Good afternoon sir. How are you? I upload a take home test for my accounting 1 class. I'm an undergraduate. I did the test but i need the correct answers for all them. Thank you very much

1 Take-home Exam 2Chapters 1 through 9 Principles of Accounting I THIS IS AN INDIVIDUAL TAKE-HOME TEST. You must not give help to anyone and you must not ask for help from anyone while performing this take-home test. 1. Rackley Company completes these transactions and events during March of the current year (terms of all credit sales are 2/10, n/30, unless otherwise stated in the transaction); perpetual inventory system was adopted by Rackley Company in recording its inventory transactions. March 1 Received $87,200 of merchandise and an invoice dated March 1, terms 2/15, n/30, from Fox Industries. 2. Sold merchandise on credit to Armand Leon, Invoice No. 854, for $33,600 (cost $16,800). 3. Purchased $2460 of office supplies on credit from Hilary Company, invoice dated March 3, terms 2/10, EOM. 3. Sold merchandise on credit to Kit Dean, Invoice No. 855, for $20,400 (cost, $11,600). 6. Borrowed $164,000 cash by giving Commerce Bank a long-term note payable. 9. Purchased $43,700 of office equipment on credit from Rose Supply, Invoice dated March 9, terms 3/10, EOM. 10. Sold merchandise on credit to Taylor Wood, Invoice No. 856, for $11,200 (cost, $5,800). 12. Received payment from Armand Leon for the March 2 sales less discount. 13. Sent Check No. 416 to Fox Industries in payment of the amount due on the March 1, invoice. 13. With respect to the sale of March 3, received the amount due from Kit Dean. 13. Received $32,625 of merchandise and an invoice dated March 13, terms 2/10, n/30, from the LR Company. 15. Issued Check No. 417, in payment of sales salaries for the first half of the month, 2 $18,000. 15. Cash sales for the first half of the month are $69,000 (cost is $40,400). 16. Purchased $1,700 of store supplies on credit from Hilary Company, invoice dated March 16, terms n/10 EOM. 17. Received $2,400 credit memorandum from LR Company for unsatisfactory merchandize received on March 14, and returned for credit. 19. Received $630 credit memorandum from Rose Supply for office equipment received on March 9 and returned for credit 19. Paid the amount due to Rose Supply for office equipment. 20. Received amount due from Taylor Wood for the sale of March 10. 23. Issued Check No. 418 to LR Company in payment of the invoice of March 13 Less the returns and the discount. 27. Sold merchandise on credit to Taylor Wood Invoice No. 857 for $14,900 (cost $7000). 28. Sold merchandise on credit to Kit Dean, Invoice No. 858, for $6,300 (cost is $3,200) 31. Accrued salaries for the second half of the month, $18,600. 31. Cash sales for the last half of the month are $30,000 (cost is $16,000). Required: a. Open the following general ledger accounts: Cash; Accounts receivable; inventory (March 1, beginning balance is $10,000); Office supplies; store supplies; office equipment; accounts payable; long-term notes payable; M. Bishop, Capital (March 1 beginning balance is ? ); Sales; Sales Discounts; Cost of Goods Sold; and Sales Salaries Expense. Open the following accounts receivable ledger accounts: Taylor Woods, Armand Leon, and Kit Dean. Open the following accounts payable ledger accounts: Hilary Company, Fox Industries, Rose Supply and LR Company. 3 b. Make necessary journal entries for all the transactions above. Post all your entries including those that need to be posted to customer accounts as well as creditor accounts. c. Prepare schedules of the balances in the accounts receivable ledger and accounts payable ledger (i.e., list the names in the accounts receivable ledger as well as their respective balances. Compare the total of all those individual balances in the accounts receivable ledger with the balance in their related control account to determine their respective accuracies. Perform similar procedure to prove the respective accuracies of the accounts payable ledger and the related control account in the general ledger. Ascertain that you provide the names of the control accounts in each of the cases). d. Prepare a trial balance. e. Prepare a multiple step income statement. f. Prepare a classified balance sheet. g. Prepare closing entries. h. Prepare a post-closing trial balance. i. Prepare necessary reversing entries. 2. Prepare a bank reconciliation for Collier Jarden company as of November 30, using the following information. Cash on November 30 bank statement $10,410 Cash account balance in general ledger 9,890 Deposit made on November 30, not recorded on bank statement 1,865 Note collected by bank ($1,200 plus $60 in interest) 1,260 Outstanding checks: No. 567, $800; No. 569, $452 1,252 Debit memorandum from bank for a NSF check written by J. Lane In payment of his account 100 In addition, Collier Jarden recorded Check No. 548 written for $152 in payment of the November utility bill as $125. 