Accounting 20
Module 1
Assignment 4
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Reserved
Accounting 20
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Assignment 4
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Assignment 4
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Assignment 4
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Assignment 4
Assignment 4
(30)
Accounting 20
A.
Multiple Choice
B.
Problems
(10)
Problem 1 follows
(12)
Problem 2 follows
(13)
Problem 3 follows
(20)
Problem 4 follows
(15)
______
(100)
Problem 5 follows
231
Assignment 4
Problem 1
The summary of transactions below represents the dental fees charged to
various patients of Dr. Lien Chang’s dental practice for the month of
December, 20__.
Dec.
2
0001 To Mr. H. Vandenberk for dental services rendered to Mrs.
Vandenberk. Total fee for E CL XR, $103.
3
0002 To Mr. H. Vandenberk for dental services rendered to the two children:
Roberta, E CL XR, $73; Tom, XR 1WF, $52.
4
0003 To Mr. Geoff Dean, XR WF, $43.
4
0004 To Mr. H. Vandenberk, E CL, $103.
8
0005 To Mrs. E. Revell, for E XR and EN (endontics), $252.
10
0006 To Mr. T. Murphy, for 2WF, $44.
14
0007 To Mr. B. Gibson, $143, for dental services performed on two children:
Don, for CL, $40; David, for E CL, $103.00.
15
0008 To Mrs. Vandenberk, spouse of H. Vandenberk, for 2 WF, $63.
16
0009 To Ms. M. Kingsbury, for CR, $600.
17
0010 To Ms. C. Pratt, for BR, $280.
22
0011 To Mr. Jack Wilson, for E CL, $103.
24
0012 To Ms. B. Johnson, for lab fee, $195.
30
0013 To Mrs. J. Borron, spouse of Mr. Wm. Borron, for E Cl, $103.
31
0014 To Mr. Wm. Borron, for E CL, $103.
Instructions: Record the same transactions on page 5 of a Fees Earned Journal.
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Assignment 4
Problem 2
Refer to Problem 1 (Dr. Lien Chang’s dental practice) and the solution for
that problem.
Instructions:
a.
List all the patients identified in the December transactions. Then arrange the
names in alphabetical order.
b.
From that list, set up an Accounts Receivable Ledger in T-account form.
c.
Post the transactions from the Fees Earned Journal to the T-accounts set up for the
Accounts Receivable Ledger.
d.
Set up a patient’s ledger card for Mr. H. Vandenberk. Post the transactions from
the Fees Earned Journal to this account.
e.
Total the Fees Earned Journal and show this total journalized for the month of
December. Then rule the journal for the month.
f.
Set up the two appropriate General Ledger accounts and post the total from the
Fees Earned Journal to these accounts.
Problem 3
The transactions below represent the cash received from various patients of
Dr. Lien Chang’s dental practice for the month of December, 20__.
Dec.
4
0003 Received $43 in cash from Mr. Geoff Dean in full settlement for the
dental services rendered today.
17
0013 Received a cheque for $80 from Ms. C. Pratt in part payment of the
dental fee charged today.
31
0025 Received a cheque for $100 from Mr. H. Vandenberk in part payment
of his account.
31
0026 Received a cheque for $103 from Mr. Jack Wilson in full settlement of
account.
31
0028 Received a cheque for $252 from Ms. E. Revell in full settlement of
account.
31
0030 Received a cheque for $44 from Mr. T. Murphy in full settlement of
account.
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Assignment 4
Dec.
31
0032 Mr. B. Gibson appeared at the office to pay $50 cash in part payment
of his account.
31
0033 Received a cheque for $100 from Ms. M. Kingsbury in part payment of
her account.
Instructions:
a.
Record the transactions above in a Cash Receipts Journal, page 1.
b.
Use the T-accounts in the Accounts Receivable Ledger solved for Problem 2 to post
the transactions from the Cash Receipts Journal to the individual patient accounts.
Calculate the balance in each T-account on December 31.
c.
Use the patient’s ledger card set up for Mr. H. Vandenberk in Problem 2 to show
how this family card would receive the appropriate posting from the Cash Receipts
Journal.
d.
Check the addition of the Cash Receipts Journal using an adding machine tape or
the footing procedure. Total and record the appropriate double entry for this total,
then rule the Cash Receipts Journal for the month.
e.
Post the month-end total from the Cash Receipts Journal to the General Ledger.
Note: The Cash account shows a balance of $10 000. Check the solution to Problem
2 for the correct balance forward for Accounts Receivable DR.
Problem 4
On March 1, Dr. Robert Wong, D.D.S., acquired a dental practice from a
retired dentist. Dr. Wong’s opening balance sheet revealed the following:
Cash, $50 000; Accounts Receivable, $1 075; Dental Supplies on Hand,
$5 000, Dental Equipment, $70 000; Office Equipment, $5 000; Furniture,
$2 600; Bank Loan Payable, $35 000.
Instructions:
a.
In a General Journal, page 4, make the opening entry to record the assets,
liabilities, and owner’s equity reported in the opening balance sheet of March 1.
b.
Open the following General Ledger accounts with account numbers as indicated in
parentheses: Cash (101), Accounts Receivable (103), Dental Supplies on Hand
(105), Dental Equipment (110), Office Equipment (112), Furniture (114), Bank Loan
Payable (201), Robert Wong, Capital (301), Professional Fees Earned (401).
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Assignment 4
c.
Post the opening entry from the General Journal to the appropriate accounts in the
General Ledger.
d.
Set up separate patient accounts receivable cards to make up the Accounts
Receivable Ledger for the following patients (names in parentheses represent the
other family members): Mr. J. M. Boersema (Mrs.), Mrs. Helen Dye, Ms. Janet
Gamble (new patient), Mr. R. Mandel (Mrs., Betty, Barbara), Ms. Pat Nash (new
patient). For each patient, invent appropriate street and city or town addresses.
e.
For each old patient account acquired by the business, record the following balance
forward as of March 1: Mr. J. M. Boersema, balance of $100; Mrs. Helen Dye,
balance of $250; Mr. R. Mandel, balance of $725.
Keep all forms for use in the next question.
Problem 5
The transactions below represent the dental fees charged and the cash
received from the various patients of Dr. Robert Wong’s dental practice for
the month of March, 20__.
Mar.
3
1001 Received cheque for $100 from Mr. J. M. Boersema in full settlement of
account.
6
1002 Mr. R. Mandel. E CL, total fee of $103. No payment was received.
7
1003 Ms. Janet Gamble. Total fee of $115 for XR, E, and CL. Received $20
cash in part payment of account.
9
1004 Ms. Pat Nash. EX PRO, total fee of $103. Received $55 cash on
account.
13
1005 Received cheque for $100 from Mrs. Helen Dye, in part payment of
account.
14
1006 Total charge of $900 to Mrs. Boersema, wife of Mr. J. J. Boersema, for
a bridge. No payment was received.
20
1007 Received a cheque for $48 from Ms. Pat Nash in full settlement of
account.
22
1008 Received a cheque for $150 from Mrs. Helen Dye in full settlement of
account.
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Assignment 4
Mar. 23
1009 Ms. Pat Nash, total fee of $400 charged for gold inlay. No payment
received.
24
1010 Received a cheque for $95 from Ms. Janet Gamble in full settlement of
account.
27
1011 Received a cheque for $500 from Mr. R. Mandel in part settlement of
account.
29
1012 Ms. Janet Gamble. Total fee of $1 600 charged for root canal
treatment. No payment received.
30
1013 Received a cheque for $100 from Mr. J. M. Boersema on account.
Instructions:
a.
Analyze each of the dental transactions summarized above. Then record each
charge in a Fees Earned Journal, page 2. Also record each payment in a Cash
Receipts Journal, page 3.
b.
On a daily basis post the information from the special journals to appropriate
patient accounts receivable cards. Use the Accounts Receivable Ledger established
in Problem 4.
c.
Total the Fees Earned Journal and the Cash Receipts Journal and show each total
journalized for the month of March.
d.
Post the total from each special journal to appropriate accounts in the General
Ledger. Use the General Ledger prepared for Problem 4.
e.
Prepare a Schedule of Accounts Receivable and a Trial Balance of the General
Ledger.
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Assignment 4
A.
Multiple Choice
Select the most appropriate response for each of the following and place a
check mark () beside it. Submit these pages.
1.
A document that keeps a running balance of money owed by a patient’s
family is called a(n) ***.
______
______
______
______
2.
patient ledger card
fee bill
Fees Earned Journal
Cash Receipts Journal
a.
b.
c.
d.
on the original fee bill
as the monthly total in the Fees Earned Journal
on the original fee bill and the completed stub
only on the completed stub of a fee bill
The fact that a fee bill provides proof that a revenue transaction has
occurred is an application of the *** principle.
______
______
______
______
Accounting 20
a.
b.
c.
d.
The amount of the total fees for a patient appears ***.
______
______
______
______
4.
Accounts Receivable General Ledger account
fee bill
patient ledger card
Fees Earned Journal
The source document originating a revenue transaction in a dental
firm is called a ***.
