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brownmoose258Lv1

28 Sep 2019

1. Describe perpetual system and periodic system [1 point] 2.Describe the Four Methods of Inventory Valuation [1 point] 3. Thetrial balance before adjustment of XYZ Company reports thefollowing balances: Dr. Cr. Accounts receivable $100,000 Allowancefor doubtful accounts $ 2,500 Sales (all on credit) 750,000 Salesreturns and allowances 40,000 Instructions Prepare the entries forestimated bad debts assuming that doubtful accounts are estimatedto be (1) 6% of gross accounts receivable and (2) 1% of net sales.[1 point] 4. During June, the following changes in inventory item29 took place: June 1 Balance 1,400 units @ $24 14 Purchased 900units @ $36 24 Purchased 700 units @ $30 8 Sold 400 units @ $50 10Sold 1,000 units @ $40 29 Sold 500 units @ $44 Perpetualinventories are maintained in units only. Instructions What is thecost of the ending inventory for item 29 under the followingmethods? (Show calculations.) (a) FIFO. [1.5 points] (b) AverageCost. [1.5 points] 5. Calculate the Cost of Goods Sold underperiodic method from the following information: [2 points] Sales58450 Sales Return 395 Purchases 35975 Purchase Discount 3590Beginning Inventory 18780 Gross Margin 25 % on Cost EndingInventory 4721 6. Sales and purchases of company XYZ for the year2010 had been $1,400,000 and $980,000, respectively. The beginninginventory (Jan. 1, 2010) was $170,000; XYZ's gross profit is 40% ofselling price. Instructions Compute the cost of ending inventory.[2 points]

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Deanna HettingerLv2

28 Sep 2019

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Related questions

Should be easy, answer question and give ashort explanation

I give 1 star if you just guess

Using the following transactions, calculatethe net income.

1. Bill Co. paid $3,700 for one month rent
2. Bill Co. paid $2,900 for two weeks wages
3. Bill Co. performed $6,900 in consulting services onaccount
4. Bill Co billed a customer $3,200 for servicesperformed
5. Bill Co. received $6,900 in payment for item 3
6. Bill Co performed services and immediately collected$3,700
7. Bill Co. paid $670 for advertising in the local paper

$10,230

On August 1, Olivera Company soldmerchandise in the amount of $4,600 to Wyne, with credit terms of3/10, n/30. The cost of the items sold is $3,700. Olivera uses theperpetual inventory system. On August 4, Wyne returns some of themerchandise. The selling price of the merchandise is $460 and thecost of the merchandise returned is $370.The entry or entries thatOlivera must make on August 4 is:

Sales returns andallowances	370
Accounts receivable		370

Sales returns andallowances	460
Accounts receivable		460

Accounts receivable	460
Sales returns and allowances		460

Sales returns andallowances	460
Accounts receivable		460
Merchandise inventory	370
Cost of goods sold		370

Accounts receivable	460
Sales returns and allowances		460
Cost of goods sold	370
Merchandise inventory		370

For the year ended December 31, 2010, Mason Company has implementedan employee bonus program equal to 7% of Mason's net income, whichemployees will share equally. Mason's net income (pre-bonus) isexpected to be $2,500,000, and bonus expense is deducted incomputing net income. What is the amount that needs to be recordedfor estimated bonus liability for 2010?

$175,000

A parcel of land is offered for sale at $151,000, is assessed fortax purposes at $113,000, is recognized by its purchasers as beingworth $141,000, and is purchased for $138,000. The land should berecorded in the purchaser's books at:

$151,000.

A company had cash sales of $49,563, credit sales of $38,576, salesreturns and allowances of $7,118 and sales discounts of $4,393. Thecompany's net sales for this period equal:

$88,139

At the end of the day, the cashregister's record shows $1,300, but the count of cash in the cashregister is $1,120. The correct entry to record the cash sales forthe day is:

Cash	180
Sales		180

Cash	1,120
Sales		1,120

Cash	1,300
Sales		1,300

Cash	1,120
Cash over and short	180
Sales		1,300

Cash	1,300
Sales		1,120
Cash over and short		180

A machine originally had an estimated useful life of 7 years, butafter 2 complete years, it was decided that the original estimateof useful life should have been 9 years. At that point theremaining cost to be depreciated should be allocated over theremaining:

4 years

What would be the account balance in the revenue ledger accountafter the following transactions?

