f01mid2 - TEST 2 FALL DF ‘fll ' SIGNATURE TA 22....

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Unformatted text preview: TEST 2 FALL DF ‘fll ' SIGNATURE TA 22. internal control does not: help safeguard the assets a business uses in its operations 6] guarantee a company will not go bankrupt c] encourage adherence to company policies at] omrnote operational efficiency 23. Internal control is the organizational plan and related measures that: a) gives one individual central over all accounting functions b} sateguards assets ensures accurate accounting records bed: b and o 2?. The employee Iarho processes cash payments should have nothing to do with the approval process i a part of which characteristic of internal control: * separation of duties i assignment ct responsibilities of: proper authorization d} competent. reliable. and ethical personnel 23. . Me of the following is not an element of internal control? assigning to one individual the responsibility for accounting for and custody of assets - relying on internal and external audits c} separation at duties vehemvpr paesib-t-a d} assigning responsibilities to individuals who have the authority to administer them 34. Two or more employees working together to defraud a company is referred to as: :. team work collusion c} embezzlement d} fraud 115. Late on the night of September 30. 2cxs. en arsonist destroyed the Greensboro Company warehouse which was lull of inventory. Luckily the accounting records were stored in another facility and not destroyed in the fire. Greensboro Company is in the process ol' filing a ciaim with its insurance company for the inventory loss due to the fire. T KPH_ it 15? Beginning inventory $350,501: Purchases through September 30, 2035 4?D,250 Net sales revenue through Sept. 30. 2015 145.200 + The gross profit percent has historically been 405 or net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method. Beginning inventory $350.” zagfiflfl arr?“ 5‘" llcanminim::iviiiiiiei fcr i. £259,520 1. “it” “‘9 1r n:- in? I H + 5n - Less: Costofgoods sold' “21251 I ZEE‘E: floor-a Ending inmtory w I Elli?- wamamdrssecexseyzsmaacf- 2&2,” 'zyi”; T “31 Record entries for the toilowing transactions for Elviera Company. Riviera Company maintains an ' allowance account. CE] :3 Sold merchandise on account to Carver Company. $2.800. o) Sold merchandise on account to Gwinett Company. $1.6TCI. I; oo o ,1." :3 ea c] Write off both the Center Company and the Gwinett Company.r accounts. d} Carver Company unexpectedly paid oft its account in full. General Journal “ I— m I— l— I— _ I_ m Aooomts Receivable-Carver Co. 10. The accountant for Withers Company is toilingr to dacide which method to use tor estimating unoollectible accounts. An aging of accounts receivable revealed $I4,325 in uncollecttole accounts. Under the percent-ot-sales methodI uncollacttha-account expense was estimated at $14330. The balance in allowance tor uncollectiole accounts prior to adluetment was $1360 @ (cl r.) and the halanca in accounts receivable was $284,500. r -. _ r- -- a) Determine the amount of the adjusting entry under each method. 5 b} What will be the amount reported on the balance sheet as uncollectibla under each method? ALLA) 3.21.! i! r- c} Calculate the net realizable vatua for accounts. receivable reported on the balance sheet under each I'l'IB‘tWT— — - — — Solution: a) aging-dracoounts method {$14,325 + 51350) = m percentiof-salea method m h} aging-ot-acoounts method £11325 percentotraales method [$14380 - REED} = m c} aging-of-aooounte method {1234.506 - $14,325} = m peroent-of—cales method {5234.500- 513.020} = m e .79 1mg loliuwina: date are eveilebie for the month ot March: it i March 1 balance 20 units at $15 each i 3' 00 CH I'd-cf Merch 10 purchase 40 units at $15 each .5452} A. M March 1? purchase 30 units et $1150 eechz'gfi'g‘ HP" ‘6' March 30 purchase 35d units at $IE Eat:er .519 '5' . N i" x e LIFE 0n March 31. 