University of Houston, Downtown ACC 2301ACCOUNTING HWValley Company’s adjusted trial balance on August 31, 2017, its fiscal yearend, follows. On August 31, 2016, merchandise inventory was $25,400. Supplementaryrecords of merchandising activities for the year ended August 31, 2017,reveal the following itemized costs Required:1. Compute the company’s net sales for the year.2. Compute the c
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ACCOUNTING HW
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal yearend, follows.
On August 31, 2016, merchandise inventory was $25,400. Supplementary
records of merchandising activities for the year ended August 31, 2017,
reveal the following itemized costs
Required:
1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of merchandise purchased for the
year.
3. Prepare a multiple-step income statement that includes separate
categories for net sales, cost of goods sold, selling expenses, and general
and administrative expenses.
4. Prepare a single-step income statement that includes these expense
categories: cost of goods sold, selling expenses, and general and
administrative expenses.
Compute the company’s net sales for the year
Required:
1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of merchandise purchased for the
year.
3. Prepare a multiple-step income statement that includes separate
categories for net sales, cost of goods sold, selling expenses, and general
and administrative expenses.
4. Prepare a single-step income statement that includes these expense
categories: cost of goods sold, selling expenses, and general and
administrative expenses.
Compute the company’s net sales for the year
On August 31, 2016, merchandise inventory was $25,400. Supplementary
records of merchandising activities for the year ended August 31, 2017,
reveal the following itemized costs.
Required:
1. Prepare closing entries as of August 31, 2017 (the perpetual
inventory system is used).
2. Record the entry to close the income statement accounts with credit balances.
3. Record the entry to close Income summary.
4. Record the entry to close the dividends account.
Required information
[The following information applies to the questions displayed below.]
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
Rent expense and salaries expense are equally divided between selling activities and general
and administrative activities. Nelson Company uses a perpetual inventory system.
Additional Information:
a. Store supplies still available at fiscal year-end amount to $1,750.
b. Expired insurance, an administrative expense, for the fiscal year is
$1,400.
c. Depreciation expense on store equipment, a selling expense, is
$1,525 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise
inventory is taken. It shows $10,900 of inventory is still available at
fiscal year-end.
Required:
1. Using the above information prepare adjusting journal entries:
2. Prepare a multiple-step income statement for fiscal year 2017.
Required information
[The following information applies to the questions displayed
below.]
The following unadjusted trial balance is prepared at fiscal year-end for
Nelson Company.
Rent expense and salaries expense are equally divided between selling
activities and general and administrative activities. Nelson Company uses a
perpetual inventory system.
Additional Information:
a. Store supplies still available at fiscal year-end amount to
$1,750.
b. Expired insurance, an administrative expense, for the fiscal
year is $1,400.
c. Depreciation expense on store equipment, a selling expense,
is $1,525 for the fiscal year.
d. To estimate shrinkage, a physical count of ending
merchandise inventory is taken. It shows $10,900 of
inventory is still available at fiscal year-end.
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of
January 31, 2017. (Round your answers to 2 decimal places.)
Nakashima Gallery had the following petty cash transactions in February of
the current year.
Feb. 2 Wrote a $400 check, cashed it, and gave the proceeds
and the petty cashbox to Chloe Addison, the petty
cashier.
5 Purchased bond paper for the copier for $14.15 that is
immediately used.
9 Paid $32.50 COD shipping charges on merchandise
purchased for resale, terms FOB shipping point.
Nakashima uses the perpetual system to account for
merchandise inventory.
12 Paid $7.95 postage to express mail a contract to a
client.
14 Reimbursed Adina Sharon, the manager, $68 for business
mileage on her car.
20 Purchased stationery for $67.77 that is immediately
used.
23 Paid a courier $20 to deliver merchandise sold to a
customer, terms FOB destination.
25 Paid $13.10 COD shipping charges on merchandise
purchased for resale, terms FOB shipping point.
27 Paid $54 for postage expenses.
28 The fund had $120.42 remaining in the petty cashbox.
Sorted the petty cash receipts by accounts affected
and exchanged them for a check to reimburse the fund
for expenditures.
28 The petty cash fund amount is increased by $100 to a
total of $500.
Required:
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for February with these
categories: delivery expense, mileage expense, postage expense,
merchandise inventory (for transportation-in), and office supplies expense.
Sort the payments into the appropriate categories and total the
expenditures in each category.
3. Prepare the journal entries for required 2 to both (a) reimburse and (b)
increase the fund amount.
Required information
[The following information applies to the questions displayed below.]
