Question:QUESTION 1

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

1. How much of Accounts Receivable were "written off" the month?(Hint: Run the ADA t-account)

QUESTION 3

1. What is Fargo's Net Realizable Value of Accounts Receivable at the end of July?

1 points

QUESTION 4

1. What was the amount of cash received on the sale of office equipment?

1 points

QUESTION 5

1. 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?

1 points

QUESTION 6

1. How old (in months) is the office equipment that was neither sold nor acquired during the month?

1 points

QUESTION 7

1. How much cash was paid on Accounts Payable during the month?Assume the beginning balance of Accounts Payable in July was zero

1 points

QUESTION 8

1. If the beginning balance in Note Payable was $20,000, what amount of Notes Payable did Fargo issue in in July?

1 points

QUESTION 9

1. How much of the Note Payable was paid off during July?

1 points

QUESTION 10

1. 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.

1 points

QUESTION 11

1. 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.)

1 points

QUESTION 12

1. 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.)

1 points

QUESTION 13

1. What was the balance of Retained Earnings at the beginning of the fiscal year?

1 points

QUESTION 14

1. 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?

1 points

QUESTION 15

What journal entry does Fargo make to record the purchase of office supplies?

A. Debit Office Supplies, Credit Cash.

B. Debit Cash, Credit Office Supplies.

C. Debit Office Supplies Expense, Credit Cash.

D. Debit Office Supplies Expense, Credit Office Supplies?

1 points

QUESTION 16

1. How much cash dividends were paid during the month?Assume that the beginning balance in Dividends Payable at June 30 was $1,000.

1 points

QUESTION 17

1. Of the cash dividends paid, how much related to the current period?

1 points

QUESTION 18

1. What are net sales for July?

1 points

QUESTION 19

1. 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)

1 points

QUESTION 20

1. How much cash received on accounts receivable in July?(Hint: Run the AR t-account)

1 points

QUESTION 21

Does the company use the gross or net method to record purchases?How do you know? CHOSE ONE

A. Gross becuase Purchase Return & Allowances are on the Trial Balance.

B. Gross because Sales Discounts are on the Trial Balance.

C. Gross because Purchase Discounts are on the Trial Balance.

D. Gross because Sales Discounts Forfeited are not on the Trial Balance.

E. Gross because Purchase Discounts Forfeited are not on the Trial Balance.

F. Net becuase Purchase Return & Allowances are on the Trial Balance.

G. Net because Sales Discounts are on the Trial Balance.

H. Net because Purchase Discounts are on the Trial Balance.

I. Net because Sales Discounts Forfeited are not on the Trial Balance.

J. Net because Purchase Discounts Forfeited are not on the Trial Balance.

1 points

QUESTION 22

1. What is the beginning balance in inventory on July 1?

1 points

QUESTION 23

1. What are net purchases for July?

1 points

QUESTION 24

1. 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?

1 points

QUESTION 25

Fill in the blanks: The adjusting entry to adjust inventory will include a debit to Ending Inventory, COGS, _______________, and ______________.

A. Purhcases, and Beginning Inventory.

B. Purchase Discounts, and Purchase Returns & Allowances.

C. Purchases, and Purchase Discounts.

D.Purchases, and Purchase Returns & Allowances.

1 points

QUESTION 26

1. 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.

1 points

QUESTION 27

1. 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.

1 points

QUESTION 28

1. 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.

1 points

QUESTION 29

When closing dividends declared, which account is debited?

A. Dividends Declared

B. Income Summary

C. Accumulated OCI

D. Retained Earnings

1 points

QUESTION 30

1. 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.

ACG 340 Case 3: Fargo 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 of July 2016, except the adjustment for inventory. Fargo's fiscal year end is June 30. 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 Debit $67,700 58,000 700 60,000 1,200 1,700 22,000 400 31,900 4,000 3,000 Credit $55,400 54,400 1,100 400 1,300 1,500 7,600 40,000 800 100 8,200 30,000 12,600 20,000 19,900 7,200 61,000 2,200 500 42,000 900 400 9,200 1,300 700 600 500 400 300 300 $315,800 200 $315,800