Acc 291 new Motivated Minds/newtonhelp.com

ACC 291 All Assignments (New Syllabus) (August, 2019)
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ACC 291T Week 1 Practice: Connect® Knowledge Check
ACC 291T Week 1 Apply: Connect® Exercise
ACC 291 Week 1 Practice Connect Practice Assignment
ACC 291 Week 1 Apply Connect Assignment (Score 10/10)
(With Excel File)

ACC 291 Week 2 Practice Connect Practice Assignment (Score
10/10)
(with Excel File)
(With Excel File)
ACC 291 Week 4 Practice Connect Assignment
ACC 291 Week 4 Apply Connect Assignment (With Excel file)
ACC 291 Week 5 Connect Practice Connect Assignment (Score
100%)
ACC 291 Week 5 Apply Connect Assignment (with Excel File)
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ACC 291 Final Exam Guide (New, 2019, 100% Score)
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1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.

cash to be paid to creditors.
amounts due from individuals or companies.
2. Three accounting issues associated with accounts receivable are
depreciating, valuing, and collecting.
depreciating, returns, and valuing.
accrual, bad debts, and accelerating collections.
recognizing, valuing, and accelerating collections.
3. When the allowance method is used to account for uncollectible
accounts Bad Debts Expense is debited when:
management estimates the amount of uncollectibles.
a customer’s account becomes past due.
an account becomes bad and is written off.
a sale is made.
4. Which one of the following is not a principle of sound accounts
receivable management?
Determine a payment period.
Determine to whom to extend credit.
Delay cash receipts from receivables if necessary.
Monitor collections.
5. The accounts receivable turnover is used to analyze
profitability.
long-term solvency.
liquidity.
risk.
6. The following information is provided for Sunland Company and
Marigold Corp.:
7. What is Marigold’s return on assets (rounded) for 2017?
3%
2%
3%

9%
8. Which of the following is not properly classified as property, plant
and equipment?
A truck held for resale by an automobile dealership.
Land improvement, such as parking lots and fences.
Building used as a factory.
Land used in ordinary business operations.
9. A characteristic of a plant asset is that it is
held for sale in the ordinary course of the business.
used in the operations of a business.
not currently used in the business but held for future use.
intangible
10. A current liability is a debt that can reasonably be expected to be
paid
out of cash currently on hand.
within one year, or the operating cycle, whichever is longer.
out of currently recognized revenues.
between 6 months and 18 months.
11. A current liability is a debt that can reasonably be expected to be
paid
out of cash currently on hand.
within one year, or the operating cycle, whichever is longer.
out of currently recognized revenues.
between 6 months and 18 months.
12. The 2017 financial statements of Blossom Company contain the
following selected data (in millions).
13. The debt to assets ratio (rounded) is
40%.
7.1 times.
44.4%.
2.25%.
usually different from year to year.
cash flows from financing activities.

cash flows from operating activities.
26. Assume that the Fitzgerald Corporation uses the indirect method to
depict cash flows. Indicate where, if at all, a stock dividend declared and
issued would be classified on the statement of cash flows.
Does not represent a cash flow.
Investing activities section.
Financing activities section.
Operating activities section.
27. Free cash flow provides an indication of a company’s ability to
generate cash to invest in capital expenditures.
generate cash to pay dividends.
generate cash to invest in capital expenditures and to pay dividends.
generate net income
28. When using the indirect method to compute cash provided by
operating activities
increases in accounts receivable are added to net income.
income taxes paid may be ignored.
amortization expense is added to net income.
decreases in inventory are subtracted from net income
29. To determine the net cash provided (used) by operating activities, it
is necessary to analyze
the current year’s income statement.
a comparative balance sheet.
additional information.
all of these answer choices are correct.
30. Which of these is not a liquidity ratio?
Current ratio
Accounts receivable turnover
Asset turnover
Inventory turnover
The current ratio would be of most interest to
long-term creditors.
stockholders.

customers.
short-term creditors
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(With Excel File)
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This Tutorial contains an Excel File which can be used for any change in
values
ACC 291 Week 1 Apply Connect Assignment
Exceptional Electronics began operations September 1, 2019. The firm
sells its merchandise for cash and on open account. Sales are subject to a
7 percent sales tax. During September, Exceptional Electronics engaged
in the following transactions.
DATE TRANSACTIONS
2019
Sept. 1 Sold a high-definition television set on credit to
Candy Cho; issued Sales Slip 101 for $3,200 plus sales tax of $224.

3 Sold stereo equipment on credit to Jim Peterson;
issued Sales Slip 102 for $1,000 plus sales tax of $70.
7 Sold a microwave oven on credit to Bridgette
Huffman; issued Sales Slip 103 for $400 plus sales tax of $28.
12 Accepted return of defective stereo equipment
from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales
tax of $14. The stereo equipment was sold on September 3.
15 Recorded cash sales for the period from
September 1 to September 15 of $9,000 plus sales tax of $630.
16 Sold a gas dryer on credit to Kathy Sundstrand;
issued Sales Slip 104 for $700 plus sales tax of $49.
17 Sold a home entertainment system on credit to
Mark Navalta; issued Sales Slip 105 for $2,200 plus sales tax of $154.
18 Received $780 from Candy Cho on account.
20 Received payment in full from Jim Peterson for
the sale of September 3, less the return of September 12.
25 Gave Mark Navalta an allowance because of
scratches on his home entertainment system sold on September 17, Sales
Slip 105; issued Credit Memorandum 102 for $100 plus sales tax of $7
27 Received payment in full from Bridgette Huffman
for the sale of September 7
29 Sold a dishwasher on credit to Mark Navalta;
issued Sales Slip 106 for $500 plus sales tax of $35.
30 Recorded cash sales for the period from
September 16 to September 30 of $11,900 plus sales tax of $833.
GENERAL LEDGER ACCOUNTS
101 Cash 401 Sales
111 Accounts Receivable 421 Sales Returns and
Allowances
221 Sales Tax Payable

ACCOUNTS RECEIVABLE LEDGER ACCOUNTS
Candy Cho Jim Peterson
Bridgette Huffman Kathy Sundstrand
Mark Navalta
Required:
Post the entries from the general journal into the appropriate accounts in
the general ledger and in the accounts receivable ledger.
Prepare a schedule of accounts receivable.
Analyze:
What is the amount of sales tax owed at September 30, 2019?
Question 2
The Appliance Store began operations March 1, 2019. The firm sells its
merchandise for cash and on open account. Sales are subject to a 6
percent sales tax. During March, The Appliance Store engaged in the
following transactions:
TRANSACTIONS
1-Mar Sold merchandise on credit to Dave Allen; issued Sales Slip 101
for $600 plus sales tax of $36.
4-Mar Sold merchandise on credit to Castor Phan; issued Sales Slip 102
for $950 plus sales tax of $57.
12-Mar Sold merchandise on credit to Chris Hughes; issued Sales
Slip 103 for $1,100 plus sales tax of $66.
15-Mar Recorded cash sales for the period from March 1 to
March 15 of $5,700 plus sales tax of $342.

25-Mar Sold merchandise on credit to Brian Cooley; issued Sales
Slip 104 for $900 plus sales tax of $54.
28-Mar Received a check from Castor Phan of $310 to apply
toward his account.
31-Mar Recorded cash sales for the period from March 16 to
March 31 of $2,600 plus sales tax of $156.
31-Mar Received payment in full from Dave Allen for the sale of
March 1.
Required:
1. Record the transactions in a general journal.
2. Post the entries from the general journal to the appropriate
general ledger accounts.
101 Cash 221 Sales Tax Payable
111 Accounts Receivable 401 Sales
Analyze: What were the total cash receipts during March?
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ACC 291 Week 1 Assignment Comparative Analysis Problem
(2 Papers)
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This Tutorial contains Papers+ Excel Sheet
Purpose of Assignment
The purpose of this assignment is to help you understand the basics of
financial statement analysis using financial ratios on the assets section of
the balance sheet, data interpretation, and how ratios are used to gain
insight about the management of receivable.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Develop an 875-word analysis providing conclusions concerning the
management of accounts receivable based on the financial statements of
Columbia Sportswear Company presented in Appendix B and the
financial statements of VF Corporation presented in Appendix C,
including the following:
Based on the information contained in these financial statement,
compute the following 2014 values for each company:
What conclusions concerning the management of accounts receivable
can be drawn from this data?
Accounts receivable turnover (For VF, use “Net sales” and assume all
sales were credit sales)
Average collection period for accounts receivable
Use the Week 1 Excel® spreadsheet to show your work
and submit with your analysis.
Click the Assignment Files tab to submit your assignment.
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attempt 1
1
Record the following transactions of Lisa’s Fashion Boutique in a
general journal. Lisa’s Fashion Boutique operates in a state with 8%
sales tax. (Round your intermediate calculations and final answers to 2
decimal places):
DATE TRANSACTIONS
2019
Feb. 2 Sold merchandise for cash totaling $3,800 to customers using
bank credit cards. Record the 2 percent discount on credit card sales at
time of sale.
15 Sold merchandise totaling $2,100 to customers using American
Express.
20 Received amount due from American Express, less their 3 percent
discount, for sales made by customers using American Express on
February 15.
2

On April 1, Moloney Meat Distributors sold merchandise on account to
Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment
was received in full from Fronke’s Franks, less discount, on April 10.
Required:
Record the transactions on April 1 and April 10.
3
Record the following transactions of Fashion Park in a general journal.
Fashion Park must charge 8 percent sales tax on all sales.
DATE TRANSACTIONS
2019
April 2 Sold merchandise for cash, $2,500 plus sales tax.
3 The customer purchasing merchandise for cash on April 2 returned
$250 of the merchandise; provided a cash refund to the customer.
4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for
$1,050 plus tax, terms n/30.
6 Accepted return of damaged merchandise from Jordan Clark; issued
Credit Memorandum 302 for $150 plus tax. The original sale was made
on Sales Slip 908 of April 4.
30 Received payment on account from Jordan Clark in payment of her
purchase of April 4, less the return on April 6.
4

Main Street Distributors, a wholesale firm, made sales using the
following list prices and trade discounts. What amount should be
recorded for each sale?
List price of $6,000 and trade discounts of 40 percent and 15 percent.
5
The following transactions took place at Five Flags Amusement Park
during May. Five Flags Amusement Park must charge 8 percent sales
tax on all sales:
DATE TRANSACTIONS
2019
May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip
1015 for $1,200 plus 8 percent sales tax, terms n/30.
15 Recorded cash sales, $5,800 plus 8 percent sales tax.
31 Received payment on account due from Bill Gomez for the sale on
May 1.
attempt 2
1
Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment
was received in full from Fronke’s Franks, less discount, on April 10.

