklin Company uses the following journals: cash receipts (CR), cash payments(CP), revenue (R), purchases (P), and general (G).  Assume that it uses accounts receivable and accountspayable subsidiary ledgers as well as a general.
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84.The primary difference between a periodic and perpetual inventory system is that a a.periodic system determines the inventory on hand only at the end of the accounting period b.periodic system keeps a record showing the inventory on hand at all times c.periodic system provides an easy means to determine inventory shrinkage d.periodic system records.
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167.  On March 29, customers who owe $10,500 on account to Sonic Sales Company submit payments of $4,250.Journalize this event. ANSWER: DIFFICULTY:Easy Bloom’s: Applying LEARNING OBJECTIVES:ACCT.WARD.16.06-02 - 06-02 ACCREDITING STANDARDS:ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic 168.  Journalize the following merchandise transactions: (a)          Sold merchandise on account, $17,300, with terms 2/10, net 30.  The cost of themerchandise.
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129.  The following purchases journal headings have been suggested for Tower Tree-Trimming Service Company. Whatproblems do you see with these headings? Date Account Credited Post. Ref. Accounts Payable Dr. Accounts Receivable Cr. Cash Cr. Other Accounts Dr. 130.  Two transactions were posted to the following creditor’s account. NAMEWindsurf, Inc.ADDRESS343 Coastline Road Date Item Post. Ref. Debit Credit Balance Aug.   1 Balance 1,210 8 Invoice 333 CP38 1,210 — 15 Invoice  567 P11 735 735 Describe each transaction and the source of.
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167.  What is the normal balance of the following accounts? a.  Sales Tax Payable b.  Merchandise Inventory c.  Delivery Expense d.  Cost of Merchandise Sold e.  Customer Refunds Payable f.  Estimated Returns Inventory g.  Sales 168.  For each of the following, calculate the cost of inventory reported on the balance sheet. (a)          The total merchandise on hand at the.
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114.Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $15,000.  EmmaCo. prepaid the $750 shipping charge.  Using the perpetual inventory method, which of the following entries willIsabella Co. make to record payment of the merchandise if Isabella Co. pays within the discount period? a.Accounts.
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154.Which account will be included in both service and merchandising companies, closing entries? a.Sales b.Cost of Merchandise Sold c.Purchase Discounts d.Sales Returns and Allowances 155.If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shrinkage? a.debit Merchandise Inventory,.
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31.A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is called cashdiscounts. a.True b.False 32.Sellers and buyers are required to record trade discounts. a.True b.False 33.If the ownership of merchandise passes to the buyer when the seller delivers the merchandise for shipment, theterms are stated as FOB destination. a.True b.False 34.A sale of.
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167.  Discuss the following statement: “Operating cycles for all merchandising businesses are the same, with similar profit margins.” Include an example(s) to illustrate your explanation. 168.  Describe the major differences in preparing the financial statements for a service business and a merchandisingbusiness. Service  Business Merchandising  Business Income Statement: Income Statement: Balance Sheet: Balance Sheet: 169.  .
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129.  Read each transaction and identify the appropriate journal in which it should be recorded. 1.  Owner withdrew supplies. 2.  Sale made on account. 3.  Payment to vendor on account. 4.  Payment received from customer on account. 5.  Purchases on account. 6.  Adjusting journal entry for supplies used. 7.  Owner withdrew cash. 8.  Company borrows money from bank. 9. .
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129.  Discuss the process of posting from a revenue journal to the subsidiary ledger and to the general ledger. 130.  Two transactions were posted to the following customer account. NAME: Boogie Board Water WearADDRESS:  2340 Xtreme Surf Date Item Post. Ref. Debit Credit Balance July   1 Balance 805 6 Invoice 406 R42 645 1,450 24 Invoice 456 CR56 710 740 Describe each transaction and the source of each posting. 131.  .
