ACC 422 Final Exam Comprehensive Test Bank Latest for Grade A+

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Brief Exercise 7-1 Your answer is correct. Cheyenne Enterprises owns the following assets at December 31, 2017. Cash in bank—savings account 71,600 Checking account balance 19,500 Cash on ... hand 8,510 Postdated checks 950 Cash refund due from IRS 40,600 Certificates of deposit (180-day) 90,560 What amount should be reported as cash? Brief Exercise 7-1 Checking account balance 19,500 Cash to be reported $99,610 Brief Exercise 7-7 Your answer is correct. Sage Family Importers sold goods to Tung Decorators for $37,800 on November 1, 2017, accepting Tung’s $37,800, 6-month, 6% note. Prepare Sage’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Brief Exercise 7-7 5/1/18 Interest Revenue = ($37,800 × 6% × 4/12) = $756 Exercise 7-4 Your answer is correct. Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,995 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $109,060 as shown in the ledger. The following information is available for your first year in business. (1) Collections from customers $263,340 (2) Merchandise purchased 425,600 (3) Ending merchandise inventory 119,700 (4) Goods are marked to sell at 40% above cost Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account. $ The ending balance of accounts receivable from Customers 164920 $ Apparent shortage 55860 Exercise 7-4 Computation of cost of goods sold: Merchandise purchased $425,600 Less: Ending inventory 119,700 Cost of goods sold $305,900 Selling price = 1.40(Cost of goods sold) = 1.40($305,900) = $428,260 Sales on account $428,260 Less: Collections 263,340 Uncollected balance 164,920 Apparent shortage $55,860 Enough for a new car = $55,860 Exercise 7-9 Your answer is correct. The trial balance before adjustment of Pina Inc. shows the following balances. Dr. Cr. Accounts Receivable $95,600 Allowance for Doubtful Accounts 2,010 Sales Revenue (all on credit) $590,400 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,743 credit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Exercise 7-9 (a) Allowance for Doubtful Accounts = ($95,600 × 4%) + $2,010 = $5,834 (b) Allowance for Doubtful Accounts = [($95,600 x 5%) – $1,743] = $3,037 Exercise 7-22 Your answer is partially correct. Marigold, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April. 1. On April 1, it established a petty cash fund in the amount of $255. 2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows. Delivery charges paid on merchandise purchased $73 Supplies purchased and used 38 Postage expense 46 I.O.U. from employees 30 Miscellaneous expense 49 The petty cash fund was replenished on April 10. The balance in the fund was $7. 3. The petty cash fund balance was increased by $113 to $368 on April 20. Prepare the journal entries to record transactions related to petty cash for the month of April. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Cash 255 April 10 Freight-In 73 Supplies Expense 38 Postage Expense 46 Accounts Receiv 30 Miscellaneous Ex 49 Cash Over and S 12 Cash 248 EAT_144989552 Pet y Cash April 20 113 Cash 113 [Show More]

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