ACC 291 Entire Course / PRINCIPLES OF ACCOUNTING II / university of phoenix
ACC 291 Entire Course / PRINCIPLES OF ACCOUNTING II / university of phoenix
ACC 291 Week 1 Practice: Connect Practice Assignment
1
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Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa’s Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):
DATE TRANSACTIONS
2019
Feb. 2 Sold merchandise for cash totaling $3,800 to customers using bank credit cards. Record the 2 percent discount on credit card sales at time of sale.
15 Sold merchandise totaling $2,100 to customers using American Express.
20 Received amount due from American Express, less their 3 percent discount, for sales made by customers using American Express on February 15.
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2
On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment was received in full from Fronke’s Franks, less discount, on April 10.
Required:
Record the transactions on April 1 and April 10.
3
Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales.
DATE TRANSACTIONS
2019
April 2 Sold merchandise for cash, $2,500 plus sales tax.
3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer.
4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30.
6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was made on Sales Slip 908 of April 4.
30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.
4
Main Street Distributors, a wholesale firm, made sales using the following list prices and trade discounts. What amount should be recorded for each sale?
List price of $6,000 and trade discounts of 40 percent and 15 percent.
List price of $7,300 and trade discounts of 25 percent and 8 percent.
List price of $7,100 and trade discounts of 20 percent and 5 percent.
5
The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales:
DATE TRANSACTIONS
2019
May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
15 Recorded cash sales, $5,800 plus 8 percent sales tax.
31 Received payment on account due from Bill Gomez for the sale on May 1.
ACC 291 Week 1 Apply: Connect Assignment
1
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions:
DATE TRANSACTIONS
2019
Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $1,600 plus sales tax of $112.
3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $800 plus sales tax of $56.
7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28.
12 Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.
15 Recorded cash sales for the period from September 1 to September 15 of $10,000 plus sales tax of $700.
16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49.
17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $1,600 plus sales tax of $112.
18 Received $620 from Candy Cho on account.
20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $300 plus sales tax of $21.
27 Received payment in full from Bridgette Huffman for the sale of September 7.
29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35.
30 Recorded cash sales for the period from September 16 to September 30 of $10,300 plus sales tax of $721.
Required:
Record the transactions in a general journal.
Analyze:
What portion of the sales during September were for entertainment items? Assume the cash sales transactions are for non-entertainment items. (Hint: Do not forget to reduce sales by any sales returns or allowances.)
2
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions.
DATE TRANSACTIONS
2019
Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,200 plus sales tax of $224.
3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales tax of $70.
7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28.
12 Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.
15 Recorded cash sales for the period from September 1 to September 15 of $9,000 plus sales tax of $630.
16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49.
17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,200 plus sales tax of $154.
18 Received $780 from Candy Cho on account.
20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $100 plus sales tax of $7
27 Received payment in full from Bridgette Huffman for the sale of September 7
29 Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35.
30 Recorded cash sales for the period from September 16 to September 30 of $11,900 plus sales tax of $833.
GENERAL LEDGER ACCOUNTS
101 Cash 401 Sales
111 Accounts Receivable 421 Sales Returns and Allowances
221 Sales Tax Payable
ACCOUNTS RECEIVABLE LEDGER ACCOUNTS
Candy Cho Jim Peterson
Bridgette Huffman Kathy Sundstrand
Mark Navalta
Required:
Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger.
Prepare a schedule of accounts receivable.
Analyze:
What is the amount of sales tax owed at September 30, 2019?
3
The Appliance Store began operations March 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. During March, The Appliance Store engaged in the following transactions:
DATE TRANSACTIONS
2019
March 1 Sold merchandise on credit to Dave Allen; issued Sales Slip 101 for $550 plus sales tax of $33.
4 Sold merchandise on credit to Castor Phan; issued Sales Slip 102 for $850 plus sales tax of $51.
12 Sold merchandise on credit to Chris Hughes; issued Sales Slip 103 for $1,150 plus sales tax of $69.
15 Recorded cash sales for the period from March 1 to March 15 of $6,100 plus sales tax of $366.
25 Sold merchandise on credit to Brian Cooley; issued Sales Slip 104 for $800 plus sales tax of $48.
28 Received a check from Castor Phan of $270 to apply toward his account.
31 Recorded cash sales for the period from March 16 to March 31 of $3,000 plus sales tax of $180.
31 Received payment in full from Dave Allen for the sale of March 1.
Required:
Record the transactions in a general journal.
Post the entries from the general journal to the appropriate general ledger accounts.
GENERAL LEDGER ACCOUNTS
101 Cash 221 Sales Tax Payable
111 Accounts Receivable 401 Sales
Analyze:
What were the total cash receipts during March?
ACC 291 Week 2 Practice: Connect Practice Assignment
1
Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:
DATE TRANSACTIONS
2019
Sept. 2 Purchased ski boots for $6,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
3 Purchased skis for $12,200 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $1,000 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
11 Purchased ski jackets for $5,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
12 Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
22 Purchased ski poles for $4,760 plus a freight charge of $170 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23 Purchased ski pants for $3,250 from Swenson Ski Goods, Invoice 528, terms n/30.
25 Received Credit Memorandum 245 for $400 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
27 Purchased ski sweaters for $3,600 plus a freight charge of $150 from Colorado Ski Shop, Invoice 6722, terms n/30.
30 Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.
Required:
Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.
Prepare a schedule of accounts payable.GENERAL LEDGER ACCOUNTS
101 Cash, $27,000 Dr.
201 Accounts Payable
501 Purchases
502 Freight In
503 Purchases Returns and Allowances
504 Purchases Discounts
ACCOUNTS PAYABLE LEDGER ACCOUNTS
Alaska Supply Company
Cold Mountain Clothing Company
Colorado Ski Shop
Swenson Ski Goods
Analyze:
What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.
2
NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:
DATE TRANSACTIONS
2019
June 1 Issued Check 101 to purchase merchandise, $4,500.
3 Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.
5 Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $3,000.
25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.
30 Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Required:
Journalize the transactions in a general journal.
Analyze:
What was the amount of trade discounts received on the June 15 purchase from Park Research?
3
Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:
DATE TRANSACTIONS
2019
Sept. 2 Purchased ski boots for $6,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
3 Purchased skis for $12,200 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $1,000 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
11 Purchased ski jackets for $5,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
12 Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
22 Purchased ski poles for $4,760 plus a freight charge of $170 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23 Purchased ski pants for $3,250 from Swenson Ski Goods, Invoice 528, terms n/30.
25 Received Credit Memorandum 245 for $400 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
27 Purchased ski sweaters for $3,600 plus a freight charge of $150 from Colorado Ski Shop, Invoice 6722, terms n/30.
30 Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.
Required:
Record the transactions in a general journal.
Analyze:
What was the amount of the cash discount on September 12?
4
NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:
DATE TRANSACTIONS
2019
June 1 Issued Check 101 to purchase merchandise, $4,500.
3 Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.
5 Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $3,000.
25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.
30 Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Required:
Post the transactions in to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger.
Prepare a schedule of accounts payable at June 30, 2019.
GENERAL LEDGER ACCOUNTS
101 Cash, $37,400 Dr.
201 Accounts Payable
501 Purchases
502 Purchases Returns and Allowances
503 Purchases Discounts
504 Freight In
ACCOUNTS PAYABLE LEDGER ACCOUNTS
BioCenter Inc.
New Concepts Corporation
Park Research
Analyze:
What was the amount of merchandise returned to vendors by NewTech Medical Devices in June?
5
Bowden Company (buyer) and Song, Inc. (seller), engaged in the following transactions during January 2019:
Bowden Company
DATE TRANSACTIONS
2019
Jan. 8 Issued Check 2101 for $2,940 on account to Song, Inc., in payment of Invoice 1885 dated December 30, 2018, less cash discount of $60.
10 Purchased merchandise for $3,500 from Song, Inc., Invoice 1920; terms 2/10, n/30.
15 Received Credit Memorandum 320 from Song, Inc., for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.
19 Paid amount due to Song, Inc., for Invoice 1920 of January 10, less the return of January 15 and less the cash discount, Check 2130.
30 Purchased merchandise for $4,400 from Song, Inc., Invoice 1950; terms 2/10, n/30.
GENERAL LEDGER ACCOUNTS—BOWDEN COMPANY
201 Accounts Payable, $3,000 Cr.
ACCOUNTS PAYABLE LEDGER ACCOUNT—BOWDEN COMPANY
Song, Inc., $3,000
Song, Inc.
DATE TRANSACTIONS
2019
Jan. 8 Received payment of $2,940 on account from Bowden Company in payment of Invoice 1885 dated December 30, 2018, less cash discount of $60.
10 Sold merchandise for $3,500 on account to Bowden Company, Invoice 1920, terms 2/10, n/30.
15 Issued Credit Memorandum 320 to Bowden Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.
19 Received payment from Bowden Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount.
30 Sold merchandise for $4,400 to Bowden Company, Invoice 1950; terms 2/10, n/30.
GENERAL LEDGER ACCOUNTS—SONG, INC.
111 Accounts Receivable, $3,000 Dr.
ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SONG, INC.
Bowden Company, $3,000
Required:
Journalize the transactions above in a general journal for both Bowden Company and Song, Inc.
Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Bowden Company.
Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Song, Inc.
Analyze:
What is the balance of the accounts payable for Song, Inc., in the Bowden Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Bowden Company in the Song, Inc., accounts receivable subsidiary ledger?
ACC 291 Week 2 Apply: Connect Assignment
1
NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:
DATE TRANSACTIONS
2019
June 1 Issued Check 101 to purchase merchandise, $3,100.
3 Purchased merchandise for $1,900 from BioCenter Inc., Invoice 606; terms 1/10, n/30.
5 Purchased merchandise for $4,450, plus a freight charge of $120, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $250 that was returned; the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,540 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $7,800 and trade discounts of 25 percent and 20 percent from Park Research, Invoice 1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $1,600.
25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $220.
30 Purchased merchandise for $1,800, plus a freight charge of $71, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Required:
Journalize the transactions in a general journal.
Analyze:
What was the amount of trade discounts received on the June 15 purchase from Park Research?
2
Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:
DATE TRANSACTIONS
2019
Sept. 2 Purchased ski boots for $6,000 plus a freight charge of $250 from Colorado Ski Shop, Invoice 6672, terms n/30.
3 Purchased skis for $11,600 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.
7 Received Credit Memorandum 165 for $940 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
11 Purchased ski jackets for $4,400 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
12 Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
22 Purchased ski poles for $4,160 plus a freight charge of $140 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23 Purchased ski pants for $2,650 from Swenson Ski Goods, Invoice 528, terms n/30.
25 Received Credit Memorandum 245 for $340 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
27 Purchased ski sweaters for $3,000 plus a freight charge of $120 from Colorado Ski Shop, Invoice 6722, terms n/30.
30 Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.
Required:
Record the transactions in a general journal.
Analyze:
What was the amount of the cash discount on September 12?
ACC 291 Week 3 Practice: Connect Practice Assignment
1
Florence Company received a bank statement showing a balance of $13,550 on November 30, 2019. During the bank reconciliation process, Florence’s accountant noted the following bank errors:
A check for $265 issued by Florentine, Inc., was mistakenly charged to Florence Company’s account.
Check 2782 was written for $200 but was paid by the bank as $1,200.
Check 2920 for $85 was paid by the bank twice.
A deposit for $580 on November 22 was credited by the bank for $850.
Assuming outstanding checks total $2,450, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation.
2
On January 2, The Public Legal Clinic issued Check 2108 for $450 to establish a petty cash fund. Indicate how this transaction would be recorded in a general journal.
3
Di Stefano Office Supply Company received a bank statement showing a balance of $70,005 as of March 31, 2019. The firm’s records showed a book balance of $71,487 on March 31. The difference between the two balances was caused by the following items.
A debit memorandum for $40, which covers the bank’s collection fee for the note (item 6).
A deposit in transit of $4,700.
A check for $348 issued by another firm that was mistakenly charged to Di Stefano’s account.
A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.
Outstanding checks: Check 3782 for $2,200; Check 3840 for $251.
