I have attached the questions as well as the answers I got.. But the following questions that I was told by my professor that are wrong: 2, 3, 5, 7, 10, 11.. Also please look over the rest to see if they are right. Thanks.

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 1 Interest Paid = 20+300100 $220.00 2 ADA account 1100 700 700 1100 400 Account Written off 400 3 Net realizable Value of Accounts Receivable = 4400700 3700 4 Cash received on sale of equipment = 1500200 1300 5 Office Equipment acquired dueing the year = 220001500 +300 20800.00 ` 6 Old Equipment =2 years old 7 Accounts Payable 0 40000 8100 31900 Amount Paid to Accounts Payable 8 Beginning Balance of Notes Payable 31900 $20,000 Amount issued in July 10000 9 Notes Payable paid off $3,000 10 Amount of Discount = (4000031900)*2% 162 11 The cash outlay for advertising 1000 12 Cash used to pay salaries 8400 13 Retained Earnings at the beginning 19900 14 Total purchase of supplies 1400 15 Date Account Title Supplies Cash Debit Credit 1400 1400 16 Cash Dividend 4000 17 Cash dividend related to current period 3000 18 Net Sales 58300 19 Beginning balance of AR 3100 20 Cash received 51000 21 The company uses gross method to record purchases, as it separately shows the amount of purchase return and discount 22 Beging Balance of Inventory 40700 24 Cost of Goods Sold COGS= beg inv + net purchasesEnding Inventory Date 60000 23 Net Purchases 30700 25 Account Title Cost of Goods Sold Inventory Debit Account Title Sales Revenue Gain on sale of equipment Income Summary Debit Account Title Income Summary Sales Return Sales Discount Cost of goods sold Salaries Expense Office Supplies expense Insurance Expense Advertising Expenses Bad Debt Expense Misc. Expense Depreciation Expense Interest Expense Debit Account Title Dividend Declared Retained Earnings Debit Account Title Income Summary Retained Earnings Credit Debit 30700 30700 26 Date Credit 61000 200 61200 27 Date Date 28 Credit 46700 2200 500 30700 9200 1300 700 600 500 400 300 300 Credit 7200 7200 29 Date 30 Ending Balance in Retained Earnings Credit 14500 14500 27200