Your Questions About In Which Journal Is The Return Of Supplies Purchased On Account Recorded

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Mark asks…

Accounting?????????????????????????????

II. EXERCISES

A. Carley Company maintains four special journals and a general journal to record its transactions. Using the code below, indicate in the space provided the appropriate journal for recording the transactions listed.

Code Journals
———— ————————
S Sales journal
CR Cash receipts journal
CP Cash payments journal
P Single-column purchases journal
G General journal

____ 1. Mr. Carley invested cash in the business.
____ 2. Purchased store supplies on account.
____ 3. Sold merchandise to customer on account.
____ 4. Purchased a 2-year fire insurance policy for cash.
____ 5. Received a check from a customer as payment on account.
____ 6. Paid for store supplies purchased in transaction 2.
____ 7. Purchased merchandise on account.
____ 8. Issued a credit memorandum to a customer who returned defective merchandise previously sold on account.
____ 9. Purchased office equipment for cash.
____ 10. Made an adjusting entry for store supplies used during the period.

B. On October 1, 2002, Foster Company establishes an imprest petty cash fund by issuing a check for $150 to Kim Mann, the custodian of the petty cash fund. On October 31, 2002, Kim Mann submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $6 cash in the fund:

Freight-in $20
Office Supplies Expense 40
Entertainment of Clients 60
Postage Expense 20

INSTRUCTIONS
Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31. B) diario general

C. Noland Boat Company’s bank statement for the month of September showed a balance per bank of $7,000. The company’s Cash account in the general ledger had a balance of $4,667 at September 30. Other information is as follows:

(1) Cash receipts for September 30 recorded on the company’s books were $4,200 but this amount does not appear on the bank statement.

(2) The bank statement shows a debit memorandum for $40 for check printing charges.

(3) Check No. 119 payable to Lynch Company was recorded in the cash payments journal and cleared the bank for $248. A review of the accounts payable subsidiary ledger shows a $36 credit balance in the account of Lynch Company and that the payment to them should have been for $284.

(4) The total amount of checks still outstanding at September 30 amounted to $5,800.

(5) Check No. 138 was correctly written and paid by the bank for $429. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $492.

(6) The bank returned an NSF check from a customer for $550.

(7) The bank included a credit memorandum for $1,260 which represents collection of a customer’s note by the bank for the company; principal amount of the note was $1,200 and interest was $60. Interest has not been accrued.

INSTRUCTIONS
(a) Prepare a bank reconciliation for Noland Boat Company at September 30.
(b) Prepare any adjusting entries necessary as a result of the bank reconciliation.C) diario general

D. Reebles Food Store developed the following information in recording its bank statement for the month of March.

Balance per books March 31 $3,622
Balance per bank statement March 31 $11,400

(1) Checks written in March but still outstanding $8,000.
(2) Checks written in February but still outstanding $3,200.
(3) Deposits of March 30 and 31 not yet recorded by bank $7,200.
(4) NSF check of customer returned by bank $700.
(5) Check No. 210 for $591 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $519.
(6) Bank service charge for March was $50.
(7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $834 when Check No. 318 was correctly prepared for $384. The check cleared the bank in March.
(8) The bank collected a note receivable for the company for $4,000 plus $150 interest revenue.

INSTRUCTIONS
Prepare a bank reconciliation at March 31.

E. Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item.

Code
————
A Add to cash balance per books
B Deduct from cash balance per books
C Add to cash balance per bank
D Deduct from cash balance per bank
E Does not affect the bank reconciliation

Items:
—————
____ 1. Outstanding checks.

____ 2. Bank service charge.

____ 3. Check for $320 correctly written and paid by the bank but incorrectly entered in the cash payments journal for $230.

____ 4. Deposit in transit.

____ 5. Bank returns deposited check marked NSF.

____ 6. Bank collects notes receivable and interest for depositor.

____ 7. Bank debit memorandum for check printing fees.

____ 8. Petty cash custodian has $86 in paid petty cash vouchers that have not been reimbursed.

____ 9. Bank charged a check against the company which should have been charged to another company.

____ 10. A check for $236 was correctly paid by the bank but was incorrectly entered in the cash payments journal for $263.

