ACC 291 Entire Course / PRINCIPLES OF ACCOUNTING II / university of phoenix

ACC 291 Entire Course / PRINCIPLES OF ACCOUNTING II / university of phoenix

ACC 291 Week 1 Practice: Connect Practice Assignment

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa’s Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):

DATE TRANSACTIONS
2019
Feb. 2 Sold merchandise for cash totaling $3,800 to customers using bank credit cards. Record the 2 percent discount on credit card sales at time of sale.
15 Sold merchandise totaling $2,100 to customers using American Express.
20 Received amount due from American Express, less their 3 percent discount, for sales made by customers using American Express on February 15.

On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment was received in full from Fronke’s Franks, less discount, on April 10.

Required:

Record the transactions on April 1 and April 10.

Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales.

DATE TRANSACTIONS
2019
April 2 Sold merchandise for cash, $2,500 plus sales tax.
3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer.
4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30.
6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was made on Sales Slip 908 of April 4.
30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

Main Street Distributors, a wholesale firm, made sales using the following list prices and trade discounts. What amount should be recorded for each sale?

List price of $6,000 and trade discounts of 40 percent and 15 percent.
List price of $7,300 and trade discounts of 25 percent and 8 percent.
List price of $7,100 and trade discounts of 20 percent and 5 percent.

The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales:

DATE TRANSACTIONS
2019
May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
15 Recorded cash sales, $5,800 plus 8 percent sales tax.
31 Received payment on account due from Bill Gomez for the sale on May 1.

ACC 291 Week 1 Apply: Connect Assignment
1

Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions:

DATE TRANSACTIONS
2019
Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $1,600 plus sales tax of $112.
3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $800 plus sales tax of $56.
7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28.
12 Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.
15 Recorded cash sales for the period from September 1 to September 15 of $10,000 plus sales tax of $700.
16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49.
17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $1,600 plus sales tax of $112.
18 Received $620 from Candy Cho on account.
20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $300 plus sales tax of $21.
27 Received payment in full from Bridgette Huffman for the sale of September 7.
29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35.
30 Recorded cash sales for the period from September 16 to September 30 of $10,300 plus sales tax of $721.
Required:

Record the transactions in a general journal.

Analyze:

What portion of the sales during September were for entertainment items? Assume the cash sales transactions are for non-entertainment items. (Hint: Do not forget to reduce sales by any sales returns or allowances.)

DATE TRANSACTIONS
2019
Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,200 plus sales tax of $224.
3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales tax of $70.
7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28.
12 Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.
15 Recorded cash sales for the period from September 1 to September 15 of $9,000 plus sales tax of $630.
16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49.
17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,200 plus sales tax of $154.
18 Received $780 from Candy Cho on account.
20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $100 plus sales tax of $7
27 Received payment in full from Bridgette Huffman for the sale of September 7
29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35.
30 Recorded cash sales for the period from September 16 to September 30 of $11,900 plus sales tax of $833.

GENERAL LEDGER ACCOUNTS

101 Cash 401 Sales
111 Accounts Receivable 421 Sales Returns and Allowances
221 Sales Tax Payable

ACCOUNTS RECEIVABLE LEDGER ACCOUNTS

Candy Cho Jim Peterson
Bridgette Huffman Kathy Sundstrand
Mark Navalta
Required:

Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger.
Prepare a schedule of accounts receivable.
Analyze:

What is the amount of sales tax owed at September 30, 2019?

The Appliance Store began operations March 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. During March, The Appliance Store engaged in the following transactions:

DATE TRANSACTIONS
2019
March 1 Sold merchandise on credit to Dave Allen; issued Sales Slip 101 for $550 plus sales tax of $33.
4 Sold merchandise on credit to Castor Phan; issued Sales Slip 102 for $850 plus sales tax of $51.
12 Sold merchandise on credit to Chris Hughes; issued Sales Slip 103 for $1,150 plus sales tax of $69.
15 Recorded cash sales for the period from March 1 to March 15 of $6,100 plus sales tax of $366.
25 Sold merchandise on credit to Brian Cooley; issued Sales Slip 104 for $800 plus sales tax of $48.
28 Received a check from Castor Phan of $270 to apply toward his account.
31 Recorded cash sales for the period from March 16 to March 31 of $3,000 plus sales tax of $180.
31 Received payment in full from Dave Allen for the sale of March 1.
Required:

Record the transactions in a general journal.
Post the entries from the general journal to the appropriate general ledger accounts.

