Please answer the questions on the following document.

You are only allowed to work with your group members and your professor. No tutors or other groups. ACG 340 Case 4: 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 Cash $67,700 $55,400 Accounts Receivable 58,000 54,400 Allowance for Doubtful Accounts 700 1,100 Inventory 60,000 Prepaid Advertising 1,200 400 Office Supplies on Hand 1,700 1,300 Office Equipment 22,000 1,500 Accumulated Depreciation 400 7,600 Accounts Payable 31,900 40,000 Salaries Payable 800 Interest Payable 100 Dividends Payable 4,000 8,200 Notes Payable 3,000 30,000 Common Stock 12,600 Paid-In Capital in Excess of Par 20,000 Retained Earnings 19,900 Dividends Declared 7,200 Sales 61,000 Sales Returns 2,200 Sales Discounts 500 Purchases 42,000 Purchase Returns and Allowances 900 Purchase Discounts 400 Salaries Expense 9,200 Office Supplies Expense 1,300 Insurance Expense 700 Advertising Expense 600 Bad Debt Expense 500 Miscellaneous Expense 400 Depreciation Expense 300 Interest Expense 300 Gain on Sale of Office Equipment 200 Totals $315,800 $315,800 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, 2014, $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. 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? (Hint: Think of converting from accrual basis to cash basis.) 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.) 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. 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? 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