The following information is available to reconcile Branch Company’s book balance of cash
with its bank statement cash balance as of July 31, 2017.
a. On July 31, the company’s Cash account has a $27,497 debit balance, but
its July bank statement shows a $27,233 cash balance.
b. Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding
on the June 30 bank reconciliation. Check No. 3040 is listed with the July
canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $382
and Check No. 3069 for $2,281, both written in July, are not among the
canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries
in the accounting records, it is found that Check No. 3056 for July rent
expense was correctly written and drawn for $1,270 but was erroneously
entered in the accounting records as $1,250.
d. The July bank statement shows the bank collected $8,000 cash on a
noninterest-bearing note for Branch, deducted a $45 collection expense,
and credited the remainder to its account. Branch had not recorded this
event before receiving the statement.
e. The bank statement shows an $805 charge for a $795 NSF check plus a
$10 NSF charge. The check had been received from a customer, Evan
Shaw. Branch has not yet recorded this check as NSF.
f. The July statement shows a $25 bank service charge. It has not yet been
recorded in miscellaneous expenses because no previous notification had
been received.
g. Branch's July 31 daily cash receipts of $11,514 were placed in the bank's
night depository on that date but do not appear on the July 31 bank
statement.
Required:
1. Prepare the bank reconciliation for this company as of July 31, 2017.
Required information
[The following information applies to the questions displayed below.]
The following information is available to reconcile Branch Company’s book balance of cash
with its bank statement cash balance as of July 31, 2017.
a. On July 31, the company’s Cash account has a $27,497 debit balance, but
its July bank statement shows a $27,233 cash balance.
b. Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding
on the June 30 bank reconciliation. Check No. 3040 is listed with the July
canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $382
and Check No. 3069 for $2,281, both written in July, are not among the
canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries
in the accounting records, it is found that Check No. 3056 for July rent
expense was correctly written and drawn for $1,270 but was erroneously
entered in the accounting records as $1,250.
d. The July bank statement shows the bank collected $8,000 cash on a
noninterest-bearing note for Branch, deducted a $45 collection expense,
and credited the remainder to its account. Branch had not recorded this
event before receiving the statement.
e. The bank statement shows an $805 charge for a $795 NSF check plus a
$10 NSF charge. The check had been received from a customer, Evan
Shaw. Branch has not yet recorded this check as NSF.
f. The July statement shows a $25 bank service charge. It has not yet been
recorded in miscellaneous expenses because no previous notification had
been received.
g. Branch's July 31 daily cash receipts of $11,514 were placed in the bank's
night depository on that date but do not appear on the July 31 bank
statement.
2. Prepare the journal entries necessary to bring the company’s book
balance of cash into conformity with the reconciled cash balance as of
July 31, 2017. (If no entry is required for a
transaction/event, select "No journal entry required" in
the first account field.)
Mayfair Co. allows select customers to make purchases on credit. Its other
customers can use either of two credit cards: Zisa or Access. Zisa deducts
a 3% service charge for sales on its credit card. Access deducts a 2%
service charge for sales on its card. Mayfair completes the following
transactions in June.
June | 4 Sold $650 of merchandise on credit (that had cost
$400) to Natara Morris.5 Sold $6,900 of merchandise (that had cost $4,200) to
customers who used their Zisa cards.
6 Sold $5,850 of merchandise (that had cost $3,800) to
customers who used their Access cards.
8 Sold $4,350 of merchandise (that had cost $2,900) to
customers who used their Access cards.
13 Wrote off the account of Abigail McKee against the
Allowance for Doubtful Accounts. The $429 balance in
McKee’s account stemmed from a credit sale in October
of last year.
18 Received Morris’s check in full payment for the
purchase of June 4.
Required:
Prepare journal entries to record the preceding transactions and events.
(The company uses the perpetual inventory system.) (If no entry is
required for a transaction/event, select "No journal entry
required" in the first account field.)
Required information
[The following information applies to the questions displayed below.]
At December 31, 2017, Hawke Company reports the following results for its calendar year.
Cash sales $1,905,000
Credit
sales 5,682,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable | $1,270,100 debit
Allowance for doubtful accounts | 16,580 debitRequired:
1. Prepare the adjusting entry for this company to recognize bad debts
under each of the following independent assumptions.
a. Bad debts are estimated to be 1.5% of credit sales.
b. Bad debts are estimated to be 1% of total sales.
c. An aging analysis estimates that 5% of year-end accounts
receivable are uncollectible.
Adjusting entries (all dated December 31, 2017).
Required information
[The following information applies to the questions displayed below.]
At December 31, 2017, Hawke Company reports the following results for its calendar year.
Required information
[The following information applies to the questions displayed below.]
At December 31, 2017, Hawke Company reports the following results for its calendar year.
Cash sales $1,905,000
Credit
sales 5,682,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable | $1,270,100 debit
Allowance for doubtful accounts | 16,580 debit3. Show how Accounts Receivable and the Allowance for Doubtful
Accounts appear on its December 31, 2017, balance sheet given the
facts in part 1c.
Required information
[The following information applies to the questions displayed below.]
Jarden Company has credit sales of $3,600,000 for year 2017. On December 31, 2017, the
company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500.
Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the
basis of past experience, it estimates the percent of receivables in each age category that will
become uncollectible. This information is summarized here.
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