GENERAL LEDGER ACCOUNTS
101 Cash 221 Sales Tax Payable
111 Accounts Receivable 401 Sales
Analyze:

What were the total cash receipts during March?

ACC 291 Week 2 Practice: Connect Practice Assignment

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:

DATE TRANSACTIONS
2019
Sept. 2 Purchased ski boots for $6,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
3 Purchased skis for $12,200 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $1,000 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
11 Purchased ski jackets for $5,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
12 Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
22 Purchased ski poles for $4,760 plus a freight charge of $170 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23 Purchased ski pants for $3,250 from Swenson Ski Goods, Invoice 528, terms n/30.
25 Received Credit Memorandum 245 for $400 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
27 Purchased ski sweaters for $3,600 plus a freight charge of $150 from Colorado Ski Shop, Invoice 6722, terms n/30.
30 Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.
Required:

Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.
Prepare a schedule of accounts payable.GENERAL LEDGER ACCOUNTS
101 Cash, $27,000 Dr.
201 Accounts Payable
501 Purchases
502 Freight In
503 Purchases Returns and Allowances
504 Purchases Discounts
ACCOUNTS PAYABLE LEDGER ACCOUNTS

Alaska Supply Company

Cold Mountain Clothing Company

Colorado Ski Shop

Swenson Ski Goods

Analyze:

What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.

NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:

DATE TRANSACTIONS
2019
June 1 Issued Check 101 to purchase merchandise, $4,500.
3 Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.
5 Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $3,000.
25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.
30 Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.

Required:

Journalize the transactions in a general journal.

Analyze:

What was the amount of trade discounts received on the June 15 purchase from Park Research?

Required:

Record the transactions in a general journal.

Analyze:

What was the amount of the cash discount on September 12?

Required:

Post the transactions in to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger.
Prepare a schedule of accounts payable at June 30, 2019.
GENERAL LEDGER ACCOUNTS

101 Cash, $37,400 Dr.
201 Accounts Payable
501 Purchases
502 Purchases Returns and Allowances
503 Purchases Discounts
504 Freight In

ACCOUNTS PAYABLE LEDGER ACCOUNTS

BioCenter Inc.

New Concepts Corporation

Park Research

Analyze:

What was the amount of merchandise returned to vendors by NewTech Medical Devices in June?

Bowden Company (buyer) and Song, Inc. (seller), engaged in the following transactions during January 2019:

Bowden Company

DATE TRANSACTIONS
2019
Jan. 8 Issued Check 2101 for $2,940 on account to Song, Inc., in payment of Invoice 1885 dated December 30, 2018, less cash discount of $60.
10 Purchased merchandise for $3,500 from Song, Inc., Invoice 1920; terms 2/10, n/30.
15 Received Credit Memorandum 320 from Song, Inc., for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.
19 Paid amount due to Song, Inc., for Invoice 1920 of January 10, less the return of January 15 and less the cash discount, Check 2130.
30 Purchased merchandise for $4,400 from Song, Inc., Invoice 1950; terms 2/10, n/30.
GENERAL LEDGER ACCOUNTS—BOWDEN COMPANY

201 Accounts Payable, $3,000 Cr.

ACCOUNTS PAYABLE LEDGER ACCOUNT—BOWDEN COMPANY

Song, Inc., $3,000

Song, Inc.

DATE TRANSACTIONS
2019
Jan. 8 Received payment of $2,940 on account from Bowden Company in payment of Invoice 1885 dated December 30, 2018, less cash discount of $60.
10 Sold merchandise for $3,500 on account to Bowden Company, Invoice 1920, terms 2/10, n/30.
15 Issued Credit Memorandum 320 to Bowden Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.
19 Received payment from Bowden Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount.
30 Sold merchandise for $4,400 to Bowden Company, Invoice 1950; terms 2/10, n/30.

GENERAL LEDGER ACCOUNTS—SONG, INC.

111 Accounts Receivable, $3,000 Dr.

ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SONG, INC.

Bowden Company, $3,000

Required:

Journalize the transactions above in a general journal for both Bowden Company and Song, Inc.
Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Bowden Company.
Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Song, Inc.

