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Study Resources (Accounting)

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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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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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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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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90.An “Accounts Receivable Customer Balances” report shows a.revenues by customer for a specified date range b.customer balances owed as of a specific date c.cash payments to creditors for a specific date range d.sales by customer as of a specific date 91.A cash investment made by the owner should be recorded in the a.cash receipts journal b.purchases journal c.cash.
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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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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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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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Match each journal entry that follows as one of the types of journal entries (a-c) below. a.  Journal entries b.  Adjusting journal entries c.  Closing journal entries 197. Cash Fees Earned 450 450 198. Income Summary ABC, Capital 650 650 199. Utilities Expense Cash 430 430 200. Wages Expense Wages Payable 870 870 201. Unearned Revenue 985 Fees Earned 985 202. Income Summary 597 Rent Expense 200 Supplies Expense 180 Utilities Expense 110 Miscellaneous Exp. 107 203.  RS, Drawing215 Cash215 204.  Accounts Receivable325 Fees Earned325 (Customer billed for.
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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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191.  Complete the following end-of-period spreadsheet for Danilo Enterprises. Danilo Enterprises End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance ? Income Statement ? Balance Sheet Account Title Debit Credit Debit Credit Debit Credit Cash 14,500 Accounts Receivable 7,500 Supplies 500 Equipment 20,500 Accumulated Depr.—Equip. 15,000 Accounts Payable 9,500 Wages Payable 3,060 Tony Danilo, Capital 18,240 Tony Danilo, Drawing 1,000 Fees Earned 34,000 Wages Expense 18,000 Rent Expense 9,300 Depreciation Expense 8,500 Totals 79,800 79,800 Net Income (Loss) 192.  .
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191.  Kirk Enterprises offers rug cleaning services to business clients.  Below are the adjustments data for the yearended July 31. Using this information along with the spreadsheet below, record the adjusting entries in propergeneral journal form. Adjustments: (a)    The equipment is estimated to last for 5 years with no salvage value.  The.
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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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120.Which of the following is notan area where the Internet is used for business purposes? a.business cycle management b.customer relationship management c.supply chain management d.product life­cycle management 121.E-commerce a.accounts for less than 1% of all retail sales b.only relates to transactions between a company and a consumer c.can improve the speed and efficiency of transactions d.increases paperwork 122.Business may be.
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129.  Briefly describe the three-step process of accounting system development. 130.  Define and describe an accounting system. 131.  Utilizing the revenue journal below, journalize the following five transactions of Porshe Creations: (a)           On March 20, Porshe sells 25 cell phone covers to Xtreme at $4.50 per cover oninvoice 887. (b)           On March 21, Porshe.
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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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41.The columns included in special journals are standardized for all businesses. a.True b.False 42.Generally, subsidiary ledgers are used for general ledger accounts that consist of a large number of individual items. a.True b.False 43.In a computerized accounting system, all postings happen automatically at the end of the month. a.True b.False 44.In computerized accounting systems, reports may be generated at.
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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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60.The primary ledger containing all the balance sheet and income statement accounts is the a.general ledger b.creditors ledger c.customers ledger d.subsidiary ledger 61.The subsidiary ledger that includes customer account activity is called the a.asset ledger b.accounts payable ledger c.expense ledger d.accounts receivable ledger 62.Every controlling account must have its own a.revenue ledger b.general ledger c.subsidiary ledger d.journal 63.At the end of the month, the total.
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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 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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191.  Kirk Enterprises offers rug cleaning services to business clients.  Below is the trial balance for Kirk Enterprises,which was prepared on the end-of-period spreadsheet (work sheet) for the year ended July 31. Kirk EnterprisesEnd-of-Period SpreadsheetFor the Year Ended July 31 Trial Balance Adjustments Adjusted Trial Balance ? Debit Credit Debit Credit Debit Credit Cash 36 ? ? ? ? ? Prepaid Insurance 12 ? ? ? ? ? Fees Receivable 56 ? ? ? ? ? Supplies 12 ? ? ? ? ? Equipment 60 ? ? ? ? ? Accumulated Depreciation ? 12 ? ? ? ? Unearned Revenue ? 20 ? ? ? ? Accounts Payable ? 32 ? ? ? ? Wages Payable ? ? ? ? ? ? Ruben Ramon, Capital ? 84 ? ? ? ? Ruben.
