ACCT 2001 Study Guide - Quiz Guide: Institute For Operations Research And The Management Sciences

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15 Oct 2018

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ACCT 2001 Full Course Notes

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Class 15 review exercise (answer these questions and check answers as soon as possible after each class) On august 18, 2011, manning company, the seller, sold harrison ,000 of merchandise, terms net 30. If a 10%, 60-day note receivable is acquired from a customer in settlement of an existing account receivable of ,000, the accounting entry for acquisition of the note will: none of the above. Include a debit to notes receivable for ,300. Include a credit to interest revenue for . Include a debit to notes receivable for ,000 and no entry for interest. Include a debit to notes receivable for ,800: brooks company received a 60-day, 15% note for ,000 on june 16. The maturity value of this note is ,225: on november 1, eads corporation sold merchandise in return for a 12%, 90-day note receivable in the amount of ,000.

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Project 2: Review of Merchandising Cycle [The following information applies to the questions displayed below.] Wallyâs Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: Cash $ 21,470 Unearned Revenue (25 units) $ 5,300 Accounts Receivable $ 12,500 Accounts Payable (Jan Rent) $ 3,200 Allowance for Doubtful Accounts $ (1,850) Notes Payable $ 15,500 Inventory (30 units) $ 2,400 Contributed Capital $ 6,900 Retained Earnings â Feb 1, 2012 $ 3,620 â¢ WWC establishes a policy that it will sell inventory at $165 per unit. â¢ In January, WWC received a $5,300 advance for 25 units, as reflected in Unearned Revenue. â¢ WWCâs February 1 inventory balance consisted of 30 units at a total cost of $2,400. â¢ WWCâs note payable accrues interest at a 12% annual rate. â¢ WWC will use the FIFO inventory method and record COGS on a perpetual basis. February Transactions 02/01 Included in WWCâs February 1 Accounts Receivable balance is a $1,700 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,700 balance to a note, and Kit Kat signs a 6-month note, at 9% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. 02/02 WWC paid a $600 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 170 units of inventory are purchased on account by WWC for $12,750 â terms 2/15, n30. 02/05 WWC paid Federal Express $510 to have the 170 units of inventory delivered overnight. Delivery occurred on 02/06. 02/10 Sales of 140 units of inventory occurred during the period of 02/07 â 02/10. The sales terms are 2/10, net 30. 02/15 The 25 units that were paid for in advance and recorded in January are delivered to the customer. 02/15 20 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,700. 02/17 Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs. 02/18 Wrote off a customerâs account in the amount of $1,950. 02/19 $6,400 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. 02/19 Collected $9,900 of customersâ Accounts Receivable. Of the $9,900, the discount was taken by customers on $7,500 of account balances; therefore WWC received less than $9,900. 02/26 WWC recovered $590 cash from the customer whose account had previously been written off (see 02/18). 02/27 A $900 utility bill for February arrived. It is due on March 15 and will be paid then. 02/28 WWC declared and paid a $850 cash dividend. Adjusting Entries: 02/29 Record the $2,700 employee salary that is owed but will be paid March 1. 02/29 WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February interest expense accrued on the note payable. 02/29 Record one monthâs interest earned Kit Katâs note (see 02/01). Journal Entries, Balance Sheet and Income statement please.

sangriaturtle634

Wallyâs Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows:


Cash	$	21,620	Unearned Revenue (30 units)	$	5,350
Accounts Receivable	$	12,650	Accounts Payable (Jan Rent)	$	3,300
Allowance for Doubtful Accounts	$	(1,900)	Notes Payable	$	16,000
Inventory (35 units)	$	2,800	Contributed Capital	$	7,000
			Retained Earnings â Feb 1, 2012	$	3,520

â¢	WWC establishes a policy that it will sell inventory at $180 per unit.
â¢	In January, WWC received a $5,350 advance for 30 units, as reflected in Unearned Revenue.
â¢	WWCâs February 1 inventory balance consisted of 35 units at a total cost of $2,800.
â¢	WWCâs note payable accrues interest at a 12% annual rate.
â¢	WWC will use the FIFO inventory method and record COGS on a perpetual basis.

