BUS 214
1.
Winter 2014
CASH – BANK RECONCILIATION
the following information:
2,900
4,200
1,400
900
2.
Test No. 2
.
Determine the Adjusted or Actual Cash Balance from
Balance per General Ledger
Balance per Bank Statement
Deposit in Transit
Outstanding Checks
Cash – Bank Reconciliation
the following information:
2,900
25
2,000
1,400
100
275
900
Name .
Determine the Adjusted or Actual Cash Balance from
Balance per General Ledger
Bank service charge
Collection of Note Receivable for us by the Bank
Deposit in Transit
Interest Revenue Earned on bank balance
NSF check (the check was a payment for one of our customer’s account receivable)
Outstanding Checks
.
3.
CASH – BANK RECONCILIATION Given the information in Problem 2, what journal
entry or entries, if any would you need to make in the General Journal?
CASH – BANK RECONCILIATION Given the information in the previous problems, what
balance would you report on the balance sheet?
$_____
5. ALLOWANCE FOR BAD DEBTS (PERCENT OF SALES METHOD) Before any adjustments,
ABC Copy Co. had $50,000 sales, a $20,000 balance in Accounts Receivable and a
$250 credit balance in Allowance for Uncollectible Accounts (Allow for Unc.). ABC Copy
Co. estimates Bad Debt Expense will be approximately 2% of its sales and uses the
percent of sales method to calculate Bad Debt Expense. Prepare the adjusting Journal
Entry ABC Copy Co. needs to make.
6. What effect does the previous Journal Entry have on Net Income? What effect does
the previous Journal Entry have on Current Assets?
4.
7. Given the information if the previous two problems, show how Accounts Receivable
should be reported in the current asset section of the balance sheet.
5)
6)
7)
Net Income
Increases by $__________
no effect
Decreases by $ 1,000____
Current Assets
Increases by $__________
no effect
Decreases by $_1,000_
Net realizable value = $18,750
1-30 days
2,000
31-60 days
1,100
1.0%
650
2.0%
61-90 days
170
10.0%
> 90 days
80
60.0%
8. BAD DEBT EXPENSE (AGED ACCOUNTS RECEIVABLE APPROACH) At year end, Tommie’s
Toyota values its receivables using the aged receivables approach. Before any
adjustments, Tommie’s had a $2,000 balance in Accounts Receivable and a $32 credit
balance in Allowance for Uncollectible Accounts (Allow for Unc.). Use the above aging
schedule to calculate the Allowance for Uncollectible Accounts and Bad Debt Expense
and prepare the adjusting Journal Entry.
9. What amount of Accounts Receivable should Tommie’s report on their balance sheet
(or how much will Accounts Receivable increase total Current Assets)?
10. William Arnett owes Tommie’s Toyota $50. Prepare the Journal Entry when Tommie’s
Toyota writes off William Arnett’s account as uncollectible.
11. What effect does the previous Journal Entry (in Problem 10) have on Net Income?
What effect does the previous Journal Entry have on Current Assets?
8)
9)
10)
11)
Increases by $__________ no effect Decreases by $__________
Current Assets Increases by $__________ no effect Decreases by $__________
Net Income
12. DAYS SALES IN ACCOUNTS RECEIVABLE Use the schedule shown below to calculate the
Days’ Sales in Receivables for 2013.
sales
accounts receivable at 12/31
2013
2012
182,500
13,200
173,375
11,800
2011
156,038
10,000
13. NOTES RECEIVABLE Prepare the journal entry on Nov. 1, 2013 when SLO Town
Savings HomeTown loans $25,000 to a customer on an 8-month, 9% note.
14. Prepare the adjusting entry on Dec. 31st.
15. Prepare the journal entry when the customer pays off the note on June 30, 2014.
16. INVENTORY Prepare the journal entry when Freddie’s Ford sells a car costing $22,500
to Mark Miller for $24,000 (on account).
Debit
Inventory at Jan. 1st
Freight - IN
Freight - OUT
Purchases
Sales Discounts
Sales Returns
Purchase Discounts
Purchase Returns
Sales Revenue
1,500
50
95
19,300
85
65
Inventory at Dec. 31st
1,790
18.
COST OF GOODS SOLD (Inventory on
12/31 is $1,790) Use the following table to calculate
Cost of Goods Sold.
19.
GROSS PROFIT (Inventory on 12/31 is
$1,790) Use the following table to calculate Gross
Profit.
20
40
28,650
units
Inventory on Jan. 1st
5/13 purchase
8/12 purchase
10/4 purchase
Available
Units sold in 2010
17.
NET SALES (Inventory on 12/31 is
$1,790) Use the following table to calculate Net Sales.
Credit
cost
18
35
35
12
$10.00
$11.00
$12.00
$13.00
100
80
extended
$180.00
$385.00
$420.00
$156.00
$1,141.00
20. INVENTORY Use FIFO to calculate Cost of Goods Sold and ending Inventory for the
data in the table. Clearly label your work.
21. INVENTORY Use Average Cost to calculate Cost of Goods Sold and ending Inventory
for the data in the table. Clearly label your work.
22. INVENTORY Use LIFO to calculate Cost of Goods Sold and ending Inventory for the
data in the table. Clearly label your work.
units
Inventory on Jan. 1st
5/13 purchase
7/20 SALE
8/12 purchase
9/17 SALE
9/30 purchase
cost
extended
18
35
$10.00
$11.00
$180.00
$385.00
35
$12.00
$420.00
12
$13.00
qty
price
40
$19.00
40
$19.00
$156.00
23. INVENTORY Use Average Cost to calculate Cost of Goods Sold for the Sep. 17th sale.
24. INVENTORY Use Average Cost to prepare the complete journal entry for the Sep. 17th sale.
25. INVENTORY Use LIFO to calculate Cost of Goods Sold for the Sep. 17th sale.
26. INVENTORY Use LIFO to calculate the balance in ending Inventory at 12/31.
2013
Net sales
Cost of goods sold
Gross profit
3,650
2,920
730
2012
2011
3,500
2,800
700
27.
NVENTORY Calculate the Gross Profit
3,200 Percentage for 2013.
2,400
800
28.
INVENTORY Use the information from
the above problem to calculate inventory turnover for
2013.
29. As of Dec. 31, 2013 ORMCo’s inventory had a recorded cost of $9,000. The
replacement cost for its inventory was $9,400, At what amount should ORMCo. report
its inventory on the balance sheet?
$
Inventory
30. On Dec. 31, 2013, the replacement cost of ORVC’s ending inventory was $112,000 and
its recorded cost was. $114,000. What amount should ORVC report on their Dec. 31,
2013 balance sheet?
$
Inventory
Miller Motor Co.
Trial Balance
As of June 30th for the month of June
Accounts payable
Accounts receivable
Accumulated depreciation
Cash
Common stock
Depreciation expense
Dividends
Equipment
Rent expense
Retained earnings
Revenue
Salary expense
Salaries payable
Supplies
Supplies expense
Unearned revenue
6,000
2,100
300
1,700
5,000
300
1,000
9,000
700
0
3,800
700
700
300
600
600
16,400
16,400
31. Prepare a Balance Sheet, with proper dating, from Miller Motor Co.’s trial balance.