New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
management accounting information

Principles Of Accounting Volume 2 Chapters 12-25 1st Edition Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton - Solutions

M6-8 Recording Journal Entries for Sales and Sales Discounts Merchandise costing $1,500 is sold for $2,000 on terms 2/10, n/30. The company uses a perpetual inventory system. Prepare the journal entries needed at the time of sale and collection, assuming that the buyer pays within the discount
M6-7 Preparing Journal Entries for Purchases and Sales Using a Perpetual Inventory System Inventory at the beginning of the year cost $13,400. During the year, the company purchased (on account) inventory costing $54,000. Inventory that had cost $60,000 was sold on account for $75,000. At the end
M6-6 Preparing Journal Entries for Credit Card Sales Credit card sales were $8,000 (credit card fee 3 percent). The goods sold had cost the company $3,500. Prepare journal entries to record these transactions.
M6-5 Determining Inventory Cost in a Perpetual System Using the information in M6-4, how much should Anderson’s report as the cost of inventory?
M6-4 Preparing Journal Entries for Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual System Assume Anderson’s General Store bought, on credit, a truckload of merchandise from American Wholesaling costing $23,000. The company was charged $650 in transportation cost by National
M6-3 Calculating Shrinkage in a Perpetual Inventory System Corey’s Campus Store has $50,000 of inventory on hand at the beginning of the month. During the month, the company buys $8,000 of merchandise and sells merchandise that had cost $30,000. At the end of the month, $25,000 of inventory is on
M6-2 Choosing between a Perpetual and a Periodic Inventory System Nordstrom, Inc., started in business in 1901. It only took 100 years, but eventually the company changed from a periodic inventory system to a perpetual inventory system (in 2002). Write a brief report describing how this change is
M6-1 Distinguishing Among Operating Cycles Identify the type of business as service (S), retail merchandiser (RM), wholesale merchandiser (WM), or manufacturer (M) for each of the following. 1. The company reports no inventory on its balance sheet. 2. The company’s customers have been slow in
10. Earlier this year, your company negotiated larger purchase discounts when paying for its merchandise inventory, which it has consistently taken throughout the year. What effect will this factor have on the company’s gross profit percentage this year, in comparison to last year’s
9. A $1,000 sale is made on May 1 with terms 2/10, n/30. Items with a $100 selling price are returned on May 3. What amount, if received on May 9, will be considered payment in full?a. $700c. $882b. $800d. $880
8. Which of the following is not a component of net sales?a. Sales returns and allowances.c. Cost of goods sold.b. Sales discounts.d. Sales revenue.
7. Which of the following describes proper accounting for the costs of transporting purchased goods from the seller to the purchaser (freight-in) that is paid for by the purchaser?a. The amount is included in the cost of inventory by the purchaser.b. The amount is recorded as an other operating
6. Sales discounts with terms 2/10, n/30 mean:a. 10 percent discount for payment within 30 days.b. 2 percent discount for payment within 10 days or the full amount (less returns) is due within 30 days.c. Two-tenths of a percent discount for payment within 30 days.d. None of the above.
5. What is the best description of a credit card fee?a. The discount offered by a seller to a consumer for using a national credit card such as VISA.b. The fee charged by a seller to a consumer for the right to use a credit card, calculated as a percentage of total revenue for the sale.c. The
4. Which of the following describes how payments to suppliers made within the purchase discount period are recorded in a perpetual inventory system (using the method shown in the chapter)?a. Reduce Cash, reduce Accounts Payable.b. Reduce Cash, reduce Accounts Payable, reduce Inventory.c. Reduce
3. Purchase discounts with terms 2/10, n/30 mean:a. 10 percent discount for payment within 30 days.b. 2 percent discount for payment within 10 days or the full amount (less returns) is due within 30 days.c. Two-tenths of a percent discount for payment within 30 days.d. None of the above.
