1. value: 3.34 points Following are selected transactions Deshawn Company for 2010 and 2011. 2010   Dec. 13   Accepted a $28,000, 45-day, 7% note dated December 13 in granting Latisha Clark a time extension on her past-due account receivable. 31   Prepared an adjusting entry to record the accrued interest on the Clark note. 2011   Jan. 27   Received Clark’s payment for principal and interest on the note dated December 13.   Mar. 3   Accepted a $22,000, 10%, 90-day note dated March 3 in granting a time extension on the pastdue account receivable of Shandi Company. 17   Accepted a $20,000, 30-day, 8% note dated March 17 in granting Juan Torres a time extension on his past-due account receivable.   Apr. 16   Torres dishonors his note when presented for payment.   May 1   Wrote off the Torres account against the Allowance for Doubtful Accounts.  June 1   Received the Shandi payment for principal and interest on the note dated March 3. Prepare journal entries for the above transactions for 2011. (Use 360 days a year. Do not round intermediate calculations and round your final answers to nearest dollar amount. Omit the "$" sign in your response.) Date General Journal Debit Credit 2011   Jan. 27     Mar. 3   17     Apr. 16     May 1     June 1   2. value: 3.33 points Hawk Company establishes a $360 petty cash fund on September 9. On September 30, the fund shows $89 in cash along with receipts for the following expenditures: transportation-in, $53; postage expenses, $54; and miscellaneous expenses, $153. The petty cashier could not account for a $11 shortage in the fund. Hawk uses the perpetual system in accounting for merchandise inventory. (1) Prepare the September 9 entry to establish the fund. (Omit the "$" sign in your response.) Date General Journal Debit Credit Sept. 9 (2) Prepare the September 30 entry to reimburse the fund. (Omit the "$" sign in your response.) Date General Journal Debit Credit Sept. 30 (3) Prepare an October 1 entry to decrease the fund to $315. (Omit the "$" sign in your response.) Date General Journal Debit Credit Oct. 1 3. value: 3.33 points Frederick Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2011, its Cash account shows a $14,853 debit balance. Frederick Clinic's June 30 bank statement shows $14,746 on deposit in the bank. a. Outstanding checks as of June 30 total $2,295. b. The June 30 bank statement included a $65 debit memorandum for bank services. c. Check No. 919, listed with the canceled checks, was correctly drawn for $389 in payment of a utility bill on June 15. Frederick Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $398. d. The June 30 cash receipts of $2,346 were placed in the bank's night deposito.

1. 1.
value:
3.34 points
Following are selected transactions Deshawn Company for 2010
and 2011.
2010
Dec.
13
Accepted a $28,000, 45-day, 7% note dated December 13 in
granting Latisha Clark a time extension on her past-due account
receivable.
31
Prepared an adjusting entry to record the accrued interest on the
Clark note.
2011
Jan.
27
Received Clark’s payment for principal and interest on the note
dated December 13.
Mar.
3
Accepted a $22,000, 10%, 90-day note dated March 3 in
granting a time extension on the pastdue account receivable of
Shandi Company.
17
Accepted a $20,000, 30-day, 8% note dated March 17 in
granting Juan Torres a time extension on his past-due account

2. receivable.
Apr.
16
Torres dishonors his note when presented for payment.
May
1
Wrote off the Torres account against the Allowance for
Doubtful Accounts.
June
1
Received the Shandi payment for principal and interest on the
note dated March 3.
Prepare journal entries for the above transactions for 2011. (Use
360 days a year. Do not round intermediate calculations and
round your final answers to nearest dollar amount. Omit the "$"
sign in your response.)
Date
General Journal
Debit
Credit
2011
Jan.
27

3. Mar.
3
17

4. Apr.
16
May
1

5. June
1
2.
value:
3.33 points
Hawk Company establishes a $360 petty cash fund on
September 9. On September 30, the fund shows $89 in cash
along with receipts for the following expenditures:
transportation-in, $53; postage expenses, $54; and
miscellaneous expenses, $153. The petty cashier could not
account for a $11 shortage in the fund. Hawk uses the perpetual

6. system in accounting for merchandise inventory.
(1)
Prepare the September 9 entry to establish the fund. (Omit the
"$" sign in your response.)
Date
General Journal
Debit
Credit
Sept. 9
(2)
Prepare the September 30 entry to reimburse the fund. (Omit the
"$" sign in your response.)
Date
General Journal
Debit
Credit
Sept. 30

7. (3)
Prepare an October 1 entry to decrease the fund to $315. (Omit
the "$" sign in your response.)
Date
General Journal
Debit
Credit
Oct. 1
3.
value:

8. 3.33 points
Frederick Clinic deposits all cash receipts on the day when they
are received and it makes all cash payments by check. At the
close of business on June 30, 2011, its Cash account shows a
$14,853 debit balance. Frederick Clinic's June 30 bank
statement shows $14,746 on deposit in the bank.
a.
Outstanding checks as of June 30 total $2,295.
b.
The June 30 bank statement included a $65 debit memorandum
for bank services.
c.
Check No. 919, listed with the canceled checks, was correctly
drawn for $389 in payment of a utility bill on June 15.
Frederick Clinic mistakenly recorded it with a debit to Utilities
Expense and a credit to Cash in the amount of $398.
d.
The June 30 cash receipts of $2,346 were placed in the bank's
night depository after banking hours and were not recorded on
the June 30 bank statement.
Prepare a bank reconciliation for Frederick Clinic using the
above information (Input all amounts as positive values. Omit
the "$" sign in your response):
FREDERICK CLINIC
Bank Reconciliation
June 30, 2011
$
$
Add

