Questions and Answers of College Accounting A Practical Approach

From the following accounts, journalize the closing entries (assume March 31). Maxwell Jackson, Capital 310 100 Maxwell Jackson, Withdr. 312 27 Income Summary 314 Uber Fees 410 1,500 Gas Expense
What is the purpose of Income Summary and where is it located?
Explain how a bookkeeping service might have adapted both during and after the Covid-19 pandemic.
Ariella Palacio is the purchasing agent for Simpson Co. One of her suppliers, Grant Co., offers Ariella a free vacation to Portugal if she buys at least 50% of Simpson’s supplies from Grant Co.
Journalize the following transactions. Assume the perpetual inventory system. 202X May 9 Sold merchandise for $900 cash. The cost of merchandise was $600. 9 Purchased merchandise from Aster Co. on
Journalize the following transactions. Assume the perpetual inventory system. 202X Jan 4 Sold merchandise for $500 cash. The cost of merchandise was $400. 9 Purchased merchandise from Jess Co. on
Kate Collins has opened Grains and Orchards, a wholesale grocery and fruit company. The following transactions occurred in March.Required1. Journalize the transactions. Beginning balances of
Silver Company has four employees, and each employee earned $40,000 for the calendar year. Using a blank Form 940, complete Part 2, lines 3–8, to answer the following questions: Total annual
Explain the purpose of a contra-revenue account.
Match each of the following terms, a through e, with the appropriate definitions 1 to 5.a. Form 940b. Form W-2c. FUTA Taxesd. FICA Taxese. Form 9411. Payroll taxes on employers that are assessed by
At the end of April 202X, the total amount of Social Security, $550, and Medicare, $220, was withheld as tax deductions from the employees of Strike, Inc. Federal income tax of $2,950 was also
Jamir Company’s payroll information for the month of April is as follows:On April 30, the company issued check no. 250 payable to the Payroll Bank checking account to pay for the April payroll
At the end of November 202X, the total amount of Social Security, $490, and Medicare, $275, was withheld as tax deductions from the employees of Rapid Waters, Inc. Federal income tax of $2,980 was
What account is debited when recording the distribution of the payroll checks to the employees?
In order to complete this question, you will need to reference Amazon’s 2020 Annual Report. This can be found using your preferred search engine and going to their Investors Relations page, which
Ramador Company uses a special payroll account to pay employees. The gross amount of the payroll this week is $5,700; the net amount is $4,900. Journalize the transfer of funds to the payroll account
Sanchez Company uses a special payroll account to pay employees. The gross amount of the payroll this week is $5,320; the net amount is $4,545. Journalize the transfer of funds to the payroll account
Slater Company has four employees, each of whom earn $4,000 per month and have been employed since January 1. FICA Social Security taxes are 6.2% on the first $142,800 paid to each employee, and FICA
What is a calendar year?
Explain how to calculate FICA Social Security and Medicare taxes.
The total wage expense for Bow Co. was $183,000. Of this total, $37,000 was above the Social Security wage base limit and not subject to this tax. All earnings are subject to Medicare taxes, and
The total wage expense for Grande Co. was $517,000. Of this total, $389,000 was above the FICA Social Security wage base limit and not subject to this tax. All earnings are subject to FICA Medicare
If in Exercise 6B-2 cash on hand is $20, prepare the entry to replenish the petty cash on December 31.Data From Exercise 6B-2In general journal form, prepare journal entries to establish a petty cash
If in Exercise 6B-2 cash on hand is $45, prepare the entry to replenish the petty cash on December 31.Data From Exercise 6B-2In general journal form, prepare journal entries to establish a petty cash
If in Exercise 6A-2 cash on hand is $19, prepare the entry to replenish the petty cash on October 31.Data From Exercise 6A-2In general journal form, prepare journal entries to establish a petty cash
Jenn Wadden, owner of Wadden Home Decorating Service, has requested that you prepare from the following balances (a) An income statement for September 202X, (b) A statement of owner’s
Rearrange the following titles in the order they would appear on a trial balance: C. Norris, Withdrawals Accounts Receivable Cash C. Norris, Capital Office Equipment Day Spa Fees Earned Selling
Revenue is an asset. True or false? Please explain.
A withdrawal is a business expense. True or false? Please explain.
What does an income statement show?
As a result of the Covid-19 pandemic, how have small businesses changed or modified their operations?