F. The following information was used to prepare the March 2002, bank reconciliation for Knorr Machine Works..

1. Included with the bank statement materials was a check from Joe Terrell for $70 stamped “NSF.”
2. A personal deposit by Tim Knorr to his personal account in the amount of $300 for dividends on his General Electric common stock was credited to the company account.
3. The bank statement included a debit memorandum for $30.00 for four books of blank checks for Knorr Machine Works.
4. The bank statement contains a credit memorandum for $42.75 interest on the average checking account balance.
5. The daily deposits of March 30 and March 31, for $3,362 and $3,125 respectively, were not included in the bank statement postings.
6. Two checks totaling $316.86, which were outstanding at the end of February, cleared in March and were returned with the March statement.
7. The bank statement included a credit memorandum dated March 28, 2002, for $75.00 for the monthly interest on a 6-month $15,000 certificate of deposit that the company owns.
8. Four checks, #8712, #8716, #8718, #8719, totaling $5,369.65, did not clear the bank during March.
9. On March 24, 2002, Knorr Machine Works delivered to the bank for collection a $4,500, 3-month note from Tom Jacobs. A credit memorandum dated March 29, 2002, indicated the collection of the note and $135.00 of interest.
10.The bank statement included a debit memorandum for $25.00 for the collection service on the above note and interest.

INSTRUCTIONS
Identify the items that require adjustment to the cash balance per books and prepare the appropriate adjusting entries.F) diario general

G. Prepare journal entries to record the following transactions entered into by Elway Company:G) diario general

2001
June 1 Received a $15,000, 12%, 1-year note from Ann Grey as full payment on her account.

Nov. 1 Sold merchandise on account to Peters, Inc. for $10,000, terms 2/10, n/30.

Nov. 5 Peters, Inc. returned merchandise worth $1,000.

Nov. 9 Received payment in full from Peters, Inc.

Dec. 31 Accrued interest on Grey’s note.

2002
June 1 Ann Grey honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2002.

H. Lloyd Products is undecided about which base to use in estimating uncollectible accounts. On December 31, 2002, the balance in Accounts Receivable was $680,000 and net credit sales amounted to $3,600,000 during 2002. An aging analysis of the accounts receivable indicated that $35,000 in accounts are expected to be uncollectible. Past experience has shown that about 1% of net credit sales eventually are uncollectible.

INSTRUCTIONS
Prepare the adjusting entries to record estimated bad debts expense using the (1) percentage of sales basis and (2) the percentage of receivables basis under each of the following independent assumptions:
H) diario general

(a) Allowance for Doubtful Accounts has a credit balance of $3,200 before adjustment.
(b) Allowance for Doubtful Accounts has a debit balance of $730 before adjustment.

I. Compute the maturity date and the maturity value associated with each of the following notes receivables.

1. A $10,000, 6%, 3-month note dated April 20.

Maturity date ___________, Maturity value $____________.

2. A $15,000, 8%, 72-day note dated May 5.

Maturity date ___________, Maturity value $____________.

3. An $8,000, 9%, 30-day note dated August 15.

Maturity date ___________, Maturity value $____________.

J. Compute the missing amount for each of the following notes:

Annual Total
Principal Interest Rate Time Interest
——————————————————————————————————————
(a) $10,000 10% 2.5 years ?
——————————————————————————————————————
(b) $120,000 ? 9 months $10,800
——————————————————————————————————————
(c) ? 10% 90 days $ 1,000
——————————————————————————————————————
(d) $40,000 9% ? $ 1,200
—————————————————————————————————————

K Assume that the payroll records of Flynn Oil Company provided the following information for the weekly payroll ended November 26, 2002.

Federal Year-to-Date
HoursHourlyIncomeUnionEarnings Through
EmployeeWorkedPay RateTaxDues Previous Week
——————————————————————————————————————————
C. White 44 36 $286 $9 $76,000
J. Ward 36 10 65 5 23,200
K. Hurt 391694-5,100
M. King42221697 49,500

Additional information: All employees are paid overtime at time and a half for hours worked in excess of 40 per week. The FICA tax rate is 8% for the first $75,000 of each employee’s annual earnings. The employer pays unemployment taxes of 6.2% (5.4% for state and .8% for federal) on the first $7,000 of each employee’s annual earnings.