Performed services and lefta bill	$5,000
Performed services andcollected immediately	$3,900
Performed services andbilled customer	$2,600
Performed services onaccounts	$6,800
Received partial payment onaccount	$1,900

A company sells leaf blowers for $150each. Each unit has a 3 year warranty that covers replacement ofdefective parts. It is estimated that 6% of all leaf blowers soldwill be returned under the warranty at an average cost of $15 each.During October, the company sold 300,000 leaf blowers. 600 leafblowers were serviced under the warranty during October at a totalcost of $30,000. The balance in the Estimated Warranty Liabilityaccount on October 1 was $15,000. What is the company's warrantyexpense for the month of October?

	$259,750.
	$270,000.
	$30,000.
	$300,000.
	$265,000.

turquoiseseal652

Palisade Creek Co. is a merchandising business that uses theperpetual inventory system. The account balances for Palisade CreekCo. as of May 1, 2016 (unless otherwise indicated), are asfollows:

110	Cash	$ 83,600
112	Accounts Receivable	233,900
115	Merchandise Inventory	624,400
116	Estimated Returns Inventory	28,000
117	Prepaid Insurance	16,800
118	Store Supplies	11,400
123	Store Equipment	569,500
124	Accumulated Depreciation-Store Equipment	56,700
210	Accounts Payable	96,600
211	Salaries Payable	â
212	Customers Refunds Payable	50,000
310	Lynn Tolley, Capital, June 1, 2015	685,300
311	Lynn Tolley, Drawing	135,000
312	Income Summary	â
410	Sales	5,069,000
510	Cost of Merchandise Sold	2,823,000
520	Sales Salaries Expense	664,800
521	Advertising Expense	281,000
522	Depreciation Expense	â
523	Store Supplies Expense	â
529	Miscellaneous Selling Expense	12,600
530	Office Salaries Expense	382,100
531	Rent Expense	83,700
532	Insurance Expense	â
539	Miscellaneous Administrative Expense	7,800

During May, the last month of the fiscal year, the followingtransactions were completed:

Record the following transactions on page 20 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.

May	1	Paid rent for May, $5,000.
	3	Purchased merchandise on account from Martin Co., terms 2/10,n/30, FOB shipping point, $36,000.
	4	Paid freight on purchase of May 3, $600.
	6	Sold merchandise on account to Korman Co., terms 2/10, n/30,FOB shipping point, $68,500. The cost of the merchandise sold was$41,000.
	7	Received $22,300 cash from Halstad Co. on account.
	10	Sold merchandise for cash, $54,000. The cost of the merchandisesold was $32,000.
	13	Paid for merchandise purchased on May 3.
	15	Paid advertising expense for last half of May, $11,000.
	16	Received cash from sale of May 6.
	19	Purchased merchandise for cash, $18,700.
	19	Paid $33,450 to Buttons Co. on account.
	20	Paid Korman Co. a cash refund of $13,230 for returnedmerchandise from sale of May 6. The invoice amount of the returnedmerchandise was $13,500 and the cost of the returned merchandisewas $8,000.

Record the following transactions on page 21 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.

May	20	Sold merchandise on account to Crescent Co., terms 1/10, n/30,FOB shipping point, $110,000. The cost of the merchandise sold was$70,000.
	21	For the convenience of Crescent Co., paid freight on sale ofMay 20, $2,300.
	21	Received $42,900 cash from Gee Co. on account.
	21	Purchased merchandise on account from Osterman Co., terms 1/10,n/30, FOB destination, $88,000.
	24	Returned of damaged merchandise purchased on May 21, receivinga credit memo from the seller for $5,000.
	26	Refunded cash on sales made for cash, $7,500. The cost of themerchandise returned was $4,800.
	28	Paid sales salaries of $56,000 and office salaries of$29,000.
	29	Purchased store supplies for cash, $2,400.
	30	Sold merchandise on account to Turner Co., terms 2/10, n/30,FOB shipping point, $78,750. The cost of the merchandise sold was$47,000.
	30	Received cash from sale of May 20 plus freight paid on May21.
	31	Paid for purchase of May 21, less return of May 24.