Analyze:

What is the balance of the accounts payable for Song, Inc., in the Bowden Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Bowden Company in the Song, Inc., accounts receivable subsidiary ledger?

ACC 291 Week 2 Apply: Connect Assignment
1

DATE TRANSACTIONS
2019
June 1 Issued Check 101 to purchase merchandise, $3,100.
3 Purchased merchandise for $1,900 from BioCenter Inc., Invoice 606; terms 1/10, n/30.
5 Purchased merchandise for $4,450, plus a freight charge of $120, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $250 that was returned; the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,540 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $7,800 and trade discounts of 25 percent and 20 percent from Park Research, Invoice 1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $1,600.
25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $220.
30 Purchased merchandise for $1,800, plus a freight charge of $71, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.

Required:

Journalize the transactions in a general journal.

Analyze:

What was the amount of trade discounts received on the June 15 purchase from Park Research?

DATE TRANSACTIONS
2019
Sept. 2 Purchased ski boots for $6,000 plus a freight charge of $250 from Colorado Ski Shop, Invoice 6672, terms n/30.
3 Purchased skis for $11,600 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $940 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
11 Purchased ski jackets for $4,400 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
12 Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
22 Purchased ski poles for $4,160 plus a freight charge of $140 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23 Purchased ski pants for $2,650 from Swenson Ski Goods, Invoice 528, terms n/30.
25 Received Credit Memorandum 245 for $340 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
27 Purchased ski sweaters for $3,000 plus a freight charge of $120 from Colorado Ski Shop, Invoice 6722, terms n/30.
30 Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.

Required:

Record the transactions in a general journal.

Analyze:

What was the amount of the cash discount on September 12?

ACC 291 Week 3 Practice: Connect Practice Assignment

Florence Company received a bank statement showing a balance of $13,550 on November 30, 2019. During the bank reconciliation process, Florence’s accountant noted the following bank errors:

A check for $265 issued by Florentine, Inc., was mistakenly charged to Florence Company’s account.
Check 2782 was written for $200 but was paid by the bank as $1,200.
Check 2920 for $85 was paid by the bank twice.
A deposit for $580 on November 22 was credited by the bank for $850.

Assuming outstanding checks total $2,450, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation.

On January 2, The Public Legal Clinic issued Check 2108 for $450 to establish a petty cash fund. Indicate how this transaction would be recorded in a general journal.

Di Stefano Office Supply Company received a bank statement showing a balance of $70,005 as of March 31, 2019. The firm’s records showed a book balance of $71,487 on March 31. The difference between the two balances was caused by the following items.

A debit memorandum for $40, which covers the bank’s collection fee for the note (item 6).
A deposit in transit of $4,700.
A check for $348 issued by another firm that was mistakenly charged to Di Stefano’s account.
A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.
Outstanding checks: Check 3782 for $2,200; Check 3840 for $251.
A credit memorandum for a $7,300 noninterest-bearing note receivable that the bank collected for the firm.
Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.

After returning from a three-day business trip, the accountant for Southeast Sales, Johanna Estrada, checked bank activity in the company’s checking account online. The activity for the last three days follows.

Business Checking Account #123456-987
Date Type Description Additions Payments Balance
09/24/2019 Loan Payment Online Transfer to CM XXXX $ 3,500.00 $ 15,675.06
09/24/2019 Deposit DEPOSIT ID NUMBER 8888 $ 2,269.60 $ 19,175.06
09/23/2019 Check CHECK #1554 (view) $ 3,500.00 $ 16,905.46
09/23/2019 Bill Payment Online Payment $ 36.05 $ 20,405.46
09/22/2019 Check CHECK #1553 (view) $ 240.00 $ 20,441.51
09/22/2019 Check CHECK #1551 (view) $ 1,750.00 $ 20,681.51
09/22/2019 ACH Credit Edwards UK AP PAYMENT $ 8,900.00 $ 22,431.51
09/22/2019 ATM ATM WITHDRAWAL $ 240.00 $ 13,531.51

After matching these transactions to the company’s Cash account in the general ledger, Johanna noted the following unrecorded transactions:

The ATM withdrawal on 9/22/2019 was for personal use by the owner, Robert Savage.
The ACH credit on 9/22/2019 was an electronic funds payment received on account from Edwards UK, a credit customer located in Great Britain.
The bill payment made 9/23/2019 was to Waste Control Trash Services (utilities).
The loan payment on 9/24/2019 was an automatic debit by Central Motors for the company’s monthly payment on a loan for its automobiles. The loan does not bear interest.