February Transactions
02/01	Included in WWCâs February 1 Accounts Receivable balance is a $1,400 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,400 balance to a note, and Kit Kat signs a 6-month note, at 12% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012.
02/02	WWC paid a $650 insurance premium covering the month of February. The amount paid is recorded directly as an expense.
02/05	An additional 180 units of inventory are purchased on account by WWC for $13,500 â terms 2/15, n30.
02/05	WWC paid Federal Express $360 to have the 180 units of inventory delivered overnight. Delivery occurred on 02/06.
02/10	Sales of 150 units of inventory occurred during the period of 02/07 â 02/10. The sales terms are 2/10, net 30.
02/15	The 30 units that were paid for in advance and recorded in January are delivered to the customer.
02/15	25 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase.
02/16	WWC pays the first 2 weeks wages to the employees. The total paid is $2,800.
02/17	Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs.
02/18	Wrote off a customerâs account in the amount of $2,000.
02/19	$6,600 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense.
02/19	Collected $10,000 of customersâ Accounts Receivable. Of the $10,000, the discount was taken by customers on $8,000 of account balances; therefore WWC received less than $10,000.
02/26	WWC recovered $600 cash from the customer whose account had previously been written off (see 02/18).
02/27	A $950 utility bill for February arrived. It is due on March 15 and will be paid then.
02/28	WWC declared and paid a $950 cash dividend.

Adjusting Entries:

02/29	Record the $2,800 employee salary that is owed but will be paid March 1.
02/29	WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts.
02/29	Record February interest expense accrued on the note payable.
02/29	Record one monthâs interest earned Kit Katâs note (see 02/01).

1-a.

Prepare all February journal entries and adjusting entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1-b.

Post all February entries (transactions and adjustments) to the T-accounts.

1-c.

Prepare the financial statements at the end of February. (Balance Sheet only, items to be deducted must be indicated with a negative amount.)

harlequinbuffalo618

Project 2: Review of Merchandising Cycle

[The following information applies to the questions displayed below.]


Cash	$	21,320	Unearned Revenue (45 units)	$	5,250
Accounts Receivable	$	12,350	Accounts Payable (Jan Rent)	$	3,100
Allowance for Doubtful Accounts	$	(1,800)	Notes Payable	$	15,000
Inventory (50 units)	$	4,250	Contributed Capital	$	6,800
			Retained Earnings â Feb 1, 2012	$	5,970

â¢	WWC establishes a policy that it will sell inventory at $175 per unit.
â¢	In January, WWC received a $5,250 advance for 45 units, as reflected in Unearned Revenue.
â¢	WWCâs February 1 inventory balance consisted of 50 units at a total cost of $4,250.
â¢	WWCâs note payable accrues interest at a 12% annual rate.
â¢	WWC will use the FIFO inventory method and record COGS on a perpetual basis.

February Transactions
02/01	Included in WWCâs February 1 Accounts Receivable balance is a $1,600 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,600 balance to a note, and Kit Kat signs a 6-month note, at 12% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012.
02/02	WWC paid a $950 insurance premium covering the month of February. The amount paid is recorded directly as an expense.
02/05	An additional 160 units of inventory are purchased on account by WWC for $12,000 â terms 2/15, n30.
02/05	WWC paid Federal Express $320 to have the 160 units of inventory delivered overnight. Delivery occurred on 02/06.
02/10	Sales of 130 units of inventory occurred during the period of 02/07 â 02/10. The sales terms are 2/10, net 30.
02/15	The 45 units that were paid for in advance and recorded in January are delivered to the customer.
02/15	15 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase.
02/16	WWC pays the first 2 weeks wages to the employees. The total paid is $2,600.
02/17	Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs.
02/18	Wrote off a customerâs account in the amount of $1,900.
02/19	$6,200 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense.
02/19	Collected $9,800 of customersâ Accounts Receivable. Of the $9,800, the discount was taken by customers on $7,000 of account balances; therefore WWC received less than $9,800.
02/26	WWC recovered $580 cash from the customer whose account had previously been written off (see 02/18).
02/27	A $850 utility bill for February arrived. It is due on March 15 and will be paid then.
02/28	WWC declared and paid a $750 cash dividend.

Adjusting Entries:

02/29	Record the $2,600 employee salary that is owed but will be paid March 1.
02/29	WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts.
02/29	Record February interest expense accrued on the note payable.
02/29	Record one monthâs interest earned Kit Katâs note (see 02/01). feb 15c. Record the 15 units of inventory returned

Feb 15d. Record the sales return and allowance. (keep getting this one wrong)

Feb 29b.WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts

cerisesnake518

ACCT 2001 Study Guide - Quiz Guide: Institute For Operations Research And The Management Sciences

ACCT 2001 Full Course Notes

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