______
______
______
______
3.
a.
b.
c.
d.
a.
b.
c.
d.
revenue
cost
objectivity
matching
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Assignment 4
5.
A Fees Earned Journal is used to record ***.
______
______
______
______
6.
Accounting 20
General Ledger
General Journal
Fees Earned Journal
Accounts Receivable Ledger
a.
b.
c.
d.
subsidiary ledger
one-write system
General Ledger
manual accounting system
The Accounts Receivable account in the General Ledger at month-end
should be equal to the total ***.
______
______
______
______
9.
a.
b.
c.
d.
The Accounts Receivable Ledger is an example of a ***.
______
______
______
______
8.
cash receipts
cash payments
revenue transactions
expense transactions
The file or book that contains all the individual patient accounts is
called the ***.
______
______
______
______
7.
a.
b.
c.
d.
a.
b.
c.
d.
Fees Earned in one month
Cash Received in one month
balances of the individual customer accounts
amount owed to suppliers
An internal control system is used to ensure that ***.
______
______
a.
b.
______
______
c.
d.
all accounting entries are recorded correctly
assets are safeguarded and accurate, and reliable
accounting data is provided
all debit entries equal all credit entries
the owner does not use any of the business’s assets
for personal use
238
Assignment 4
10.
The following is an example of an internal control measure ***.
______
______
______
______
11.
13.
Accounting 20
using a trial balance
using a Cash Receipts Journal
recording drawings as a deduction to owner’s equity
waiting three days to deposit cash receipts so that a
trip to the bank is worthwhile
When a customer makes a payment on account, the transaction would
be recorded in the *** Journal.
______
______
______
______
12.
a.
b.
c.
d.
a.
b.
c.
d.
Fees Earned
Cash Receipts
Cash Payments
General
One advantage of using a Cash Receipts Journal is ***.
______
______
a.
b.
______
c.
______
d.
three lines are needed to record the entry
the cash receipt and the reduction to the patient
account are both recorded in this journal
the total cash receipts are posted once at monthend to the General Ledger
the Accounts Receivable General Ledger account
controls the Accounts Receivable subsidiary ledger
The total of the Schedule of Accounts Receivable should be equal to the
***.
______
______
______
a.
b.
c.
______
d.
balance of a patient’s account
total in the Fees Earned Journal
balance of the Accounts Receivable account in the
General Ledger
total in the Fees Earned Journal minus the total in
the Cash Receipts Journal
239
Assignment 4
14.
A schedule that categorizes patients’ account balances by when the
dental services were performed is called a(n) ***.
______
______
______
______
15.
patient ledger card
Schedule of Accounts Receivable
trial balance
aged trial balance
A one-write system would be used by a business that has/is ***.
______
______
______
______
Accounting 20
a.
b.
c.
d.
a.
b.
c.
d.
many different sources of revenue
one major source of revenue
a service business
an inexperienced bookkeeper
240
Assignment 4
B.
Problems
Remember: This information has been posted so Post Reference column must be
filled in.
Problem 1
P age
F e e s Ea rn e d J o u rn a l
Re c e ip t D a te
N u m be r 20__
D e s c rip tio n
Ac c o u n t D e bite d
P ost
Re f.
5
Am o u n t
Key Figure to Check: total for Professional Fees Earned is $2 260.
Problem 2
Patients (alphabetical order):
Key Figure to Check: there are 10 patients in the list.
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Assignment 4
Problem 2
Accounts Receivable Ledger
Extra Forms
Accounting 20
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Assignment 4
Problem 2 (continued)
Do not forget your referencing!
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Assignment 4
Problem 2 (continued)
Note: Use the Fees Earned Journal for Problem 1 to complete part (e) of this
problem.
General Ledger
Accounts Receivable
D a te
19__
20__
Ex p la n a ti o n
P ost
Re f.
D e bi t
Account No. 103
Cre d i t
Professional Fees Earned
D a te
19__
20__
Ex p la n a ti o n
B a la n c e
Account No. 401
P ost
Re f.
D e bi t
Cre d i t
B a la n c e
Problem 3a, d, e
Ca s h Re c e ip ts J o u rn a l
Re c e ip t D a te
N u m be r 20__
Ac c o u n t Cre d ite d
D e s c rip tio n
P age
P ost
Re f.
1
Am o u n t
Key Figure to Check: Total of Cash Receipts Journal is $772.
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Assignment 4
Problem 3b
Use the T-accounts in the Accounts Receivable Ledger for Problem 2 to post the
transactions from the Cash Receipts Journal to the individual patient accounts.