Prepare the journal entries in a general journal to record the four transactions above. (Round your answers to 2 decimal places.)

Teng Corporation received a bank statement showing a balance of $15,700 as of October 31, 2019. The firm’s records showed a book balance of $15,262 on October 31. The difference between the two balances was caused by the following items.

A debit memorandum for an NSF check from Richard Wolf for $332.
Three outstanding checks: Check 7017 for $124, Check 7098 for $55, and Check 7107 for $1,560.
A bank service charge of $12.
A deposit in transit of $957.
Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement. Prepare the necessary journal entries for the year 2019.

ACC 291 Week 3 Apply: Connect Assignment
1

Royal Jewels, a retail business, started business on June 25, 2019. It keeps a $300 change fund in its cash register. The cash receipts for the period from June 25 to June 30, 2019 are below.

DATE TRANSACTIONS
June 25 Cash sales per the cash register tape, $1,226.
Cash count, $1,518.
26 Cash sales per the cash register tape, $1,336.
Cash count, $1,629.
27 Cash sales per the cash register tape, $1,347.
Cash count, $1,650.
28 Cash sales per the cash register tape, $1,278.
Cash count, $1,571.
29 Cash sales per the cash register tape, $1,123.
Cash count, $1,428.
30 Cash sales per the cash register tape, $1,364.
Cash count, $1,657.
Required:

Record the cash receipts from June 25 to June 30, 2019, in a general journal.
Post the amounts for Cash Short or Over in the journal entries to the general ledger.
Analyze:

How will the balance in Cash Short or Over on June 30 be reported in the financial statements?

On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,199. The balance shown on the bank statement on the same date was $13,152.

Notes

The firm’s records indicate that a $1,360 deposit dated August 30 and a $692 deposit dated August 31 do not appear on the bank statement.
A service charge of $7 and a debit memorandum of $275 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)
The following checks were issued but have not yet been paid by the bank:

Check 712, $ 101
Check 713, $ 116
Check 716, $ 229
Check 736, $ 568
Check 739, $ 69
Check 741, $ 111

A credit memorandum shows that the bank collected a $2,039 note receivable and interest of $54 for the firm. These amounts have not yet been entered in the firm’s records.

Required:

Prepare a bank reconciliation statement for the firm as of August 31.
Record general journal entries for items on the bank reconciliation statement that must be journalized.
Analyze:

What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?

On August 1, 2019, the accountant for Western Imports downloaded the company’s July 31, 2019, bank statement from the bank’s Website. The balance shown on the bank statement was $28,770. The July 31, 2019, balance in the Cash account in the general ledger was $14,131.

Jenny Irvine, the accountant for Western Imports, noted the following differences between the bank’s records and the company’s Cashaccount in the general ledger:

An electronic funds transfer for $14,500 from Foncier Ricard, a customer located in France, was received by the bank on July 31.
Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,270.
The accounting records indicate that Check 1425 was issued for $66 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $96.
A deposit of $890 made after banking hours on July 31 did not appear on the July 31 bank statement.
The following checks were outstanding: Check 1429 for $1,250, and Check 1430 for $142.
An automatic debit of $263 on July 31 from CentralComm for telephone service appeared on the bank statement but had not been recorded in the company’s accounting records.
Required:

Prepare a bank reconciliation for the firm as of July 31.
Record general journal entries for the items on the bank reconiliation that must be journalized.

Analyze:

What effect on total expenses occurred as a result of the general journal entries recorded?

ACC 291 Week 4 Practice: Connect Practice Assignment

During the year 2019, Sampson Company had net credit sales of $1,950,000. Past experience shows that 1.5 percent of the firm’s net credit sales result in uncollectible accounts.
Equipment purchased by Park Consultancy for $38,220 on January 2, 2019, has an estimated useful life of 10 years and an estimated salvage value of $2,700. What adjustment for depreciation should be recorded on the firm’s worksheet for the year ended December 31, 2019?
On December 31, 2019, Giant Plumbing Supply owed wages of $11,400 to its factory employees, who are paid weekly.
On December 31, 2019, Giant Plumbing Supply owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $11,400 of accrued wages for its factory employees.
On December 31, 2019, Giant Plumbing Supply owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $11,400 of accrued wages for its factory employees.

