Question
Make all necessary entries on the Final Exam Answer sheet in theJournalprovided forProblem 1using the following information: John Doe occasionally issues short-term notes to suppliers
Make all necessary entries on the Final Exam Answer sheet in theJournalprovided forProblem 1using the following information:
John Doe occasionally issues short-term notes to suppliers in return for an extension of time on payment of their accounts payable balances. During certain parts of the year Doe finds it necessary to borrow funds at the bank to meet current expenses and to provide additional working capital. Journalize the following transactions involving notes payable issued during the current year. Calculate any missing data.
- Jun 20 Doe borrowed $2,000 at the XYZ Bank on a 90-day, 14% note.
- Jul 7 Doe issued a $1,550, 60-day, 13% note to Peck Supplies in payment of the accounts payable.
- ?? Paid the June 20 note at maturity, plus interest.
- ?? Paid $650, plus interest on the July 7 note at maturity, and issued a new 45-day, 15% note for the remaining balance.
PROBLEM 2:
Make all necessary entries on the Final Exam Answer sheet in theJournalprovided forProblem 2using the following information:
- Brown occasionally accepts short-term notes from customers that are unable to pay their accounts when due and who seek an extension.Journalize the transactions involving notes receivables accepted during the current year.Calculate any missing data.
- Mar 6Received a $500, 60-day 7% note dated March 6 from Jim Black in payment of his account.
- Apr 16 Received a $600, 90-day 9% note dated April 16 from Sam Green in payment of his account.
- ?? Received payment from Jim Black for the note due today, plus interest.
- ??Received $300, plus interest from Sam Green, with a new note for the remaining balance to pay off the note dated April 16.
PROBLEM 3:
Make all necessary entries on the Final Exam Answer sheet in thePartial Income Statementprovided forProblem 3using the following information:
The following information was taken from the accounting records of Wilson Company for the month of November, 1999:
Merchandise Inventory, November 1.......... $ 68,000
Merchandise Inventory, November 30........... 62,500
Sales..............................................................235,400
Purchases...................................................... 196,250
Freight In..........................................................2,200
Sales Returns and Allowances.........................2,195
Sales Discounts................................................. 1,240
Purchase Returns and Allowances...................6,870
Purchase Discounts...........................................2,135
Complete the Partial Income Statement for the month of November 30, 1999.
PROBLEM 4:
Make all necessary entries on the Final Exam Answer sheet in theJournalsprovided for Questions 1, 2, and 3in Problem 4using the following information:
At the end of the current year, the accounts receivable balance for Moore Supplies has a debit balance $180,000 and credit sales for the year totaled $1,780,000.Give the end-of-the-period adjusting entries to enter the estimate for uncollectible accounts expense for each of the following independent assumptions.Also provide the net receivables for each of the following assumptions.
Question 1:
- The Allowance for Doubtful Accounts has a $800 credit balance.The percentage of sales method is used and uncollectible accounts expense is estimated to be 3/4% (.75%) of credit sales.
Question 2:
- The Allowance for Doubtful Accounts has a $650 credit balance.The percentage of receivables method is used and an analysis of the accounts receivables produces an estimate of $10,790 in uncollectible accounts.
Question3:
- The Allowance for Doubtful Accounts has a $400 debit balance. The percentage of sales method is used and uncollectible accounts expense is estimated to be 1%(1.5%) of credit sales.
PROBLEM 5:
Make all necessary entries on the Final Exam Answer sheet in the blanks provided forProblem5using the following information:
Paul Wholesale deals in only one article of inventory.The following data summarizes the transactions involving inventory during the month of August :
Inventory, August 1....................................... 20,000 units @ $3.05
Purchase, August 8........................................ 35,000 units @ $3.20
Purchase, August 23...................................... 65,000 units @ $3.40
On hand August 31, per physical count....................... 40,000units
Required: Calculate the amount to be assigned to the August 31 inventory and the cost of goods sold by (1) the FIFO method,(2) the weighted-average method-round to the thousandths place, and (3) the LIFO method.Place answers in the blanks provided on the answer sheet.
PROBLEM 6:
Make all necessary entries on the Final Exam Answer sheet in thescheduleprovided forProblem6using the following information:
Chris Dixon has just purchased a special purpose machine for $40,000.Dixon thinks that 4 years will be the useful life of the asset and estimates that, at the end of that time, the salvage value will be $5,000.Required: Prepare and complete the schedule on the answer sheet showing the depreciation each year and the book value at the end of each year by each method.
PROBLEM 7:
Make all necessary entries on the Final Exam Answer sheet in the blanks provided forProblem7using the following information:
From the above, determine the following:
- The maturity value at maturity
- The due date of the note
- The face value of the note
- The interest due at maturity
PROBLEM 8:
Make all necessary entries on the Final Exam Answer sheet in theJournalprovided forProblem8using the following information:
Year-End Adjustment Information:
- A physical count of the inventory showed that actual inventory was$26,000.
- The loss from uncollectible accounts is figured as of 1% of the total credit sales of $200,000.Use the Allowance for Doubtful Accounts.
- Depreciation is figured for the store equipment that has a $50,000cost, a $25,000 salvage value and a 5-year life.(Cost value-salvage value/years).
- Actual supplies on hand totaled $2,300 as of December 31.Suppliesused were $2,700.
- Purchased a 1-year Prepaid Insurance policy for $2,400 on April 1. We have used 9 month
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