Required:

Download the spreadsheet in the Ledger panel and save the Excelfile to your computer. Use the spreadsheet to post the Maytransactions from the journal to a ledger of four-column accounts.Be sure to save your work in Excel as it will be used to completethe following steps in Part 1 of this problem as well as steps inPart 2 of this problem. Your input into the spreadsheet will not beincluded in your grade in CengageNOW on this problem.

A.	Enter the May 1 balances of each of the accounts in theappropriate balance column of a four-column account. Enter May 1 inthe date column. Write Balance in the item section, and enter âXâin the Posting Reference column.
B.	Journalize the transactions for May, starting on Page 20 of thejournal.*

Post the journal to the general ledger, extending the month-endbalances to the appropriate balance columns after all posting iscompleted. In this problem, you are not required to update or postto the accounts receivable and accounts payable subsidiary ledgers.Add the appropriate posting reference to the journal.

Prepare an unadjusted trial balance. Accounts with zerobalances can be left blank.

At the end of May, the following adjustment data wereassembled. Analyze and use these data to complete (5) and (6).

â¢

Merchandise inventory on May 31, $570,000

â¢

Insurance expired during the year, $12,000

â¢

Store supplies on hand on May 31, $4,000

â¢

Depreciation for the current year, $14,000

â¢

Accrued salaries on May 31:

Sales salaries, $7,000

Office salaries, $6,600

Total accrued salaries: $13,600

â¢

The adjustment for customer returns and allowances is $60,000for sales and $35,000 for cost of merchandise sold.

(Optional) On your own paper or spreadsheet, enter theunadjusted trial balance on a 10-column end-of-period spreadsheet(work sheet), and complete the spreadsheet. Find a blankend-of-period work sheet in the Excel spreadsheet you previouslydownloaded.

A.	Journalize the adjusting entries. Record the adjusting entrieson Page 22 of the journal.*
B.	Post the adjusting entries. Add the appropriate postingreference to the journal.

Prepare an adjusted trial balance. Accounts with zero balancescan be left blank.

* Refer to the Chart of Accounts for exact wording of accounttitles.

sapphirecod7

Billâs Lawn Care Mini Practice Part 4

In June, Bill commented to you that he could never figure outhis bank statement, âit never matches the

balance in my accounting recordsâ he tells you. So you explainthat a bank reconciliation is a tool used

to balance the bank statement to the accounting books. He givesyou his bank statement for June, 2014

(shown below). The general ledger shows a balance for theaccount cash of $14,319.00 on June 30,

2014 (detail transactions below). Billâs business only has onechecking account and no other cash

accounts.

Bill has begun to have problems collecting some of his creditaccounts and is considering writing off a

couple of customer account balances. He asks you how these baddebts should be recorded and has

asked you to begin recording bad debt using the allowance methodfor June, 2014. Selected account

balances at the end of June, 2014 are:

Sales $7,200

Sales on Credit $2,900

Accounts Receivable $3,200

As a result of increased focus on collecting accountsreceivable, Bill has decided to extend credit for one

customer, Alan Jones, who owes Billâs Lawn Care $500. Bill andAlan have agreed to a 90-day 6% note

for $500 issued on June 5, 2014.

Instructions:

1. Using the bank statement and the general ledger, prepare abank reconciliation for Billâs Lawn

Care as of June 30, 2014. Record the necessary journal entriesto adjust the books for the

appropriate reconciling items. Start with Page 6 for the journalentries. Explanations are

optional.