2. Which of the following is false regarding a perpetual inventory system?a. Physical counts are never needed since records are maintained on a transaction-by-transaction basis.b. The balance in the inventory account is updated with each inventory purchase and sale transaction.c. Cost of goods sold
1. Mountain Gear, Inc., buys bikes, tents, and climbing supplies from Rugged Rock Corporation for sale to consumers. What type of company is Mountain Gear, Inc.?a. Service.c. Wholesale merchandiser.b. Retail merchandiser.d. Manufacturer.
14. What is gross profit? How is the gross profit percentage computed? Illustrate its calculation and interpretation assuming net sales revenue is $100,000 and cost of goods sold is $60,000.
13. Why are contra-revenue accounts used for sales discounts and sales returns and allowances rather than direct deductions from the sales account?
12. Explain the difference between sales revenue and net sales.
11. Is the amount of sales discount taken recorded (a) at the time the sale is recorded or (b) at the time the collection of the account is recorded?
10. What is the distinction between sales allowances and sales discounts?
9. What is a sales discount? Use 1/10, n/30 in your explanation.
7. Describe in words the journal entries that are made in a perpetual inventory system when inventory is sold on credit. 8. What is a credit card fee? How does it affect amounts reported on the income statement?
6. What is a purchase discount? Use 1/10, n/30 in your explanation.
5. What is the distinction between purchase returns and allowances and purchase discounts?
4. Describe how transportation costs to obtain inventory (freight-in) are accounted for by a merchandising company using a perpetual inventory system. Explain the reasoning behind this accounting treatment.
3. Why is a physical count of inventory necessary in a periodic inventory system? Why is it still necessary in a perpetual system?
2. What is the main distinction between perpetual and periodic inventory systems? Which type of system provides better internal control over inventory? Explain why.
1. What is the distinction between service and merchandising companies? What is the distinction between merchandising and manufacturing companies? What is the distinction between retail and wholesale merchandising companies?
CP5-1 Financial Reporting Project: Mini Practice Set Young Co. established the following chart of accounts.Young Co. uses both an accounts receivable and an accounts payable subsidiary ledger. The transactions for Young Co. for the first month of business, March 2009, are presented below. March 1
PB5-8 Journalizing in Special Journals; Posting; Preparing a Trial Balance The post-closing trial balance for Joe’s Accounting Services is as follows:The following detail is contained in the subsidiary ledgers: • Accounts receivable—N. Bonham $2,150; H. Giahi $1,300; J. Teak $3,050. •
PB5-7 Journalizing Transactions in Revenue and Cash Receipts Journals; Posting; Preparing a Trial Balance; Reconciling Control and Subsidiary Accounts; Preparing a Trial Balance Shown below are the purchases and cash payments journals for Solara Corporation for April 2009, its first month of
PB5-6 Journalizing Transactions in Special Journals and the General Journal Selected accounts from the chart of accounts of Clover Company are shown below:The following selected transactions occurred in May. All purchases and revenues were on account unless otherwise indicated. May 3 Purchased
PB5-5 Journalizing Transactions in the Revenue Journal, Purchases Journal, and General Journal; Posting to Subsidiary Ledgers and Control Accounts The following selected accounts were taken from the chart of accounts for Cewlio Corporation.The following selected transactions occurred in December.
PB5-4 Posting Accounts Receivable and Accounts Payable Transactions and Preparing Schedules of Accounts Receivable and Accounts Payable The Accounts Receivable control account for Grate Plains, Inc., as of April 30, 2009, was $16,500 consisting of the following balances: $5,500 from Pomegranate
PB5-3 Journalizing Transactions in the Cash Payments Journal; Posting to Control Account and Subsidiary Ledger Pete’s Packaging packages and ships items worldwide. The following selected accounts were taken from its chart of accounts.105 Cash 210 Accounts Payable 115 Packaging Supplies 311 Pete
PB5-2 Journalizing Transactions in the Cash Receipts Journal; Posting to Control Account and Subsidiary Ledger Dave’s Dentistry, DDS (owned by David Mastic) provides basic dental care (cleanings, fillings, etc.). The following selected accounts are taken from its chart of accounts.On February 28,
PB5-1 Matching Terminology with Definitions Following are the terms and definitions covered in Chapter 5. Match each term with its definition by entering the appropriate letter in the space provided. Use one letter for each blank. Terms 1. General journal 2. Special journal 3. Monthly posting 4.
