ACCOUNTING 301: TEST #4: CHAPTERS 7 AND 8: TAKE HOME PROBLEMS
The bank statement for Cates Company indicates a balance of $1,730 on June 30. The cash
balance per books had a balance of $799 on this date. The following information pertains to t
Chapter 5 In-Class
On September 1, Pennington Supply had an inventory of 20 backpacks at a cost of $25 each.
The company uses a perpetual inventory system. During September, the following transactions
and events occurred.
4 Purchased 50 back
Financial Accounting Problem 6-3A
Vista Company Inc. had a beginning inventory of 100 units of Product RST at a cost of $8 per
unit. During the year, purchases were:
Dec. 8 100
TEST 5: CHAPTERS 9 AND 10: STUDY NOTES
One 8 x 11 page of notes (front and back) is allowed on the exam. A calculator is
allowed, no cell phones.
You will have 30 multiple choice questions and 3 short answer. Questions may
include, but not limited to the
Sarbanes Oxley Act
independent outside auditors must attest to the level of internal control.
companies must continually assess the functionality of internal controls
companies must develop sound internal controls over financial reporting
TEST #4: CHAPTERS 7 AND 8:
You will have 26 multiple choice problems and 3 problems.
JOURNAL ENTRIES FOR A NOTE RECEIVABLE INCLUDING CALCULATION OF INTEREST, MATURITY
VALUE AND ADJUSTING JOURNAL ENTRY FOR ACCRUAL OF INTEREST.
Using the following information, prepare a bank reconciliation for Hammond Company for June
a. The bank statement balance is $7,562.
b. The cash account balance is $6,422
c. Outstanding checks totaled $1,650.
d. Deposits in transit are $900.
Chapter 6 In-Class
Focus on being able to calculate the Periodic method
On November 1st we start the month with a beginning inventory of 100 units with a $10 per
unit cost. Below is the inventory purchase history for November:
CH 8 Examples
Direct Write-off Method:
1) Warden Co. writes off M. E. Dorans $200 balance as uncollectible on December 12. The
Bad Debts Expense . 200
Accounts ReceivableM. E. Doran . 200
(To record write-off of M. E. Doran account)
PRINCIPLES OF INTERNAL CONTROL ACTIVITIES
Establishment of Responsibility
Control is most effective when only one person is responsible for a given task.
Establishing responsibility often requires limiting access only to authorized personnel,
and then ide
Financial Accounting Exercise 6-10
Tascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following
inventory information is available for this product at December 31, 2017:
Purchase Transactions Homework
On September 5, De La Hoya Company buys merchandise on account from Junot Diaz
Company. The purchase price of the goods paid by De La Hoya is $1,500. On September 8, De
La Hoya returns defective goods with a selling price of
Financial Accounting Chapter 9
Worksheet and Adjustments for a Merchandising Business
The end-of-period activities for a merchandising business are similar to the end-ofperiod activities you
studied for a service business.
PREPARE A TRIAL BALANCE. All acc
Financial Accounting Chapter 8 Notes
SALES AND CASH RECEIPTS
Just as merchandizing businesses follow certain procedures to process and record purchases, they follow
certain procedures to process and record sales.
Terms of Payment
Merchandising Operations and Inventory Systems Homework
Indicate whether the following statements are true or false. If false, indicate how to correct the
1.The primary source of revenue for a merchandising company results from performing servi
Cost Flow Methods Homework
The accounting records of Shumway Ag Implement show the following data.
Beginning inventory 4,000 units at $3
6,000 units at $4
7,000 units at $12
Determine (a) the cost of goods available for sale and (b) the co
Rules of Ownership Homework
Hasbeen Company completed its inventory count. It arrived at a total inventory value of
$200,000. You have been given the information listed below. Discuss how this information
affects the reported cost of inventory.
Gross Profit Rate and Profit Margin Homework
Rachel Rose, Inc. reported the following in its 2017 and 2016 income statements.
Cost of goods sold 40,000 60,000
Operating expenses 14,000 28,000
Income tax expense 8,000 1
Depreciation Methods Exercise (CH 9)
Bills Pizzas purchased a small delivery truck on January 1, 2012.
Expected salvage value
Estimated useful life (in years) 5
Estimated useful life (in miles) 100,000
Straight-line method: (
Bonds Exercise (CH 10)
1) Devor Corporation issues 100, five-year, 10%, $1,000 bonds dated January 1, 2014, at 100 (100% of
a) The entry to record the sale is:
Jan. 1 Cash
(To record sale of bonds at face value)
EXAM 5 (CHAPTERS 9 AND 10)
Take Home (Extra Credit) Due Saturday, November 21st 8:30AM
On January 1, 2012, Harrison Corporation issued $800,000, 6%, 10-year bonds at face value. Interest is
payable annually on January 1. Harrison Corporat
Rodgers Corporation produces and sells football equipment. On July 1, 2016, Rodgers Corporation issued $65,000,000 of
10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $73,100,469. Interest on the bonds is