The chart of accounts of Angelique’s Grocery Delivery Service is as follows:Angelique’s Grocery Delivery Service completed the following transactions during the month of October:A. Angelique
From the trial balance of Gabriella Leitz, Attorney-at-Law, given in Figure 2.7, prepare (a) An income statement for the month of January, (b) A statement of owner’s equity for the month
From the trial balance of Tupuola’s Janitorial Services in Figure 2.5, prepare thefollowing for March:• Income statement• Statement of owner’s equity• Balance sheet Cash Equipment Accounts
Prepare journal entries for the following transactions that occurred during May: 202X May 1 3 12 18 Anne Hope invested $180,000 cash and $40,000 of equipment into her new business. Purchased building
Record the following into the general journal of Raymond’s Auto Shop. 202X May 1 5 8 14 18 20 Raymond Tillman invested $100,000 cash in the auto shop. Paid $7,000 for auto equipment. Bought auto
Prepare journal entries for the following transactions that occurred during March: 202X March 1 3 12 18 Lori Hall invested $20,000 cash and $6,000 of equipment into her new business. Purchased
On September 1, 202X, Mia Kaminsky opened Mia’s Art Studio. The following transactions occurred in September:Your tasks are to do the following:a. Set up the ledger based on the following chart of
Janine Jackson operates Janine’s Office Supply Co. As the bookkeeper, you have been requested to journalize the following transactions:The chart of accounts for Janine’s Office Supply Company is
Record the following into the general journal of Reggie’s Auto Shop. 202X May 1 5 8 14 18 20 Reggie Singletary invested $90,000 cash in the auto shop. Paid $7,000 for auto equipment. Bought auto
A trial balance is a formal statement. True or false? Please explain.
Jasmine Sims, the lead bookkeeper of Cayman Co., was scheduled to leave on a 3-week vacation at 5:00 on Friday. She couldn’t get the company’s trial balance to balance. At 4:30, she decided to
The Covid-19 pandemic resulted in more accountants working from home as a standard business practice. Is this good or bad, and why?
The following transactions occurred in November 202X for J. Kingsly’s Technical Staffing Agency:The chart of accounts for J. Kingsly Technical Staffing Agency is as follows:Your task is to do the
Post the journal entries in Figure 3.34 to the ledger of Bukhari Company. The partial ledger of Bukhari Company is Cash, 111; Equipment, 121; Accounts Payable, 211; and A. Bukhari, Capital, 311.
The following transactions occurred in September 202X for A. Mendez Technical Staffing Agency:The chart of accounts for A. Mendez Technical Staffing Agency is as follows:Your tasks are to do the
From the following transactions for the Ivanov Company for the month of July, (a) Prepare journal entries (assume that it is page 1 of the journal), (b) Post journal entries to the ledger
From the following transactions for Ivanov Company for the month of November,(a) Prepare journal entries (assume that it is page 1 of the journal), (b) Post journal entries to the ledger (use a
What are interim statements?
What is a compound journal entry?
Discuss the concept of cross-referencing.
In order to complete this question, you will need to reference Amazon’s 2020 Annual Report. This can be found using your preferred search engine and going to Amazon’s Investors Relations page,
If you were a bookkeeper during the Covid-19 pandemic, explain how you would do your work remotely from home.
Use transaction analysis charts to analyze the following adjustments:a. Depreciation on equipment, $1,400.b. Rent expired, $900.
Use transaction analysis charts to analyze the following adjustments:a. Depreciation on equipment, $1,000.b. Rent expired, $600.
Go to Target’s website and find out how its equipment is depreciated.
Update the trial balance for Hill’s Moving Co. (Figure 4.27) for October 31, 202X. Adjustment Data to Update Trial BalanceA. Insurance expired, $550.B. Moving supplies on hand, $800.C. Depreciation
From the following, calculate what would be the total of assets on the balance sheet. B. Fleese, Capital Computer Equipment Accounts Payable Cash $50,000 20,000 6,000 $36,000
Jackie Wengler, owner of Wengler Home Design Service, has requested that you prepare from the following balances (a) An income statement for June 202X, (b) A statement of owner’s equity
Breck Sam is the accountant for Sam’s Internet Service. From the following information, his task is to construct a balance sheet as of September 30, 202X, in proper form. Can you help him?
Felicia Johnson is the accountant for Johnson’s Digital Services. From the following information, her task is to construct a balance sheet as of November 30, 202X, in proper form. Could you help
At the end of April, Mizumi Aito decided to open her own computer service business. Analyze the following transactions she completed by recording their effects into the expanded accounting equation.
From the following, prepare a balance sheet for Kim Co. Cleaners at the end of September 202X: Cash, $67,000; Equipment, $7,000; Accounts Payable, $13,000; B. Kim, Capital.
How are businesses classified?
