Questions from General Accounting

Q: Refer to QS 7-6 and for each of the May

Refer to QS 7-6 and for each of the May transactions identify the journal in which it would be recorded. Assume the company uses a sales journal, purchases journal, cash receipts journal, cash disburs...

Q: Endor Company begins the year with $140,000 of goods

Endor Company begins the year with $140,000 of goods in inventory. At year-end, the amount in inventory has increased to $180,000. Cost of goods sold for the year is $1,200,000. Compute Endor’s invent...

Q: Confucius Bookstore’s inventory is destroyed by a fire on September 5,

Confucius Bookstore’s inventory is destroyed by a fire on September 5, 2015. The following data for year 2015 are available from the accounting records. Estimate the cost of the inve...

Q: Nolan Company deposits all cash receipts on the day when they are

Nolan Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows a $22,352 debit ba...

Q: Daw Company’s December 31 year-end unadjusted trial balance shows a

Daw Company’s December 31 year-end unadjusted trial balance shows a $10,000 balance in Notes Receivable. This balance is from one 6% note dated December 1, with a period of 45 days. Prepare any necess...

Q: Record the sale by Balus Company of $125,000 in

Record the sale by Balus Company of $125,000 in accounts receivable on May 1. Balus is charged a 2.5% factoring fee.

Q: The following list describes aspects of either the allowance method or the

The following list describes aspects of either the allowance method or the direct write-off method to account for bad debts. For each item listed, indicate if the statement best describes either the a...

Q: Warner Company’s year-end unadjusted trial balance shows accounts receivable of

Warner Company’s year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of $280,000. Uncollectibles are estimated to be 0.5...

Q: On August 2, 2015, Jun Co. receives a $

On August 2, 2015, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account. Prepare Jun’s journal entry assuming the note is honored by the customer on O...

Q: Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $

Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and...