I would like the answers to this accounting quiz...

FINANCIAL ACCOUNTING Quiz 5 Chapters 7 & 8 Score % Name: Course: Accounting Section: PROBLEM 1BANK RECONCILIATION INSTRUCTIONS: Indicate the proper place for each of the following reconciling items by inserting the correct letter from the bank reconciliation form below in the Answers column. Dylan Co., Bank Reconciliation, April 30, 20 Cash balance per bank statement................. $XX Cash balance per depositor's records........... Additions......................................................... A Additions......................................................... Deductions..................................................... B Deductions..................................................... Adjusted balance............................................ $XX Adjusted balance............................................ ITEMS 0. Check drawn by depositor for $98 but recorded in journal as $89 ........... Answers D $XX C D $XX For Scoring 0. ____ 1. Deposit in transit not recorded by bank, $6,668 ........................................ 2. Customer's check returned by bank to depositor because of insufficient funds, $204 ................................................................................................ $XX 1. ____ 2. ____ 3. The bank has processed and paid a check in the amount of $175. It has not been recorded in the journal ......................................................... 3. ____ 4. Proceeds of bank loan omitted from journal, $56,125 .............................. 4. ____ 5. Bank debit memorandum for service charges, $35 .................................. 5. ____ 6. Check for $345 written by Upton Co., but erroneously charged by bank to Dylan Co. ............................................................................................... 6. ____ 7. Checks outstanding, $11,456..................................................................... 7. ____ 8. Deposit of $7,950 recorded in journal as $7,590 ...................................... 8. ____ 9. Bank credit memorandum for note collected by the bank, $6,150, including $150 interest ............................................................................... 9. ____ Deposit of $6,900 erroneously listed on the bank statement as $9,800.... 10. ____ 10. FILL-IN-THE-BLANK 1PRINCIPLES AND TERMINOLOGY INSTRUCTIONS: Complete each of the following statements by writing the appropriate words in the Answers column. STATEMENTS 0. The notification that accompanies the check and indicates the specific invoice that is being paid is called a(n) ................................................... For Scoring Answers remittance advice 1. The procedures used by a company to safeguard its assets, process information accurately, and ensure compliance with laws are called...... 0. ____ 1. ____ 2. Before a voucher is prepared for the purchase of merchandise, the three documents to support the correctness of the amount of the liability are the: ....................................................................................... 2. ____ continued STATEMENTS Answers For Scoring 3. A fund established to avoid writing checks for small amounts is called a(n) ............................................................................ 5. ____ 4. A cash balance required by the bank to be maintained by a business is called a(n) ............................................................. 6. ____ 5. Cash equivalents are considered \"equivalent\" because they are highly................................................................................ .................................................................................................. 7. ____ 6. Compensating balances should be disclosed in the ............... 8. ____ 7. If the actual cash received from cash sales is more than the amount indicated by the cash register tally, the overage would be credited to an account entitled ................................................ 9. ____ 8 - 11. The three objectives of internal control are to provide reasonable assurance that ; assets are ................................. 10. ____ 9. business information is ........................................................... 11. ____ 10. laws and regulations are ......................................................... 12. ____ 11. A debit balance in the cash short and over account is reported on the income statement in the section entitled ....... 13. ____ PROBLEM 2ANALYSIS OF TRANSACTIONS INSTRUCTIONS: In the appropriate columns, insert the letters of the accounts to be debited and credited in recording the selected transactions described below. A. B. C. D. E. Accounts Payable Accounts Receivable Capital Stock Dividends Cash F. G. H. I. ACCOUNTS Cash Short and Over J. Misc. Administrative Expense Interest Expense K. Misc. Selling Expense Interest Revenue L. Notes Payable Merchandise Inventory M. Notes Receivable N. O. P. Q. Office Supplies Petty Cash Purchases Sales TRANSACTIONS 0. Purchased office supplies on account ..................................................... Debit N For Scoring 0. ____ Credit A For Scoring 0. ____ 1-2. Issued check for payment for merchandise purchased on account, within the discount period ........................................................................ 