Problem 3c
Use the patient's ledger card set up for Mr. H. Vandenberk in Problem 2 to show how this
family card would receive the appropriate posting from the Cash Receipts Journal.
Key Figure to Check: Vandenberk's balance as at December 31 is $294.
Problem 3e
Key Figure to Check:
The final Cash balance on December 31 is $10 772.00; the
final Accounts Receivable balance on December 31 is
$1 488.00.
General Ledger
Ac c o u n t N o . 101
Ca sh
Date
20__
Expla n a t io n
P o st
Re f.
Expla n a t io n
P o st
Re f.
D e bit
Cre dit
Ac c o u n t N o . 103
Accou n t s R ecei v a b l e
Date
20__
Accounting 20
B ALAN CE
D e bit
245
Cre dit
B ALAN CE
Assignment 4
Problem 4a, b, c
Date
20__
Ac c o u n t Tit le
Ge n e ra l J o u rn a l
P ost
Re f.
D e bit
Cre dit
General Ledger
Ac c o u n t N o . 101
Ca sh
Date
20__
Expla n a t io n
P o st
Re f.
Expla n a t io n
P o st
Re f.
D e bit
Cre dit
Ac c o u n t N o . 103
Accou n t s R ecei v a b l e
Date
20__
B ALAN CE
D e bit
Cre dit
B ALAN CE
Key Figure to Check: the balancing amount in the opening entry is $98 675.
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Assignment 4
Problem 4a, b, c (continued)
Ac c o u n t N o . 105
D en t a l S u p p l i es on Ha n d
Date
20__
Expla n a t io n
P o st
Re f.
D e bit
Cre dit
Ac c o u n t N o . 110
D en t a l Eq u i p m en t
Date
20__
Expla n a t io n
P o st
Re f.
Expla n a t io n
P o st
Re f.
Expla n a t io n
P o st
Re f.
Expla n a t io n
P o st
Re f.
D e bit
Cre dit
D e bit
Cre dit
D e bit
Cre dit
Ba n k Loa n P a ya b l e
Date
20__
Accounting 20
B ALAN CE
Ac c o u n t N o . 114
Fu r n i t u r e
Date
20__
B ALAN CE
Ac c o u n t N o . 112
O ffi ce Eq u i p m en t
Date
20__
B ALAN CE
B ALAN CE
Ac c o u n t N o . 201
247
D e bit
Cre dit
B ALAN CE
Assignment 4
Problem 4a, b, c (continued)
Ac c o u n t N o . 301
R ob er t Won g, Ca p i t a l
Date
20__
Expla n a t io n
P o st
Re f.
D e bit
Cre dit
Ac c o u n t N o . 401
P r ofessi on a l Fees Ea r n ed
Date
20__
B ALAN CE
Expla n a t io n
P o st
Re f.
Expla n a t io n
P o st
Re f.
Expla n a t io n
P o st
Re f.
D e bit
Cre dit
B ALAN CE
Extra Forms
Ac c o u n t N o .
Date
20__
D e bit
Cre dit
B ALAN CE
Ac c o u n t N o .
Date
20__
Accounting 20
248
D e bit
Cre dit
B ALAN CE
Assignment 4
Problems 4 and 5
Do not forget your referencing!
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Assignment 4
Problems 4 and 5 (continued)
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Assignment 4
Problems 4 and 5 (continued)
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Assignment 4
Problems 4 and 5 (continued)
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Assignment 4
Problems 4 and 5 (continued)
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Assignment 4
Problem 5a, b, c (continued)
F e e s Ea rn e d J o u rn a l
Re c e ip t D a te
N u m be r 20__
Ac c o u n t D e bite d
D e s c rip tio n
P age
P ost
Re f.
1
Am o u n t
Key Figure to Check: Total of Fees Earned Journal is $3 221.
Note:
Use the Accounts Receivable Ledger established in Problem 4 for the daily posting to
appropriate patient accounts receivable cards.
Problem 5a, b, c (continued)
Ca s h Re c e ip ts J o u rn a l
Re c e ip t D a te
N u m be r 20__
Ac c o u n t Cre d ite d
D e s c rip tio n
P age
P ost
Re f.
1
Am o u n t
Key Figure to Check: Total of Cash Receipts Journal is $1 168.
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Assignment 4
Problem 5d
Use the General Ledger prepared for Problem 4 to post the total from each special
journal to appropriate accounts in the General Ledger.
Problem 5e
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Assignment 4
Problem 5e (continued)
Ac c t .
No.
Ac c o u n t Tit le
D e bit
Cre dit
Key Figure to Check: the totals should be $136 896
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Assignment 4