FinalW10 - NAME BUS 214, Financial Accounting Final...

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NAME BUS 214, Financial Accounting Final Examination — Winter 2010 Question 1 (75 points) The following is a partial trial balance for X Company at December 31, 2009. X Company Partial Trial Balance December 31, 2009 Debit Credit Accounts receivable $ 900,000 Allowance for bad debts $ 18,000 Supplies inventory 50,000 Merchandise inventory 2,010,000 Purchases -0- Freight-in -0- Purchase returns & allowances -0- Purchase discounts -0- Prepaid insurance -0- Wages payable 30,000 Accounts payable 800,000 Sales revenue -0- Sales returns & allowances -0- Sales discounts -0- Cost of goods sold -0- Wage expense -0- Insurance expense -0- Supplies expense -0- Freight-out expense -0- Bad debt expense -0- Required: Prepare journal entries and perform computations for the following transactions and events. 1. On January 1, 2010, X Company paid its insurance company $72,000 cash for a 6-month comprehensive insurance policy. Prepare the journal to record this transaction. 2. During January of 2010, X Company purchased $200,000 of Supplies on account. Prepare the journal entry to record this transaction. 1
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3. During January of 2010, X Company purchased 300,000 units of Merchandise inventory for $7,350,000 on account. X Company does maintain detailed Purchase accounts. Prepare the journal entry to record this transaction. 4 During January of 2010, X Company paid $180,000 cash for freight-in cost on merchandise that was purchased during January. Prepare the journal entry to record this transaction. 5. During January of 2010, X Company returned 3,000 units of Merchandise inventory to suppliers for $73,500 full credit. Prepare the journal entry to record this transaction. 6. During January of 2010, X Company sold 305,000 units of merchandise to customers for $15,250,000. $13,750,000 of the sales were for cash, and $1,500,000 of the sales were on account. Prepare the journal entry to record this transaction. 7. During January of 2010, X Company paid $3,000 cash to deliver merchandise to customers. Prepare the journal entry to record this transaction. 8. During January of 2010, customers returned $2,600 of sales described in Item 6. $500 of these were credit sales that were returned for credit and the other $2,100 were returned for cash refunds. Prepare the journal entry to record this transaction. 9. During January of 2010, X Company sold used customer returned merchandise for $1,300 cash. Prepare the journal entry to record this transaction. 2
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10. During January of 2010, X Company collected cash from customers in settlement of $1,631,400 of X’s Accounts receivable. Customers deducted $9,000 in discounts and paid the net amount of $1,622,400 in cash to X Company. Prepare the journal entry to record this transaction. 11. During January of 2010, X Company paid cash to suppliers to settle $7,200,000 of X’s Accounts
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This note was uploaded on 10/25/2011 for the course COM 143 taught by Professor Becker during the Spring '08 term at Miami University.

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FinalW10 - NAME BUS 214, Financial Accounting Final...

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