ACCT251 Final Exam Question And Answers( Complete Solution Rated A)

ACCT251 Final Exam ACCT251 Final Exam – Page 1 The Final Exam has 3 pages and is worth 270 points total. This first page has all Multiple Choice questions. Question 1.1. (TCO 1) To display the size of your backup file ...

ACCT251 Final Exam ACCT251 Final Exam – Page 1 The Final Exam has 3 pages and is worth 270 points total. This first page has all Multiple Choice questions. Question 1.1. (TCO 1) To display the size of your backup file, you can use the Windows program called: (Points : 5) Windows Explorer Scan disk Defrag Windows Accessories Windows Defender Question 2.2. (TCO 1) The Edit menu allows you to do the following: (Points : 5) cut copy paste clear find transactions Question 3.3. (TCO 1) The balance sheet lists: (Points : 5) assets, liabilities, and capital of a business. revenues and expenses of a business. the percentage of revenue at the end of the year. the percentage of debt at the end of the year. cash disbursements. Question 4.4. (TCO 1) Business managers and owners depend on financial statements because: (Points : 5) Peachtree automatically calculates accurate financial statements. financial statements are for internal use only. they have primary responsibility for the business. they can evaluate cash and make appropriate decisions. they can use account balances to customize financial statements. Question 5.5. (TCO 2) The sample company, Bellwether Garden Supply, uses which method of posting? (Points : 5) Batch posting Real-time posting Cash basis posting Accrual basis posting Just-in-time posting Question 6.6. (TCO 2) The posting method used by the business in Chapter 9 is: (Points : 5) batch posting real-time posting a combination of batch posting and real-time posting. accrual posting cash basis posting Question 7.7. (TCO 2) The account type specified on the chart of accounts is also the account classification for the: (Points : 5) balance sheet and income statement general ledger general journal cash receipts journal receipts Question 8.8. (TCO 3) In Chapter 11, the ______________________________is completed before recording and posting the end-of-quarter adjusting entries. (Points : 5) adjusted trial balance cash disbursements journal unadjusted trial balance cash receipts journal post-closing trial balance Question 9.9. (TCO 3) The best time to record adjusting entries is: (Points : 5) the end of the quarter. the end of each month. six month intervals. the end of the year only. during the month. Question 10.10. (TCO 4) To change accounting periods, you need to make the following menu bar selections: (Points : 5) Tasks; System, Change Accounting Period Tasks; Default, Change Accounting Period Tasks; Maintain, Defaults Maintain; System, Change Accounting Period Maintain; User Security Question 11.11. (TCO 4) If your journals do not agree with the textbook illustrations, use the following Peachtree feature: (Points : 5) Maintain; defaults, general ledger Edit journal transactions Tasks; general journal transaction Maintain chart of accounts Company page; link to restore Question 12.12. (TCO 5) The account credited on the Receipts window is: (Points : 5) Account No. 1020, Checking Account The GL Account selected Account No. 1040, IRA Savings The Receipts window does not need to have an account credited. Account No. 1010, Money Market Question 13.13. (TCO 5) In Chapter 10, you do the following: (Points : 5) Set up a retail business. Select November 2010 as the accounting period. Record deposits, checks, and ATMs. Print the chart of accounts. Record purchase invoices. Question 14.14. (TCO 6) On the Navigation Bar, make the following selections to enter a sales invoice: (Points : 5) Customers & Sales page; click on the Customers icon and select View and Edit Customers. Customers & Sales page; click on the Sales Invoices icon and select Set Up Invoice Defaults. Tasks; Purchases/Receive Inventory. Customers & Sales page; click on the Sales Invoices icon and select New Sales Invoice. Inventory & Services page; click on the Invoice icon, select View and Edit Invoices. Question 15.15. (TCO 6) The standard sales discount, in terms of number of days, for Bellwether Garden Supply is: (Points : 5) no sales discount is offered. a discount if balance is paid in full within 10 days. a discount if balance is paid in full within 15 days. a discount if balance is paid in full within 20 days. a discount if balance is paid in full within 25 days. Question 16.16. (TCO 6) You need to set up a Job ID for Franklin Botanical Gardens in Chapter 6, so that you can track: (Points : 5) the employees’ expenses and miles driven to the job. how much the merchandise cost. how much the merchandise sold for. the supplies and employee hours charged to this customer. employee expenses and cost of inventory. Question 17.17. (TCO 6) The Sales/Invoicing window is also known as the: (Points : 5) purchase journal cash receipts journal sales journal cash disbursements journal general ledger Question 18.18. (TCO 6) On