ACCT2110 Financial Accounting Group Test 2 Problem 1. Schneider Book Store entered into the transactions listed below. uly 6 Purchased $1,700 of merchandise on credit, terms n/30. 8 Returned $200 of the items purchased on July 6. Paid freight charges of $90 on the items purchased July 6. merchandise on credit for $3,400, terms 1/10, n/30. The merchandise had an inventory cost of $1,700 19 Sold merchandise sold on July 19, $200 of it was returned. The items had cost the store $100 28 31 full from the customer of July 19. Received payment in Paid for the merchandise purchased on July 6. Instructions: Prepare Schneider's necessary entries, assuming use of the perpetual inventory system. Problem 2. The Dexter Company sells many products. Whamo is one of its popu inventory purchases and sales of Whamo lar items. Below is an analysis of the for the month of March. Dexter Company uses the periodic inventory system. 60 $60 100 200 S82 1-Mar Beg. Inventory 3-Mar Purchase $75 4-Mar Sales 70 $120 10-Mar Purchase 80 80 50 $130 $130 $130 16-Mar Sales 19-Mar Sales 25-Mar Sales $90 30-Mar Purchase Instructions: (Show computations) (a) Using FIFO, calculate the ending inventory and the cost of goods sold for March. (b) Using Weighted-average, calculate the ending inventory and the cost of goods sold for March. (c) Using LIFO, calculate the ending inventory and the cost of goods sold for March. 40 Problem 3. Using the following information, prepare a bank reconciliation and any adjusting entries necessary as a result of the bank reconciliation for Larson Company for May 31, 2015. a. The bank statement balance is $9,100. b. The cash account balance is $7,712 c. Outstanding checks totaled $1,600. d. Deposits in transit are $300. e. Collection of note by bank $400, and interest eaned $12. f. The bank service charge is $24. g. A NSF check for $100 from a customer was returned with the statement. h. A check for $300 from a customer on account that cleared the bank in May was jounalized and posted for $500. Problem 4. The December 31, 2015 balance sheet of the Bryan Company had Accounts Receivable of $500,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During 2009, the following transactions occurred: sales on account $1,450,000; sales returns and allowances, $100,000; collections from customers, $1,300,000; accounts written off, $35,000; previously written off accounts of $4,000 were collected. (a) Journalize these transactions for 2016. (b) If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 6% of accounts receivable at year end what is the adjusting entry at December 31, 2016? Problem 5. Bermuda Distributors has the following transactions related to notes receivable during the last two the year. 15 31 Loaned $12,000 cash to S. Toffer on a 1-year, 10% note. Sold goods to J. James, receiving a $2.400, 60-day, 12% note. Accrued interest revenue on all notes receivable. Instructions: Journalize the transactions for Bermuda Distributors. ACCT2110 Financial Accounting Group Test 2 Problem 1. Schneider Book Store entered into the transactions listed below. uly 6 Purchased $1,700 of merchandise on credit, terms n/30. 8 Returned $200 of the items purchased on July 6. Paid freight charges of $90 on the items purchased July 6. merchandise on credit for $3,400, terms 1/10, n/30. The merchandise had an inventory cost of $1,700 19 Sold merchandise sold on July 19, $200 of it was returned. The items had cost the store $100 28 31 full from the customer of July 19. Received payment in Paid for the merchandise purchased on July 6. Instructions: Prepare Schneider's necessary entries, assuming use of the perpetual inventory system. Problem 2. The Dexter Company sells many products. Whamo is one of its popu inventory purchases and sales of Whamo lar items. Below is an analysis of the for the month of March. Dexter Company uses the periodic inventory system. 60 $60 100 200 S82 1-Mar Beg. Inventory 3-Mar Purchase $75 4-Mar Sales 70 $120 10-Mar Purchase 80 80 50 $130 $130 $130 16-Mar Sales 19-Mar Sales 25-Mar Sales $90 30-Mar Purchase Instructions: (Show computations) (a) Using FIFO, calculate the ending inventory and the cost of goods sold for March. (b) Using Weighted-average, calculate the ending inventory and the cost of goods sold for March. (c) Using LIFO, calculate the ending inventory and the cost of goods sold for March. 40 Problem 3. Using the following information, prepare a bank reconciliation and any adjusting entries necessary as a result of the bank reconciliation for Larson Company for May 31, 2015. a. The bank statement balance is $9,100. b. The cash account balance is $7,712 c. Outstanding checks totaled $1,600. d. Deposits in transit are $300. e. Collection of note by bank $400, and interest eaned $12. f. The bank service charge is $24. g. A NSF check for $100 from a customer was returned with the statement. h. A check for $300 from a customer on account that cleared the bank in May was jounalized and posted for $500. Problem 4. The December 31, 2015 balance sheet of the Bryan Company had Accounts Receivable of $500,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During 2009, the following transactions occurred: sales on account $1,450,000; sales returns and allowances, $100,000; collections from customers, $1,300,000; accounts written off, $35,000; previously written off accounts of $4,000 were collected. (a) Journalize these transactions for 2016. (b) If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 6% of accounts receivable at year end what is the adjusting entry at December 31, 2016? Problem 5. Bermuda Distributors has the following transactions related to notes receivable during the last two the year. 15 31 Loaned $12,000 cash to S. Toffer on a 1-year, 10% note. Sold goods to J. James, receiving a $2.400, 60-day, 12% note. Accrued interest revenue on all notes receivable. Instructions: Journalize the transactions for Bermuda Distributors