1. ____ 2. ____ 3-4. Issued check to establish petty cash fund ............................................... 3. ____ 4. ____ 5-6. The actual cash counted and deposited was less than the amount recorded on the cash register receipt tape for sales for the day ............. 5. ____ 6. ____ 7-8. Recorded entry based on bank reconciliation for bank credit memorandum for note collected by bank ................................................ 7. ____ 8. ____ 9-10. Recorded entry based on the bank reconciliation for bank debit memorandum for customer's check returned by bank for insufficient funds ...................................................................................... 9. ____ 10. ____ 11-12. Reimbursed the petty cash fund for disbursements made for office supplies, miscellaneous administrative expense, and miscellaneous selling expense ........................................................................................ 11. ____ 12. ____ FILL-IN-THE-BLANK 2PRINCIPLES AND TERMINOLOGY INSTRUCTIONS: Answer the following questions or complete the statements by writing the appropriate words or amounts in the Answers column. QUESTIONS/STATEMENTS 0. The party purchasing a company's receivables is called a(n) .................. 1. Allowance for Doubtful Accounts has a credit balance of $10,000 at the end of the year, before adjustments. Sales for the year amounted to $1,500,000, and sales returns and allowances amounted to $50,000. If Answers factor For Scoring 0. ____ uncollectible accounts expense is estimated at 2% of net sales, the amount of the appropriate adjusting entry will be ..................................... 2. 3. 4. $ 1. ____ If, instead of a percentage of net sales, the adjusting entry in Question 1 is based on an analysis of receivables that indicates doubtful accounts of $20,500, the amount of the adjustment will be ..................................... $ 2. ____ Allowance for Doubtful Accounts has a debit balance of $1,500 at the end of the year, before adjustment. If an analysis of receivables indicates doubtful accounts of $17,000, the amount of the appropriate adjusting entry will be ................................................................................ $ 3. ____ The maturity value of a $100,000, 180-day, 4% note receivable is .......... $ 4. ____ 5. 6. 7. 8. In writing off an uncollectible account by the direct write-off method, the account credited is ..................................................................................... $ 5. ____ At the end of the fiscal year, after the accounts are closed, Accounts Receivable has a balance of $975,000, and Allowance for Doubtful Accounts has a balance of $125,000. What is the expected net realizable value of the receivables? .......................................................... $ 6. ____ Where on the balance sheet would receivables that are expected to be realized in cash within one year be reported? ........................................... 7. ____ Allowance for Doubtful Accounts is listed on the appropriate financial statement in the subsection titled .............................................................. 8. ____ 9. 10. Notes receivable expected to be collected in 1 years are listed on the financial statements in the subsection titled .............................................. 9. ____ If the receivable turnover is 20, how many days are the receivables outstanding, on the average? .................................................................... 10. ____ PROBLEM 3ANALYSIS OF TRANSACTIONS AND ADJUSTMENTS INSTRUCTIONS: In recording the selected transactions and adjustments, indicate the titles of the general ledger accounts to be debited and credited by inserting in the appropriate column the letters that correspond to the account titles listed. ACCOUNTS A. B. C. D. Accounts Payable Accounts Receivable Allowance for Doubtful Accounts Cash E. F. G. H. Interest Interest Interest Interest Expense Revenue Payable Receivable I. J. K. L. Misc. Administrative Expense Notes Payable Notes Receivable Bad Debt Expense TRANSACTIONS 0. Received the final payment on a promissory note .................................. Debit D For Scoring 0. ____ Credit K, F For Scoring 0. ____ 1-2. Recorded the adjusting entry for estimated uncollectible accounts at the end of the fiscal period, based upon the allowance method ............. 1. ____ 2. ____ 3-4. Wrote off the account of the bankrupt debtor (included in Allowance for Doubtful Accounts provision made in Question 1-2) .............................. 3. ____ 4. ____ 5-8. Recovered the bad debt written off in Question 3-4 ............................... 5. ____ 6. ____ 7. ____ 8. ____ 9-10. Replaced a customer's account receivable with a note receivable ......... 9. ____ 10. ____