On December 1, 2019, Jim’s Java Joint borrowed $50,000 from its bank in order to expand its operations. The firm issued a four-month, 6 percent note for $50,000 to the bank and received $49,000 in cash because the bank deducted the interest for the entire period in advance.

In general journal form, show the entry that would be made to record this transaction and the adjustment for prepaid interest that should be recorded on the firm’s worksheet for the year ended December 31, 2019.

On December 31, 2019, the Notes Payableaccount at Northwood Manufacturing Company had a balance of $16,000. This balance represented a three-month, 7.5 percent note issued on November 1.
On January 2, 2019, Hitech Computer Consultants purchased flash drives, paper, and other supplies for $5,230 in cash. On December 31, 2019, an inventory of supplies showed that items costing $1,590 were on hand. The Suppliesaccount has a balance of $5,230.
On September 1, 2019, North Dakota Manufacturing paid a premium of $14,640 in cash for a one-year insurance policy. On December 31, 2019, an examination of the insurance records showed that coverage for a period of four months had expired.
On May 1, 2019, Headcase Beauty Salon signed a one-year advertising contract with a local radio station and issued a check for $10,800 to pay the total amount owed. On December 31, 2019, the Prepaid Advertisingaccount has a balance of $10,800.
For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 2019, worksheet assuming no previous adjusting entries have been made during the year.

The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019, has $199,000 recorded in the Debit column and $215,345 in the Credit column on the line for the Income Summary account.

What were the beginning and ending balances for Merchandise Inventory?

On December 31, 2019, the Notes Payable account at Vanessa’s Boutique Shop had a balance of $90,000. This amount represented funds borrowed on a six-month, 8 percent note from the firm’s bank on December 1.

Record the journal entry for interest expense on this note that should be recorded on the firm’s worksheet for the year ended December 31, 2019.

ACC 291 Week 4 Apply: Connect Assignment
1

a.-b. Merchandise Inventory, before adjustment, has a balance of $6,600. The newly counted inventory balance is $7,100.

Unearned Seminar Fees has a balance of $5,100, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019. Two seminars had been conducted by June 30, 2019.
Prepaid Insurance has a balance of $6,600 for six months’ insurance paid in advance on May 1, 2019.
Store equipment costing $12,890 was purchased on March 31, 2019. It has a salvage value of $410 and a useful life of four years.
Employees have earned $160 that has not been paid at June 30, 2019.
The employer owes the following taxes on wages not paid at June 30, 2019: SUTA, $4.80; FUTA, $0.96; Medicare, $2.32; and social security, $9.92.
Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were $1,100,000.
Prepaid Rent has a balance of $5,250 for six months’ rent paid in advance on March 1, 2019.
The Supplies account in the general ledger has a balance of $310. A count of supplies on hand at June 30, 2019, indicated $105 of supplies remain.
The company borrowed $13,700 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 12 percent.
Required:

Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019. The company has a June 30 fiscal year-end.

Analyze:

After all adjusting entries have been journalized and posted, what is the balance of the Prepaid Rent account?

On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow.

DATE TRANSACTIONS
July 1 Signed a lease for an office and issued Check 101 for $13,950 to pay the rent in advance for six months.
1 Borrowed money from Second National Bank by issuing a four-month, 6 percent note for $31,200; received $30,576 because the bank deducted the interest in advance.
1 Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $6,500 per month; received the entire fee of $78,000 in advance.
1 Purchased office equipment for $17,200 from Office Outfitters; issued a two-month, 9 percent note in payment. The equipment is estimated to have a useful life of four years and a $1,840 salvage value. The equipment will be depreciated using the straight-line method.
1 Purchased a one-year insurance policy and issued Check 102 for $1,680 to pay the entire premium.
3 Purchased office furniture for $22,120 from Furniture Warehouse; issued Check 103 for $15,520 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of six years and a $1,600 salvage value. The office furniture will be depreciated using the straight-line method.
5 Purchased office supplies for $1,910 with Check 104. Assume $850 of supplies are on hand July 31, 2019.
Required:

Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019.
Record the adjusting journal entries that must be made on July 31, 2019.
Analyze:

What balance should be reflected in Unearned Accounting Fees at July 31, 2019?

The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 2019, the firm’s general ledger contained the accounts and balances that appear below.