the Navigation Bar, make the following selections to record a sales return: (Points : 5) Customers & Sales page; click on the Credits and Returns icon and select Make Payment to Customer, select the customer, type the invoice number Customers & Sales page; click on the Credits and Returns icon and select New Credit Memo Customers & Sales page; click on the Sales Invoices icon and select New Sales Invoice Customers & Sales page; click on the Credits and Returns icon and select View and Edit Credit Memos Tasks page; select Maintain Customers/Sales Reps, Defaults Question 19.19. (TCO 6) On the Navigation Bar, make the following selections to record a cash sale: (Points : 5) On the Customers & Sales page, click on the Sales Invoices icon and select New Sales Invoice. On the Customers & Sales page, click on the Receive Money icon and select View and Edit Payments Receive, Apply to Revenues tab, record the cash sale. On the Customers & Sales page, click on the Receive Money icon and select Receive Money From Customer, Apply to Revenues tab, record the cash sale. On the Banking page, click on the Receive Money icon and select Receive Money From Customer, Apply to Revenues tab, record the cash sale. On the Inventory & Services page, select Inventory Adjustments. Question 20.20. (TCO 6) The Franklin Botanical Gardens job has the following special circumstance: (Points : 5) It is a motel overlooking a freeway. It is a hotel near the airport. It is a new building overlooking a park. It is an apartment complex with surrounding gardens. A newly remodeled building. ACCT251 Final Exam – Page 2 This page has all multiple choice questions. Question 1.1. (TCO 7) On the Navigation Bar, make the following selections to enter inventory item maintenance information: (Points : 5) Inventory & Services page; click on the Inventory Items icon, select View and Edit Inventory items and record inventory information Vendors & Purchases page; click on the Purchase Orders icon, select New Purchase Orders and record inventory information Inventory & Services page; click on the Inventory Items icon, select New Inventory Item and record inventory information Maintain; Defaults, Inventory Items, record inventory information Vendor & Purchases; select Pay Bills, New Bill Question 2.2. (TCO 7) The LIFO (last in, first out) method of inventory assumes: (Points : 5) the lowest amount of net loss. the highest amount of net income. cost of sales is based on current replacement. beginning inventory is sold first. overall Average cost. Question 3.3. (TCO 7) On the Navigation Bar, make the following selections to make a general journal entry: (Points : 5) Company page; click on the Chart of Accounts icon and select View and Edit Accounts Company page; link to General Journal Entry Banking page; click on the Write Checks icon and select New Check Company page; link to Restore a backup and click on the General Journal Entry icon Maintain; select General Journal record Question 4.4. (TCO 7) If your GL Account columns and A/P Account field are not displayed on the Purchases/Receive Inventory window, you need to: (Points : 5) check the Tasks windows. check the maintenance menus. click on Options; Global and uncheck the three boxes in the Hide General Ledger Accounts section. reset the defaults in the Accounting Behind the Screens selection. accounting Behind the Screens cannot be changed. Question 5.5. (TCO 9) An organized body of related information is called a/an: (Points : 5) feature of the software software function accounting software application Peachtree Complete Accounting database Question 6.6. (TCO 9) The Payments window is also known as the: (Points : 5) Cash Receipts Journal Purchase Journal Sales Journal Cash Disbursements Journal General Journal Question 7.7. (TCO 9) The following accounts are debited and credited when you purchase inventory on account: (Points : 5) Dr. Inventory account, credit Account Receivable/vendor. Dr. Accounts Payable/Vendor; Cr. expense account. Dr. Inventory account; Cr. Accounts Payable/Vendor. Dr. Accounts Receivable/Customer; Cr. Sales account. Dr. Accounts Payable/Vendor; Cr. Inventory account. Question 8.8. (TCO 9) Sharon’s Service Merchandise is a partnership owned by: (Points : 5) Sharon Stewart and David Becker Constance Molina and Sally Sweeney Charles Anderson and Sharon Walters Karen Hart and Maria Stanton Richard Williams and Carol Dash Question 9.9. (TCO 9) The Purchases/Receive Inventory window is also called the: (Points : 5) cash disbursements journal sales journal cost of goods sold journal purchase journal general journal Question 10.10. (TCO 9) Sharon’s Service Merchandise accounting records are set up to begin on: (Points : 5) November 1, 2010 December 1, 2010 January 1, 2009 January 1, 2010 December 1, 2009 Question 11.11. (TCO 10) Processing payroll is automatic once _____________________ are set up correctly. (Points : 5) defaults tasks employees/sales rep tasks payroll tables manually recorded payroll deductions Question 12.12. (TCO 10) The