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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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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.  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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100.Which transaction is normally recorded in a special journal? a.sales returnsb. depreciation expense c. purchases on accountd. issued stock dividend 101.An adjustment resulting from a creditor reducing the amount owed on an unpaid invoice due to an invoicing errorwould be recorded in the a.general journal b.purchases journal c.cash payments journal d.cash receipts journal 102.If a company uses special.
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21.A cash refund paid to a customer who overpaid an account receivable is recorded in the cash payments journal. a.True b.False 22.Even when special journals are used, a personal withdrawal of cash is recorded in the general journal. a.True b.False 23.Services provided for cash are recorded in the revenue journal. a.True b.False 24.Services provided on account are recorded in.
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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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31.The Post. Ref. column of the revenue journal will reference the account number of the customer. a.True b.False 32.The total of the accounts receivable subsidiary accounts and the balance of the accounts receivable control accountshould equal each other at the end of the period. a.True b.False 33.Adjusting journal entries are recorded in a special journal. a.True b.False 34.Even when.
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190.1) Dana Bowen Company is completing its first year of operations on April 30.  Reconstructthe entries for the year ended April 30 from the T accounts below.  Record them,assigning letters to each transaction, as follows: a - l   Transaction m- r   Adjusting Journal Entries 2)         Balance and prepare the Income Statement, Statement of.
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11.Transactions must first be recorded into the general journal before they can be entered into specialized journals. a.True b.False 12.The format and number of specialized journals that a business uses depends upon the legal organization of thebusiness. a.True b.False 13.The basic procedure of posting from a revenue journal is to make all postings at the end.
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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 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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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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191.  The balances in the ledger of Good Landscape Services as of January 31 before adjustments are as follows: Cash $   6,750 Dalton Good, Capital $29,775 Supplies 3,900 Dalton Good, Drawing 3,425 Prepaid Insurance 8,400 Service Revenue 56,300 Equipment 41,750 Salary Expense 24,300 Accumulated Rent Expense 6,000 Depreciation 9,950 Miscellaneous Expense 1,500 Adjustment data are as follows:  supplies on hand, January 31, $900; insurance expired for January, $1,100;depreciation on equipment for January, $1,600; salaries.
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153.    The following are all the steps in the accounting cycle.  List them in the order in which they should be done. -  Closing entries are journalized and posted to the ledger. -  An unadjusted trial balance is prepared. -  An optional end-of-period spreadsheet (work sheet) is prepared. -  A post-closing trial balance is.
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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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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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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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70.In which journal would an adjustment for an overcharge by a creditor be recorded? a.general journal b.purchases journal c.cash payments journal d.cash receipts journal 71.Which of the following transactions is recorded in the revenue journal? a.sale of excess office equipment for cash b.rendering services for cash c.rendering services on account d.sale of excess office equipment on account 72.Each individual entry.
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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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50.A(n)system is the methods and procedures for collecting, classifying, summarizing and reporting abusiness’s financial and operating information. a.accounting b.fiduciary c.operations d.auditing 51.The phase of accounting system installation in which the information needs of people in the organization are takeninto account is a.analysis b.design c.implementation d.installation 52.Which of the following is notone of the three phases needed when changing an accounting.
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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.  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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1.The methods and procedures for collecting, classifying, summarizing, and reporting a business's financial andoperating information are called the accounting system. a.True b.False 2.Systems analysis is the final phase in the creation or revision of an accounting system. a.True b.False 3.Processing methods are the means by which the system collects, summarizes, and reports accounting information. a.True b.False 4.Accounting systems evolve.
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110.Computerized accounting systems a.are only used by medium- and large-sized companies b.are generally not as accurate as manual systems c.record and post transactions at the same time d.must make use of special journals 111.The total on the "Cash Receipts" report generated by QuickBooks software at January 31 would be equal to the a.total revenue earned for.
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80.A cash purchase of supplies should be recorded in the a.cash receipts journal b.purchase journal c.general journal d.cash payments journal 81.When posting the column totals of a cash payments journal, a debit should be posted to a.Cash b.Accounts Payable c.Sales Discounts d.Unearned Revenue 82.In which journal is the receipt of a promissory note from a customer on account recorded? a.revenue journal b.cash.
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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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