ADJUSTMENTS

a.–b. Merchandise inventory on December 31, 2019, is $11,621.

During 2019, the firm had net credit sales of $28,000; the firm estimates that 0.7 percent of these sales will result in uncollectible accounts.
On December 31, 2019, an inventory of the supplies showed that items costing $240 were on hand.
On October 1, 2019, the firm signed a six-month advertising contract for $900 with a local newspaper and paid the full amount in advance.
On January 2, 2018, the firm purchased store equipment for $7,680. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $530.
On January 2, 2018, the firm purchased office equipment for $1,180. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $130.
On December 31, 2019, the firm owed salaries of $1,760 that will not be paid until 2020.
On December 31, 2019, the firm owed the employer’s social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,760 of accrued wages.
On December 31, 2019, the firm owed federal unemployment tax (assume 0.6 percent) and state unemployment tax (assume 5.4 percent) on the entire $1,760 of accrued wages.
Required:

Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019.
Enter the adjustments above in the Adjustments section of the worksheet.
Complete the worksheet.
Analyze:

By what amount were the assets of the business affected by adjustments?

ACC 291 Week 5 Practice: Connect Practice Assignment

Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2019, the firm’s general ledger contained the accounts and balances that follow.

Required:

Record adjusting entries in the general journal as of December 31, 2019.
Record closing entries in the general journal as of December 31, 2019.
Record reversing entries in the general journal as of January 1, 2020.
Analyze:

Assuming that the firm did not record a reversing entry for salaries payable, what entry is required when salaries of $6,000 are paid on January 3?

Good to Go Auto Products distributes automobile parts to service stations and repair shops. The adjusted trial balance data that follows is from the firm’s worksheet for the year ended December 31, 2019

Accounts Debit Credit
Cash $ 99,000
Petty Cash Fund 600
Notes Receivable, due 2020 15,000
Accounts Receivable 140,200
Allowance for Doubtful Accounts $ 3,800
Interest Receivable 150
Merchandise Inventory 128,500
Warehouse Supplies 3,300
Office Supplies 700
Prepaid Insurance 4,640
Land 16,000
Building 107,000
Accumulated Depreciation—Building 16,700
Warehouse Equipment 19,800
Accumulated Depreciation—Warehouse Equipment 9,500
Office Equipment 9,400
Accumulated Depreciation—Office Equipment 3,900
Notes Payable, due 2020 15,000
Accounts Payable 56,900
Interest Payable 400
Loans Payable—Long-Term 17,000
Mortgage Payable 20,000
Colin O’Brien, Capital (Jan. 1) 326,870
Colin O’Brien, Drawing 70,650
Income Summary 131,400 128,500
Sales 1,110,300
Sales Returns and Allowances 8,400
Interest Income 580
Purchases 463,000
Freight In 9,800
Purchases Returns and Allowances 13,650
Purchases Discounts 9,240
Warehouse Wages Expense 108,600
Warehouse Supplies Expense 5,800
Depreciation Expense—Warehouse Equipment 3,400
Salaries Expense—Sales 151,700
Travel Expense 24,000
Delivery Expense 37,425
Salaries Expense—Office 85,000
Office Supplies Expense 1,220
Insurance Expense 9,875
Utilities Expense 8,000
Telephone Expense 3,280
Payroll Taxes Expense 31,600
Building Repairs Expense 3,700
Property Taxes Expense 16,400
Uncollectible Accounts Expense 3,580
Depreciation Expense—Building 5,600
Depreciation Expense—Office Equipment 1,620
Interest Expense 4,000
Totals $ 1,732,340 $ 1,732,340
Required:

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than one year.
Analyze:

What percentage of total operating expenses is attributable to warehouse expenses?

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2019.