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129.  Mickey Co. does business in three regional segments: West, East, and Central. The following information is availabl Segment Current Year (in thousands) Prior Year (in thousands) East $ 776,000 $ 664,000 West 824,000 596,000 Central 495,000 325,000 Total revenues $2,095,000 $1,585,000 ?Prepare a horizontal analysis of the segment data. Round percentages to two decimal places. 130.  123 Kids TV operates in five major international segments. Segment Current.
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129.  If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are used, indicate thejournal in which each of the following transactions should be recorded: (a)          Investment of additional cash in the business by the owner. (b)         Rendering of services for cash. (c)          Rendering of services on account. (d)         Receipt.
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104.The amount of the total cash paid to the seller for merchandise purchased for consumption would normally include a.only the list price b.only the sales tax c.the list price plus the sales tax d.the list price less the sales tax 105.Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000.  The retailer receives.
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129.  Connie and Jill operate Reardon's Bakery which has the following segment revenues for the most recent two fiscal years. Prepare a vertical analysis. Round percentages to two decimal places. Segment Current Year (in thousands) Prior Year (in thousands) Cakes $ 691,000 $ 662,000 Cupcakes 512,000 550,000 Desserts 417,000 468,000 Beverages 875,000 815,000 Total revenues $2,495,000 $2,495,000 130.  Minnie Co. does business in three segments: Theme Park, Movie Production, and Merchandise. The.
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129.  For each of the following businesses, explain how a revenue journal might be modified for the specific business. 1. Jon’s Auto Repair Business 2.  Esquire Movie Theater 3.  Beach Hut Snack Bar, Restaurant, and Lounge 130.  Explain what subsidiary ledgers are and give examples of three types of subsidiary ledgers that a business.
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134.Which of the following items should notbe included in the cost of ending merchandise inventory? a.purchased units in transit, shipped FOB shipping point b.purchased units in transit, shipped FOB destination c.units on hand in the warehouse d.sold units in transit, not invoiced, and shipped FOB destination 135.The Corbit Corp. sold merchandise for $10,000 cash. The.
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129.  Listed below are selected transactions completed by Ridge Company during March of the current year. Mar.5  Rendered services on account to Quinton Co., Invoice No. 92,$3,250. 10  Rendered services on account to Martin Inc., Invoice No. 93, $4,500. 13  Received $5,000 in payment of monthly rent, which was due on March 1. 15 .
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129.  Two transactions were posted to the following supplier’s (creditor’s) account: NAME:Xample, Inc.Address:  567 Harrison Blvd. Date Item Post. Ref. Debit Credit Balance Nov.   1 Balance √ 125 9 Invoice 564 CP45 55 70 18 Invoice 574 P28 75 145 Describe each transaction and the source of each posting. 130.  Davidson, Inc. incurred the following transactions during the month of January.  Record the appropriate ones in thecash receipts journal. If a transaction should.
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74.Merchandise inventory is classified on the balance sheet as a a.current liability b.current asset c.long-term asset d.long-term liability 75.Which of the following is nota difference between a retail business and a service business? a.in what is sold b.the inclusion of gross profit on the income statement c.accounting equation d.merchandise inventory included on the balance sheet 76.Net income plus operating expenses.
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129.  Read each transaction and identify which journal the transaction should be recorded. 1.  Recorded adjusting journal entry for accrued interest. 2.  Performed advising services on account. 3. Purchased office supplies on account. 4.  Borrowed money for expansion project. 5.  Received $500 from Tool Tech. on account. 6.  Owner withdrew cash for personal use. 7.  Paid monthly.
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167.  Which of the following costs would be included in merchandise inventory? (a)          Purchase price (b)         Insurance in transit FOB shipping point (c)          Freight for delivery FOB shipping point (d)         Repair due to negligence of receiving clerk (e)          Receiving department employee salary (f)          Cost of processing purchase orders 168.  On March 4, Micro Sales makes $4,850 in.
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