INSTRUCTIONS
(a) Prepare the payroll register for the pay period.
(b) Prepare general journal entries to record the payroll and payroll taxes.K) diario general

financi4 answers:

This isn’t homework. Look at the range of questions. It looks like someone’s final exam for their first accounting class.

Thomas asks…

accounting homework help?

im suppose to put the following transactions in the general journal.

27. discovered an error in computing a commission; received cash from salesperson for the overpayment $700
debit cash 700 and credit salary and commission expense 700

30. recorded revenue earned and billed to clients during the month 48400
accounts receivable debit 48400, fees earned credit 48400

17. paid creditors on account 7750.
accounts payble debit 7750, cash credit 7750

20. returned a portion of the office supplies purchased on novemeber 2, receiving full credit for their cost $250
accounts payable debit 250, office supplies credit 250

did i post these entries in the journal correctly?

im also suppose to then post the entries to the corresponding ledgers (like i post all the cash transactions in the cash ledger) my question about this is what do i use for the beginning balance for the cash ledger?

financi4 answers:

The entries look okay to me. They should have given you a beginning balance for the cash ledger or else you can look on the balance sheet for that date.

David asks…

ACCOUNTING HELP ASAP!!?

Your Question
READ THIS!! Accounting help asap!?
I am studing for an accounting exam with my old tests. I got these questions rong on those test & need to be able to study the correct answers before my exam on friday… PLEASE HELP!!

1) April 23 Cash 14,000 Jim Xu, Capital 14,000 Invest cash in Xu Co. The journal entry will: a. Increase Capital and decrease Cash
b. Increase Cash and decrease Capital
c. Increase Cash and increase Capital
d. Decrease Cash and decrease Capital

2) If total assets decreased by $88,000 during a period of time and owner’s equity increased by $65,000 during the same period, then the amount and direction (increase or decrease) of the period’s change in total liabilities is
a. $23,000 increase
b. $88,000 decrease
c. $153,000 increase
d. $153,000 decrease

3)In which order are the accounts listed in the chart of accounts?
a.assets, expenses, liabilities, owners’ equity, revenues
b. owners’ equity, assets, liabilities, revenues, expenses
c. assets, liabilities, owner’ equity, revenues, expenses
d. assets, liabilities, revenues, expenses, owners’ equity

4.Which of the following accounts would be increased with a credit?
a. Land, Accounts Payable, Drawing
b. Accounts Payable, Unearned revenue, Collins Capital
c.Collins Capital, Accounts Receivable, Unearned Revenue
d. Cash, Accounts Receivable, Collins Capital
5) The supplies account has a balance of $1,200 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
a. 650
b. 1,750
c. 4,150
d. 2,850
6. The account type and normal balance of Accumulated Depreciation is
a. revenue, credit
b. expense, debit
c asset, credit
d asset, debit

7) Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
a. Supplies Expense
b. Accumulated Depreciation
c. Prepaid Insurance
d. Unearned Rent
8.After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $36,678 and the credits of $41,101. This indicates that
a. neither net income or loss can be calculated because it is found on the income statement
b. the company has a net loss of $4,423 for the period
c. the company has a net income of $4,423 for the period
d. The amounts are out of balance and need to be corrected

9. Which of the statements below indicates that a company earned a net income for the period?
a. The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the work sheet.
b. The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet.
c. The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheet.
d. Cash inflows exceeded cash outflows.

10. After net income is entered on the work sheet, the Balance Sheet debit and credit columns must
a be the same amount as the total amount of the Income Statement debit and credit columns
b equal each other
c. be the same amount as the total amount in the Adjusted Trial Balance debit and credit columns
d. not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheet

11. A work sheet includes columns for
a adjusting entries
b closing entries
c reversing entries
d adjusting and closing entries

12. When merchandise is returned under the perpetual inventory system, the buyer would credit a Merchandise Inventory
b Purchases Returns and Allowances
c Accounts Payable
d depending on the inventory system used

14 Use the following information to answer the following questions.

The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May.