PA5-8 Journalizing in Special Journals; Posting; Preparing a Trial Balance The post-closing trial balance for Ken Flammer—Attorney at Law is as follows:The following detail is contained in the subsidiary ledgers: • Accounts receivable—B. Baily $1,460; N. Hite $2,320; W. Price $1,570. •
PA5-7 Journalizing Transactions in Revenue and Cash Receipts Journals; Posting; Preparing a Trial Balance; Reconciling Control and Subsidiary Accounts; Preparing a Trial Balance Shown below are the purchases and cash payments journals for Pepperine for its first month of operations, October
PA5-6 Journalize Transactions in the Special Journals and General Journal Selected accounts from the chart of accounts of Doyle Company are shown below: 105 Cash 210 Accounts Payable 110 Accounts Receivable 410 Fees Earned 115 Office Supplies 510 Salaries Expense 180 Office Equipment 630 Utilities
PA5-5 Journalizing Transactions in the Revenue Journal, Purchases Journal, and General Journal; Posting to Subsidiary Ledgers and Control Accounts The following selected accounts were taken from the chart of accounts for Lionel Corporation. 110 Accounts Receivable 210 115 Office Supplies 410
PA5-4 Posting Accounts Receivable and Accounts Payable Transactions and Preparing Schedules of Accounts Receivable and Accounts Payable The Accounts Receivable control account for the Dupree Company as of December 31, 2008, was $10,284, consisting of the following balances: $8,652 from Doe, Inc.,
PA5-3 Journalizing Transactions in the Cash Payments Journal; Posting to Control Account and Subsidiary Ledger Sally's Sewing does alterations and creates custom fashions for its customers. The following selected accounts were taken from its chart of accounts. 105 Cash 115 Sewing Supplies 145
PA5-2 Journalizing Transactions in the Cash Receipts Journal; Posting to Control Account and Subsidiary Ledger Purple Pirates (owned by George Sparrow) performs magic tricks and other entertainment at children’s birthday parties. The following selected accounts are taken from the chart of
PA5-1 Matching Terminology with Definitions Following are the terms and definitions covered in Chapter 5. Match each term with its definition by entering the appropriate letter in the space provided. Use one letter for each blank. Terms Definitions 1. Crossfoot 2. Special journal 3. Accounts
E5-27 Correcting Errors in Accounts Payable Subsidiary Ledger After all end-of-period postings were made, the accounts payable subsidiary ledger and the Accounts Payable control account for Kramar Enterprises did not agree. After investigating the problem, it was determined that the control account
E5-26 Posting from the General Journal to Control Account and Subsidiary Ledger Purchase-related transactions for Katanga Company are presented for the month of July 2009.Required: Post the transactions shown in Katanga Company’s general journal to the subsidiary ledger accounts, as well as the
E5-25 Recording Transactions in the General Journal Purchase-related transactions for Cryogelf Limited are presented for the month of January 2009. Jan. 6 Purchased office equipment by issuing a $10,000 note payable to Equipers, Inc. 12 Returned office supplies to Total Office on account; $50. 22
E5-24 Recording Transactions in the General Journal Various purchase-related transactions for GenaFlynn, Inc., are presented for the month of December 2009. Dec. 2 Returned supplies to Suppliers Incorporated on account; $30. 9 Received a credit from The Daily Journal for an advertising billing
E5-23 Recording Transactions in the Purchases and Cash Payments Journals Purchase-related transactions for Tofflet Enterprises are presented for the month of February 2009. Feb. 1 Issued check No. 651 to Rentals R Us for February rent; $3,400. 6 Purchased supplies on account from Sophie’s
E5-22 Recording Transactions in the Purchases and Cash Payments Journals Transactions for Twilight Company are presented for the month of October 2009. Oct. 3 Purchased postage meters on account from Potter’s Postage Equipment; $1,000. 8 Issued check No. 1101 to Everything Postal for packaging
E5-21 Posting from the Cash Payments Journal to Control Account and Subsidiary Ledger The cash payments journal for Shrimp Enterprises is presented for the month of April 2009.Required: 1. Complete the cash payments journal with totals. 2. Post the transactions shown in Shrimp Enterprises cash
E5-20 Recording Transactions in the Cash Payments Journal Transactions involving cash payments for Housin Company are presented for the month of January 2009. Jan. 2 Issued check No. 801 to Mutual of Omaha for a one-year insurance policy; $1,600. 10 Issued check No. 802 to Sliver Enterprises on
E5-19 Recording Transactions in the Cash Payments Journal Transactions involving cash payments for Klink Corporation are presented for the month of November 2009. Nov. 5 Issued check No. 330 to Supply Outfitters on account; $450. 10 Issued check No. 331 to Southern Utilities for gas and electric;
E5-17 Recording Transactions in the Purchases Journal Purchase-related transactions for Gigio Company are presented for the month of May 2009. May. 2 Received a bill from State Barn Insurance for a two-year fire insurance policy; $4,980. 7 Purchased store supplies on account from Supplies R Us;
E5-16 Recording Transactions in the Purchases Journal Purchase-related transactions for Topo Company are presented for the month of February 2009. Feb. 1 Received a bill from Rob’s Rentals for February rent; $2,400. 2 Purchased office equipment on account from Eddie’s Equipment; $6,000. 9
E5-15 Recording Transactions in the Revenue and Cash Receipts Journals Revenue-related transactions for Spot Enterprises are presented for the month of September 2009. Sep. 2 Received cash from Angrila Corporation for services rendered; $60. 4 Issued invoice No. 421 to Rice Company; $2,500. 11
E5-14 Recording Transactions in the Revenue and Cash Receipts Journals Revenue-related transactions for Foods Enterprises are presented for the month of January, 2008. Jan. 1 Issued invoice No. 601 to Cheese Company; $1,600. 4 Received cash from Angus, Inc., for services rendered; $800. 12 Issued
E5-13 Posting from the Cash Receipts Journal to Control Account and Subsidiary Ledger The cash receipts journal for Jewel Company is presented for the month of November 2008.Required: 1. Complete the cash receipts journal with totals. 2. Post the transactions shown in Jewel Company’s cash
E5-12 Recording Transactions in the Cash Receipts Journal Transactions involving cash receipts for Prog Company are presented for the month of April 2008. Apr. 2 Received cash from Gorm, Inc., on account; $2,800. 6 Received cash from Slock Corporation for services rendered; $400. 12 Received cash
E5-11 Recording Transactions in the Cash Receipts Journal Transactions involving cash receipts for Percy Enterprises are presented for the month of July 2008. Jul. 8 Received cash from Starrburst, Inc., for services rendered; $5,800. 11 Received cash from Haute Tamales Corporation on account;
E5-10 Posting from the Revenue Journal to Control and Subsidiary Accounts The revenue journal for Jungle Fever, Inc. is presented for the month of March 2009.Required: 1. Complete the revenue journal with a total. 2. Post the transactions in Jungle Fever’s revenue journal to the Accounts
E5-9 Recording Transactions in the Revenue Journal Revenue-related transactions for Prince Ltd. are presented for the month of August, 2009. Aug. 5 Issued invoice No. 520 to Duke Company; $3,900. 9 Issued invoice No. 521 to Princess Rakes; $5,700 . 12 Issued invoice No. 522 to Joker Corporation;
E5-8 Recording Transactions in the Revenue Journal Revenue-related transactions for King Enterprises are presented for the month of June, 2009. Jun. 1 Issued invoice No. 101 to Rice Company; $1,600. 8 Issued invoice No. 102 to Barney’s Bakes; $2,100. 11 Received cash from Rice Corporation on
E5-7 Matching Transactions to Appropriate Journal for Revenue- and Purchase-Related Transactions Indicate the journal in which each of the following transactions would be recorded by writing the letter of the appropriate journal in the space provided.