A credit memorandum for a $7,300 noninterest-bearing note receivable that the bank collected for the firm.
Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.
4
After returning from a three-day business trip, the accountant for Southeast Sales, Johanna Estrada, checked bank activity in the company’s checking account online. The activity for the last three days follows.
Business Checking Account #123456-987
Date Type Description Additions Payments Balance
09/24/2019 Loan Payment Online Transfer to CM XXXX $ 3,500.00 $ 15,675.06
09/24/2019 Deposit DEPOSIT ID NUMBER 8888 $ 2,269.60 $ 19,175.06
09/23/2019 Check CHECK #1554 (view) $ 3,500.00 $ 16,905.46
09/23/2019 Bill Payment Online Payment $ 36.05 $ 20,405.46
09/22/2019 Check CHECK #1553 (view) $ 240.00 $ 20,441.51
09/22/2019 Check CHECK #1551 (view) $ 1,750.00 $ 20,681.51
09/22/2019 ACH Credit Edwards UK AP PAYMENT $ 8,900.00 $ 22,431.51
09/22/2019 ATM ATM WITHDRAWAL $ 240.00 $ 13,531.51
After matching these transactions to the company’s Cash account in the general ledger, Johanna noted the following unrecorded transactions:
The ATM withdrawal on 9/22/2019 was for personal use by the owner, Robert Savage.
The ACH credit on 9/22/2019 was an electronic funds payment received on account from Edwards UK, a credit customer located in Great Britain.
The bill payment made 9/23/2019 was to Waste Control Trash Services (utilities).
The loan payment on 9/24/2019 was an automatic debit by Central Motors for the company’s monthly payment on a loan for its automobiles. The loan does not bear interest.
Prepare the journal entries in a general journal to record the four transactions above. (Round your answers to 2 decimal places.)
5
Teng Corporation received a bank statement showing a balance of $15,700 as of October 31, 2019. The firm’s records showed a book balance of $15,262 on October 31. The difference between the two balances was caused by the following items.
A debit memorandum for an NSF check from Richard Wolf for $332.
Three outstanding checks: Check 7017 for $124, Check 7098 for $55, and Check 7107 for $1,560.
A bank service charge of $12.
A deposit in transit of $957.
Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement. Prepare the necessary journal entries for the year 2019.
ACC 291 Week 3 Apply: Connect Assignment
1
Royal Jewels, a retail business, started business on June 25, 2019. It keeps a $300 change fund in its cash register. The cash receipts for the period from June 25 to June 30, 2019 are below.
DATE TRANSACTIONS
June 25 Cash sales per the cash register tape, $1,226.
Cash count, $1,518.
26 Cash sales per the cash register tape, $1,336.
Cash count, $1,629.
27 Cash sales per the cash register tape, $1,347.
Cash count, $1,650.
28 Cash sales per the cash register tape, $1,278.
Cash count, $1,571.
29 Cash sales per the cash register tape, $1,123.
Cash count, $1,428.
30 Cash sales per the cash register tape, $1,364.
Cash count, $1,657.
Required:
Record the cash receipts from June 25 to June 30, 2019, in a general journal.
Post the amounts for Cash Short or Over in the journal entries to the general ledger.
Analyze:
How will the balance in Cash Short or Over on June 30 be reported in the financial statements?
2
On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,199. The balance shown on the bank statement on the same date was $13,152.
Notes
The firm’s records indicate that a $1,360 deposit dated August 30 and a $692 deposit dated August 31 do not appear on the bank statement.
A service charge of $7 and a debit memorandum of $275 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)
The following checks were issued but have not yet been paid by the bank:
Check 712, $ 101
Check 713, $ 116
Check 716, $ 229
Check 736, $ 568
Check 739, $ 69
Check 741, $ 111
A credit memorandum shows that the bank collected a $2,039 note receivable and interest of $54 for the firm. These amounts have not yet been entered in the firm’s records.
Required:
Prepare a bank reconciliation statement for the firm as of August 31.
Record general journal entries for items on the bank reconciliation statement that must be journalized.
Analyze:
What effect