Question 1

The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016:

Item

Amount

Ending Cash per Bank Statement

$1,500

Ending Cash per Company Books

$1,705

Bank Service Charges

$15

Deposits in Transit

$325

OutstandingCheques

$230

CustomerChequereturned NSF

$95

What is the adjusted cash balance based on the completed bank reconciliation?

Question 2

One January 2, 2016, Alpha Company purchased 10,500 shares of Bravo Company stock, as trading securities, for $10 per share. On July 3, 2016 the securities were trading on the open market for $12.50 per share. On December 31, 2016, the closing market price for these securities was $9.50 per share.What value should the trading securities be reported for Alpha Company's FY 2016 balance sheet?

Question 3

Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales on July 15, 2016 amounted to $25,000 and were subject to a 5.5% credit card company collection fee.Alpha Company collected payment from Worldwide Express on July 21.What amounts should be recorded for the following accounts for the July 21 collection?

1.Cash

2.Sales

3.Service Charge

4.Accounts Receivable

Question 4

Alpha Company uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of:

Dollar Value

Age of Account

Estimated Collectible

$115,000

98%

85,000

30 to 60 days old

80%

50,000

61 to 120 days old

50%

10,000

> 120 days old

15%

The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $3,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the:

1. Accounts Receivable

2. Allowance for Doubtful Accounts

3. Bad Debt Expense

Question 5

Alpha Company used the percentage of sales method, with an historical rate of 2% for determining their bad debt expense. During 2016, sales were $1,600,000, and the January 1 Allowance for Doubtful Accounts had a normal balance of $15,000.$17,500 of accounts were written off during the year.What are the year end dollar amounts for:

1.Charged to the Bad Debt Expense account

2.Balance for Allowance for Doubtful Accounts

Question 6

Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal):

Alpha Company

December 31

Accounts

2016

2015

Accounts Receivable

$42,500

$36,000

Merchandise Inventory

57,000

50,000

Office Supplies

25,000

20,000

Credit Sales

980,000

740,000

Interest Income

25,000

20,000

Cost of Goods Sold

460,000

385,000

1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 times)

2. Whatis the FY 2016 daysoutstanding for accounts receivable ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word days. (Example 1.123 would be entered 1.1 days)

Question 7

The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016:

Item

Amount

Ending Cash per Bank Statement

$1,500

Ending Cash per Company Books

$1,705

Bank Service Charges

$15

Deposits in Transit

$325

OutstandingCheques

$230

CustomerChequereturned NSF

$95

Use this information to prepare the compound General Journal entry (without explanation) for March 31, 2016, to cause the company books to match the adjusted cash balance based on the completed bank reconciliation. If no entry is required then write "No EntryRequired."

General Journal:

Date

Accounts

Debit

Credit

Question 8

On April 1, 2016, Alpha Company set up a petty cash fund with a balance of $550. At the end of the month, the petty cash box contained vouchers of $85 for postage, $175 for supplies, $50 for gasoline, and cash on hand of $195. On April 30, 2016, the petty cash fund was replenished. Use this information to prepare the General Journal entries (without explanation) for April 1 and April 30 (compound entry). If no entry is required then write "No Entry Required."

General Journal:

Date

Accounts

Debit

Credit

4/1/16

4/30/16

Question 9

One August 2, 2016, Alpha Company purchased 10,000 shares of Bravo Company stock, as trading securities, for $10 per share. On September 30, 2016 the securities were trading on the open market for $12.50 per share. On December 31, 2016, the closing market price for these securities was $9.50 per share. Use this information to prepare the adjusting General Journal entry (without explanation) for December 31. If no entry is required then write "No Entry Required."

General Journal:

Date

Accounts

Debit

Credit

Question 10

Alpha Company uses the direct write-off method of recording uncollectible accounts. On August 15, 2016, Yankee Zulu filed for bankruptcy and informed Alpha that he would be unable to pay $450 owed to Alpha.Alpha is certain that it will be unable to collect the $450.Use this information to prepare the General Journal entry (without explanation) for August 15. If no entry is required then write "No Entry Required."

General Journal:

Date

Accounts

Debit

Credit

Question 11

Alpha Company uses an allowance method for recording bad debts. On July 15, 2016 Alpha Company was advised of the bankruptcy of the Broken Corporation and wrote off their $2,500 of accounts receivable.Suddenly, on August 25, 2016 Broken won the Maryland State Mega Millions. Without warning, on August 26, Alpha Company received half the payment for Broken's past debt. Use this information to prepare the General Journal entries (without explanation) for the August 26, 2016 event. If no entry is required then write "No Entry Required."