E5-6 Matching Transactions to Purchases, Cash Payments, and General Journals Indicate the journal in which each of the following transactions would be recorded by writing the letter of the appropriate journal in the space provided. Transaction 1. Recorded office supplies used at the end of the
E5-5 Matching Transactions to Revenue, Cash Receipts, and General Journals Indicate the journal in which each of the following transactions would be recorded by writing the letter of the appropriate journal in the space provided. Transaction 1. Provided services on account. 2. Investment of cash by
E5-4 Identifying Proper Posting Treatment for Transactions in the Cash Payments Journal The following cash payments journal was taken from the records of Lemski Corporation for the month of February:Required: For each of the posting references (a)–(h), identify which of the following is the
E5-3 Identifying Transactions in Accounts Receivable and Accounts Payable Ledgers Various debit and credit transactions are presented in the following subsidiary ledger accounts: Example 1:Required: 1. Identify the source of each transaction (a)–(e). 2. Describe each transaction (a)–(e). 3.
E5-2 Determining Account Balance in Accounts Payable Control Account and Explaining How Items are Posted from Special Journals Georgy Company uses the four special journals described in this chapter. On January 31, the balance in the Accounts Payable control account was $84,000. After footing and
E5-1 Determining Account Balance in Accounts Receivable Control Account and Explaining How Items are Posted from Special Journals Cluney Company uses the four special journals described in this chapter. On October 31, the balance in the Accounts Receivable control account was $50,000. After footing
M5-14 Identifying Advantages and Disadvantages of Computerized Accounting Information Systems Indicate whether each of the following items is an advantage or disadvantage of using a computerized accounting information system: Answer Phase 1. Lack of control over portions of the accounting
M5-13 Matching Each Developmental Phase of an Accounting Information System with its Description Match each developmental phase with the related description by entering the appropriate letter in the space provided.Phase Description 1. Implementation A. Determining whether the company will use a
M5-12 Identifying the Underlying Assumptions of Accounting Information Systems Indicate whether each of the following statements regarding accounting information systems is true or false. 1. Flexibility in an accounting system is not realistic because accounting information systems are built to
M5-11 Identifying Columns in Special Journals Identify the special journal in which you would find the following column headings. (Note: Some column headings may be found in more than one special journal.) 1. Accounts Receivable Cr. 6. Cash Dr. 2. Accounts Payable Cr. 7. Other Accounts Dr. 3. Ref.
M5-10 Identifying the Frequency of Posting from Various Journals Freeburrow, Inc., uses a revenue journal, purchases journal, cash receipts journal, cash payments journal, and general journal for recording transactions. For each column of a special journal described below, indicate how often
M5-9 Identifying the Appropriate Journal for Recording Transactions Identify the appropriate journal that would be used to record each of the following transactions: 1. Revenue earned on account 6. Cash received for services rendered 2. Sales supplies returned to supplier for cash 7. Sales supplies
M5-8 Identifying the Appropriate Journal for Recording Transactions Identify the appropriate journal that would be used to record each of the following transactions: 1. Cash paid for rent 6. Owner contribution of furniture to business 2. Owner contribution of cash to business 7. Cash payments to
M5-7 Posting to the Accounts Receivable Subsidiary Ledger and Preparing a Schedule of Accounts Receivable Using the special journals from M5-4 and M5-5, perform the following tasks: 1. Assuming there are no balances in any of the customer accounts at February 28, post the necessary information to
M5-6 Posting to the Accounts Receivable Control Account Using the special journals presented in M5-4 and M5-5, determine the ending balance in the Accounts Receivable control account by posting the appropriate amounts into the following ledger account. Date Feb 28 Item Balance Accounts Receivable.
