1. UOP ACC 422 Week 2 WileyPLUS Assignment
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Exercise 7-2
Presented below are a number of independent
situations.
For each individual situation, determine the
amount that should be reported as cash.
1. Checking account balance $929,070; certificate
2. of deposit $1,417,000; cash advance to subsidiary
of $992,770; utility deposit paid to gas company
$198.
2. Checking account balance $503,630; an
overdraft in special checking account at same bank
as normal checking account of $20,900; cash held
in a bond sinking fund $235,120; petty cash fund
$332; coins and currency on hand $1,460.
3. Checking account balance $606,360; postdated
check from a customer $11,450; cash restricted
due to maintaining compensating balance
requirement of $119,770; certified check from
customer $9,610; postage stamps on hand $642.
4. Checking account balance at bank $46,660;
money market balance at mutual fund (has
checking privileges) $49,520; NSF check received
from customer $845.
5. Checking account balance $703,110; cash
restricted for future plant expansion $516,120;
short-term Treasury bills $187,700; cash advance
received from customer $986 (not included in
checking account balance); cash advance of $7,540
to company executive, payable on demand;
refundable deposit of $29,900 paid to federal
3. government to guarantee performance on
construction contract.
Exercise 7-8
At the end of 2012, Sorter Company has accounts
receivable of $854,470 and an allowance for
doubtful accounts of $47,360. On January 16, 2013,
Sorter Company determined that its receivable
from Ordonez Company of $6,240 will not be
collected, and management authorized its writeoff.
(a) Prepare the journal entry for Sorter Company
to write off the Ordonez receivable. (Credit
account titles are automatically indented when the
amount is entered. Do not indent manually.)
(b) What is the net realizable value of Sorter
Company's accounts receivable before the writeoff
of the Ordonez receivable?
(c) What is the net realizable value of Sorter
Company's accounts receivable after the write-off
of the Ordonez receivable?
4. Exercise 8-5
Werth Company asks you to review its December
31, 2012, inventory values and prepare the
necessary adjustments to the books. The
following information is given to you.
1.
2.
Included in inventory is merchandise sold to
Bubbey on December 30, f.o.b. destination. This
merchandise was shipped after it was counted. 3.
The invoice was prepared and recorded as a sale
on account for $18,970 on December 31. The
merchandise cost $10,893, and Bubbey received it
on January 3.
Werth uses the periodic method of recording
inventory. A physical count reveals $348,107 of
inventory on hand at December 31, 2012.
Not included in the physical count of inventory
is $15,442 of merchandise purchased on
December 15 from Browser. This merchandise
was shipped f.o.b. shipping point on December
29 and arrived in January. The invoice arrived
and was recorded on December 31.
5. Included in inventory was merchandise
received from Dudley on December 31 with an 4.
invoice price of $23,164. The merchandise was
shipped f.o.b. destination. The invoice, which has
not yet arrived, has not been recorded.
Not included in inventory is $12,656 of
merchandise purchased from Minsky £ Industries.
This merchandise was received on . December 31
after the inventory had been counted. The invoice
was received and recorded
on December 30.
Included in inventory was $15,469 of
inventory
6. held by Werth on consignment from
Jackel
Industries.
Included in inventory is merchandise sold
to Sims f.o.b. shipping point. This merchandise was
shipped after it was counted. The invoice was
7. prepared and recorded as a sale for
$28,010 on December 31. The cost of this
merchandise was $17,073, and Sims received the
merchandise on
January 5.
Excluded from inventory was a carton
labeled
8. “Please accept for credit.” This carton
contains
merchandise costing $2,223 which had
6. made to the books to reflect the return, but
none of the returned merchandise seemed
damaged.
(a) Determine the proper inventory balance for
Werth Company at December 31, 2012.
(b) Prepare any correcting entries to adjust
inventory to its proper amount at December 31,
2012. Assume the books have not been closed. (If
no entry is required, select "No entry" for the
account titles and enter 0 for the amounts. Credit
account titles are automatically indented when
amount is entered. Do not indent manually.)
Exercise 8-14
LoBianco Company's record of transactions for the
month of April was as follows.
Purchases Sales
April 1 (balance on hand) 774 @ $5
. 0
April 3 645 @ $8
4 1,935 @ 5.2 9 1,677 @ 8
8 1,032 @ 5.5 11 774 @ 10
13 1,548 @ 5.8 23
1,54
8 @
1
0
21 903 @ 5.9 27 1,161 @ 13
7. 29 645 @ 6.2 5,805
6,837
Calculate average cost per unit. (Round average
cost per unit to 2 decimal places, e.g. $2.76.)
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