employee deductions display as negative amounts on the Payroll Entry window because: (Points : 5) they are added to the paycheck amount. they are not used to compute the paycheck. they are deducted from the employee’s gross pay. the employer always pays deductions from the paycheck. employee deductions display as positive amounts. Question 13.13. (TCO 10) The account number used to record employees’ regular pay is: (Points : 5) 77500 77600 77700 77800 77900 Question 14.14. (TCO 10) On the Navigation Bar, make the following selections to enter employee maintenance information: (Points : 5) Employees & Payroll page; click on the Employees icon and select Write Letters to Employees Employees & Payroll page; click on the Employees icon and select New Employee Employees & Payroll page; click on the Pay Employees icon and select Set Up Payroll Service Tasks; Payroll Entry Tasks; Payroll Entry, View and Edit Employee Payments ACCT251 Final Exam – Page 3 On the third page are 4 essay questions at 25 points each for a total of 100 points. Question 1. 1. (TCO 2, 3, & 4) The following selected accounts with normal balances appeared in the unadjusted trial balance of Bellwether Garden Industries: Accounts receivable $176,000 Prepaid rent 69,000 Prepaid insurance 36,000 Equipment 280,000 Accumulated depreciation-equipment 30,000 Unearned service revenue 24,000 Salary expense 130,000 REQUIRED: Prepare the necessary year-end adjusting entries as of December 31, 2011 for each part. Be sure to note which account is debited and credited. – Part A: One-half of the revenue received in advance has been earned by December 31, 2011. – Part B: The prepaid insurance represents three years’ premium on a policy providing coverage starting September 1, 2011. – Part C: Since the last payday, employees have earned an additional $2,500 which has not yet been paid or recorded. – Part D: The equipment has an estimated life of 10 years and no expected value at the end of its life. – Part E: Services performed but unbilled and uncollected at year-end amount to $6,500. – Part F: The prepaid rent relates to one-half of a year beginning on October 1, 2011. (Points : 25) Question 2. 2. (TCO 2, 4, & 5) Prepare any journal entries based on the following data regarding the bank reconciliation prepared by Titon Com for the month of April 20XX: Part A. The unadjusted balance in the cash account on Titon’s books was $8,715.71. Part B. The April 30 balance shown on Titon’s bank statement was $8,472.36. Part C. A customer that owed Titon $700 on a note paid the $700, and $35 for interest directly to Titon’s bank. Titon did not know about this payment prior to receiving its bank statement. Part D. Titon had made a deposit of $1,635.25 near the end of April that had not cleared the bank when it prepared Titon’s bank statement. Part E. Titon discovered that a check it had written for $153.15 had been erroneously recorded in its books as $135.15. This check had been written to pay an account payable. Part F Three checks that Titon had written during April had not cleared the bank by April 30. The amounts of these checks were $147.90, $372.15, and $209.45. Part G. Titon has a checking account that earns interest on the minimum monthly balance. The bank statement showed that $35.12 of interest was earned during April. Part H The bank statement showed that a check written by one of Titon’s customers was returned for NSF. The check was for $79.72. Titon did not know about the NSF check before receiving its bank statement. Part I. The bank charged Titon a $10.00 service charge for the month of April. REQUIRED: Prepare the necessary reconciliation entries for each part. Be sure to note which account is debited and credited. (Points : 25) Question 3. 3. (TCO 2, 4, & 7) Inventory data for Midwest Logistics Company for June 20XX are as follows: June 1 balance 80 units at $25 June 10 purchase 100 units at $28 June 15 sale 120 units June 21 purchase 90 units at $32 June 30 sale 130 units REQUIRED: Using the FIFO cost method, compute ending inventory as of June 30, 20XX and determine cost of goods sold for June. Be sure to show your calculations. (Points : 25) Question 4. 4. (TCO 2, 4, & 8) On January 2, 20XX, Bellwether Garden Supply purchased a delivery truck for $34,000. The estimated useful life of the truck is 5 years, with an estimated salvage value of $4,000. The truck is expected to be driven 200,000 miles during its useful life. Part A. Compute the amount of depreciation expense that the company will recognize in a year in which the truck is driven 47,000 miles, assuming the company uses the units-of-production method. Part B. Compute the book value of the asset at the end of the Third year, assuming the company uses the straight-line method. Part C. Determine the balance in the Accumulated Depreciation account at the end of the Second year that it owns the asset, assuming the company uses the double-declining-balance method. REQUIRED: For each part, compute the results. Be sure to show your calculations. (Points : 25)