M5-5 Identifying Posting References in a Cash Receipts Journal Using the following cash receipts journal, identify the appropriate posting reference for each of the letters ( a – j) shown, as either: 1. An amount posted to the subsidiary ledger. 2. An amount posted to a general ledger account. 3.
M5-4 Identifying Posting References in a Revenue Journal Using the revenue journal below, identify the appropriate posting reference for each of the letters ( a – f ) shown, as either: 1. An amount posted to the subsidiary ledger. 2. An amount posted to a general ledger account. 3. An amount not
M5-3 Determining Balance in Accounts Payable Control Account Determine the balance in the Accounts Payable control account (No. 210) as of June 30, 2009, by posting the following purchases and payments made on account during June 2009. Assume a balance of $315 in Accounts Payable at May 31, 2009,
M5-2 Determining Balance in Accounts Receivable Control Account Determine the balance in the Accounts Receivable control account (No. 110) as of August 31, 2009, by posting the following information about the revenues and receipts on account for Joy, Inc. during August 2009. Assume a balance of
M5-1 Identifying Appropriate Ledger for Specific Accounts Identify whether each of the following items would be found in the general ledger or a subsidiary ledger. 1. Accounts Payable—D & E Electric 5. Salaries Expense 2. Interest Earned 6. Notes Payable 3. Office Supplies 7. Accounts
10. Which of the following is not an advantage of using a computerized accounting information system?a. Fewer transaction posting errors.b. Information input errors.c. Up-to-date balances in the subsidiary ledgers and general ledger at all times.d. Simplification of recordkeeping.
9. Which of the following is not a step in the development of an accounting information system?a. Implementationb. Flexibilityc. Feedbackd. Analysis
8. All of the following are true statements regarding posting from special journals excepta. Postings to the subsidiary ledgers are made on a daily basis from the special journals.b. Postings to the control accounts are made at the end of the accounting period from the special journals.c. Postings
7. Which of the following is a true statement regarding the use of special journals?a. Crossfooting the revenue journal is a useful step that helps ensure errors are detected before amounts are posted to ledger accounts.b. Cash transactions can be recorded in any of the four special journals.c. All
6. Which of the following is a true statement regarding the use of subsidiary ledgers and special journals?a. The use of subsidiary ledgers reduces the number of transactions recorded in the control account.b. The use of subsidiary ledgers greatly increases individual efforts because everything is
5. In recording transactions to the subsidiary ledger and the control account, which of the following is a true statement?a. Transactions are posted daily to the subsidiary ledger and at the end of the accounting period to the control account.b. A transaction should be posted only to the subsidiary
4. Which of the following statements is false?a. The sum of the individual subsidiary accounts balances and the balance in the corresponding control account will not be equal until the end of the accounting period.b. Special journals are used to record repetitive, frequent transactions.c. Single
3. Which of the following is a true statement regarding special journals?a. The revenue journal is used for recording cash revenues.b. Posting to the subsidiary ledgers is done daily from all special journals and the general journal.c. The purchases journal is used for recording cash payments for
2. A ✓ in the Ref. column of a special journal indicates thata. The transaction was posted to the applicable control account.b. The transaction was posted to the applicable general ledger account.c. The transaction was posted to the applicable subsidiary ledger.d. The transaction was not posted.
1. All individual transactions with customers on account are tracked in thea. Accounts payable control accountb. Accounts payable subsidiary ledgerc. Accounts receivable control accountd. Accounts receivable subsidiary ledger
21. List two advantages and two disadvantages of using a computerized accounting information system.
20. Briefly describe the four developmental phases of an accounting information system.

Showing 1600 - 1700 of 4138

First
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved