Compute the amount of interest paid in July At June 30, 2016, $20 was payable (Hint Think of converting from accrual basis to cash basis ) 1 points QUESTION 2 How much of Accounts Receivable were written off the month (Hint Run the ADA t account) 1 points QUESTION 3 What is Fargos Net Realizable Value of Accounts Receivable at the end of July 1 points QUESTION 4 What was the amount of cash received on the sale of office equipment 1 points QUESTION 5 Assuming that the office equipment has a five year estimated life, no estimated salvage value, and no depreciation is taken during the month of purchase or sale, how much office equipment was acquired during the month 1 points QUESTION 6 How old (in months) is the office equipment that was neither sold nor acquired during the month 1 points QUESTION 7 How much cash was paid on Accounts Payable during the month Assume the beginning balance of Accounts Payable in July was zero 1 points QUESTION 8 If the beginning balance in Note Payable was $20,000, what amount of Notes Payable did Fargo issue in in July 1 points QUESTION 9 How much of the Note Payable was paid off during July 1 points QUESTION 10 If all vendors sell to Fargo on terms 2 10, n 30, what was the total amount of purchases discounts which were allowed to lapse No purchases were made in the last 10 days of July 1 points QUESTION 11 If there was no prepaid advertising at the beginning of the period, what was the total cash outlay for advertising in July (Hint Think of converting from accrual basis to cash basis ) 1 points QUESTION 12 How much cash was used to pay salaries during the month Assume the balance in Salaries Payable on July 1 was zero (Hint Think of converting from accrual basis to cash basis ) 1 points QUESTION 13 What was the balance of Retained Earnings at the beginning of the fiscal year 1 points QUESTION 14 If office supplies valued at $300 were on hand at the beginning of the month, what were the total purchases of office supplies during the month 1 points QUESTION 15 What journal entry does Fargo make to record the purchase of office supplies Debit Office Supplies, Credit Cash Debit Cash, Credit Office Supplies Debit Office Supplies Expense, Credit Cash Debit Office Supplies Expense, Credit Office Supplies 1 points QUESTION 16 How much cash dividends were paid during the month Assume that the beginning balance in Dividends Payable at June 30 was $1,000 1 points QUESTION 17 Of the cash dividends paid, how much related to the current period 1 points QUESTION 18 What are net sales for July 1 points QUESTION 19 If 90 of sales are made on credit and all returns were related to credit sales, what was the beginning balance in Accounts Receivable on July 1 (Hint Run the AR t account) 1 points QUESTION 20 How much cash received on accounts receivable in July (Hint Run the AR t account) 1 points QUESTION 21 Does the company use the gross or net method to record purchases How do you know Gross becuase Purchase Return Allowances are on the Trial Balance Gross because Sales Discounts are on the Trial Balance Gross because Purchase Discounts are on the Trial Balance Gross because Sales Discounts Forfeited are not on the Trial Balance Gross because Purchase Discounts Forfeited are not on the Trial Balance Net becuase Purchase Return Allowances are on the Trial Balance Net because Sales Discounts are on the Trial Balance Net because Purchase Discounts are on the Trial Balance Net because Sales Discounts Forfeited are not on the Trial Balance Net because Purchase Discounts Forfeited are not on the Trial Balance 1 points QUESTION 22 What is the beginning balance in inventory on July 1 1 points QUESTION 23 What are net purchases for July 1 points QUESTION 24 Assume that the company did a count of ending inventory and found that they had 70,000 of inventory remaining at the end of July What is the cost of goods sold for the month of July 1 points QUESTION 25 Fill in the blanks The adjusting entry to adjust inventory will include a debit to Ending Inventory, COGS, , and Purhcases, and Beginning Inventory Purchase Discounts, and Purchase Returns Allowances Purchases, and Purchase Discounts Purchases, and Purchase Returns Allowances 1 points QUESTION 26 What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal credit balance at July 31 A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account For instance, 100 is a credit to the Income Summary account for $100, and a 100 is a debit to the Income Summary account for $100 1 points QUESTION 27 What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal debit balance at July 31 A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account For instance, 100 is a credit to the Income Summary account for $100, and a 100 is a debit to the Income Summary account for $100 1 points QUESTION 28 What is the amount of the change to Income Summary account for the closing entry to close Income Summary to Retained Earnings at July 31 A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account For instance, 100 is a credit to the Income Summary account for $100, and a 100 is a debit to the Income Summary account for $100 1 points QUESTION 29 When closing dividends declared, which account is debited Dividends Declared Income Summary Accumulated OCI Retained Earnings 1 points QUESTION 30 After you have adusted inventory and done the four closing entries for the month, what is the ending balance in Retained Earnings on July 31 A positive number indicates a credit balance in the Retained Earnings account and a negative number indicates a debit balance in the Retained Earnings account For