35 unit: are on hand. 3;:- Cetculete poet of goods sold under the tailor-Hing methods: e} FIFO e: LIFE! :1 weighted-mule [round per unit cost to the nearest cent. round final answer to the nearest dollar} 115 unit: Iflilebie - 35 ending no its = 50 units sold I} {203515}+ {401 $1614 [20 I. $11501= $300 + $640 + $350 : 11.23} 091125 I$13}+(30X $1153} + {25 I 516} = $450 + 5525 + 5400 = 51,115 a} (an x :15; + [an x $15; + {an x 511.50: + {25 x $13} = sec-c + seen 4- $525 + $45»:- = 51.515 51.0151'115 units = $16.55 X B0 = m2 105. I|iiemni Company enquired equipment on Jenuery 1, 2013. for $450,000. The equipment has en eetimebed useful life 01*5 were end an estimated reeiduel velue of $30,000. Calculate depreciation expense for 20% end 20x4 under each of the following mediod e. The equipment is estimated to produce 150.000 units. During 2013 end 2014. the equipment produced 25,000 and 40,030 units. respectively. Round to the nearest duller where neceesery. 2013 2014 m _eee.ee:_ m m m m StreiIht-line Double-declining belence Units~ofrpreductidn Straight-line {sesame — sadooeyfi = rupee per year I.'it.':ui:iIe-i:let:iininer oelence 2013 3450.000 X 135 I 2 = $100,000 20144 {$453,000 - 5100.000) 1". IRS I 2 = 5100.000 Units-of—production gait-$900 - $30.000}!150,000 units = $2.80 per unit 52.50 H 25.000 units = I?0,000 | 2014 $2.00 X 40,000 unite = 5112.000 ,4an: MM 72393“ #30 25'@’.rre! a 42m":- j/r? m @ nil - fire: “WEN-W‘Pr-‘oégs‘ {pvfrfdn‘z' 6’6ng C 5.5" $3; 2 6%} UFO FL 3;: 20526: -' Arm/45M 5%,: .C ’ a i. I 5-fer 3/4? («r J {a 24 m I“! If 3??— *540 (9—1; , #- ,_———--'""'- mafia-Ea fiHEfiAé'E AWN]; 115’”; 5375 65x35": If}; Mr: “’5’ firm; m1} fflfléfi'mx 5' if} 66—; 5’33; r"_".--""F Ina The I‘D-IIIDWII'EI date have been gathered ler Reynolds Earn puny to assist ynu in preparing the Jul}:r 31, EDIE. bank miliaticn'. __h a} The JLfiy 31 bank balance was $4,000. E? b) The bank amt included 530 at service charges. c} There was en EFT depceit cf$900 en the bani: statement for the mentth rent clue from a tenant d] Checks #541 and #543 for $335 and $32G. respectively. were not among the canceled checks returned with the amen-rent. a) The July 31 dwell“ 01' $4,435 did not appear en the bank statement. 1') The bookkeeper had erranecuety recorded a 5500 check as $5,000. The check was written to a under in pay eff en accounts payabie. 3} included with tl'iecenuled checks we: a check written by Raynoida Company [or $200 which was deducted from Reynolds Company's account. l1} The bank statement included an NSF check. written by Maxie Corn pany fer a $483 payment an eccmmt. i} The cash account ehewed a balance at $3,200 on July 31. L Prepare the Juiy 31.. 20:13. hank reconciliation fer Reynolds. Company 2. Prepare the Adjusters Iain-rial Erie-y Reynolds Company Bank Reconciliation July 31. 20MB Bank balance. July 31. EDIE $4.000 Add: Deposit in transit $4.435 Bank errar _Zfl1 3,515 $3,635 Less: Outstanding check: #54] i 2135 #543 JED. J25 Adjusted bani: balance. July 31, 20x3 gem Ennis balance. July 31. 2013 53.200 Add; EFT deposit ' S 900 E E Backlteeper error $8.6m Le551HSFci1eck I 460 Service charges 32 _ fl} adjusted bank balance. July 31. EDI-3 m C A 5H 2-? 9 M A :- fi'r $4530 55mg: cHdmt’ .30 A an?” F” IL" 4 {PM 1' R'in $453 11¢. Redilie Com puny. which he: e December at year-end. eumpieted the following transactions during 20M and 2036: 20m. @ DEL l4 EDIE merchandise to Bruce Company, renewing a 60-day, 9% note for MID-Di}, 5e '9 339' . .I' Maw. 16: Sold merchandise to Marine Company recewmg a 12-day. Efl. note for $5.500. DeelEl Received amount due from Bruce Campany Deni] Aecmed interest on the Marine Company note. 2035 Jeni? Cultected in full tram Marine Company. Prepare the necessary journal entries to record the abetre traneaetIene. Bur-eral Journal Get. 14 Note Reeeiuahle-Bruee Ce. —v ma- Nm.1e Note Receivable-Marine Cu. flit-— —m Dec-13 cm — I“ n" — W Interest ReceivabIe 55 Interest Revenue“ ZGXE Jan- 2? 6-604 Interest Receivable Interest Revenue-r" — Note Renewable-Marine Ce. _ - $4.0m eeexeerm: :50 Ge r5: "$6.5eexeex45reee =ses “$5.5m x .03 :r erreee = $39 'I‘IUVLII. —I'N THE VIDEO WHAT WAS JOSE GDP-{E3 STT'UATIIDN PRESSURE? MSTESTWAS; ...
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f01mid2 - TEST 2 FALL DF ‘fll ' SIGNATURE TA 22....

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