General Journal:

Date

Accounts

Debit

Credit

Question 12

On March 31, 2016, Alpha Company's note receivable fromBravo Company was dishonored due to the extreme decline in economic conditions. The note was a one-year, $10,000 note, issued on January 1, 2016, bearing 10%. Use this information to prepare for the Alpha Company the General Journal entries (without explanation) for March 31, 2016. If no entry is required then write "No Entry Required."

General Journal:

Date

Accounts

Debit

Credit

Question 1 The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016: Item Amount Ending Cash per Bank Statement $1,500 Ending Cash per Company Books $1,705 Bank Service Charges $15 Deposits in Transit $325 Outstanding Cheques $230 Customer Cheque returned NSF $95 What is the adjusted cash balance based on the completed bank reconciliation? Question 2 One January 2, 2016, Alpha Company purchased 10,500 shares of Bravo Company stock, as trading securities, for $10 per share. On July 3, 2016 the securities were trading on the open market for $12.50 per share. On December 31, 2016, the closing market price for these securities was $9.50 per share. What value should the trading securities be reported for Alpha Company's FY 2016 balance sheet? Question 3 Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales on July 15, 2016 amounted to $25,000 and were subject to a 5.5% credit card company collection fee. Alpha Company collected payment from Worldwide Express on July 21. What amounts should be recorded for the following accounts for the July 21 collection? 1. Cash 2. Sales 3. Service Charge 4. Accounts Receivable Question 4 Alpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of: Dollar Value Age of Account Estimated Collectible $115,000 120 days old 15% The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $3,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the: 1. Accounts Receivable 2. Allowance for Doubtful Accounts 3. Bad Debt Expense Question 5 Alpha Company used the percentage of sales method, with an historical rate of 2% for determining their bad debt expense. During 2016, sales were $1,600,000, and the January 1 Allowance for Doubtful Accounts had a normal balance of $15,000. $17,500 of accounts were written off during the year. What are the year end dollar amounts for: 1. Charged to the Bad Debt Expense account 2. Balance for Allowance for Doubtful Accounts Question 6 Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal): Alpha Company December 31 Accounts 2016 2015 Accounts Receivable $42,500 $36,000 Merchandise Inventory 57,000 50,000 Office Supplies 25,000 20,000 Credit Sales 980,000 740,000 Interest Income 25,000 20,000 Cost of Goods Sold 460,000 385,000 1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 times) 2. What is the FY 2016 days outstanding for accounts receivable ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word days. (Example 1.123 would be entered 1.1 days) Question 7 The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016: Item Amount Ending Cash per Bank Statement $1,500 Ending Cash per Company Books $1,705 Bank Service Charges $15 Deposits in Transit $325 Outstanding Cheques $230 Customer Cheque returned NSF $95 Use this information to prepare the compound General Journal entry (without explanation) for March 31, 2016, to cause the company books to match the adjusted cash balance based on the completed bank reconciliation. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Question 8 On April 1, 2016, Alpha Company set up a petty cash fund with a balance of $550. At the end of the month, the petty cash box contained vouchers of $85 for postage, $175 for supplies, $50 for gasoline, and cash on hand of $195. On April 30, 2016, the petty cash fund was replenished. Use this information to prepare the General Journal entries (without explanation) for April 1 and April 30 (compound entry). If no entry is required then write "No Entry Required." General Journal: Date 4/1/16 Accounts Debit C 4/30/16 Question 9 One August 2, 2016, Alpha Company purchased 10,000 shares of Bravo Company stock, as trading securities, for $10 per share. On September 30, 2016 the securities were trading on the open market for $12.50 per share. On December 31, 2016, the closing market price for these securities was $9.50 per share. Use this information to prepare the adjusting General Journal entry (without explanation) for December 31. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit Question 10 Alpha Company uses the direct write-off method of recording uncollectible accounts. On August 15, 2016, Yankee Zulu filed for bankruptcy and informed Alpha that he would be unable to pay $450 owed to Alpha. Alpha is certain that it will be unable to collect the $450. Use this information to prepare the General Journal entry (without explanation) for August 15. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit Question 11 Alpha Company uses an allowance method for recording bad debts. On July 15, 2016 Alpha Company was advised of the bankruptcy of the Broken Corporation and wrote off their $2,500 of accounts receivable. Suddenly, on August 25, 2016 Broken won the Maryland State Mega Millions. Without warning, on August 26, Alpha Company received half the payment for Broken's past debt. Use this information to prepare the General Journal entries (without explanation) for the August 26, 2016 event. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit Question 12 On March 31, 2016, Alpha Company's note receivable from Bravo Company was dishonored due to the extreme decline in economic conditions. The note was a one-year, $10,000 note, issued on January 1, 2016, bearing 10%. Use this information to prepare for the Alpha Company the General Journal entries (without explanation) for March 31, 2016. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit