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Study Resources (Accounting)

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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F - 1 Payroll Accounting Ex. 31 Assume that the payroll records of Erroll Oil Company provided the following information for the weekly payroll ended November 26, 2013. Year-to-Date HourlyFederalEarnings Through EmployeeHours WorkedPay RateIncome TaxUnion Dues  Previous Week C. Young40$55$432—$111,000 J. Ward461065$523,200 K. Hurt441812675,100 M. King 4222169949,500 Additional information: All employees are paid overtime at time and a half for hours.
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F - 1 Payroll Accounting 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.
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G - 1 Subsidiary Ledgers and Special Journals MATCHING               88.Match the items below by entering the appropriate code letter in the space provided. A.Accounts payable ledgerD.Subsidiary ledger B.Columnar journalE.Control account C.Special journals ____              1.A general ledger account that summarizes detailed information in a subsidiary ledger. ____              2.A subsidiary ledger that contains accounts with individual creditors. ____              3.A special.
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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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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 Revenue. b.debit to Accounts Receivable; credit to Sales Revenue. c.debit to Sales Discounts; credit to Cash. d.debit to Accounts Payable; credit to Sales Returns and Allowances. 52.Which accounts in the.
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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. 2.An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers. 3.The.
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F - 1 Payroll Accounting Ex. 34 The following payroll liability accounts are included in the ledger of Clementine Company on January 1, 2013: FICA Taxes Payable$1,600 Federal Income Taxes Payable4,000 State Income Taxes Payable665 Federal Unemployment Taxes Payable175 State Unemployment Taxes Payable1,190 Union Dues Payable400 Health Insurance Payable5,000 U. S. Savings Bonds Payable1,000 In January, the following transactions occurred: Jan.9Sent a check.
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PricingJ - 1 11.Divisions within vertically integrated companies normally sell goods only to other divisions within the same company. 12.Using the negotiated transfer pricing approach, a minimum transfer price is established by the selling division. 14.If a cost-based transfer price is used, the transfer price must be based on variable cost. 15.A problem with.
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F - 1 Payroll Accounting Exercises Ex. 30 Sam Geller had earned (accumulated) salary of $104,500 through November 30. His December salary amounted to $9,500. Lara Lane began employment on December 1 and will be paid her first month's salary of $6,000 on December 31. Income tax withholding for December for each employee is.
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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 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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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, 2013, 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 11.The cash payments journal only has one column because all entries recorded in this journal require a credit to the Cash account. 12.A cash payments journal should not be used to record transactions which require payment by check. 13.If a transaction cannot be recorded in a.
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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 Walz100051,884 4,159 1.Open general ledger T-accounts for Accounts Receivable (No. 112) and Sales (No. 401) and an.
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I-1 Accounting for Sole Proprietorships BRIEF Exercises Be. 46 Presented here are five economic events. For each item, indicate whether the event increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and owners’ equity.     Owner’s Assets=Liabilities+      Equity                1.Owner invested cash in the business.____                                                                      2.Purchased supplies on account.______                           .
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G - 1 Subsidiary Ledgers and Special Journals Ex. 72(Cont.) The balance in the Accounts Payable control account of $41,580 has been verified as correct. Also assume that the journals references in the Post Ref. columns of the accounts payable subsidiary ledger have been verified as correct. Instructions Determine the errors in the preceding accounts.
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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.
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PricingJ - 1 61.All of the following are correct statements about the cost-plus pricing approach except that it a.is simple to compute. b.considers customer demand. c.includes only variable costs in the cost base. d.will only work when the company sells the quantity it budgeted. 62.In the cost-plus pricing approach, the desired ROI per unit is computed.
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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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H-1 Accounting for Partnerships COMPLETION STATEMENTS               52.An association of two or more person to carry on as co-owners of a business for profit is called a ______________.               53.A change in partners due to withdrawal or admission, which does not necessarily terminate the business is called a _____________.               54.A  _______________  _______________ is a.
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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.               83.If a certain type of transaction occurs with great frequency, it is more efficient to create a ______________ to record that.
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PricingJ - 1 41.In cost-plus pricing, the markup consists of a.manufacturing costs. b.desired ROI. c.selling and administrative costs. d.total cost and desired ROI. 42.The desired ROI per unit is calculated by a.multiplying the ROI times the investment and dividing by the estimated volume. b.multiplying the unit selling price by the ROI. c.dividing the total cost by the estimated volume.
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PricingJ - 1 appendix j TRUE-FALSE STATEMENTS 1.In most cases, a company sets the price instead of it being set by the competitive market. 2.In a competitive market, a company is forced to act as a price taker and must emphasize minimizing and controlling costs. 3.The difference between the target price and the desired profit.
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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 $20,000.
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PricingJ - 1 91.What is the Selling Division’s opportunity cost per unit from selling 3,000 units to the Purchasing Division? a.$10 b.$25 c.$4 d.$0 92.In the minimum transfer price formula, variable cost is defined as the variable cost of a.all units sold, both internally and externally. b.units sold externally. c.units not sold. d.units sold internally. 93.Under the negotiated transfer pricing approach,.
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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 $35,000 from O’Connor Company. Terms: 2/10, n/30; FOB.
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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. 42.Cash from sales of merchandise will be recorded in the a.purchases journal. b.sales journal. c.cash receipts journal. d.general journal. 43.Debit postings to the individual accounts in an accounts receivable subsidiary ledger.
