pre test 2.docx - Test 1 Question 1 0.2 out of 0.2 points The following information is available for Speaker City for January Balance per bank statement

pre test 2.docx - Test 1 Question 1 0.2 out of 0.2 points...

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Test 1Question 10.2 out of 0.2 pointsThe following information is available for Speaker City for January:Balance per bank statement at January 31Outstanding checksDeposits in transitNSF check from customerBank service chargeDetermine the true cash balance on the bank reconciliation for Speaker City.Selected Answer:9,500Correct Answer:9,500 ± 0Response Feedback:See Module 4 LO 1.2.1 Bank ReconciliationsSince you were given the balance per the bank, you need to add the deposits-in-transit and subtract the outstanding checks to get the true cash balance.To get to the true cash balance, the balance in the accounting records, i.e., the book balance, is updated for the informationfound on the bank statement by:adding direct deposits (electronic fund transfers or EFTs),subtracting direct payments (EFTs),subtracting bank service charges and fees,subtracting non-sufficient funds (NSF) checks(bounced customer checks), andsubtracting any company errors made in the company's favor and adding any errors made in the banks favor. The true cash balance should agree with the bank balance updated bythe information that has been recorded in the books but not yet recorded by the bank by:adding deposits in transit which are deposits made by the company that have not yet been recorded by the bank,subtracting outstanding checks which are checks written by the company that have not been recorded by the bank, andsubtracting any bank errors made in the banks favor and adding anyerrors made in the company's favor.Question 2
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0.2 out of 0.2 pointsRecord the purchase of $800 of merchandise on account by selecting which accounts would be debited and credited. (Select all that apply.)Selected Answers:credit Accounts Payabledebit InventoryAnswers:debit Cost of Goods Soldcredit Cashdebit Cashdebit Accounts Payablecredit Accounts Payabledebit Inventorycredit Inventorycredit Cost of Goods SoldResponse Feedback:See Module 3 LO1.The company debits what it gets, Inventory (+A), and credits what it gives in exchange, Accounts Payable (+L). Both total assets and liabilities increase by $800.DebitCreditInventoryxxAccounts PayablexxLater, Inventory is expensed when sold and is recorded with a debit to Cost of Goods Sold (-SE) and a credit to Inventory (-A).DebitCreditCost of Goods SoldxxInventoryxxWhen the company pays what it owes for Inventory, it records a debit to Accounts Payable (-L) and a credit to Cash (-A).DebitCreditAccounts PayablexxCashxxQuestion 30.2 out of 0.2 pointsUsing a perpetual inventory system, which of the following entries would record the sale of merchandise on account?Selected Answer:Debit Accounts Receivable and Cost of Goods Sold; Credit Sales
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Revenue and InventoryAnswers:Debit Accounts Payable and Inventory; Credit Sales Revenue and Cost of Goods SoldDebit Sales Revenue and Cost of Goods Sold; Credit Accounts Payable and InventoryDebit Accounts Receviable and Sales Revenue; Credit Cost of Goods Sold and InventoryDebit Accounts Receivable and Cost of Goods Sold; Credit Sales
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  • Balance Sheet, Generally Accepted Accounting Principles, Doubtful Accounts

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