ACCOUNTS Debit Credit
Cash $ 34,100
Petty Cash Fund 500
Notes Receivable, due 2020 11,800
Accounts Receivable 86,000
Allowance for Doubtful Accounts $ 6,000
Merchandise Inventory 234,000
Warehouse Supplies 2,860
Office Supplies 1,420
Prepaid Insurance 10,200
Land 46,000
Building 178,000
Accumulated Depreciation—Building 54,000
Warehouse Equipment 37,000
Accumulated Depreciation—Warehouse Equipment 17,400
Delivery Equipment 51,000
Accumulated Depreciation—Delivery Equipment 19,600
Office Equipment 25,000
Accumulated Depreciation—Office Equipment 12,000
Notes Payable, due 2020 20,200
Accounts Payable 49,000
Interest Payable 580
Mortgage Payable 61,000
Loans Payable, Long-term 17,000
Charles Ronie, Capital (Jan. 1) 452,460
Charles Ronie, Drawing 127,000
Income Summary 244,000 234,000
Sales 1,685,000
Sales Returns and Allowances 18,200
Interest Income 1,580
Purchases 767,000
Freight In 13,800
Purchases Returns and Allowances 8,440
Purchases Discounts 11,160
Warehouse Wages Expense 199,600
Warehouse Supplies Expense 7,100
Depreciation Expense—Warehouse Equipment 5,800
Salaries Expense—Sales 269,200
Travel and Entertainment Expense 21,500
Delivery Wages Expense 60,330
Depreciation Expense—Delivery Equipment 9,800
Salaries Expense—Office 70,600
Office Supplies Expense 4,000
Insurance Expense 6,200
Utilities Expense 9,290
Telephone Expense 6,520
Payroll Taxes Expense 59,000
Property Taxes Expense 5,600
Uncollectible Accounts Expense 5,800
Depreciation Expense—Building 9,000
Depreciation Expense—Office Equipment 4,000
Interest Expense 8,200
Totals $ 2,649,420 $ 2,649,420
Required:

What is the current ratio for this business?

The data below concerns adjustments to be made at Coffee Bean Importers.

Adjustments

On November 1, 2019, the firm signed a lease for a warehouse and paid rent of $21,000 in advance for a six-month period.
On December 31, 2019, an inventory of supplies showed that items costing $1,940 were on hand. The balance of the Suppliesaccount was $11,880.
A depreciation schedule for the firm’s equipment shows that a total of $10,750 should be charged off as depreciation in 2019.
On December 31, 2019, the firm owed salaries of $6,100 that will not be paid until January 2020.
On December 31, 2019, the firm owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on all accrued salaries.
On October 1, 2019, the firm received a five-month, 8 percent note for $6,500 from a customer with an overdue balance.
Required:

Record the adjusting entries in the general journal as of December 31, 2019.
Record reversing entries in the general journal as of January 1, 2020.
Analyze:

After the adjusting entries have been posted, what is the balance of the Prepaid Rent account on January 1, 2020?

The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.

Required:

Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.
Prepare a classified balance sheet as of December 31, 2019.
Analyze:

What is the inventory turnover for Artisan Wines?

ACC 291 Week 5 Apply: Connect Assignment
1

ACCOUNTS Debit Credit
Cash $ 23,900
Petty Cash Fund 600
Notes Receivable, due 2020 11,600
Accounts Receivable 94,000
Allowance for Doubtful Accounts $ 5,800
Merchandise Inventory 232,000
Warehouse Supplies 2,840
Office Supplies 1,400
Prepaid Insurance 9,600
Land 44,000
Building 176,000
Accumulated Depreciation—Building 52,800
Warehouse Equipment 36,000
Accumulated Depreciation—Warehouse Equipment 16,800
Delivery Equipment 50,000
Accumulated Depreciation—Delivery Equipment 19,200
Office Equipment 24,000
Accumulated Depreciation—Office Equipment 11,400
Notes Payable, due 2020 20,000
Accounts Payable 38,800
Interest Payable 560
Mortgage Payable 60,000
Loans Payable, Long-term 16,000
Charles Ronie, Capital (Jan. 1) 449,760
Charles Ronie, Drawing 126,800
Income Summary 242,000 232,000
Sales 1,681,000
Sales Returns and Allowances 18,000
Interest Income 1,560
Purchases 765,000
Freight In 13,600
Purchases Returns and Allowances 8,240
Purchases Discounts 10,960
Warehouse Wages Expense 197,600
Warehouse Supplies Expense 6,900
Depreciation Expense—Warehouse Equipment 5,600
Salaries Expense—Sales 267,200
Travel and Entertainment Expense 21,300
Delivery Wages Expense 60,130
Depreciation Expense—Delivery Equipment 9,600
Salaries Expense—Office 70,400
Office Supplies Expense 3,800
Insurance Expense 6,000
Utilities Expense 9,090
Telephone Expense 6,320
Payroll Taxes Expense 58,000
Property Taxes Expense 5,400
Uncollectible Accounts Expense 5,600
Depreciation Expense—Building 8,800
Depreciation Expense—Office Equipment 3,800
Interest Expense 8,000
Totals $ 2,624,880 $ 2,624,880
Required:

What is the current ratio for this business?