instance, 100 is a credit balance in the Retained Earnings account for $100, and a 100 is a debit balance in the Retained Earnings account for $100 You are only allowed to work with your group members and your professor No tutors or other groups ACG 340 Case 2 Fargo The adjusted trial balance of Fargo Company as of July 31, 2014 is presented below (Read that again, think about what that means about where Fargo is in the accounting cycle ) Notice that the total debits and credits for each account are indicated (including the beginning balances) rather than the usual account balance For example, the cash account had transactions which resulted in a total of $67,700 debits (including the beginning balance) and a total of $55,400 credits All adjusting entries have been made for the month of July 2014, except the adjustment for inventory Fargo's fiscal year end is June 30 Account Debit Credit $67,700 $55,400 Cash 58,000 54,400 Accounts Receivable 700 1,100 Allowance for Doubtful Accounts 60,000 Inventory 1,200 400 Prepaid Advertising 1,700 1,300 Office Supplies on Hand 22,000 1,500 Office Equipment 400 7,600 Accumulated Depreciation 31,900 40,000 Accounts Payable 800 Salaries Payable 100 Interest Payable 4,000 8,200 Dividends Payable 3,000 30,000 Notes Payable 12,600 Common Stock 20,000 Paid In Capital in Excess of Par 19,900 Retained Earnings 7,200 Dividends Declared 61,000 Sales 2,200 Sales Returns 500 Sales Discounts 42,000 Purchases 900 Purchase Returns and Allowances 400 Purchase Discounts 9,200 Salaries Expense 1,300 Office Supplies Expense 700 Insurance Expense 600 Advertising Expense 500 Bad Debt Expense 400 Miscellaneous Expense 300 Depreciation Expense 300 Interest Expense 200 Gain on Sale of Office Equipment $315,800 $315,800 Totals 0 You are only allowed to work with your group members and your professor No tutors or other groups Using the trial balance of gross balances for Fargo and the additional information given below, answer the following questions about the operations of Fargo Put answers in box when given Each question is worth half a point 1 Compute the amount of interest paid in July At June 30, 2012, $20 was payable (Hint Think of converting from accrual basis to cash basis ) 2 How much of Accounts Receivable were written off the month (Hint Run the ADA t account) 3 What is Fargo's Net Realizable Value of Accounts Receivable at the end of July 4 What was the amount of cash received on the sale of office equipment 5 Assuming that the office equipment has a five year estimated life, no estimated salvage value, and no depreciation is taken during the month of purchase or sale, how much office equipment was acquired during the month 6 How old is the office equipment that was neither sold nor acquired during the month 7 How much cash was paid on Accounts Payable during the month Assume the beginning balance of Accounts Payable in July was zero 1 You are only allowed to work with your group members and your professor No tutors or other groups 8 If the beginning balance in Note Payable was $20,000, what amount of Notes Payable did Fargo issue in in July 9 How much of the Note Payable was paid off during July 10 If all vendors sell to Fargo on terms 2 10, n 30, what was the total amount of purchases discounts which were allowed to lapse No purchases were made in the last 10 days of July 11 If there was no prepaid advertising at the beginning of the period, what was the total cash outlay for advertising in July 12 How much cash was used to pay salaries during the month Assume the balance in Salaries Payable on July 1 was zero 13 What was the balance of Retained Earnings at the beginning of the fiscal year 14 If office supplies valued at $300 were on hand at the beginning of the month, what were the total purchases of office supplies during the month 15 What journal entry does Fargo make to record the purchase of office supplies Good journal entry format required 2 You are only allowed to work with your group members and your professor No tutors or other groups 16 How much cash dividends were paid during the month Assume that the beginning balance in Dividends Payable at June 30 was $1,000 17 Of the cash dividends paid, how much related to the current period 18 What are net sales for July 19 If 90 of sales are made on credit and all returns were related to credit sales, what was the beginning balance in Accounts Receivable on July 1 (Hint Run the AR t account) 20 How much cash received on accounts receivable in July (Hint Run the AR t account) 21 Does the company use gross or net method to record purchases How do you know 22 What is the beginning balance in inventory on July 1 23 What are net purchases for July 24 Assume that the company did a count of ending inventory and found that they had 70,000 of inventory remaining at the end of July What is the cost of goods sold for the month of July 3 You are only allowed to work with your group members and your professor No tutors or other groups 25 Provide the journal entry to adjust inventory at July 31 Good journal entry format is required 26 Provide the journal entry to close revenues at July 31 Good journal entry format is required 27 Provide the journal entry to close expenses at July 31 Good journal entry format is required 28 Provide the journal entry to close dividends at July 31 Good journal entry format is required 29 Provide the journal entry to close income summary at July 31 Good journal entry format is required 30 After you have adjusted inventory and done your closing entries for the month, what is the ending balance in Retained Earnings on July 31 4

