Practice Exam. Need help finishing the attach file. Took it already but having trouble finding out what I got wrong

Dr. Christine Jonick, Professor of Accounting, University of North Georgia 2013 Exam #4 33 questions; 3 points each Answer each question below, following the directions given for each type. Part 1 - Multiple Choice. Enter an "X" in the cell to the left of the correct answer. 1. Fixed assets are ordinarily presented in the balance sheet at cost less annual depreciation expense. at cost plus accumulated depreciation at cost less accumulated depreciation. at current market values. 2. Accumulated depreciation is a balance that indicates a fixed asset's current value to a company. is a balance that indicates how much of the value of a fixed asset has expired, or been used is the same as Depreciation Expense on the income statement. is a contra revenue account in the fixed asset section of the balance sheet. 3. On September 30, an $18,000, 12%, 30-day note came due from Clarke Co. Which of the following accounts is NOT a possible debit entry? Cash Accounts Receivable Note Receivable Allowance for Doubtful Accounts 4. On December 31, 2013, Allowance for Doubtful Accounts has a credit balance of $1,075 after all write-offs were recorded for 2013. Which statement is true? The company must be using the percent of sales method to estimate its bad debt expense. On December 31, 2013, the net realizable value of accounts receivable was zero. The company underestimated its bad debt expense in year 2013. The company overestimated its bad debt expense in year 2013. 5. One of the Vinson Company's checks for $540 for a payment to a vendor cleared the bank on May 9, and this deduction appeared on the May 31 bank statement. However, Vinson Company had recorded this check amount as $450 in its Cash ledger in error. On the bank reconciliation, the difference of $90 should be added to the bank statement ending balance. added to the company's ending Cash ledger account balance. deducted from the bank statement ending balance. deducted from the company's ending Cash ledger account balance. 6. Answer the three facts about the Accumulated Depreciation account. Account type: Financial statement: asset income statement contra asset balance sheet expense revenue contra revenue Close out? 7. 8. Answer the three facts about the Allowance for Doubtful Accounts account. Account type: Financial statement: asset income statement contra asset balance sheet expense revenue contra revenue Answer the three facts about the Note Receivable account. Account type: Financial statement: asset income statement contra asset balance sheet expense revenue contra revenue To increase: To increase: Part 2 - Fill-in-the-blanks. Enter the correct amount for each question in the space provided. 9. The following information relates to equipment purchased on May 1, 2010. Cost of the equipment Residual value of the equipment Accumulated depreciation as of 12/31/13 Depreciation expense during 2014 $32,100 1,600 18,300 480 What is equipment's book value on December 31, 2013? $ 10. You purchase six laser printers for your office for a cost of $7,340 plus sales tax of $440. You pay $100 to have the printers shipped to you from the manufacturer. You pay $240 to have them installed and hooked up to your office network. One of the printers is dropped during installation and it costs $140 to replace a damaged part. What is the depreciable cost of the printers? $ 11. A company purchases equipment for $174,700 on January 1. It has an estimed residual value of $6,700 and an estimated useful life of 10 years. The company uses the straight-line method of depreciation. Determine the book value of the equipment after 12 years of ownership. $ 12. A company purchases equipment for $ 151,200 on January 1. It has an estimed residual value of $5,900 and an estimated useful life of 3 years. The company uses the declining balance method of depreciation. Determine the amount of depreciation expense for the FIRST year. $ 13. A company purchases a machine for $136,500 on January 1. It has an estimed residual value of $6,500 and an estimated useful life of 13,000 hours. The machine was used as follows: Year 1 2,700 hours Year 2 3,500 hours Year 3 3,800 hours Year 4 4,200 hours Determine the amount of depreciation expense for the FOURTH year. $ 14. A company purchases equipment for $90,625 on January 1. It has an estimed residual value of $4,100 and an estimated useful life of 5 years. The company uses the declining balance method of depreciation. Determine the amount of depreciation expense for the FIFTH year. $ 15. A company purchases equipment for $81,000 on January 1. It has an estimed residual value of $4,000 and an estimated useful life of 7 years. The company uses the straight-line method of depreciation. The company sells the equipment on 12/31 after 5 full years of ownership for $29,300 cash. Determine the amount of gain or loss on the sale. (Enter a loss as a negative number.) $ 16. After the adjusting entry is made to set up the