Question
QUESTION 1 Compute the amount of interest paid in July. At June 30, 2016, $20 was payable. (Hint: Think of converting from accrual basis to
QUESTION 1
Compute the amount of interest paid in July. At June 30, 2016, $20 was payable. (Hint: Think of converting from accrual basis to cash basis.)
QUESTION 2
How much of Accounts Receivable were written off the month? (Hint: Run the ADA t-account)
QUESTION 3
What is Fargos Net Realizable Value of Accounts Receivable at the end of July?
QUESTION 4
What was the amount of cash received on the sale of office equipment?
QUESTION 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?
QUESTION 6
How old (in months) is the office equipment that was neither sold nor acquired during the month?
QUESTION 7
How much cash was paid on Accounts Payable during the month? Assume the beginning balance of Accounts Payable in July was zero
QUESTION 8
If the beginning balance in Note Payable was $20,000, what amount of Notes Payable did Fargo issue in in July?
QUESTION 9
How much of the Note Payable was paid off during July?
QUESTION 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.
QUESTION 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.)
QUESTION 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.)
QUESTION 13
What was the balance of Retained Earnings at the beginning of the fiscal year?
QUESTION 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?
QUESTION 15
What journal entry does Fargo make to record the purchase of office supplies?
Debit Office Supplies, Credit Cash. | ||
Debit Cash, Credit Office Supplies. | ||
Debit Office Supplies Expense, Credit Cash. | ||
Debit Office Supplies Expense, Credit Office Supplies? |
QUESTION 16
How much cash dividends were paid during the month? Assume that the beginning balance in Dividends Payable at June 30 was $1,000.
QUESTION 17
Of the cash dividends paid, how much related to the current period?
QUESTION 18
What are net sales for July?
QUESTION 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)
QUESTION 20
How much cash received on accounts receivable in July? (Hint: Run the AR t-account)
QUESTION 21
Does the company use the gross or net method to record purchases? How do you know?
Gross becuase Purchase Return & Allowances are on the Trial Balance. | ||
Gross because Sales Discounts are on the Trial Balance. | ||
Gross because Purchase Discounts are on the Trial Balance. | ||
Gross because Sales Discounts Forfeited are not on the Trial Balance. | ||
Gross because Purchase Discounts Forfeited are not on the Trial Balance. | ||
Net becuase Purchase Return & Allowances are on the Trial Balance. | ||
Net because Sales Discounts are on the Trial Balance. | ||
Net because Purchase Discounts are on the Trial Balance. | ||
Net because Sales Discounts Forfeited are not on the Trial Balance. | ||
Net because Purchase Discounts Forfeited are not on the Trial Balance. |
QUESTION 22
What is the beginning balance in inventory on July 1?
QUESTION 23
What are net purchases for July?
QUESTION 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?
QUESTION 25
Fill in the blanks: The adjusting entry to adjust inventory will include a debit to Ending Inventory, COGS, _______________, and ______________.
Purhcases, and Beginning Inventory. | ||
Purchase Discounts, and Purchase Returns & Allowances. | ||
Purchases, and Purchase Discounts. | ||
Purchases, and Purchase Returns & Allowances. |
QUESTION 26
What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal credit balance at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100.
QUESTION 27
What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal debit balance at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100.
QUESTION 28
What is the amount of the change to Income Summary account for the closing entry to close Income Summary to Retained Earnings at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100.
QUESTION 29
When closing dividends declared, which account is debited?
Dividends Declared | ||
Income Summary | ||
Accumulated OCI | ||
Retained Earnings |
QUESTION 30
After you have adusted inventory and done the four closing entries for the month, what is the ending balance in Retained Earnings on July 31? A positive number indicates a credit balance in the Retained Earnings account and a negative number indicates a debit balance in the Retained Earnings account. For instance, 100 is a credit balance in the Retained Earnings account for $100, and a -100 is a debit balance in the Retained Earnings account for $100.
The adjusted trial balance of Fargo Company as of July 31, 2016 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??uly 2016, except the adjustment for inventory Fargo's fiscal year end is June 30 Debit Account Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Advertising Office Supplies on Hand Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Dividends Payable Notes Payable Common Stock Paid-In Capital in Excess of Par Retained Earnings Dividends Declared Sales Sales Returns Sales Discounts Purchases Purchase Returns and Allowances Purchase Discounts Salaries Expense Office Supplies Expense Insurance Expense Advertising Expense Bad Debt Expense Miscellaneous Expense Depreciation Expense Interest Expense Gain on Sale of Office Equipment Totals Credit S67,700$55,400 54.400 1.100 58,000 700 60,000 1,200 1.700 22,000 400 31,900 400 1.300 ,500 7.600 40,000 800 100 8.200 30,000 12,600 20,000 19,900 4,000 7,200 61,000 2,200 500 42,000 900 400 9,200 1,300 700 600 500 400 300 300 200 S315.800 S315,800Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started