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 19, 2024

Compute the amount of interest paid in July. At June 30, 2016, $20 was payable. (Hint: Think of converting from accrual basis to cash basis.)

Compute the amount of interest paid in July. At June 30, 2016, $20 was payable.(Hint: Think of converting from accrual basis to cash basis.)

1 points

QUESTION 2

How much of Accounts Receivable were written off the month? (Hint: Run the ADA t-account)

1 points

QUESTION 3

What is Fargos Net Realizable Value of Accounts Receivable at the end of July?

1 points

QUESTION 4

What was the amount of cash received on the sale of office equipment?

1 points

QUESTION 5

Assuming that the office equipment has a five year estimated life, no estimated salvage value, and no depreciation is taken during the month of purchase or sale, how much office equipment was acquired during the month?

1 points

QUESTION 6

How old (in months) is the office equipment that was neither sold nor acquired during the month?

1 points

QUESTION 7

How much cash was paid on Accounts Payable during the month? Assume the beginning balance of Accounts Payable in July was zero

1 points

QUESTION 8

If the beginning balance in Note Payable was $20,000, what amount of Notes Payable did Fargo issue in in July?

1 points

QUESTION 9

How much of the Note Payable was paid off during July?

1 points

QUESTION 10

If all vendors sell to Fargo on terms 2/10, n/30, what was the total amount of purchases discounts which were allowed to lapse. No purchases were made in the last 10 days of July.

1 points

QUESTION 11

If there was no prepaid advertising at the beginning of the period, what was the total cash outlay for advertising in July? (Hint: Think of converting from accrual basis to cash basis.)

1 points

QUESTION 12

How much cash was used to pay salaries during the month? Assume the balance in Salaries Payable on July 1 was zero. (Hint: Think of converting from accrual basis to cash basis.)

1 points

QUESTION 13

What was the balance of Retained Earnings at the beginning of the fiscal year?

1 points

QUESTION 14

If office supplies valued at $300 were on hand at the beginning of the month, what were the total purchases of office supplies during the month?

1 points

QUESTION 15

What journal entry does Fargo make to record the purchase of office supplies?

Debit Office Supplies, Credit Cash.

Debit Cash, Credit Office Supplies.

Debit Office Supplies Expense, Credit Cash.

Debit Office Supplies Expense, Credit Office Supplies?

1 points

QUESTION 16

How much cash dividends were paid during the month? Assume that the beginning balance in Dividends Payable at June 30 was $1,000.

1 points

QUESTION 17

Of the cash dividends paid, how much related to the current period?

1 points

QUESTION 18

What are net sales for July?

1 points

QUESTION 19

If 90% of sales are made on credit and all returns were related to credit sales, what was the beginning balance in Accounts Receivable on July 1? (Hint: Run the AR t-account)

1 points

QUESTION 20

How much cash received on accounts receivable in July? (Hint: Run the AR t-account)

1 points

QUESTION 21

Does the company use the gross or net method to record purchases? How do you know?

Gross becuase Purchase Return & Allowances are on the Trial Balance.

Gross because Sales Discounts are on the Trial Balance.

Gross because Purchase Discounts are on the Trial Balance.

Gross because Sales Discounts Forfeited are not on the Trial Balance.

Gross because Purchase Discounts Forfeited are not on the Trial Balance.

Net becuase Purchase Return & Allowances are on the Trial Balance.

Net because Sales Discounts are on the Trial Balance.

Net because Purchase Discounts are on the Trial Balance.

Net because Sales Discounts Forfeited are not on the Trial Balance.

Net because Purchase Discounts Forfeited are not on the Trial Balance.

1 points

QUESTION 22

What is the beginning balance in inventory on July 1?

1 points

QUESTION 23

What are net purchases for July?

1 points

QUESTION 24

Assume that the company did a count of ending inventory and found that they had 70,000 of inventory remaining at the end of July. What is the cost of goods sold for the month of July?

1 points

QUESTION 25

Fill in the blanks: The adjusting entry to adjust inventory will include a debit to Ending Inventory, COGS, _______________, and ______________.

Purhcases, and Beginning Inventory.

Purchase Discounts, and Purchase Returns & Allowances.

Purchases, and Purchase Discounts.

Purchases, and Purchase Returns & Allowances.

1 points

QUESTION 26

What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal credit balance at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100.

1 points

QUESTION 27

What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal debit balance at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100.

1 points

QUESTION 28

What is the amount of the change to Income Summary account for the closing entry to close Income Summary to Retained Earnings at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100.

1 points

QUESTION 29

When closing dividends declared, which account is debited?

Dividends Declared

Income Summary

Accumulated OCI

Retained Earnings

1 points

QUESTION 30

After you have adusted inventory and done the four closing entries for the month, what is the ending balance in Retained Earnings on July 31? A positive number indicates a credit balance in the Retained Earnings account and a negative number indicates a debit balance in the Retained Earnings account. For instance, 100 is a credit balance in the Retained Earnings account for $100, and a -100 is a debit balance in the Retained Earnings account for $100.