estimate for uncollectible accounts, Accounts Receivable has a debit balance of $429,700, Note Receivable has a debit balance of $30,000, and Allowance for Doubtful Accounts has a credit balance of $17,200. What is the net realizable value of the Accounts Receivable? $ 17. Your company accepted a 120-day, 6% note for $162,000 from Winter Company on account. On the maturity date, Winter Company still cannot pay, so you accept a new a 60-day, 10% note for the full amount due (principal and interest). How much cash will you receive if Winter Company pays you in full on the maturity date of the second note? $ 18. The allowance account before adjustment has a debit balance of $3,100. Bad debt expense for the upcoming year is estimated to be 3% of net sales, which are $184,300. What is the amount of the adjusting entry to provide for doubtful accounts? $ 19. The allowance account before adjustment has a credit balance of $2,060. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $51,500 for the upcoming year. What is the balance in the Allowance for Doubtful Accounts ledger after the adjusting entry is recorded? $ 20. The allowance account before adjustment has a credit balance of $2,060. Bad debt expense for the upcoming year is estimated to be 2% of net sales, which are $377,000. What is the balance in the Allowance for Doubtful Accounts ledger after the adjusting entry is recorded? $ 21. A company's bank statement indicated there as a cash balance of $13,020 on June 30. Other facts: a. Outstanding checks on June 30 totaled $6,120. b. The company had received $2,210 from a customer on June 29 and deposited it in the bank the same afternoon, but it was too late for it to appear on the June 30 bank statement. c. On June 16 the bank had collected a note that was due to the company from a customer. The principal amount of the note was $6,000 and a total of $6,036 appeared on the company's June 30 bank statement. d. The bank had added $50 to the June statement for bank service charges. What is the total amount on the adjusted ending bank balance as of June 30 after the bank reconciliation is prepared? $ Part 3 - Journal Entries. Enter the accounts and amounts to record each transaction. 22. A company purchased a machine for $254,100 on January 1. It has an estimed residual value of $2,100 and an estimated useful life of 63,000 hours. The machine was used 10,100 hours the first year. The company uses the units of production method of depreciation. Journalize the adjusting entry for depreciation for the first year. Date Account Debit Credit 12/31 23. You sold a truck that cost $34,800 with accumulated depreciation of $29,600 for $4,700. Date Account Debit Credit 5/31 For #24 - 28, assume there are 30 days in each month and 360 days in each year. 24. You accepted a 120-day, 8% note for $33,300 from Quinn Co. on account on March 1. Date Account Debit Credit 3/1 25. You received the amount due from Quinn Co. for the note on March 1. Date Account Debit 6/30 Credit 26. Your company had previously accepted a 30-day, 6% note for $100,000 from Spring, Inc. on account on July 1. It is now July 31 and the note is due and Spring, Inc. dishonors the note. Date Account Debit Credit 7/31 27. On August 31, you receive full payment from Spring, Inc. on the note dishonored on 7/31 plus a 20% interest penalty on the 7/31 outstanding balance. Date Account Debit Credit 8/31 28. You collect $600 of the $1,890 that Whitaker Co. owes you on account and write off the remainder. You use the direct write-off method for uncollectible customer accounts. Date Account Debit Credit 9/9 Transactions #29 - 33 below relate to one another. There is a ledger on the tab below called "Ledgers" if you choose to use it. It is not a graded part of this exam. 29. On December 31, 2013, Allowance for Doubtful Accounts has a credit balance of $4,500 before the adjusting entry is recorded. Analysis of receivables indicates the estimated amount of doubtful accounts is $64,900 for the upcoming year. Journalize the entry for the estimate on January 1, 2014. Date Account Debit Credit 1/1/14 30. On February 17, you write off the $55,800 that Outboard Motors Co. owes you on account. Date Account Debit Credit 2/17/14 31. On November 29, Outboard Motor Co. pays you $11,700 of the amount you had written off on February 17. You reinstate the account. Date Account Debit Credit 11/29/14 32. On December 8, you write off the $22,100 that Kelly Company owes you on account. Date Account Debit Credit 12/8/14 33. Analysis of receivables indicates the estimated amount of doubtful accounts is $72,700 for the upcoming year. Journalize the entry for the estimate on January 1, 2015. Date Account Debit Credit 1/1/15 34. How will you prepare for your final exam in ACCT 2101? expired, or been used h of the following s bad debt expense. e bank on May 9, yes no debit credit debit credit net realizable of the accounts oming year. g entry is recorded? expense for the g entry is recorded? Date Item Allowance for Doubtful Accounts Debit Credit Debit Credit