4 3. John Kerry.com company set up a petty cash fund for payments of small amounts. The following petty cash transactions are reported by the petty cashier as occurring in June (the last month of the company's fiscal year). June 1. Received a company check for $250 to establish the petty cash fund. 15. Received a company check to replenish the fund for the following expenditures made since October 1 and to increase the fund by $400. a. b. c. d. e. Paid $90 for janitorial service. Purchased office supplies for $54. Purchased postage stamps for $52. Paid $46 to the County Crier for an advertisement in the newspaper. Counted $11 remaining in the petty cash box. 30 The petty cashier reports that $294 remains in the fund and decides that the June 15 increase in the fund was too large. A company check is drawn to replenish the fund for the following expenditures made since June 15 and to reduce the fund to 500. f. Purchased office supplies for $148. g. Reimbursed office manager for business mileage, $24. h. Paid $35 courier charges to deliver merchandise to a customer, terms FOB destination. 4. On March 10, received an 80-day $200,000, 8% note from ABC company in place of an open accounts receivable from ABC company. On March 20, discounted the note from the bank at an interest rate of 10%. The note was endorsed with recourse. The note was dishonored. The bank charged $300 protest fee. Fifteen days after the maturity date of the note, ABC company paid the amount due in full. Record all the necessary entries from March 10 up to, what you consider, the date of termination of all activities on the note. 5 5. Acquired a machinery for $300,000 on January 16, 2007. The machinery has a useful life of 12 years and a salvage value of $60,000. (i)Required: Compute the depreciation expense for years 2007 and 2008 using each of the following methods: Straight line method; double declining balance method and units of production method, assuming that the machine can be used for a maximum of 800,000 hours and the machine was used for 300,000 hours in 2007 and 200,000 hours in 2008 (ii) Required: Using the same information as in item 5( i) and the following independent assumptions, respond to the following questions: a. Assuming that on April 12, 2009, the machine was sold for $290,000, make necessary entries in the yeae of the machinery, assuming the company uses double declining balance method of depreciation. b. Assuming that on April 12, 2009, the company, instead of selling the machinery, decided to trade in the machinery for a new machinery that has a fair market value of $335,000. Make necessary entries for the trade in of the old machinery assuming that the vendor of the new machinery informed the company that the fair market value of the old machinery is $275,000. (i) Also assume that the exchange does not have any commercial substance. (ii) Would your answer have been different if the exchange had commercial substance? Provide explanations and/or entries to explain your answer. c. How can you compute the asset turnover and what does it mean? 6 6. ABC company has the following information: Jan 1 Beginning balance of inventory300 units at $15 per unit Jan 7 Purchased 400 units at $19 Jan 10 Purchased 250 units at $22 Jan 15 Sold 360 at $50 Jan 20 Purchased 80 units at $25 Jan 25 Sold 270 units at $60 Required: 1. Determine the cost of goods sold as well as the cost of ending inventory using each of the following methods assuming the company uses periodic inventory system. a. First-in-first out b. Last-in-first out c. Weighted average cost method 2. Assuming the company uses perpetual inventory system, determine the cost of goods sold and the cost of ending inventory, using the three methods listed in a, b, and c above. 7. Chelsea and Chelsea LLC lost some inventory as a result of vandalism by teenagers while rioting demanding for their right to be unsociable. Chelsea and Chelsea provided the following information asking you to determine the amount of inventory lost during this riot using the gross profit method of inventory estimation. Purchases $400,000 Sales Discount $5,000 Purchases Discount $10,000 Sales Returns and Allowances $15,000 Purchases Returns and Allowances $30,000 Sales $460,000 Beginning Inventory $225,000 7 Transportation-out $6,000 Transportation-in $12000 Inventory recovered after the riot is $45,000 The average cost of goods sold percentage over the years is 55% 8. Breana and Giovana Anxiety Control Company uses retail average cost method of determining the company's ending inventory. The following information was provided for this purpose: Purchases, $500,000, and its retail price is $900,000. Purchases discount is $60,000. Sales is $450,000 and sales returns and allowances is $25,000. The beginning inventory is $300,000 with a retail price of $700,000. Determine the ending inventory at retail weighted average cost 9. Write a comprehensive discussion on the following: a. Identify and explain the objectives of internal control. b. Identify and discuss each element of internal control c. What is Sarbans-Oxley Act of 2002? Explain the role that Sarbanes-Oxley is playing on the internal control system of the publicly traded companies. In addition to the above, you should review your retail inventory, lower of cost ot market method (individual item and aggregate approach)