You are only allowed to work with your group members and your professor. No tutors or other groups. ACG 340 Case 2: Fargo The adjusted trial balance of Fargo Company as of July 31, 2014 is presented below. (Read that again, think about what that means about where Fargo is in the accounting cycle.) Notice that the total debits and credits for each account are indicated (including the beginning balances) rather than the usual account balance. For example, the cash account had transactions which resulted in a total of $67,700 debits (including the beginning balance) and a total of $55,400 credits. All adjusting entries have been made for the month of July 2014, except the adjustment for inventory. Fargo's fiscal year end is June 30. Account Debit Credit $67,700 $55,400 Cash 58,000 54,400 Accounts Receivable 700 1,100 Allowance for Doubtful Accounts 60,000 Inventory 1,200 400 Prepaid Advertising 1,700 1,300 Office Supplies on Hand 22,000 1,500 Office Equipment 400 7,600 Accumulated Depreciation 31,900 40,000 Accounts Payable 800 Salaries Payable 100 Interest Payable 4,000 8,200 Dividends Payable 3,000 30,000 Notes Payable 12,600 Common Stock 20,000 Paid-In Capital in Excess of Par 19,900 Retained Earnings 7,200 Dividends Declared 61,000 Sales 2,200 Sales Returns 500 Sales Discounts 42,000 Purchases 900 Purchase Returns and Allowances 400 Purchase Discounts 9,200 Salaries Expense 1,300 Office Supplies Expense 700 Insurance Expense 600 Advertising Expense 500 Bad Debt Expense 400 Miscellaneous Expense 300 Depreciation Expense 300 Interest Expense 200 Gain on Sale of Office Equipment $315,800 $315,800 Totals 0 You are only allowed to work with your group members and your professor. No tutors or other groups. Using the trial balance of gross balances for Fargo and the additional information given below, answer the following questions about the operations of Fargo. Put answers in box when given. Each question is worth half a point. 1. Compute the amount of interest paid in July. At June 30, 2012, $20 was payable. (Hint: Think of converting from accrual basis to cash basis.) 2. How much of Accounts Receivable were \"written off\" the month? (Hint: Run the ADA t-account) 3. What is Fargo's Net Realizable Value of Accounts Receivable at the end of July? 4. What was the amount of cash received on the sale of office equipment? 5. Assuming that the office equipment has a five year estimated life, no estimated salvage value, and no depreciation is taken during the month of purchase or sale, how much office equipment was acquired during the month? 6. How old is the office equipment that was neither sold nor acquired during the month? 7. How much cash was paid on Accounts Payable during the month? Assume the beginning balance of Accounts Payable in July was zero. 1 You are only allowed to work with your group members and your professor. No tutors or other groups. 8. If the beginning balance in Note Payable was $20,000, what amount of Notes Payable did Fargo issue in in July? 9. How much of the Note Payable was paid off during July? 10. If all vendors sell to Fargo on terms 2/10, n/30, what was the total amount of purchases discounts which were allowed to lapse. No purchases were made in the last 10 days of July. 11. If there was no prepaid advertising at the beginning of the period, what was the total cash outlay for advertising in July? 12. How much cash was used to pay salaries during the month? Assume the balance in Salaries Payable on July 1 was zero. 13. What was the balance of Retained Earnings at the beginning of the fiscal year? 14. If office supplies valued at $300 were on hand at the beginning of the month, what were the total purchases of office supplies during the month? 15. What journal entry does Fargo make to record the purchase of office supplies? Good journal entry format required. 2 You are only allowed to work with your group members and your professor. No tutors or other groups. 16. How much cash dividends were paid during the month? Assume that the beginning balance in Dividends Payable at June 30 was $1,000. 17. Of the cash dividends paid, how much related to the current period? 18. What are net sales for July? 19. If 90% of sales are made on credit and all returns were related to credit sales, what was the beginning balance in Accounts Receivable on July 1? (Hint: Run the AR t-account) 20. How much cash received on accounts receivable in July? (Hint: Run the AR t-account) 21. Does the company use gross or net method to record purchases? How do you know? 22. What is the beginning balance in inventory on July 1? 23. What are net purchases for July? 24. Assume that the company did a count of ending inventory and found that they had 70,000 of inventory remaining at the end of July. What is the cost of goods sold for the month of July? 3 You are only allowed to work with your group members and your professor. No tutors or other groups. 25. Provide the journal entry to adjust inventory at July 31. Good journal entry format is required. 26. Provide the journal entry to close revenues at July 31. Good journal entry format is required. 27. Provide the journal entry to close expenses at July 31. Good journal entry format is required. 28. Provide the journal entry to close dividends at July 31. Good journal entry format is required. 29. Provide the journal entry to close income summary at July 31. Good journal entry format is required. 30. After you have adjusted inventory and done your closing entries for the month, what is the ending balance in Retained Earnings on July 31? 4