ACCT final
the accountant for rogan corp. was preparing a bank reconciliation as of February 28, 2014. The following items were identified: what amount will rogan report as its adjusted cash balance at February 28, 2014
$14,885
Asago co. Soda merchandise to health corporation on account $18,000 terms 2/15, net 45. The cost of the merchandise sold is $15,000. Asago co. Issued a credit memo for $1750 for merchandise returned that originally cost $1400 the health corporation paid the invoice within the discount. What is the amount of net sales from the above transaction
$15925
The set of items below was identified in preparing a bank reconciliation for Heath Corp. as of August 31, 2014. Bank statement balance $18,500 Heath's book balance (before adjustments) ? Outstanding checks 2,700 Customer's NSF checks 350 Service Charges 100 Deposits in transit 1,000 Interest earned on checking account 60 Heath Corp.'s balance per books before the reconciliation is
$17,190
Refer to the data for Mellon Corporation. if Mellon estimates its bad debts at 2% of net credit sales, what amount will be reported as bad debt expense for 2015?
$28,800
Use the following data to answer the question presented below for Raines corporation preparation of a bank reconcile on October 31, 2014 What is the adjusted cash balance on October 31, 2014
$29,600
Meta inc. pays 18,000 to buy stock in another company and an additional $350 in commission three months later Meta sells the stock for $19,000 at the time of the sale meta will recongize a
$650 gain
Fenchurch Corp. uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance?
Assets and owners' equity decrease
Hocks store counted some of its inventory twice as a result it operating expense will be
Correct since operating expenses are not affected by inventory costs
Xu Corp. started business at the beginning of 2015. Xu selected the FIFO method for its inventory. In order to maximize its profits for 2015 under this method, prices must be
Increasing
the following information is reported in the operating activities section of gateway's statement of cash flows for 2014: which one of the following conclusions can be assumed from the information provided?
gateway purchased more merchandise than it sold In 2014
which one of the following items would be added to the balance per books in a bank reconciliation?
interest on customer note
all of the following statements are true except:
write-downs of inventory can be reversed in later periods under U.S GAAP
What is the distinguishing characteristic between accounts receivable and notes receivable?
Notes receivable result from a written promise to pay within a specified amount of time.
which one of the following documents is used in the control of cash receipts?
bank deposit slips
The Dinho Corporation identified the following data when preparing their April bank reconciliation: Bank statement balanceDinho's book balance (before adjustments) Outstanding checksNSF checksService chargesDeposits in transitInterest earned on checking account $45,000 ? 4,500 1,400 300 5,000 25 In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000. The correct amount was recorded by the bank as $1,200. What is the net amount of the adjustment to Dinho's cash balance as a result of the bank reconciliation?
$1,475 decrease
verilux company sold merchandise to flight corp. on November 1, 2014, for $10,000. verilux accepted a promissory note from flight corp. for $10,00o. The note has a term of 5 months and a stated interest rate of 7% verilux's accounting period ends December 31, 2014. What amount should verily recognize as interest revenue on December 31, 2014
$116.67
If ever saw uses the weighted average cost inventory method the amount assigned to the June 30 inventory would be
$1359.90
Refer to the information for Mellon Corporation. If Mellon uses the aging of accounts receivable approach to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?
$219,000
If Cable Inc. receives $23,825 from credit card collections and has an average rate of 4.7% charged by the credit card company, its credit card sales during the period were:
$25,000
Using the following information, what is the amount of cost of goods sold? Purchases $32,000 Purchases discounts $960 Merchandise inventory September 1 5,700 Merchandise inventory September 30 6,370 Sales returns and allowances 910 Sales 63,000 Purchases returns and allowances 1,200 Freight In 1,040
$30,210
Goldman corporation reported the following information for 2015 and 2016. How much cash was paid for merchandise purchases during 2016
$472,000
On January 1, 2014, the Accounts Receivable and the Allowance for Uncollectible Accounts for Darius Company carried balances of $20,000 and $550 respectively. During the year, the company reported $70,000 of credit sales. There were $400 of receivables written off as uncollectible in 2014. Cash collections of receivables amounted to $74,700. The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance. The amount of bad debts expense recognized in the 2014 income statement will be:
$595
All documents attached to it invoice approval form are canceled before a check is signed
Adheres to sound internal control procedures
Although the department supervisor can indicate a preferred supplier or vendor on purchase requisitions the purchasing department has the responsibility for making the final decision on a vendor
Adheres to sound internal control procedures
The following set of items describes activities completed by a company in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. An employee from the accounting department compares the control list and the cash register tapes with the bank deposit slip.