Sheila Toliver decided to open Sheila’s Nail Salon. Sheila completed the following transactions:A. Invested $25,000 cash from her personal bank account into the business.B. Bought store equipment
In order to complete this question, you will need to reference Amazon’s 2020 Annual Report. This can be found using your preferred search engine and going to Amazon's Investors Relations page,
Mai Abington decided to open Mai’s Nail Spa. Mai completed the following transactions:A. Invested $20,000 cash from her personal bank account into the business.B. Bought store equipment for cash,
As the bookkeeper for Harvey’s Cleaning Service,a. From the trial balance columns of the worksheet on page 232, enter the beginning balance of each account in your working papers.b. Journalize and
From the following, calculate (a) Net sales.(b) Gross profit.(c) Net income.Data Sales, $35,000; Sales Discounts, $800; Sales Returns and Allowances, $5,000; Cost of Goods Sold,
Using the ledger balances and additional data provided, do the following for Meyer Lumber of Hinton for the year ended December 31, 2022:a. Prepare the worksheet.b. Prepare the income statement,
From the worksheet in Exercise E8-4B, prepare the assets section of a classified balance sheet.Data from in exercise E8-4B. From the following partial worksheet, journalize the closing entries
From the worksheet in Exercise E8-4A, prepare the assets section of a classified balance sheet.E8-4A. From the following partial worksheet, journalize the closing entries of December 31 for A. Slow
Kim Andrews prepared the following income statement on a cash basis for Ed Sloan, M.D:Ed Sloan has requested information from Kim as to what his professional fees earned would be under the
The owner of Waltz Company in Fairview has asked you to prepare a worksheet from the following trial balance and additional data:Additional Dataa. Physical count of inventory on December 31,
From the following trial balance, complete a worksheet for Jim’s Hardware of Halifax:Assumptionsa. Physical count of inventory on December 31, $615.b. Insurance expired, $150.c. Depreciation
As the accountant for Jim’s Hardware of Halifax, you have been asked to complete a worksheet from the following trial balance as well as additional data:Additional Dataa. Physical count of
a. Given the following, journalize the adjusting entry. By December 31, 2023, $210 worth of the unearned dog-walking fees were earned.b. What is the account category of unearned dog-walking fees?
Allan Co. had the following balances on December 31, 2021:The accountant for Allan has asked you to make an adjustment since $400 worth of janitorial services have just been performed for customers
Allan Co. had the following balances on December 31, 2021:The accountant for Allan has asked you to make an adjustment since $500 worth of janitorial services have just been performed for customers
Maggie Good, a junior accountant, has the December 31, 2021, trial balance of Lawrence Company sitting on her desk. Attached is a memo from her supervisor requesting that a classified balance sheet
On December 31, 2022, $300 of salaries has been accrued. (Salaries before accrued amount totalled $26,000.) The next payroll to be paid will be on February 3, 2023, for $6,000. Do the following:a.
On December 31, 2022, $700 of salaries have been accrued. (Salaries before accrued amount totalled $29,000.) The next payroll to be paid will be on February 3, 2023, for $7,500. Do the following:a.
Fill in the blanks with the correct terms from the list below.Periodic inventory....................................... Unearned RevenueCurrent assets
a. On January 1, 2022 prepare a reversing entry. On January 8, 2022 journalize the entry to record the payment of salary expense, $900.b. What will be the balance in Salary Expense on January 8
On March 2, 2022, the accountant for Bergen Carpet Co. of Edmonton was injured in a skiing accident and was advised not to return to work for six weeks. The owners of the company are anxious to
Ginger Company of Bathurst has a policy of depositing all receipts and making all payments by cheque. On receiving the bank statement, Bill Free, a new bookkeeper, is quite upset that the balance in
From the following, record the transactions in Logan’s auxiliary petty cash record and general journal: 2021 Oct. 1 A cheque was drawn (No. 444) payable to Roberta Floss, petty cashier, to
If, in exercise E9-2B, cash on hand was $29, prepare the entry to replenish the petty cash on July 31.Data from in exercise E9-2B.In general journal form, prepare journal entries to establish a petty
Because cash flow is important to a business, the cash balance shown on a company’s balance sheet and bank statement must be accurate to help manage, run, and grow the business. Since the balances
What is an operating cycle?
Following is a list of transactions for the month of October. Petty Cash Account (1010) and Miscellaneous Expense Account (5100) have been added to the chart of accounts.Assignment1. Record the
The bank statement for Corsen’s Fashion Inc. had an ending cash balance of $3,000 on July 31, 2020. On this date, the company’s cash balance in the general ledger was $4,000. After comparing the
From the following information, construct a bank reconciliation for Bang Co. as of February 28, 2022. Then prepare journal entries if needed. Chequebook balance $1,314 Bank statement balance
As the bookkeeper of Rose Company of Drumheller, you received the bank statement from TD Canada Trust indicating a balance of $5,820. The ending chequebook balance was $6,321. Prepare the bank
The following transactions occurred in March and were related to the general journal and petty cash fund of Samuel & Co. of St. John’s:The chart of accounts includes Cash, 100; Petty Cash, 105;
From the following, construct a bank reconciliation with heading for Woody Co. as of May 31, 2022. GL Cash balance Bank statement balance Deposits in transit $1,869.60 1,951.20 271.20 Outstanding
If, in exercise E9-2A, cash on hand was $11, prepare the entry to replenish the petty cash on July 31.Data from in exercise E9-2A.In general journal form, prepare journal entries to establish a petty
The following transactions occurred in April and were related to the general journal and petty cash fund of Rick’s Deli of Regina:The chart of accounts includes Cash, 100; Petty Cash, 120; Office
If, in exercise E9-2A, cash on hand was $13, prepare the entry to replenish the petty cash on July 31.Data from in exercise E9-2A.In general journal form, prepare journal entries to establish a petty
Ali Zaiere, the accountant of Hoop Co. of Nelson, has appointed Jim Pool as the petty cash custodian. The following transactions occurred in November:Help Jim replenish petty cash on December 3 by

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