2. Using the information given above, calculate the amount ofbad debt using:

Using the chart of accounts, record the journal entry for baddebt expense for Billâs Lawn Care

using the percentage of sales on credit method.

3. Using the note receivable information above and the chart ofaccounts, record the following

entries in the general journal (continue these entries on Page6):

a. Percentage of Sales on Credit = 1.5%

b. Percentage of Accounts Receivable = 1%

a. Receipt of the note in payment of the accounts receivablebalance.

b. Adjusting entry at the end of June, 2014 for the notereceivable. (Round interest

calculations to two decimals)

c. Assume that Alan pays the note and interest in full on thedue date, record the necessary

journal entry. Assume that interest has been accrued at the endof each month.

d. Assume that Alan defaults on the note and interest on the duedate, record the necessary

journal entry. Assume that interest has been accrued at the endof each month.

CHECKING ACCOUNT DETAIL:

DATE	TRANSACTION TYPE & NUMBER	AMOUNT	BALANCE
BEGINNING BALANCE			$12,850.00
6/2/2014	CHECK #1570	226.00	12,624.00
6/5/2014	CHECK #1571	83.00	12,541.00
6/6/2014	EFT #43	127.00	12,414.00
6/10/2014	DEPOSIT #104	1,550.00	13,964.00
6/15/2014	CHECK #1572	145.00	13,819.00
6/15/2014	CHECK #1573	185.00	13,634.00
6/20/2014	DEPOSIT #105	885.00	14,519.00
6/24/2014	EFT #44	143.00	14,376.00
6/28/2014	CHECK #1574	87.00	14,289.00
6/28/2014	CHECK #1575	95.00	14,194.00
6/30/2014	DEPOSIT #106	425.00	14,619.00
6/30/2014	CHECK #1576	155.00	14,464.00
6/30/2014	CHECK #1577	145.00	$14,319.00

BANK STATEMENT:

FIRST NATIONAL BANK
ACCOUNT SUMMARY JUNE 30, 2014
BEGINNING BALANCE	$12,850.00
PAYMENTS	$1,021.00
DEPOSITS	2,440.00
FEES	20.00
ENDING BALANCE	$14,249.00
PAYMENTS
DATE	REFERENCE	AMOUNT
6/5/2014	1570	$266.00
6/9/2014	1571	83.00
6/10/2014	43	127.00
6/19/2014	1572	145.00
6/28/2014	1573	185.00
6/28/2014	NSF	120.00
6/30/2014	1575	95.00
TOTAL PAYMENTS		$1,021.00
DEPOSITS
DATE	REFERENCE	AMOUNT
6/11/2014	104	$1,550.00
6/23/2014	105	885.00
6/30/2014	INTEREST	5.00
TOTAL DEPOSITS		$2,440.00
FEES
6/30/2014	SVC CHG	$20.00
TOTAL FEES		$20.00

Additional Information: Check #1570 waswritten for $266.00, but was recorded incorrectlyin the general ledger. The check was for fuel.

Billâs Lawn Care

Chart of Accounts

Classification	Account Number	Account Name
ASSETS	101	Cash
	110	Accounts Receivable
	112	Allowance for Doubtful Accounts
	115	Notes Receivable
	116	Interest Receivable
	120	Supplies
	130	Prepaid Insurance
	140	Inventory
	150	Equipment
	155	Accumulated Depreciation â Equipment
LIABILITIES	201	Accounts Payable
	220	Notes Payable
	225	Interest Payable
OWNERâS EQUITY	301	Ownerâs Capital
	305	Ownerâs Drawings
	310	Income Summary
REVENUES	401	Lawn Service Revenue
	410	Sales Revenue
	415	Sales Returns and Allowances
	420	Interest Income
COST OF GOODS SOLD	501	Purchases
	505	Purchase Returns and Allowances
EXPENSES	620	Supplies Expense
	630	Fuel Expense
	640	Repair and Maintenance Expense
	650	Advertising Expense
	660	Insurance Expense
	670	Depreciation Expense
	680	Interest Expense
	690	Bad Debt Expense
	695	Miscellaneous Expense