9. Add
Deduct
Deduct
Adjusted bank balance
$

10. Adjusted book balance
$
check my workeBoo
4.
value:
3.33 points
Frederick Clinic deposits all cash receipts on the day when they
are received and it makes all cash payments by check. At the
close of business on June 30, 2011, its Cash account shows a
$13,551 debit balance. Frederick Clinic's June 30 bank
statement shows $12,803 on deposit in the bank.
a.
Outstanding checks as of June 30 total $2,076.
b.
The June 30 bank statement included a $65 debit memorandum
for bank services.
c.
Check No. 919, listed with the canceled checks, was correctly
drawn for $474 in payment of a utility bill on June 15.
Frederick Clinic mistakenly recorded it with a debit to Utilities
Expense and a credit to Cash in the amount of $511.
d.

11. The June 30 cash receipts of $2,796 were placed in the bank's
night depository after banking hours and were not recorded on
the June 30 bank statement.
Prepare the adjusting journal entries that Frederick Clinic must
record as a result of preparing the bank reconciliation. (Omit
the "$" sign in your response.)
Date
General Journal
Debit
Credit
June 30
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12. 5.
value:
3.33 points
The following information is from the annual financial
statements of Waseem Company.
2011
2010
2009
Net sales
$
302,000
$
233,000
$
283,000
Accounts receivable, net (year-end)
31,400
29,200
25,900

13. Compute its accounts receivable turnover for 2010 and
2011. (Round your answers to one decimal place.)
Accounts receivable
turnover
2010
times
2011
times
[The following information applies to the questions displayed
below.]
Sami Company recorded the following selected transactions
during November 2011:
Date
General Journal
Debit
Credit
Nov. 5
Accounts Receivable—Surf Shop
4,591
Sales
4,591

14. 10
Accounts Receivable—Yum Enterprises
1,508
Sales
1,508
13
Accounts Receivable—Matt Albin
884
Sales
884
21
Sales Returns and Allowances
228
Accounts Receivable—Matt Albin
228

15. 30
Accounts Receivable—Surf Shop
3,144
Sales
3,144
references
6.
value:
3.33 points
1.
Prepare a general ledger having T-accounts for Accounts
Receivable, Sales, and Sales Returns and Allowances. Also
open an accounts receivable subsidiary ledger having a T-
account for each customer. Post these entries to both the general
ledger and the accounts receivable ledger. (Record the
transactions in the given order. Omit the "$" sign in your
response.)
General Ledger
Accounts Receivable

16. Bal.

17. Sales
Sales Returns and Allowances

18. Accounts Receivable Ledger
Surf Shop
Bal.

19. Yum Enterprises
Matt Albin
Bal.

20. check my workeBook LinkView Hint #1references
7.
value:
3.33 points
2.
Prepare a schedule of accounts receivable. (Omit the "$" sign in
your response.)
Sami Company
Schedule of Accounts Receivable
November 30, 2011
$
Total
$

21. 8.
value:
3.33 points
Following are selected transactions Deshawn Company for
2010.
Dec.
13
Accepted a $28,000, 45-day, 7% note dated December 13 in
granting Latisha Clark a time extension on her past-due account
receivable.
31
Prepared an adjusting entry to record the accrued interest on the
Clark note.
Prepare journal entries for the above transactions. (Use 360
days a year. Do not round intermediate calculations and round
your final answers to the nearest dollar amount. Omit the "$"
sign in your response.)
Date
General Journal
Debit
Credit
2010

22. Dec.
13
31
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9.
value:
3.34 points
On June 30, Roman Co. has $154,700 of accounts receivable.
July

23. 4
Sold $8,810 of merchandise (that had cost $5,638) to customers
on credit.
9
Sold $21,658 of accounts receivable to Center Bank. Center
charges a 5% factoring fee.
17
Received $4,846 cash from customers in payment on their
accounts.
27
Borrowed $12,376 cash from Center Bank, pledging $16,089 of
accounts receivable as security for the loan.
Prepare journal entries to record the above selected July
transactions. (The company uses the perpetual inventory
system.) (Do not round intermediate calculations and round
your final answers to the nearest dollar amount. Omit the "$"
sign in your response.)
Date
General Journal
Debit
Credit
July
4

24. 9

25. 17
27
check my workeBook
Top of Form
10.
value:

26. 3.34 points
Diablo Company applies the direct write-off method in
accounting for uncollectible accounts.
June
11
Diablo determines that it cannot collect $9,200 of its accounts
receivable from its customer Chaffey Company.
29
Chaffey Company unexpectedly pays its account in full to
Diablo Company. Diablo records its recovery of this bad debt.
Prepare journal entries to record the above selected transactions
of Diablo. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
June
11

27. 29
29
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Q11
At year-end (December 31), Alvare Company estimates its bad
debts as 0.40% of its annual credit sales of $686,000. Alvare
records its Bad Debts Expense for that estimate. On the

28. following February 1, Alvare decides that the $343 account of
P. Coble is uncollectible and writes it off as a bad debt. On June
5, Coble unexpectedly pays the amount previously written off.
Prepare the journal entries of Alvare to record these
transactions and events of December 31, February 1, and June
5. (Omit the "$" sign in your response.)
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