ACCT I S 100 Study Guide - Accounts Receivable, Asset, Profit Margin

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amethystgrasshopper107

30 Oct 2014

School

UW-Madison

Department

Accounting And Info Systems

Course

ACCT I S 100

Professor

All

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Document Summary

Each adjusting entry will affect one or more statement of earnings accounts and one or more balance sheet accounts: adjusting entries never include the cash account. Interest face value annual interest rate time in terms of one year. Update the retained earnings account by transferring net earnings (loss) and dividends to retained earnings. Prepare the temporary accounts (revenue, expense, dividends) for the next period"s postings by reducing their balances to zero. Adjustment of inventory cost of goods sold to lower physical count amount. Errors should be offset (added or deducted) on the side that made the error. 1: adjusting journal entries should only be made on the book side. Optional steps: if a work sheet is prepared, steps 4, 5, and 6 are incorporated in the work sheet. If reversing entries are prepared, they occur between steps 9 and 1. Net book value at beginning of year straight-line rate. Straight-line rate 1 useful life (in years)

Related Questions

Choose the best definition for each item.

A cash (also called sales) discount

Answer 1
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - SalesDiscounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

The gross profit percentage

Answer 2
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - SalesDiscounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

A perpetual inventory system

Answer 3
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - SalesDiscounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

Net sales

Answer 4
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - SalesDiscounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

When a sale of merchandise is made

Answer 5
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - SalesDiscounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

The operating cycle of a merchadiser

Answer 6
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - SalesDiscounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

Goods purchased FOB shipping point

Answer 7
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - SalesDiscounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

plumbuffalo108

Nov.	3	Instructions: Journalize the transactions below (credit and debit) Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers. 25%, terms FOB destination Freight terms in which the seller pays the transportation costs from the shipping point to the final destination. , 2/10, n/30.
	4	Sold merchandise for cash, $36,900. The cost of the goods sold The cost that is reported as an expense when merchandise is sold. was $20,480.
	5	Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping point Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination. , 2/10, n/30, with prepaid freight of $750 added to the invoice The bill that the seller sends to the buyer. .
	6	Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510.
	13	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
	14	Sold merchandise on VISA, $239,110. The cost of the goods sold was $137,270.
	15	Paid Papoose Creek Co. on account for purchase of November 5.
	23	Received cash on account from sale of November 8 to Quinn Co.
	24	Sold merchandise on account to Rabel Co., $57,100, terms 1/10, n/30. The cost of the goods sold was $32,270.
	28	Paid VISA service fee of $3,700.
	30	Paid Quinn Co. a cash refund of $5,960 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,290.

pucewildebeest226

Nakashima Gallery had the following petty cash transactions inFebruary of the current year.

Feb.	2	Wrote a $400 check, cashed it, and gave the proceeds and thepetty cashbox to Chloe Addison, the petty cashier.
	5	Purchased bond paper for the copier for $14.15 that isimmediately used.
	9	Paid $32.50 COD shipping charges on merchandise purchased forresale, terms FOB shipping point. Nakashima uses the perpetualsystem to account for merchandise inventory.
	12	Paid $7.95 postage to express mail a contract to a client.
	14	Reimbursed Adina Sharon, the manager, $68 for business mileageon her car.
	20	Purchased stationery for $67.77 that is immediately used.
	23	Paid a courier $20 to deliver merchandise sold to a customer,terms FOB destination.
	25	Paid $13.10 COD shipping charges on merchandise purchased forresale, terms FOB shipping point.
	27	Paid $54 for postage expenses.
	28	The fund had $120.42 remaining in the petty cash box. Sorted thepetty cash receipts by accounts affected and exchanged them for acheck to reimburse the fund for expenditures.
	28	The petty cash fund amount is increased by $100 to a total of$500.

Required:
1.	Prepare the journal entry to establish the petty cash fund.

Prepare a petty cash payments report for February with thesecategories: delivery expense, mileage expense, postage expense,merchandise inventory (for transportation-in), and office suppliesexpense. Sort the payments into the appropriate categories andtotal the expenditures in each category. (Round youranswers to 2 decimal places.)

3. Prepare the journal entries for part 2 to both (a)reimburse and (b) increase the fund amount.(Roundyour answers to 2 decimal places.)

skysnake675

ACCT I S 100 Study Guide - Accounts Receivable, Asset, Profit Margin

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