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F - 1 Payroll Accounting SHORT-ANSWER ESSAY S-A E 40 An employee's net pay consists of gross pay less mandatory and voluntary payroll deductions. Identify the mandatory payroll deductions and give two or three examples of common voluntary deductions. Are these deductions recognized as payroll expenses by the employer? What type of payroll expenses.
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H-1 Accounting for Partnerships Be. 50 The Fran & Mary Co. reports net income of $30,000.  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 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. 32.If merchandise from a cash sale is returned by a customer for a refund, the sales return is recorded.
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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 a.
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I-1 Accounting for Sole Proprietorships 11.In the closing process for a sole proprietor, the revenue and expense accounts are closed, in the same manner as for a corporation, to another temporary account, Income Summary. 12.Income Summary is closed with a debit to Income Summary and a credit to Owner’s Drawing account. 13.Closing entries result.
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PricingJ - 1 101.What is the minimum transfer price that the Engine Division should accept? a.$2,460 b.$2,550 c.$2,400 d.$1,500 102.What is the increase/decrease in overall company profits if this transfer takes place? a.Decrease $1,200,000 b.Increase $2,520,000 c.Decrease $3,000,000 d.Increase $27,000,000 Use the following information for questions 103 and 104. The Can Division of Fruit Products Inc. manufactures and sells tin cans externally.
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F - 1 Payroll Accounting MATCHING               39.Match the items below by entering the appropriate code letter in the space provided. A.Wage and Tax StatementD.FICA taxes B.Net payE.Federal unemployment taxes C.Federal income taxes ____              1.Levied against employees' wages without limit. ____              2.A payroll tax expense levied only against the employer based on employees' wages. ____              3.Gross earnings less payroll.
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PricingJ - 1 71.In January 2013, Wheels ‘N Spokes repairs a bicycle that uses parts of $180. Its material loading charge on this repair would be a.$72. b.$108. c.$180. d.$252. 72.In March 2013, Wheels ‘N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240. The bill for this repair would.
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PricingJ - 1 51.What is the target selling price per unit? a.$4.90 b.$3.50 c.$2.65 d.$3.65 52.What is the markup percentage? a.112% b.20% c.62% d.40% 53.What would the markup percentage be if only 150,000 units were sold and Brislin still wanted to earn the desired ROI? a.32.95% b.53.33% c.35.0% d.44.00% 54.When using cost-plus pricing, which amount per unit does not change when the expected volume differs from.
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I-1 Accounting for Sole Proprietorships APPENDIX I ACCOUNTING FOR SOLE PROPRIETORSHIPS TRUE-FALSE STATEMENTS 1.The primary differences between accounting and reporting for a sole proprietorship and a corporation involves accounting for revenues and expenses. 2.In a sole proprietorship there is no need to separate owner’s investments from net income retained for dividends as a sole proprietorship does.
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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 $10,000 and equipment having a book value of $3,500 and a fair value of $7,000 Instructions Prepare the entry to record each partner’s investment. Be. 47 Poncho and Chico decide to merge their proprietorships into.
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I-1 Accounting for Sole Proprietorships 31.Payments to owners are called a.expenses. b.liabilities. c.dividends. d.withdrawals. 32.Withdrawals by an owner a.increase expenses. b.decrease owner’s equity. c.decrease revenues. d.are called a net loss. 33.The first step in the recording process for a sole proprietorship is to a.prepare financial statements. b.analyze the transaction in terms of its effect on the accounts. c.post to a journal. d.prepare a trial balance. 34.The usual.
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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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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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PricingJ - 1 MULTIPLE CHOICE QUESTIONS 26.Factors that can affect pricing decisions include all of the following except a.cost considerations. b.environment. c.pricing objectives. d.All of these are factors. 27.In most cases, prices are set by the a.customers. b.competitive market. c.largest competitor. d.selling company. 28.A company must price its product to cover its costs and earn a reasonable profit in a.all cases. b.its early years. c.the.
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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 $18,000 and a fair value of $28,000. Betty will invest a building with a book value of $60,000 and a fair value of $180,000 with a mortgage of $30,000. What amount.
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PricingJ - 1 81.The time component under time-and-material pricing includes a a.loading charge. b.charge for receiving, handling, and storing materials. c.portion of the materials clerk’s wages. d.profit margin. 82.Using time-and-material pricing involves how many steps? a.4 b.3 c.2 d.1 83.The last step in calculating the hourly rate to be charged in time-and-material pricing is to a.estimate the total labor costs plus fringe.
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H-1 Accounting for Partnerships APPENDIX H 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.
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I-1 Accounting for Sole Proprietorships MULTIPLE CHOICE QUESTIONS 19.The basic accounting equation for a sole proprietorship is: a.Assets = Liabilities plus Stockholder’s equity. b.Assets = Liabilities plus Common Stock. c.Assets = Liabilities plus Owner’s Equity. d.Assets = Liabilities plus Retained Earnings. 20.As compared to a corporation, the accounting for a sole proprietorship is similar except for: a.equity transactions. b.the recognition.
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PricingJ - 1 31.Companies that sell products whose prices are set by market forces are called a.price givers. b.price leaders. c.price takers. d.price setters. 32.In which of the following situations would a company not set the prices of its products? a.When the product is not easily differentiated from competing products b.When the product is specially made for a.
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