Accounts Debit Credit
Cash $ 97,200
Petty Cash Fund 500
Notes Receivable, due 2020 19,000
Accounts Receivable 138,400
Allowance for Doubtful Accounts $ 2,000
Interest Receivable 190
Merchandise Inventory 126,700
Warehouse Supplies 1,500
Office Supplies 520
Prepaid Insurance 2,840
Land 14,200
Building 98,000
Accumulated Depreciation—Building 15,800
Warehouse Equipment 18,000
Accumulated Depreciation—Warehouse Equipment 8,600
Office Equipment 7,600
Accumulated Depreciation—Office Equipment 3,000
Notes Payable, due 2020 13,200
Accounts Payable 55,100
Interest Payable 220
Loans Payable—Long-Term 8,000
Mortgage Payable 11,000
Colin O’Brien, Capital (Jan. 1) 322,350
Colin O’Brien, Drawing 68,850
Income Summary 129,600 126,700
Sales 1,074,300
Sales Returns and Allowances 6,600
Interest Income 400
Purchases 445,000
Freight In 8,000
Purchases Returns and Allowances 11,850
Purchases Discounts 7,440
Warehouse Wages Expense 106,800
Warehouse Supplies Expense 4,000
Depreciation Expense—Warehouse Equipment 1,600
Salaries Expense—Sales 149,900
Travel Expense 22,200
Delivery Expense 35,625
Salaries Expense—Office 83,200
Office Supplies Expense 1,040
Insurance Expense 8,075
Utilities Expense 6,200
Telephone Expense 3,100
Payroll Taxes Expense 29,800
Building Repairs Expense 1,900
Property Taxes Expense 14,600
Uncollectible Accounts Expense 1,780
Depreciation Expense—Building 3,800
Depreciation Expense—Office Equipment 1,440
Interest Expense 2,200
Totals $ 1,659,960 $ 1,659,960
Required:

What percentage of total operating expenses is attributable to warehouse expenses?

ACCOUNTS Debit Credit
Cash $ 23,200
Petty Cash Fund 500
Notes Receivable, due 2020 10,900
Accounts Receivable 87,000
Allowance for Doubtful Accounts $ 5,100
Merchandise Inventory 225,000
Warehouse Supplies 2,770
Office Supplies 1,330
Prepaid Insurance 7,500
Land 37,000
Building 169,000
Accumulated Depreciation—Building 48,600
Warehouse Equipment 32,500
Accumulated Depreciation—Warehouse Equipment 14,700
Delivery Equipment 46,500
Accumulated Depreciation—Delivery Equipment 17,800
Office Equipment 20,500
Accumulated Depreciation—Office Equipment 9,300
Notes Payable, due 2020 19,300
Accounts Payable 38,100
Interest Payable 490
Mortgage Payable 56,500
Loans Payable, Long-term 12,500
Charles Ronie, Capital (Jan. 1) 404,860
Charles Ronie, Drawing 126,100
Income Summary 235,000 225,000
Sales 1,667,000
Sales Returns and Allowances 17,300
Interest Income 1,490
Purchases 758,000
Freight In 12,900
Purchases Returns and Allowances 7,540
Purchases Discounts 10,260
Warehouse Wages Expense 190,600
Warehouse Supplies Expense 6,200
Depreciation Expense—Warehouse Equipment 4,900
Salaries Expense—Sales 260,200
Travel and Entertainment Expense 20,600
Delivery Wages Expense 59,430
Depreciation Expense—Delivery Equipment 8,900
Salaries Expense—Office 69,700
Office Supplies Expense 3,100
Insurance Expense 5,300
Utilities Expense 8,390
Telephone Expense 5,620
Payroll Taxes Expense 54,500
Property Taxes Expense 4,700
Uncollectible Accounts Expense 4,900
Depreciation Expense—Building 8,100
Depreciation Expense—Office Equipment 3,100
Interest Expense 7,300
Totals $ 2,538,540 $ 2,538,540
Required:

What is the current ratio for this business?