Adheres to sound internal control procedures
Which of the following items would not be a reconciling item
Canceled checks
The entry required to recognize the bad debts expense will act to
Decrease total assets and retained earnings
On July 1, 2014 falcon company received a $20,000 promissory note from Jordan company the annual interest rate is 5% principal and interest are paid in cash at the maturity date of June 30, 2015.If Falcons fiscal year end September 30, 2014 and adjusting entry is needed to:
Increase interest receivable by $250
Which of the following statements does not describe the responsibilities of a company's internal audit staff
Internal auditors ensure that the company's financial statements have been presented fairly
When a note receivable has been discounted by a company
It may be shown as a contingent liability in the footnotes
If a company uses the direct write off method of accounting for bad debts
It will record bad debt expense only when an account is determined to be uncollectible
Federal income tax rules allow businesses to use different inventory costing methods for tax reporting and financing reporting with one exception which of the following situations is not allowed by federal income tax rules
LIFO FIFO
Which of the following statements regarding internal control is true
Large companies are able to devote a substantial amount of resources to internal control systems because these companies have the assets to justify the cost
The data presented below is for Craft, Inc. for 2015. Credit sales during the yearAccounts receivable - December 31, 2015Allowance for doubtful accounts - December 31, 2015 Bad debt expense for the year $2,100,000 295,000 28,000 17,000 What is the effect on liquidity when Craft records its estimate for bad debt expense using the allowance method?
Liquidity decreases
The party to promissory note that agrees to repay money on the maturity date of the note is called the
Maker of the note
Which of the following statements is true
Most companies use the indirect method of preparing the operating activities section of the statement of cash flow's
When using the allowance method what are the effects on accounting equation when a company write off a bad debt
No affect on overall assets or a equity
Which one of the following items would be subtracted from the balance per bank statement in a bank reconciliation
Outstanding checks
park inc. purchased merchandise from jay zee music company on June 5, 2015. the goods were shipped the same day. The merchandise's selling price was $15,000. The credit terms were 1/10, n/30. The shipping terms were FOB shipping point. Park received the merchandise on June 10, 2015. Park paid the amount due on June 13, 2015. Who is responsible for payment of the transportation costs on the merchandise sold by jay zee music to park?
Park, inc.
Which of the following is not a generally recognized internal control procedure
Reducing the cost of hiring seasonal employees
Which internal control procedure is followed when storage areas are secured with limited access
Safeguarding assets and records
If a company erroneously Records a $500 deposit as $400 in its box which of the following must occur when reconciling the bank statement
The company will have to increase the balance per the book by $100
Presented below is the operating activities section of the statement of cash flow's for the feline friends corporation for 2016: which method of preparing the operating activities section has feline used
The direct method
all of the following statements regrading the gross profit ratio are true except:
The gross profit ratio alone is sufficient to determine a company's profitability
Which one of the approaches for the allowance method of accounting for bad debts emphasizes matching bad debts expense with revenue on the income statement
The percentage of net credit sales approach
Which of the following is not a requirement of a companies external auditors under sarbanes-oxley
They must design and implement an effective information system design
During 2015, the accounts receivable balance of Dickerson Corp. increased. Which of the following statements is true?
This indicates that Dickerson sold more than it collected in cash during the period.
administrative controls
are concerned with efficient operations and adherence to managerial policies
when would LIFO liquidation occur
as a result of selling more units than are purchased during the period
The notification accompanying a check that indicates the specific invoice being paid is called a
remittance advice