Required:
Record the transactions on April 1 and April 10.
2
Record the following transactions of Lisa’s Fashion Boutique in a
general journal. Lisa’s Fashion Boutique operates in a state with 8%
sales tax. (Round your intermediate calculations and final answers to 2
decimal places):
DATE TRANSACTIONS
2019
Feb. 2 Sold merchandise for cash totaling $3,800 to customers using
bank credit cards. Record the 2 percent discount on credit card sales at
time of sale.
15 Sold merchandise totaling $2,100 to customers using American
Express.
20 Received amount due from American Express, less their 3 percent
discount, for sales made by customers using American Express on
February 15.
3
The following transactions took place at Five Flags Amusement Park
during May. Five Flags Amusement Park must charge 8 percent sales
tax on all sales:
DATE TRANSACTIONS
2019

May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip
1015 for $1,200 plus 8 percent sales tax, terms n/30.
15 Recorded cash sales, $5,800 plus 8 percent sales tax.
31 Received payment on account due from Bill Gomez for the sale on
May 1.
4
Main Street Distributors, a wholesale firm, made sales using the
following list prices and trade discounts. What amount should be
recorded for each sale?
5
Fashion Park must charge 8 percent sales tax on all sales.
DATE TRANSACTIONS
2019
3 The customer purchasing merchandise for cash on April 2 returned
$250 of the merchandise; provided a cash refund to the customer.
4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for
$1,050 plus tax, terms n/30.
6 Accepted return of damaged merchandise from Jordan Clark; issued
Credit Memorandum 302 for $150 plus tax. The original sale was made
on Sales Slip 908 of April 4.
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ACC 291 Week 1 Wileyplus Assignment E8-4, E8-11, BYP8-1,
and BYP8-2 (New)

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Wiley Plus Assignment Week 1
·E8-4, E8-11, BYP8-1, and BYP8-2 in MS Excel
 Exercise 8-4 Wainwright Company
 Exercise 8-11 Fedex Corporation
 Broadening your Perspective 8-1 Tootsie Roll
 Broadening your Perspective 8-2 Tootsie Roll and Hershey
===============================================
(with Excel File)
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This Tutorial contains an Excel File which can be used for any
change in values

Big Country Ski Shop is a retail store that sells ski equipment and
clothing. Big Country Ski Shop commenced business on September 1,
2019. The firm purchases merchandise on open account. The firm’s
purchases, purchase returns and allowances, and cash payments on
account during September 2019 follow:
DATE
TRANSACTIONS
2019
Sept.
2
Purchased ski boots for $5,200 plus a freight charge of $250 from
Colorado Ski Shop, Invoice 6672, terms n/30.
3
Purchased skis for $10,800 from Alaska Supply Company, Invoice
5916; terms 2/10, n/30.
7
Received Credit Memorandum 165 for $860 from Colorado Ski Shop
for return of damaged ski boots; the boots were originally purchased
September 2 on Invoice 6672.
11
Purchased ski jackets for $3,600 from Cold Mountain Clothing
Company, Invoice 4091, terms n/30.
12
Issued Check 104 to Alaska Supply Company in payment of Invoice
5916, dated September 3, less the cash discount.

22
Purchased ski poles for $3,360 plus a freight charge of $190 from
Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23
Purchased ski pants for $1,850 from Swenson Ski Goods, Invoice 528,
terms n/30.
25
Received Credit Memorandum 245 for $260 from Swenson Ski Goods
for return of defective ski pants; the pants were originally purchased
September 23 on Invoice 528.
27
Purchased ski sweaters for $4,000 plus a freight charge of $170 from
Colorado Ski Shop, Invoice 6722, terms n/30.
30
Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672,
dated September 2, less the return of September 7.
Required:
Open the general ledger accounts and accounts payable ledger accounts
indicated below. Enter the balance of Cash as of September 1, 2019.
Post the entries from the general journal to the appropriate accounts in
the general ledger and in the accounts payable ledger.
Prepare a schedule of accounts payable.
101
Cash, $25,000 Dr.

201
Accounts Payable
501
Purchases
502
Freight In
503
Purchases Returns and Allowances
504
Purchases Discounts
ACCOUNTS PAYABLE LEDGER ACCOUNTS
Alaska Supply Company
Cold Mountain Clothing Company
Colorado Ski Shop
Swenson Ski Goods
Analyze:
What portion of the purchases in September, before purchases returns
and allowances and before purchases discounts, were for clothing items?
Include ski boots as a clothing item.
NewTech Medical Devices is a medical devices wholesaler that
commenced business on June 1, 2019. NewTech Medical Devices
purchases merchandise for cash and on open account. In June 2019,
NewTech Medical Devices engaged in the following purchasing and
cash payment activities:
DATE TRANSACTIONS
2019

June 1 Issued Check 101 to purchase merchandise, $3,800.
3 Purchased merchandise for $1,350 from BioCenter Inc., Invoice 606;
terms 2/10, n/30.
5 Purchased merchandise for $5,150, plus a freight charge of $100,
from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less
discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts
Corporation for damaged merchandise totaling $350 that was returned;
the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,610 from BioCenter Inc., Invoice
612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of
June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $8,500 and trade
discounts of 20 percent and 15 percent from Park Research, Invoice
1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $2,300.
25 Returned merchandise purchased on June 20 as defective, receiving
a cash refund of $210.
from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Required:
Journalize the transactions in a general journal.
Analyze:
What was the amount of trade discounts received on the June 15
purchase from Park Research?
===============================================

ACC 291 Week 2 Assignment Financial Reporting Problem,
Apple Inc
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The purpose of this assignment is to help you understand the basics of
financial statement analysis related to the assets section of the balance
sheet, data interpretation, and how financial information is obtained to
understand how a company accounts for its long-lived assets.
Assignment Steps
Note: The financial statements of Apple, Inc. are presented in Appendix
A of Financial Accounting. Instructions for accessing and using the
company's complete annual report, including the notes to the financial
statements, are also provided in Appendix A.
Complete a 1,050-word summary of findings and recommendations
from the following questions:
· What were the total cost and book value of property, plant,
and equipment at September 27, 2014?
· Using the notes to find financial statements, what method or
methods of depreciation are used by Apple for financial reporting
purposes?
· What was the amount of depreciation and amortization
expense for each of the three years 2012-2014? (Hint: Use the
statement of cash flows).

· Using the statement of cash flows, what are the amounts of
property, plant, and equipment purchased in 2014 and 2013?
· Using the notes to the financial statements, explain in the
summary how Apple accounted for its intangible assets in 2014.
Use the Week 2 Excel® spreadsheet to show your work and submit with
your summary.
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ACC 291 Week 2 Fordyce and Atwater (New)
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ACC 291 Week 2 - Fordyce and Atwater
P10-5A
Fordyce Electronics issues a $400,000,8%, 10-year mortgage note on
December 31, 2007. The proceeds from the note are to be used in
financing a new research laboratory. The terms of the note provide for
semiannualinstallment payments, exclusive of real estate taxes and
insurance, of $29,433. Payments are due June 30 and December 31.
Complete the installment payments schedule for the first 2 years. (Round
answers to 0 decimal places, e.g. 125. Use rounded amounts for future
calculations.)
Prepare the entries for (1) the loan and (2) the first two installment
payments. (For multiple debit/credit entries, list amounts from largest to
smallest eg 10, 5, 3,

2.) Show how the total mortgage liability should be reported on the
balance sheet at December 31, 2008.
P10-6A
On July 1, 2011, Atwater Corporation issued $2,098,000 face value,
12%, 10-year bonds at $2,507,354. This price resulted in an effective-
interest rate of 9% on the bonds. Atwater uses the effective-interest
method to amortize bond premium or discount. The bonds pay
semiannual interest July 1 and January 1.
Prepare an amortization table through December 31, 2012 (3 interest
periods) for this bond issue.
Prepare the journal entry to record the accrual of interest and the
amortization of the premium on December 31, 2011
Prepare the journal entry to record the payment of interest and the
amortization of the premium on July 1, 2012, assuming no accrual of
interest on June 30
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ACC 291 Week 2 Practice Connect Practice Assignment (Score
10/10)
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Question 1

Big Country Ski Shop is a retail store that sells ski equipment and
clothing. Big Country Ski Shop commenced business on September 1,
2019. The firm purchases merchandise on open account. The firm’s
purchases, purchase returns and allowances, and cash payments on
account during September 2019 follow:
DATE TRANSACTIONS
2019
Sept. 2 Purchased ski boots for $6,600 plus a freight charge of $310
from Colorado Ski Shop, Invoice 6672, terms n/30.
3 Purchased skis for $12,200 from Alaska Supply Company, Invoice
5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $1,000 from Colorado Ski
Shop for return of damaged ski boots; the boots were originally
purchased September 2 on Invoice 6672.
11 Purchased ski jackets for $5,000 from Cold Mountain Clothing
Company, Invoice 4091, terms n/30.
12 Issued Check 104 to Alaska Supply Company in payment of Invoice
5916, dated September 3, less the cash discount.
22 Purchased ski poles for $4,760 plus a freight charge of $170 from
Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23 Purchased ski pants for $3,250 from Swenson Ski Goods, Invoice
528, terms n/30.
25 Received Credit Memorandum 245 for $400 from Swenson Ski
Goods for return of defective ski pants; the pants were originally
purchased September 23 on Invoice 528.
27 Purchased ski sweaters for $3,600 plus a freight charge of $150
from Colorado Ski Shop, Invoice 6722, terms n/30.
30 Issued Check 110 to Colorado Ski Shop in payment of Invoice
6672, dated September 2, less the return of September 7.
Required:
Record the transactions in a general journal.
Analyze:

What was the amount of the cash discount on September 12?
Question 2
NewTech Medical Devices is a medical devices wholesaler that
commenced business on June 1, 2019. NewTech Medical Devices
purchases merchandise for cash and on open account. In June 2019,
NewTech Medical Devices engaged in the following purchasing and
cash payment activities:
DATE TRANSACTIONS
2019
June 1 Issued Check 101 to purchase merchandise, $4,500.
3 Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606;
terms 2/10, n/30.
from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less
10 Received Credit Memorandum 227 from New Concepts
Corporation for damaged merchandise totaling $150 that was returned;
the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,680 from BioCenter Inc., Invoice
612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of
June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $9,200 and trade
discounts of 20 percent and 15 percent from Park Research, Invoice
1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $3,000.
25 Returned merchandise purchased on June 20 as defective, receiving
a cash refund of $280.
from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
8

Received payment of $2,940 on account from Bowden Company in
payment of Invoice 1885 dated December 30, 2018, less cash discount
of $60.
10
Sold merchandise for $3,500 on account to Bowden Company, Invoice
1920, terms 2/10, n/30.
15
Issued Credit Memorandum 320 to Bowden Company for damaged
merchandise totaling $300 that was returned; the goods were purchased
on Invoice 1920, dated January 10.
19
Received payment from Bowden Company for Invoice 1920 of January
10, less the return of January 15 and less the cash discount.
30
Sold merchandise for $4,400 to Bowden Company, Invoice 1950; terms
2/10, n/30.
GENERAL LEDGER ACCOUNTS—SONG, INC.
111 Accounts Receivable, $3,000 Dr.
ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SONG, INC.
Bowden Company, $3,000
Required:
Journalize the transactions above in a general journal for both Bowden
Company and Song, Inc.
Post the transactions to the appropriate accounts in the general ledger
and the accounts payable subsidiary ledger for Bowden Company.
Post the transactions to the appropriate accounts in the general ledger
and the accounts receivable subsidiary ledger for Song, Inc.

Analyze:
What is the balance of the accounts payable for Song, Inc., in the
Bowden Company accounts payable subsidiary ledger? What is the
balance of the accounts receivable for Bowden Company in the Song,
Inc., accounts receivable subsidiary ledger?
===============================================
ACC 291 Week 2 Textbook Exercise BE 8-8, E8-4, E8-14, E9-4
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ACC 291 Week 2 Textbook Exercise BE 8-8, E8-4, E8-14, E9-4
Chapter 8: BE8-8
Determine maturity dates and compute interest and rates on notes.
E8-4 The ledger of Macarty Company at the end of the current year
shows Accounts Receivable $78,000, Credit Sales $810,000, and Sales
Returns and Allowances $40,000.
Instructions
(a) If Macarty uses the direct write‐off method to account for
uncollectible accounts, journalize the adjusting entry at December 31,
assuming Macarty determines that Matisse's $900 balance is
uncollectible.

(b) If Allowance for Doubtful Accounts has a credit balance of $1,100 in
the trial balance, journalize the adjusting entry at December 31,
assuming bad debts are expected to be 10% of accounts receivable.
(c) If Allowance for Doubtful Accounts has a debit balance of $500 in
the trial balance, journalize the adjusting entry at December 31,
assuming bad debts are expected to be 8% of accounts receivable.
Determine bad debt expense, and prepare the adjusting entry.
Chapter 8: E8-14
Compute ratios to evaluate a company's receivables balance.
(LO 4), AN
E8-14 Suppose the following information was taken from the 2017
financial statements of FedEx Corporation, a major global
transportation/delivery company.
(in millions) 017 2016
Accounts receivable (gross) $ 3,587 $ 4,517
Accounts receivable (net) 3,391 4,359
Allowance for doubtful accounts 196 158
Sales revenue 35,497 37,953
Total current assets 7,116 7,244
Instructions
Answer each of the following questions.
(a) Calculate the accounts receivable turnover and the average collection
period for 2017 for FedEx.
(b) Is accounts receivable a material component of the company's total
current assets?
(c) Evaluate the balance in FedEx's allowance for doubtful accounts.
Chapter 9: E9-4
Understand depreciation concepts.
(LO 2), C
E9-4 Alysha Monet has prepared the following list of statements about
depreciation.
Depreciation is a process of asset valuation, not cost allocation.

Depreciation provides for the proper matching of expenses with
revenues.
The book value of a plant asset should approximate its fair value.
Depreciation applies to three classes of plant assets: land, buildings,
and equipment.
Depreciation does not apply to a building because its usefulness and
revenue‐producing ability generally remain intact over time.
The revenue‐producing ability of a depreciable asset will decline due
to wear and tear and to obsolescence.
Recognizing depreciation on an asset results in an accumulation of
cash for replacement of the asset.
The balance in accumulated depreciation represents the total cost that
has been charged to expense since placing the asset in service.
Depreciation expense and accumulated depreciation are reported on
the income statement.
Three factors affect the computation of depreciation: cost, useful life,
and salvage value.
Instructions
Identify each statement as true or false. If false, indicate how to correct
the statement.
===============================================
ACC 291 Week 2 Wileyplus Assignment P8-3A, BE9-11, DI9-
5, E9-7, E9-8, BYP9, P9-2A (New)
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P8-3A, BE9-11, DI9-5, E9-7, E9-8, BYP9, P9-2A.
 Problem 8-3A: Bosworth Company
 Brief Exercise 9-11: Nike, Inc.
 Do It! 9-5
 Exercise 9-7: Wang, Co.
 Exercise 9-8: Cleand Company
 Broadening Your Perspective 9-1: Tootsie Roll
 Broadening Your Perspective 9-2: Tootsie& Hershey
 Problem 9-2A: Navaro Corporation
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(With Excel File)
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values
1.

On August 1, 2019, the accountant for Western Imports downloaded the
company's July 31, 2019, bank statement from the bank's Website. The
balance shown on the bank statement was $28,710. The July 31, 2019,
balance in the Cash account in the general ledger was $14,537.
Jenny Irvine, the accountant for Western Imports, noted the following
differences between the bank's records and the company's Cash account
in the general ledger:
a. An electronic funds transfer for $13,900 from FoncierRicard, a
customer located in France, was received by the bank on July 31.
b. Check 1422 was correctly written and recorded for $1,200. The
bank mistakenly paid the check for $1,270.
c. The accounting records indicate that Check 1425 was issued for
$60 to make a purchase of supplies. However, examination of the
check online showed that the actual amount of the check was for
$90.
d. A deposit of $750 made after banking hours on July 31 did not
appear on the July 31 bank statement.
e. The following checks were outstanding: Check 1429 for $1,244,
and Check 1430 for $136.
f. An automatic debit of $257 on July 31 from CentralComm for
telephone service appeared on the bank statement but had not been
recorded in the company's accounting records.
Required:
1. Prepare a bank reconciliation for the firm as of July 31.
2. Record general journal entries for the items on the bank
reconiliation that must be journalized.

Analyze:
What effect on total expenses occurred as a result of the general journal
entries recorded?
2.
On August 31, 2019, the balance in the checkbook and the Cash account
of the Dry Creek Bed and Breakfast was $12,362. The balance shown on
the bank statement on the same date was $13,242.
Notes
a. The firm’s records indicate that a $1,540 deposit dated August 30
and a $710 deposit dated August 31 do not appear on the bank
statement.
b. A service charge of $8 and a debit memorandum of $365 covering
an NSF check have not yet been entered in the firm’s records. (The
check was issued by Art Corts, a credit customer.)
c. The following checks were issued but have not yet been paid by
the bank:
Check 712, $119
Check 713, $134
Check 716, $247
Check 736, $586
Check 739, $ 87
Check 741, $129

d. A credit memorandum shows that the bank collected a $2,129 note
receivable and interest of $72 for the firm. These amounts have not
yet been entered in the firm’s records.
Required:
1. Prepare a bank reconciliation statement for the firm as of August
31.
2. Record general journal entries for items on the bank reconciliation
statement that must be journalized.
Analyze:
What effect did the journal entries recorded as a result of the bank
reconciliation have on the fundamental accounting equation?
Royal Jewels, a retail business, started business on June 25, 2019. It
keeps a $300 change fund in its cash register. The cash receipts for the
period from June 25 to June 30, 2019 are below.
DATE TRANSACTIONS
June 25 Cash sales per the cash register tape, $1,226.
Cash count, $1,518.
26 Cash sales per the cash register tape, $1,336.
Cash count, $1,629.
Cash count, $1,650.

Cash count, $1,571.
Cash count, $1,428.
Cash count, $1,657.
Required:
Record the cash receipts from June 25 to June 30, 2019, in a general
journal.
Post the amounts for Cash Short or Over in the journal entries to the
general ledger.
Analyze:
How will the balance in Cash Short or Over on June 30 be reported in
the financial statements?
===============================================
ACC 291 Week 3 Assignment The Liabilities Section of
O’Brian’s Balance Sheet
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The purpose of this assignment is to help you understand the balance
sheet presentation for the liabilities of a company.
Assignment Steps
Prepare the liabilities section of O’Brian’s balance sheet using the
following information:
· Accounts payable $157,000
· Notes payable (due May 1, 2018) $20,000
· Bonds payable (due 2021) $900,000
· Unearned rent revenue $240,000
· Discount on bonds payable $41,000
· FICA taxes payable $7,800
· Interest payable (due 2019) $80,000
· Income taxes payable $3,500
· Sales taxes payable $1,700
The Liabilities Section of O’Brian’s balance sheet must be 525 words.
Show work on the Week 3 Excel® spreadsheet.
Note: This assignment requires that you only submit an
Excel® Workbook file. There are no written or APA guideline
requirements.
===============================================
ACC 291 Week 3 Exercise BE 1-2, BE 10-3, BE 10-4, BE 10-5,
BE 10-14

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BE 1-2, BE 10-3, BE 10-4, BE 10-5, BE 10-14
BRIEF EXERCISES
Prepare entries for an interest‐bearing note payable.
BE10-2 Hive Company borrows $90,000 on July 1 from the bank by
signing a $90,000, 7%, 1‐year note payable. Prepare the journal entries
to record (a) the proceeds of the note and (b) accrued interest at
December 31, assuming adjusting entries are made only at the end of the
year.
Compute and record sales taxes payable.
BE10-3 Greenspan Supply does not segregate sales and sales taxes at the
time of sale. The register total for March 16 is $10,388. All sales are
subject to a 6% sales tax. Compute sales taxes payable and make the
entry to record sales taxes payable and sales.
Prepare entries for unearned revenues.
BE10-4 Bramble University sells 3,500 season basketball tickets at $80
each for its 10‐game home schedule. Give the entry to record (a) the sale
of the season tickets and (b) the revenue recognized after playing the
first home game.
Compute gross earnings and net pay.
BE10-5 Betsy Strand's regular hourly wage rate is $16, and she receives
an hourly rate of $24 for work in excess of 40 hours. During a January
pay period, Betsy works 47 hours. Betsy's federal income tax
withholding is $95, and she has no voluntary deductions. Compute Betsy
Strand's gross earnings and net pay for the pay period. Assume that the
FICA tax rate is 7.65%.

Analyze solvency.
BE10-14 Suppose the 2017 Adidas financial statements contain the
following selected data (in millions).
Current assets $4,485 Interest expense $169
Total assets 8,875 Income taxes 113
Current liabilities 2,836 Net income 245
Total liabilities 5,099
Cash 775
Compute the following values and provide a brief interpretation of each.
(a) Working capital.
(b) Current ratio.
(c) Debt to assets ratio.
(d) Times interest earned.
===============================================
ACC 291 Week 3 Practice Connect Practice Assignment (100%
Score)
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attempt 1

1
Florence Company received a bank statement showing a balance of
$13,550 on November 30, 2019. During the bank reconciliation process,
Florence’s accountant noted the following bank errors:
A check for $265 issued by Florentine, Inc., was mistakenly charged to
Florence Company’s account.
Check 2782 was written for $200 but was paid by the bank as $1,200.
Check 2920 for $85 was paid by the bank twice.
A deposit for $580 on November 22 was credited by the bank for $850.
Assuming outstanding checks total $2,450, prepare the adjusted bank
balance section of the November 30, 2019, bank reconciliation.
2
On January 2, The Public Legal Clinic issued Check 2108 for $450 to
establish a petty cash fund. Indicate how this transaction would be
recorded in a general journal.
3
Di Stefano Office Supply Company received a bank statement showing
a balance of $70,005 as of March 31, 2019. The firm’s records showed a
book balance of $71,487 on March 31. The difference between the two
balances was caused by the following items.

A debit memorandum for $40, which covers the bank’s collection fee for
the note (item 6).
A deposit in transit of $4,700.
A check for $348 issued by another firm that was mistakenly charged to
Di Stefano’s account.
A debit memorandum for an NSF check of $6,145 issued by Wozniak
Construction Company, a credit customer.
Outstanding checks: Check 3782 for $2,200; Check 3840 for $251.
A credit memorandum for a $7,300 noninterest-bearing note receivable
that the bank collected for the firm.
Prepare a bank reconciliation statement for the firm as of March 31.
Prepare the necessary journal entries for March 31, 2019 from the
statement.
4
After returning from a three-day business trip, the accountant for
Southeast Sales, Johanna Estrada, checked bank activity in the
company’s checking account online. The activity for the last three days
follows.
Business Checking Account #123456-987
Date Type Description Additions Payments Balance
09/24/2019 Loan Payment Online Transfer to CM XXXX $ 3,500.00 $
15,675.06
09/24/2019 Deposit DEPOSIT ID NUMBER 8888 $ 2,269.60 $
19,175.06
09/23/2019 Check CHECK #1554 (view) $ 3,500.00 $ 16,905.46
09/23/2019 Bill Payment Online Payment $ 36.05 $ 20,405.46
09/22/2019 Check CHECK #1553 (view) $ 240.00 $ 20,441.51
09/22/2019 Check CHECK #1551 (view) $ 1,750.00 $ 20,681.51

09/22/2019 ACH Credit Edwards UK AP PAYMENT $ 8,900.00 $
22,431.51
09/22/2019 ATM ATM WITHDRAWAL $ 240.00 $ 13,531.51
After matching these transactions to the company’s Cash account in the
general ledger, Johanna noted the following unrecorded transactions:
The ATM withdrawal on 9/22/2019 was for personal use by the owner,
Robert Savage.
The ACH credit on 9/22/2019 was an electronic funds payment received
on account from Edwards UK, a credit customer located in Great
Britain.
The bill payment made 9/23/2019 was to Waste Control Trash Services
(utilities).
The loan payment on 9/24/2019 was an automatic debit by Central
Motors for the company’s monthly payment on a loan for its
automobiles. The loan does not bear interest.
Prepare the journal entries in a general journal to record the four
transactions above. (Round your answers to 2 decimal places.)
5
Teng Corporation received a bank statement showing a balance of
$15,700 as of October 31, 2019. The firm’s records showed a book
balance of $15,262 on October 31. The difference between the two
A debit memorandum for an NSF check from Richard Wolf for $332.
Three outstanding checks: Check 7017 for $124, Check 7098 for $55,
and Check 7107 for $1,560.

A bank service charge of $12.
A deposit in transit of $957.
Prepare the adjusted bank balance section and the adjusted book balance
section of the bank reconciliation statement. Prepare the necessary
journal entries for the year 2019.
===============================================
ACC 291 Week 3 Wileyplus Assignment P9-7A, E10-5, E10-8,
E10-13, E10-22, E10-24, BYP10, P10-9A, P10-13A, IFRS10-4
(New)
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·P9-7A, E10-5, E10-8, E10-13, E10-22, E10-24, BYP10, P10-9A, P10-
13A, IFRS10-4.
 Exercise 10-5: Olinger Company
 Exercise 10-8: Ortega Company
 Exercise 10-13: Romine Company
 Exercise 10-22: Cole Corporation
 Exercise 10-24: Nance, Co.
 Broadening Your Perspective 10-1: Tootsie Roll
 Broadening Your Perspective 10-2: Tootsie& Hershey
 Problem 9-7A: Farr Company
 Problem 10-9A: Wempe, Co.

 Problem 10-13A: Grace Herron
 IFRS10-4: Ratzlaff
===============================================
ACC 291 Week 4 Apply Connect Assignment (With Excel file)
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values (CONTAINS ALL QUESTIONS, SCROLL DOWN TO
CHECK)
Assignment 1
a.-b. Merchandise Inventory, before adjustment, has a balance of
$6,600. The newly counted inventory balance is $7,100.
1. Unearned Seminar Fees has a balance of $5,100, representing
prepayment by customers for five seminars to be conducted in June,
July, and August 2019. Two seminars had been conducted by June 30,
2019.
2. Prepaid Insurance has a balance of $6,600 for six months’
insurance paid in advance on May 1, 2019.
3. Store equipment costing $12,890 was purchased on March 31,
2019. It has a salvage value of $410 and a useful life of four years.

4. Employees have earned $160 that has not been paid at June 30,
2019.
5. The employer owes the following taxes on wages not paid at June
30, 2019: SUTA, $4.80; FUTA, $0.96; Medicare, $2.32; and social
security, $9.92.
6. Management estimates uncollectible accounts expense at 1 percent
of sales. This year’s sales were $1,100,000.
7. Prepaid Rent has a balance of $5,250 for six months’ rent paid in
advance on March 1, 2019.
8. The Supplies account in the general ledger has a balance of $310.
A count of supplies on hand at June 30, 2019, indicated $105 of supplies
remain.
9. The company borrowed $13,700 from First Bank on June 1, 2019,
and issued a four-month note. The note bears interest at 12 percent.
Required:
Based on the information above, record the adjusting journal entries that
must be made for Sufen Consulting on June 30, 2019. The company has
a June 30 fiscal year-end.
Analyze:
After all adjusting entries have been journalized and posted, what is the
balance of the Prepaid Rent account?
Assignment 1
The Green Thumb
Gardener
Merchandise inventory on December 31, 2019, is $11,521.
During 2019, the firm had net credit sales of $27,000; the firm estimates
that 0.6 percent of these sales will result in uncollectible accounts.

On December 31, 2019, an inventory of the supplies showed that items
costing $235 were on hand.
On October 1, 2019, the firm signed a six-month advertising contract for
$960 with a local newspaper and paid the full amount in advance.
On January 2, 2018, the firm purchased store equipment for $7,620. At
that time, the equipment was estimated to have a useful life of five years
and a salvage value of $520.
On January 2, 2018, the firm purchased office equipment for $1,120. At
that time, the equipment was estimated to have a useful life of five years
and a salvage value of $120.
On December 31, 2019, the firm owed salaries of $1,750 that will not be
paid until 2020.
On December 31, 2019, the firm owed the employer’s social security tax
(assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the
entire $1,750 of accrued wages.
On December 31, 2019, the firm owed federal unemployment tax
(assume 0.6 percent) and state unemployment tax (assume 5.4 percent)
on the entire $1,750 of accrued wages.
Assignment 2
TRANSACTIONS
Signed a lease for an office and issued Check 101 for $14,100 to pay the
rent in advance for six months.

Borrowed money from Second National Bank by issuing a four-month,
12 percent note for $32,800; received $31,488 because the bank
deducted the interest in advance.
Signed an agreement with Carter Corp. to provide accounting and tax
services for one year at $6,600 per month; received the entire fee of
$79,200 in advance.
Purchased office equipment for $26,400 from Office Outfitters; issued a
two-month, 6 percent note in payment. The equipment is estimated to
have a useful life of six years and a $1,920 salvage value. The
equipment will be depreciated using the straight-line method.
Purchased a one-year insurance policy and issued Check 102 for $1,692
to pay the entire premium.
Purchased office furniture for $18,400 from Furniture Warehouse;
issued Check 103 for $10,400 and agreed to pay the balance in 60 days.
The equipment has an estimated useful life of five years and a $1,000
salvage value. The office furniture will be depreciated using the straight-
line method.
Purchased office supplies for $1,930 with Check 104. Assume $860 of
supplies are on hand July 31, 2019.
===============================================

ACC 291 Week 4 Exercise E11-2, E11-5, E11-7, E11-13
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Journalize issuance of common stock and preferred stock and purchase
of treasury stock.
E11-2 Sagan Co. had these transactions during the current period.
June 12 Issued 80,000 shares of $1 par value common stock for cash of
$300,000.
July 11 Issued 3,000 shares of $100 par value preferred stock for cash
at $106 per share.
Nov. 28 Purchased 2,000 shares of treasury stock for $9,000.
Prepare correct entries for capital stock transactions.
E11-5 Mesa Corporation recently hired a new accountant with extensive
experience in accounting for partnerships. Because of the pressure of the
new job, the accountant was unable to review what he had learned
earlier about corporation accounting. During the first month, he made
the following entries for the corporation's capital stock.
Compare effects of a stock dividend and a stock split.
E11-7 On October 31, the stockholders' equity section of Manolo
Company's balance sheet consists of common stock $648,000 and
retained earnings $400,000.Manolo is considering the following two
courses of action: (1) declaring a 5% stock dividend on the 81,000 $8
par value shares outstanding or (2) effecting a 2‐for‐1 stock split that

will reduce par value to $4 per share. The current market price is $17 per
share.
Instructions
Prepare a tabular summary of the effects of the alternative actions on the
company's stockholders' equity and outstanding shares. Use these
column headings: Before Action, After Stock Dividend, and After Stock
Split.
Calculate ratios to evaluate profitability and solvency.
E11-13 Kojak Corporation decided to issue common stock and used the
$300,000 proceeds to redeem all of its outstanding bonds on January 1,
2017. The following information is available for the company for 2017
and 2016.
(a) Compute the return on common stockholders' equity for both years.
(b) Explain how it is possible that net income increased but the return on
common stockholders' equity decreased.
(c) Compute the debt to assets ratio for both years, and comment on the
implications of this change in the company's solvency.
===============================================
ACC 291 Week 4 Practice Connect Assignment (100% Score)
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attempt 1

1
1. During the year 2019, Sampson Company had net credit sales of
$1,950,000. Past experience shows that 1.5 percent of the firm’s net
credit sales result in uncollectible accounts.
2. Equipment purchased by Park Consultancy for $38,220 on January 2,
2019, has an estimated useful life of 10 years and an estimated salvage
value of $2,700. What adjustment for depreciation should be recorded
on the firm’s worksheet for the year ended December 31, 2019?
3. On December 31, 2019, Giant Plumbing Supply owed wages of
$11,400 to its factory employees, who are paid weekly.
4. On December 31, 2019, Giant Plumbing Supply owed the employer’s
social security (6.2 percent) and Medicare (1.45 percent) taxes on the
entire $11,400 of accrued wages for its factory employees.
5. On December 31, 2019, Giant Plumbing Supply owed federal (0.6
percent) and state (5.4 percent) unemployment taxes on the entire
$11,400 of accrued wages for its factory employees.
2
On December 1, 2019, Jim’s Java Joint borrowed $50,000 from its bank
in order to expand its operations. The firm issued a four-month, 6
percent note for $50,000 to the bank and received $49,000 in cash
because the bank deducted the interest for the entire period in advance.
In general journal form, show the entry that would be made to record
this transaction and the adjustment for prepaid interest that should be
recorded on the firm’s worksheet for the year ended December 31, 2019.
3
1. On December 31, 2019, the Notes Payableaccount at Northwood
Manufacturing Company had a balance of $16,000. This balance
represented a three-month, 7.5 percent note issued on November 1.
2. On January 2, 2019, Hitech Computer Consultants purchased flash
drives, paper, and other supplies for $5,230 in cash. On December 31,
2019, an inventory of supplies showed that items costing $1,590 were on
hand. The Suppliesaccount has a balance of $5,230.

3. On September 1, 2019, North Dakota Manufacturing paid a premium
of $14,640 in cash for a one-year insurance policy. On December 31,
2019, an examination of the insurance records showed that coverage for
a period of four months had expired.
4. On May 1, 2019, Headcase Beauty Salon signed a one-year
advertising contract with a local radio station and issued a check for
$10,800 to pay the total amount owed. On December 31, 2019, the
Prepaid Advertisingaccount has a balance of $10,800.
For each of the above independent situations, prepare the adjusting
entries that must be made on the December 31, 2019, worksheet
assuming no previous adjusting entries have been made during the year.
4
The Income Statement section of the Johnson Company worksheet for
the year ended December 31, 2019, has $199,000 recorded in the Debit
column and $215,345 in the Credit column on the line for the Income
Summary account.
What were the beginning and ending balances for Merchandise
Inventory?
5
On December 31, 2019, the Notes Payable account at Vanessa’s
Boutique Shop had a balance of $90,000. This amount represented funds
borrowed on a six-month, 8 percent note from the firm’s bank on
December 1.
Record the journal entry for interest expense on this note that should be
recorded on the firm’s worksheet for the year ended December 31, 2019.
===============================================
ACC 291 WEEK 4 Stockholders’ Equity Section of the Balance
Sheet (Lachlin Corporation Balance Sheet)

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The purpose of this assignment is to help you become familiar with
examining the stockholders' equity section of the balance sheet.
Assignment Steps
Answer the following questions in 1,050 words using the
Lachlin Corporation Balance Sheet (partial) below:
· How many shares of common stock are outstanding?
· Assuming there is a stated value, what is the stated value of the
common stock?
· What is the par value of the preferred stock?
· If the annual dividend on preferred stock is $36,000, what is the
dividend rate on preferred stock?
· If dividends of $72,000 were in arrears on preferred stock, what
would be the balance reported for retained earnings?
===============================================
ACC 291 Week 4 Wileyplus Assignment Do It 11-1, E11-5,
E11-7, BYP11-1, BYP11-2, P11-5A, P11-8A (New)

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Do It! 11-1, E11-5, E11-7, BYP11-1, BYP11-2,P11-5A, P11-8A.
 Do It! 11-1
 Exercise 11-5 Garcia Corporation
 Exercise 11-7 Pele Company
 Broadening Your Perspective 11-1 Tootsie Roll
 Broadening Your Perspective 11-2 Tootsie Roll & Hershey
 Problem 11-5A Pringle Corporation
 Problem 11-8A Everett Corporation
===============================================
(with Excel File)
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values

1
The Artisan Wines is a retail store selling vintage wines. On December
31, 2019, the firm’s general ledger contained the accounts and balances
below. All account balances are normal.
Required:
1. Prepare a classified income statement for the year ended December
31, 2019. The company does not classify its operating expenses as
selling expenses and general and administrative expenses.
2. Prepare a statement of owner’s equity for the year ended December
31, 2019. No additional investments were made during the year.
3. Prepare a classified balance sheet as of December 31, 2019.
Analyze:
What is the inventory turnover for Artisan Wines?
2
Superior Hardwood Company distributes hardwood products to small
furniture manufacturers. The adjusted trial balance data given below is
from the firm’s worksheet for the year ended December 31, 2019.
Required:
31, 2019. The expense accounts represent warehouse expenses,
selling expenses, and general and administrative expenses.
31, 2019. No additional investments were made during the period.

3. Prepare a classified balance sheet as of December 31, 2019. The
mortgage payable extends for more than a year.
Analyze:
What is the current ratio for this business?
===============================================
ACC 291 Week 5 Assignment Financial Reporting Problem II
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The purpose of this assignment is to expose you to the basic process
involved in the analysis of the cash flow statement.
Assignment Steps
Resources: Appendix A of Financial Accounting: Tools for Business
Decision Making
Note: This is a two part assignment.
Part 1
Answer questions A-F in problem CT12-1 in Financial Accounting (p.
640).
Provide an 875-word analysis of your findings.
Include conclusions concerning the management of the company's cash.
Part 2

Complete a 1,050-word summary of findings and recommendations
from the following questions:
• What is the par or stated value per share of Apple's common stock?
• What percentage of Apple's authorized common stock was issued at
September 27, 2014?
• How many shares of common stock were outstanding at September 28,
2013, and at September 27, 2014?
• Calculate the payout ratio, earnings per share, and return on common
stockholders' equity for 2014.
Use the Week 5 Excel® spreadsheet and submit with your analysis and
summary.
===============================================
ACC 291 Week 5 Connect Practice Connect Assignment (Score
100%)
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Coffee Bean
Artisan wines
Good to Go Auto Products
Superior Hardware
Healthy Eating Foods Company

The data below concerns adjustments to be made at Coffee Bean
Importers.
Adjustments
a. On November 1, 2019, the firm signed a lease for a warehouse and
paid rent of $21,000 in advance for a six-month period.
b. On December 31, 2019, an inventory of supplies showed that items
costing $1,940 were on hand. The balance of the Supplies account
was $11,880.
c. A depreciation schedule for the firm’s equipment shows that a total
of $10,750 should be charged off as depreciation in 2019.
d. On December 31, 2019, the firm owed salaries of $6,100 that will
not be paid until January 2020.
e. On December 31, 2019, the firm owed the employer’s social
security (6.2 percent) and Medicare (1.45 percent) taxes on all
accrued salaries.
f. On October 1, 2019, the firm received a five-month, 8 percent note
for $6,500 from a customer with an overdue balance.
Required:
1. Record the adjusting entries in the general journal as of December
31, 2019.
2. Record reversing entries in the general journal as of January 1,
2020.
Required:

mortgage payable extends for more than one year.
Analyze:
What percentage of total operating expenses is attributable to warehouse
expenses?
4
Healthy Eating Foods Company is a distributor of nutritious snack foods
such as granola bars. On December 31, 2019, the firm’s general ledger
contained the accounts and balances that follow.
Required:
1. Record adjusting entries in the general journal as of December 31,
2019.
2. Record closing entries in the general journal as of December 31,
2019.
3. Record reversing entries in the general journal as of January 1,
2020.
Analyze:
Assuming that the firm did not record a reversing entry for salaries
payable, what entry is required when salaries of $6,000 are paid on
January 3?
5.

Superior Hardwood Company distributes hardwood products to small
furniture manufacturers. The adjusted trial balance data given below is
from the firm’s worksheet for the year ended December 31, 2019.
Required:
mortgage payable extends for more than a year.
Analyze:
What is the current ratio for this business?
===============================================
ACC 291 Week 5 Exercise E12-3, E12-10
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Prepare the operating activities section—indirect method.
E12-3 Sosa Company reported net income of $190,000 for 2017. Sosa
also reported depreciation expense of $35,000 and a loss of $5,000 on
the disposal of plant assets. The comparative balance sheets show an
increase in accounts receivable of $15,000 for the year, a $17,000
increase in accounts payable, and a $4,000 increase in prepaid expenses.

Instructions
Prepare the operating activities section of the statement of cash flows for
2017. Use the indirect method.
Compare free cash flow of two companies.
E12-10 Information for two companies in the same industry, Merrill
Corporation and Wingate Corporation, is presented here.
Merrill Corporation Wingate Corporation
Net cash provided by operating activities $ 80,000 $100,000
Average current liabilities 50,000 100,000
Net income 200,000 200,000
Capital expenditures 40,000 70,000
Dividends paid 5,000 10,000
Instructions
Compute free cash flow for both companies and compare.
===============================================
ACC 291T Apply Assignment Week 2 Connect Assignment
(August, 2019) (with Excel File)
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During March a firm purchased $22,790 of merchandise and paid freight
charges of $1,860. If the net delivered cost of purchases for the March is
$22,040, what is the total purchase returns for March?

Multiple Choice
•
$0
•
$1,110
•
$2,610
•
Record the following transactions of Fronke’s Fashions in a general
journal:
DATE TRANSACTIONS
2019
April 1 Purchased merchandise for cash, $1,120.
2 Returned merchandise for cash purchased on
April 1; received a cash refund of $127.
4 Purchased merchandise on credit from Breit
Distributors, Invoice 125, $652, terms n/30; freight of $27. prepaid by
Breit Distributors and added to the invoice.

7 Returned damaged merchandise purchased on
April 4 from Breit Distributors; received Credit Memorandum 202 for
$34.
30 Paid the amount due to Breit Distributors for the
purchase of April 4, less the return on April 7, Check 1458.
Fronke’s Franks for $3,700 on Invoice 1001, terms 2/10, n/30. The cost
of merchandise sold was $2,400. Payment was received in full from
Fronke’s Franks, less discount, on April 10.
Record the transactions for Moloney Meat Distributors on April 1 and
April 10. The company uses the perpetual inventory system.
Fashion Park must charge 7 percent sales tax on all sales. The company
uses the perpetual inventory system. (Round your intermediate
calculations and final answers to the nearest whole dollar value.)
DATE TRANSACTIONS
2019
The cost of merchandise sold was $1,640.

3 The customer purchasing merchandise for cash on
April 2 returned $320 of the merchandise; provided a cash refund to the
customer. The cost of returned merchandise was $220.
4 Sold merchandise on credit to Jordan Clark;
issued Sales Slip 908 for $1,190 plus tax, terms n/30. The cost of the
merchandise sold was $1,190.
6 Accepted return of merchandise from Jordan
Clark; issued Credit Memorandum 302 for $220 plus tax. The original
sale was made on Sales Slip 908 of April 4. The cost of returned
merchandise was $230.
30 Received payment on account from Jordan Clark
in payment of her purchase of April 4, less the return on April 6.
Record the following transactions of Allen Inc.: (Round your answers to
2 decimal places)
DATE TRANSACTIONS
2019
March 8 Purchased merchandise on credit from Alenikov
Designs, Invoice 1091, list price $5,000, trade discounts of 30% and
20%; terms 3/10, n/30.

17 Paid the amount owed on the purchase of March 8
from Alenikov Designs, less the 3 percent discount, Check 185.
Record the following transactions of J. Min Designs in a general journal.
The company uses the perpetual inventory system.
DATE TRANSACTIONS
2019
April 1 Purchased merchandise on credit from O’Rourke
Fabricators, Invoice 885, $3,550, terms 1/10, n/30; freight of $75
prepaid by O’Rourke Fabricators and added to the invoice (total invoice
amount, $3,625).
9 Paid amount due to O’Rourke Fabricators for the
purchase of April 1, less the 2 percent discount, Check 457.
15 Purchased merchandise on credit from Kroll
Company, Invoice 145, $1,800, terms 1/10, n/30; freight of $130 prepaid
by Kroll and added to the invoice.

17 Returned damaged merchandise purchased on
April 15 from Kroll Company; received Credit Memorandum 332 for
$105.
24 Paid the amount due to Kroll Company for the
purchase of April 15, less the return on April 17, taking the 1 percent
Record these transactions in a general journal.
Tune Tones Instrument Tuning Company owes Mandy Lynn's Music
Studio $5,016 as of November 1. During November, Tune Tones
purchased merchandise from Mandy Lynn totaling $8,655 and made
payments on account to Mandy Lynn in the amount of $7,410. The
amount Tune Tones owes Mandy Lynn on November 30 is:
Multiple Choice
•
$6,261.
•
$3,771.
•

$11,049.
•
$7,410.
During the year, a firm purchased $257,500 of merchandise and paid
freight charges of $41,850. If the total purchases returns and allowances
were $16,440 and purchase discounts were $8,900 for the year, what is
the net delivered cost of purchases?
Multiple Choice
•
$299,350
•
$274,010
•
$324,690
•
$190,310
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A firm’s bank reconciliation statement shows a book balance of
$15.940,an NSF check of $460,and a service charge of $26.Its adjusted
book balance is
On January 2,The Public Legal issued check 2108 for $260 to establish a
petty cash fund.Indicate how this transaction would be recorded in a
general journal
After returning from a three-day business trip,the accountant for
southeast sales,JohannaEstrada,checked bank activity in the company’s
checking account online.The activity for the last three days follows.
After matching these transactions to the company’s cash account in the
general ledger,Johanna noted the following unrecorded transactions:
The ATM withdrawal on 9/22/201 was for personal use by the
owner,Robert Savage.

The ACH credit on 9/22/2019 was an electronic funds payment received
on account from Edwards UK, a credit customer located in Great
Britain.
The bill payment made 9/23/2019was to waste control Trash
Services(utilities).
The loan payment on 9/24/2019 was an automatic debit by central
motors for the company’s monthly payment on a loan for its
automobiles.The loan does not bear interest.
Prepare the journal entries in a general journal to record the four
transactions above.(Round your answers to 2 decimal places.)
On January 2,Jasmine’s Beauty Supplies Inc,issued Check 3100 for
$300 to establish a petty cash fund.On January 31, Check 3159 was
issued to replenish the petty cash fund.An analysis of payments from the
fund showed these totals: Supplies, $44; Delivery Expense,$85; and
Miscellaneous Expense, $20.
Indicate how these transactions would be recorded in a general journal.
Read each of the following transactions.
The cash sales per a register tape were $579.The cash count is $552.
The cash sales per a register tape were $8,700.The cash count is $8,280.
Prepare the general journal entries to record the above transactions.
Teng Corporation received a bank statement showing a balance of
$14,250 as of October 31,2019.The firm’s records showed a book

balance of $13,893 on October 31. The difference between the two
1.A debit memorandum for an NSF check from Richard Wolf for $415.
2. Three outstanding checks:Check 7017 for $115, Check 7098 for
$46,and Check 7107 for $1,470.
3. A bank service charge of $11.
4.A deposit in transit of $848.
Prepare the adjusted bank balance section and the adjusted book balance
section of the bank reconcillationstatement.Prepare the necessary journal
entries for the year 2019.
Florence company received a bank statement showing a balance of
$12,400 on November 30,2019.During the bank
reconcillationprocess.Florence’s accountant noted the following bank
errors:
A check for $147 issued by Florentine, Inc., was mistakenly charged to
Florence company’s account.
Check 2782 was written for $100 but was paid by the bank as $1,100.
Check 2920 for $81 was paid by the bank twice.
A deposit for $570 on November 22 was credited by the bank for $750.
Assuming outstanding checks total $1,750, Prepare the adjusted bank
balance section of the November 30,2019, bank reconciliation.

Northwest Gift Shop, a retail business, started business on April
29,2019.It keeps a $300 change fund in its cash register. The cash
receipts for the period from April 29 to April 30,2019, are shown below.
Record the cash receipts on April 29 and April 30, 2019, in a general
journal.
On March 31,2019, Home Decorating Pavilion received a bank
statement showing a balance of $9,690. The balance in the firm’s
checkbook and cash account on the same date was $10,134.The
difference between the two balances is caused by the items listed below,
A $2,815 deposit made on March 30 does not appear on the bank
statement.
Check 358 for $455 issued on March 29 and check 359 for $1,590
issued on March 30 have not yet been paid by the bank.
A credit memorandum shows that the bank has collected a $1,200 note
receivable and interest of $210 for the firm.
A service charge of $19 appears on the bank statement.
A debit memorandum shows an NSF check for $495.(The check was
issued by Dane jaris, a credit customer.)
The firm’s records Indicate that check 341 of March 1 was issued for
$800 to pay the month’s rent.However, the cancelled check and the
listing on the bank statement show that the actual amount of the check
was $750.
The bank made an error by deducting a check for $530 issued by another
business from the balance of Home Decorating Pavilion’s account.
Required:

1.Prepare a bank reconciliation statement for the firm as of March
31,2019.
2.Recordentires for any items on the bank reconciliation statement that
must be journalized.
Read the following transactions.
Lourdes LLC.keeps a $100 change fund in its cash register.At the end
of the day, Cash sales per the register tape were $2,650.The cash count
was $3,000
Calculate the amount over or Short.
===============================================
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1) The following selected accounts were taken from the financial
records of Los Olivos Distributors at December 31,2019.All accounts
have normal balances.
Cash $27,945
Accounts Receivable 46,200
Note Receivable 8,000
Merchandise inventory 34,200
Prepaid Insurance 2,200
Supplies 1,260
Equipment 42,000
Accumulated depreciation,equipment 22,000
Note payable to bank,due 2020 20,000
Accounts payable 28,700
Interest payable 200
Sales 522,500
Sales discounts 1,700
Cost of goods sold 388,025
Accounts Receivable at December 31,2018, was $56,300.Merchandise at
December 31,2018, was $57,100.Based on the account balances
above,Calculate the following:
a. The gross profit percentage.
b. Working capital.
c. The current ratio.
d. The inventory turnover.
e. The accounts receivable turnover. All sales wer on credit
2) Solomon Company reports the following in its most recent year of
operations:

• Sales ,$1,040,400(all on account)
• Cost of Goods sold ,$601,400
• Gross Profit,$439,000
• Accounts receivable,beginning of year,$92,000
• Accounts receivable,end of year,$112,000
• Merchandaise inventory,beginning of year,$57,000
• Merchandaise inventory,end of year.$67,000
Based on these balances,compute:
a. The accounts receivable turnover.
b. The inventory turnover.
3) The worksheet of Bridget’s Office Supplies contains the following
revenue, cost and expenses account. The merchandise inventory
amounted to $59,675 on January 1, 2019 and $52,625 on December 31,
2019. The expense accounts numbered 611 through 617 represent selling
expenses, and those numbered 631 through 646 represent general and
administrative expenses.
401 Sales $248,200 Cr.
451 Sales Returns and Allowances 4,340 Dr.
491 Miscellaneous Income 390 Cr.
501 Purchases 103,500 Dr.
502 Freight In 1,965 Dr.
503 Purchases Returns and Allowances 3,590 Cr.
504 Purchases Discounts 1,790 Cr.
611 Salaries Expense-Sales 45,200 Dr.
614 Store Supply Expense 2,300 Dr.
617 Depreciation Expense-Store Equipment 1,500 Dr.
631 Rent Expense 13,400 Dr.
634 Utilities Expense 2,990 Cr.
637 Salaries Expense-Office 21,000 Cr.
640 Payroll Taxes Expense 5,900 Dr.
643 Depreciation Expense-Office Equipment 560 Dr.

646 Uncollectible Accounts Expense 710 Dr.
691 Interest expense 720 Dr.
Prepare a classified income statement for this firm for the year ended
December 31,2019.
4) The Worksheet of Bridger’s Office Supplies contains the following
revenue,cost and expense accounts.The merchandise inventory
amounted to $58.175 on January 1,2019,and$51,125 on December
31,2019. The expense accounts numbered 611 through 617 represent
selling expenses,and those numbered 631 through 646 represent general
and administrative expenses.
401 Sales $244,400 Cr.
491 Miscellaneous Income 240 Cr.
611 Salaries Expenses-Sales 43,700 Dr.
614 Store Supplies Expense 2,150 Dr.
617 Depreciation Expense-Store Equipment 1,350 Dr.
631 Rent,Expense 11,900 Dr.
1,440.00
31 (Adjustment d)
Depreciation. Exp- Store Equipment
Accum. Depreciation-Store Equip.
To record depreciation
14,600.00
14,600.00
31 (Adjustment e)

Salaries Expense-office
Salaries payable
To record accrued salaries for Dec. 29-31
3,100.00
3,100.00
31 (Adjustment f)
Payroll Taxes Expense
Social Security Tax Payable
Medicare Tax Payable
TO record accrued payroll taxes on accrued
salaries: social security, 6.2% * 3,100 = $192.20; Medicare, 1.45% *
3,100 = $44.95
237.15
192.20
44.95
31 (Adjustment g)
Interest Expense
Interest Payable
To record accrued interest on a 4-month,6% trade
note payable dated Nov. 1: $23,000 * 2/12 = $230.00
230.00
230.00
8) The Adjusted Trial Balance section of the worksheet for Van Zant
Janitorial Supplies follows.The owner made no additional investments
during the year.

Accounts Debit Credit
Cash $ 19,600
Allowance for Doubtful Accounts $ 200
Merchandise Inventory 187,200
Supplies 7,240
Prepaid Insurance 3,160
Equipment 52,000
Accumulated Depreciation – Equipment 18,800
9) At the end of the year Stan Still Stationery Store had the following
balances: Sales $690,000 ;Sales Dicounts $2,640 ; Sales Returns and
Allownces $15,6000 ; Sales Salaries Expense $75,000. The Net Sales for
the year are:
• $596,760
• $674,400
• $671,760
• $687,360
10) The worksheet of Bridget’s Office Supplies contains the following
revenue, cost, and expense accounts. The merchandise inventory
amounted to $58,375 on January 1, 2019 and $51,325 on December 31,
2019. The expense accounts numbered 611 through 617 represents
selling expenses, and those numbered 631 through 646 represent general
and administrative expenses.
401 Sales $ 244,800 Cr.
491 Miscellaneous income 260 Cr.

611 Salaries Expense-Slaes 43,900 Dr.
614 Store Supplies Expense 2,170 Dr.
617 Deprediction Expense- Store Equipment 1,370 Dr.
631 Rent Expense 12,100 Dr.
634 Utilities Expense 2,860 Dr.
637 Salaries Expense-Office 19,700 Dr.
640 Payroll Taxes Expense 4,600 Dr.
643 Depreciation Expense- Office Equipment 430 Dr.
646 Uncollectible Accounts Expense 580 Dr.
691 Interest Expense 460 Dr.
The Worksheet of Bridget’s Office Supplies Contains the following
owner’s equity accounts. No additional investments were made during
the period.
301 Bridget Swanson, Capital $ 62,630 Cr.
302 Bridget Swanson, Drawing 40,900 Dr.
===============================================
ACC 291T Assignment Week 1 Apply: Connect® Exercise
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ACC 291T ASSIGNMENT Week 1 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this Assignment.
Complete the Week 1 Exercise in Connect®.
Note: You have only one attempt available to complete this
Assignment.
Grades must be transferred manually to eCampus by your instructor.
Don’t worry, this might happen after your due date
If Lacy’s Department Store charges 8 percent sales tax, the amount of
sales tax collected on a $525 sale would be
Multiple Choice
•
$4.20.
•
$420.00.
•
$42.00.
•
$567.00.
___________ are required to collect sales tax from customers, make
periodic payments to the taxing authority, and pay the taxes due when
reports are filed.
Multiple Choice

•
Wholesalers
•
Retailers
•
Manufacturers
•
Distributors
The Sales Returns and Allowances account is classified as
Multiple Choice
•
an asset account.
•
a contra asset account.
•
a contra revenue account.
•

a revenue account.
The amount used by wholesalers to record sales in the general journal is
Multiple Choice
•
the retail price.
•
the net price.
•
the list price.
•
•
$7,200.00.
•
$7,776.00.
•
$12,960.00.

Modern Candy, a wholesaler, sold a crate of candy for $360.00 on
account to a customer with credit terms of 1/10, n/30. If the customer
pays within the discount period, what would be the total amount credited
to the sales account?
Multiple Choice
•
$360.00
•
$356.40
•
$363.60
•
$324.00
Kay Sadia sold merchandise for $7,200 subject to 8% sales tax. The
entry in the general journal to record the sale will include:
Multiple Choice
•

a debit to Sales Tax Payable for $576.00.
•
credit to Sales for $7,200.00.
•
a credit to Sales for $7,776.00.
•
a debit to Accounts Receivable for $7,200.00.
===============================================
ACC 291T Assignment Week 1 Practice: Connect® Knowledge
Check
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ACC 291T ASSIGNMENT Week 1 Practice: Connect® Knowledge
Check
Complete the Week 1 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice
Assignment. The highest scored attempt will be recorded.
These Assignments have earlier due dates, so plan accordingly.
Hour Place Clock Shop sold a grandfather clock for $3,750 subject to a
7% sales tax. The entry in the general journal will include a debit to
Accounts Receivable for
Multiple Choice
$3,625.00.
$4,012.50.
$3,750.00.
$3,487.50.

The amount used by wholesalers to record sales in the general journal is
Multiple Choice
the retail price.
the list price.
the original price.
the net price.
Merchandise is sold on credit for $1,600 plus 6 percent sales tax. The
journal entry to record the sale will include a debit to Accounts
Receivable for
Multiple Choice
$1,600.00.

$1,696.00.
$2,560.00.
$1,504.00.
The balance due from an individual customer can be found in:
Multiple Choice
the general journal.
the Sales account in the general ledger.
the accounts receivable subsidiary ledger.
the Accounts Receivable account in the general ledger.
The entry to record a return by a credit customer of defective
merchandise on which no sales tax was charged includes
Multiple Choice
a debit to Sales and a credit to Accounts Receivable.
a debit to Accounts Receivable and a credit to Sales Returns and
Allowances.
Sales and a credit to Sales Returns and Allowances.
a debit to Sales Returns and Allowances and a credit to Accounts
Receivable.
On June 12, Music, Inc. sells $4,000 of goods on account to a credit
customer with credit terms of 1/10, n/30. If the customer pays on June
20, select the entry to record the receipt of the customer’s payment:
Multiple Choice

Cash 3,960
Sales Discounts 40
________________________________________
•
Cash 4,000
________________________________________
Cash 4,000
Sales Discounts 40
________________________________________
Sales Discounts 40
Cash 4,000
________________________________________

Which of the following describes the Sales Returns and Allowances
account?
Multiple Choice
A contra expense account with a normal debit balance.
An expense account with a normal debit balance.
A revenue account with a normal credit balance.
A contra revenue account with a normal debit balance.
Hugh Snow, the buyer, returned merchandise to Farley Co., the seller.
The entry on the books of Farley company to record the return of
merchandise from Hugh Snow would include a:
Multiple Choice
Debit to Account Receivable
Debit to Accounts Payable
Debit to Sales Returns and Allowances
Credit to Sales Returns and Allowances
Merchandise is sold for cash for $1,600 plus 6 percent sales tax. The
journal entry to record the sale will include
Multiple Choice
a debit to Accounts Receivable for $1,600; a debit to Sales Tax Payable
for $96 and a credit to Sales for $1,696.
a debit to Cash for $1,600 and a credit to Sales for $1,600.

a debit to Cash for $1,696, a credit to Sales Tax Payable for $96 and a
credit to Sales for $1,600.
a debit to Accounts Receivable for $1,696 and a credit to Sales for
$1,696.
Sales Discounts 530
Sales 52,470
________________________________________
Sales 53,000
________________________________________
•
Cash 53,000
Sales 53,000
________________________________________
A wholesale business sells goods with a list price of $800 and a trade
discount of 36 percent. The net sales price is

Multiple Choice
$1,088.00.
$512.00.
$288.00.
$800.00.
The Sales Returns and Allowances account is reported
Multiple Choice
on the income statement as an addition to Sales.
on the balance sheet as a deduction from Capital.
on the income statement as a deduction from Sales.
on the balance sheet as a deduction from Accounts Receivable.
Which of the following is a common example of the distribution
channel?
Multiple Choice

Customer sells to Wholesaler who sells to Retailer who sells to
Wholesaler
Manufacturer sells to Wholesaler who sells to Retailer who sells to
Customer
Manufacturer sells to Customer who sells to Wholesaler who sells to
Retailer
Manufacturer sells to Retailer who sells to Wholesaler who sells to
Customer
Which of the following is not one of the three basic types of businesses?
Multiple Choice
Service
Manufacturing
International
Merchandising
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Note: You have only one attempt available to complete this Assignment.
Credit terms of 2/10, n/45 mean:
Multiple Choice
payment in full is due 2 days after date of the invoice.
•
if the invoice is paid within 10 days of its date, a 2% discount may be
taken; otherwise the total amount is due in 35 days.
•

if the invoice is paid within 10 days of its date, a 2% discount may be
taken; otherwise the total amount is due in 45 days.
•
payment in full is due 45 days after date of the invoice with no discount
offered.
Assuming a periodic inventory system is used, the entry to record a
return of merchandise purchased on credit would:
Multiple Choice
•
debit Purchases Returns and Allowances and credit Accounts
Receivable.
•
debit Purchases Returns and Allowances and credit Purchases.
•
debit Purchases and credit Purchases Returns and Allowances.
•
debit Accounts Payable and credit Purchases Returns and Allowances.
Assuming a periodic inventory system is used, freight charges on
merchandise purchases should be debited to:
Multiple Choice
•
the creditor’s account in the subsidiary ledger.
•

the Freight In account.
•
the Purchases account.
•
the Accounts Payable account.
Which of the following statements is ?
Multiple Choice
•
Purchases Discounts is a contra expense account with a normal credit
balance.
•
Purchases Discounts is a revenue account with a normal credit balance.
•
Purchases Discounts is an asset account with a normal credit balance.
•

Purchases Discounts is an expense account with a normal debit balance.
Multiple Choice
•
The person who ordered the goods should also authorize payment.
•
Purchase requisitions do not need to be printed on pre-numbered forms.
•
Calculations on an invoice are assumed to be if computer generated.
Assuming a periodic inventory system is used, the entry to record a
purchase of merchandise on credit includes:
Multiple Choice
•

a debit to Accounts Payable and a credit to Purchases.
•
a debit to Purchases and a credit to Accounts Receivable.
•
a credit to Purchases and a credit to Accounts Payable.
a debit to Purchases and a credit to Accounts Payable.
On Sept. 1, Jerry’s Lighting purchased merchandise with a list price of
$12,500 with credit terms of 3/5, n/60. On Sept. 3, Jerry’s returns $1,300
of the merchandise. If payment is made within the discount period, the
total amount paid by Jerry’s Lighting is:
:
DEBIT CREDIT
A) Accounts Payable 1,000

Cash 1,000
B) Accounts Reveivable 1,000
Sales Discounts 16
Cash 984
C) Accounts Payable 800
Merchandise Inventory 16
Cash 784
D) Accounts Payable 800
Purchase Discounts 16
Cash 784
________________________________________
Multiple Choice
•
Option D.

•
Option A.
•
Option B.
•
Option C.
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Assuming a periodic inventory system is used, freight charges on
merchandise purchases should be debited to:
Multiple Choice
the creditor’s account in the subsidiary ledger.
the Freight In account.
the Purchases account.
the Accounts Payable account.
Multiple Choice

Purchases Discounts is a contra expense account with a normal credit
balance.
Purchases Discounts is a revenue account with a normal credit balance.
Purchases Discounts is an asset account with a normal credit balance.
Purchases Discounts is an expense account with a normal debit balance.
D) Accounts Receivable/J.Hines 15,000
Sales 11,000
Cost of Goods Sold 4,000
________________________________________
Multiple Choice
Option C.

Option D.
Option A.
Option B.
During March a firm purchased $22,650 of merchandise and paid freight
charges of $1,720. If the net delivered cost of purchases for the March is
$21,900, what is the total purchase returns for March?
Multiple Choice
$970
$3,440
On Sept. 1, Jerry’s Lighting purchased merchandise with a list price of
$12,500 with credit terms of 3/5, n/60. On Sept. 3, Jerry’s returns $1,300
of the merchandise. If payment is made within the discount period, the
total amount paid by Jerry’s Lighting is:

Multiple Choice
11,200.
12,125.
10,864.
10,640.
Assuming a periodic inventory system is used, identify the statement
below that is ?
Multiple Choice
Freight charges that are listed on the invoice received from a supplier are
not part of the total credit to Accounts Payable to record the credit
purchase.
Another name that may be used for the Freight In account is
“Transportation In.”
Freight In is subtracted from Purchases to arrive at delivered cost of
purchases.
None of these statements are .

Freight – In is a(n) _________ account.
Multiple Choice
revenue
liability
expense
asset
On April 5, Fair Coffee, Inc. purchased merchandise with a list price of
$1,000 and credit terms 2/10, n/30. On April 6, Fair Coffee returns $200
of the merchandise. Assuming Fair Coffee uses a perpetual inventory
system, the journal entry on April 13, to record the payment of the
amount owed, would be:
DEBIT CREDIT
A) Accounts Payable 1,000
Cash 1,000

B) Accounts Reveivable 1,000
Sales Discounts 16
Cash 984
C) Accounts Payable 800
Merchandise Inventory 16
Cash 784
D) Accounts Payable 800
Purchase Discounts 16
Cash 784
________________________________________
Multiple Choice
Option D.
Option A.
Option B.
Option C.
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Which of the following statements is not correct?

Multiple Choice
•
In accounting, the term “cash” includes checks, money orders, and funds
on deposit in a bank as well as currency and coins.
•
In a well managed business, most bills are paid by cash.
•
Option A.
•
Option B.
•
Option C.
•
Option D.
The most appropriate form of endorsement of a check for business
purposes is
Multiple Choice
•
the blank endorsement.
•
the full endorsement.

•
the restrictive endorsement.
•
no endorsement.
To arrive at an accurate balance on a bank reconciliation statement, a
service charge should be
Multiple Choice
•
added to the bank statement balance.
•
deducted from the book balance.
•
deducted from the bank statement balance.
•
added to the book balance.
A check issued for $890 to pay a vendor on account was recorded in the
firm’s records as $980; the canceled check was properly listed on the
bank statement at $890. To arrive at an accurate balance on a bank
reconciliation statement, the error should be
Multiple Choice
•
•

•
•
A check issued for $1,980 to pay a vendor on account was recorded in
the firm’s records as $1,890; the canceled check was properly listed on
the bank statement at $1,980. To arrive at an accurate balance on a bank
Multiple Choice
•
•
•
•
The bank statement did not show a check for $630 that was written and
recorded by the company during the month. The journal entry needed for
this reconciling item includes:
Multiple Choice

•
a debit to cash.
•
a credit to Accounts Payable.
•
a credit to Cash.
•
no journal entry is required for the reconciling item.
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The bank statement did not show a check for $630 that was written and
recorded by the company during the month. The journal entry needed for
this reconciling item includes:
Multiple Choice
•
a credit to Accounts Payable.
•
no journal entry is required for the reconciling item.
•

a debit to cash.
•
a credit to Cash.
Included with its bank statement a firm may receive a credit
memorandum, which could indicate
Multiple Choice
•
a fee for printing new business checks.
•
a bank service charge deducted from the firm’s account balance.
•
an addition to the firm’s account balance because the bank collected the
amount due on a promissory note from a customer of the firm.
•
the bank’s return of a dishonored (NSF) check that was issued by a
credit customer of the firm.
A firm appropriately wrote a check for $78 but entered the amount as
payment of $87 in its records. On a bank reconciliation statement this
error would be shown as

Multiple Choice
•
a deduction of $9 from the book balance.
•
an addition of $9 to the book balance.
•
a deduction of $9 from the bank statement balance.
•
an addition of $9 to the bank statement balance.
Which of the following is not a reason why the book balance of cash
may not agree with the balance on the bank statement?
Multiple Choice
•

In
•
•
•
A check issued for $1,980 to pay a vendor on account was recorded in
the firm’s records as $1,890; the canceled check was properly listed on
the bank statement at $1,980. To arrive at an accurate balance on a bank
Multiple Choice
•
•
•
•
To arrive at an accurate balance on a bank reconciliation statement,
outstanding checks should be

Multiple Choice
•
•
•
•
The entry to replenish a petty cash fund typically includes
Multiple Choice
•
debits to various asset and expense accounts and a credit to Cash.
•
debits to various expense accounts and a credit to Petty Cash Fund.
•
a debit to Cash and a credit to Petty Cash.
•
a debit to Petty Cash Fund and a credit to Cash.

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Identify the statement below that is true regarding the Allowance for
Doubtful Accounts account.
Multiple Choice
•

The account has a normal credit balance and is reported on the balance
sheet.
•
The account has a normal debit balance and is reported on the balance
sheet.
•
The account has a normal credit balance and is reported on the income
statement.
•
The account has a normal debit balance and is reported on the income
statement.
On June 1, 2019, Mighty Fast Flooring issued a 10-month, 9 percent
note for $5,000. The note was recorded in the Notes Payable-Trade
account. The adjusting entry on December 31 to record the interest
accrued (owed) on the note is:
Multiple Choice
•
a debit to Interest Expense for $450.00 and a credit to Interest Payable
for $450.00.
•

a debit to Interest Income for $450.00 and a credit to Interest Receivable
for $450.00.
•
a debit to Interest Expense for $262.50 and a credit to Interest Payable
for $262.50.
Correct
•
a debit to Interest Expense for $262.50 and a credit to Notes Payable-
Trade for $262.50.
On January 1, 2019, a firm purchased machinery for $19,000.
Depreciation expense for the year ending December 31, 2019, given the
straight-line method, a 8-year useful life, and a salvage value of $2,000,
is
Multiple Choice
•
$2,125.
•
$2,000.
•

a debit to Income Summary of $28,000 and a credit to Merchandise
Inventory for $28,000.
•
a debit to Merchandise Inventory of $28,000 and a credit to Income
Summary for $28,000.
•
a debit to Purchases of $35,000 and a credit to Merchandise Inventory
for $35,000.
•
a debit to Income Summary of $35,000 and a credit to Merchandise
Inventory for $35,000.
Stan Still Stationery Store’s employees are paid every Friday for a five
day work week and are paid a total of $1,625 per day. If December 31,
2019, is on a Tuesday, the amount of the adjusting entry for accrued
wages is:
Multiple Choice
•
$1,625
•
$4,875
•
$3,250

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