Date Product Z Units Cost
May 3 Purchase 5 $30
May 10 Sale 3
May 17 Purchase 10 $34
May 20 Sale 6
May 23 Sale 3
May 30 Purchase 10 $40

Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.

a. $102

b. $78

c. $90

d. $180

financi4 answers:

1) April 23 Cash 14,000 Jim Xu, Capital 14,000 Invest cash in Xu Co. The journal entry will:
c. Increase Cash and increase Capital

2) If total assets decreased by $88,000 during a period of time and owner’s equity increased by $65,000 during the same period, then the amount and direction (increase or decrease) of the period’s change in total liabilities is
d. $153,000 decrease

3)In which order are the accounts listed in the chart of accounts?
C. Assets, liabilities, owner’ equity, revenues, expenses

4.Which of the following accounts would be increased with a credit?
B. Accounts Payable, Unearned revenue, Collins Capital

5) The supplies account has a balance of $1,200 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
d. 2,850

6. The account type and normal balance of Accumulated Depreciation is
c asset, credit

7) Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
A. Supplies Expense

8.After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns show debits of $36,678 and the credits of $41,101. This indicates that
b. The company has a net loss of $4,423 for the period

9. Which of the statements below indicates that a company earned a net income for the period?
B. The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet.

10. After net income is entered on the work sheet, the Balance Sheet debit and credit columns must
b equal each other

11. A work sheet includes columns for
a adjusting entries

12. When merchandise is returned under the perpetual inventory system, the buyer would credit
a Merchandise Inventory

14 Use the following information to answer the following questions.
The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May.

Date Product Z Units Cost
May 3 Purchase 5 $30
May 10 Sale 3
May 17 Purchase 10 $34
May 20 Sale 6
May 23 Sale 3
May 30 Purchase 10 $40

Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.
B. $78

Charles asks…

need help with accounting questions?

My choices for each question are : revenue journal, cash receipts journal, purchases journal, cash payment journal & general journalwhich answer would best fit the following
paid for office equip. on acct.
provided service for cash
returned office supplies on acct
accrued salaries for dec
collected cash for cust. on acct.
provided service for cust. on acct.
recorded depreciation on office equipment
purchased office supplies on acct

financi4 answers:

Cash Payments – paid for office equip. On acct.
Cash Receipts – provided service for cash
General – returned office supplies on acct
General – accrued salaries for dec
Cash Receipts – collected cash for cust. On acct.
Sales – provided service for cust. On acct.
General – recorded depreciation on office equipment
Purchases – purchased office supplies on acct

Richard asks…

Accounting Journal Entries? Please help?

what would the journal entries be for the following transactions?

Sept. 1 Issued to Jim and Mary Lou Walker 20,000 shares of common stock in exchange for a total of $100,000 cash.

Sept. 1 Purchased for $180,000 all of the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000. The note has an 8% interest rate and interest is payable when the note is due.

Sept. 1 Paid $9,000 to Dundee Realty as three months’ advance rent on the rental yard and office formerly occupied by Rent-It.

Sept. 1 Purchased a piece of equipment for $35,000 cash.

Sept. 1 Sold for $6,000 a piece of equipment with a cost of $5,000 and no accumulated depreciation.

Sept. 4 Purchased office supplies on account from Modern Office Co., $2,000. Payment is due in 30 days. The supplies are expected to last several months.

Sept. 8 Received $20,000 cash as advance payment on equipment rental from McNomar Construction Company.

Sept. 14 Paid salaries for the first 14 days in September, $4,200. That is 14 days at $300 per day.

Sept. 15 Excluding the McNomar advance, equipment rental fees earned during the first 15 days of September amounted to $9,000 of which $8,000 was received in cash.

Sept. 17 Purchased on account from Earth Movers, Inc., $500 in parts needed for routine maintenance on a rental tractor. Payment is due in 10 days.

Sept. 23 Collected $300 of the credit sales recorded on September 15.

Sept. 25 Rented a backhoe to Mission Landscaping at a price of $100 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about 14 days.

Sept. 27 Paid for parts purchased September 17.

Sept. 28 Paid salaries for 14 days, $4,200.

Sept. 28 Declared a dividend of 20 cents per share, payable on October 15.

Sept. 29 Purchased a 12-month public-liability insurance policy for $2,700. The policy goes into effect October 1.

Sept. 30 Received a bill from Universal Utilities for the month of September, $600. Payment is due in 30 days.

Sept. 30 Equipment rental fees earned during the second half of September and received in cash amounted to $10,000.

Sept. 30 Issued a 10-year, $50,000 bond paying semiannual interest. The coupon or stated interest rate is 6% and the market rate is 6%.

financi4 answers:

Sept. 1 Issued to Jim and Mary Lou Walker 20,000 shares of common stock in exchange for a total of $100,000 cash.
Dr Cash 100,000
Cr Common stock 100,000

Sept. 1 Purchased for $180,000 all of the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000. The note has an 8% interest rate and interest is payable when the note is due.
Dr Equipment 180,000
Cr Note payable 110,000
Cr Cash 70,000

Sept. 1 Paid $9,000 to Dundee Realty as three months’ advance rent on the rental yard and office formerly occupied by Rent-It.
Dr Prepaid rent 9,000
Cr Cash 9,000

Sept. 1 Purchased a piece of equipment for $35,000 cash.
Dr Equipment 35,000
Cr Cash 35,000

Sept. 1 Sold for $6,000 a piece of equipment with a cost of $5,000 and no accumulated depreciation.
Dr Cash 6,000
Cr Equipment 5,000
Cr Gain on sale of equipment 1,000

Sept. 4 Purchased office supplies on account from Modern Office Co., $2,000. Payment is due in 30 days. The supplies are expected to last several months.
Dr Office supplies 2,000
Cr Accounts payable 2,000

Sept. 8 Received $20,000 cash as advance payment on equipment rental from McNomar Construction Company.
Dr Cash 20,000
Cr Unearned rental fees 20,000

Sept. 14 Paid salaries for the first 14 days in September, $4,200. That is 14 days at $300 per day.
Dr Salaries 4,200
Cr Cash 4,200

Sept. 15 Excluding the McNomar advance, equipment rental fees earned during the first 15 days of September amounted to $9,000 of which $8,000 was received in cash.
Dr Cash 8,000
Dr Accounts receivable 1,000
Cr Rental fees revenue 9,000

Sept. 17 Purchased on account from Earth Movers, Inc., $500 in parts needed for routine maintenance on a rental tractor. Payment is due in 10 days.
Dr Tractor upkeep expense 500
Cr AP 500

Sept. 23 Collected $300 of the credit sales recorded on September 15.
Dr Cash 300
Cr AR 300

Sept. 25 Rented a backhoe to Mission Landscaping at a price of $100 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about 14 days.
No entry needed

Sept. 27 Paid for parts purchased September 17.
Dr AP 500
Cr Cash 500

Sept. 28 Paid salaries for 14 days, $4,200.
Dr Salaries expense 4,200
Cr Cash 4,200

Sept. 28 Declared a dividend of 20 cents per share, payable on October 15.
Dr Dividend 4,000
Cr Dividend payable 4,000

Sept. 29 Purchased a 12-month public-liability insurance policy for $2,700. The policy goes into effect October 1.
Dr Prepaid insurance 2,700
Cr Cash 2,700

Sept. 30 Received a bill from Universal Utilities for the month of September, $600. Payment is due in 30 days.
Dr Utilities 600
Cr AP 600

Sept. 30 Equipment rental fees earned during the second half of September and received in cash amounted to $10,000.
Dr Cash 10,000
Cr Rental fees revenue 10,000

Sept. 30 Issued a 10-year, $50,000 bond paying semiannual interest. The coupon or stated interest rate is 6% and the market rate is 6%.
Dr Cash 50,000
Cr Bond payable 50,000

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