MGTB05 Final Exam Review Questions
The following data for Wong Company are available for the month of December:
Book balance of cash, December 31
Bank service charge
Deposit in transit
(a) Total estimated bad debts
Estimated bad debts
Number of Days Outstanding
Deposit in transit: May 31, $1,892
Adjustments include the following:
EFT collection from customer of $1,298 must be added to the balance per books.
The outstanding cheques are as follows:
(a) Weaknesses and (b) Problems
1. Cash is collected and kept in the car.
This could result in theft.
Cash should be deposited in the
bank each day.
2. The person purchasing the
merchandise is the same person that
BRIEF EXERCISE 4-1
Students may find this to be a fairly challenging problem, so here are a few
points that should
This is a violation of the cost principle. The land was reported at its fair value
when it should have remained at cost.
This is a violation of the economic entity assumption. The treatment of the
transaction does not recognize Deanna D
Dawn will likely operate her vegetable stand as a proprietorship
because she is planning on operating it for a short time period and a
proprietorship is the simplest and least costly business organization
to form and dissolve.
Joseph and Sab
Chapter 3- The Accounting Cycle
Accounting Cycle- the process of entering transaction and economic event data into
an accounting system and then processing, organizing and using it to produce
information, such as financial statements
*Accounting systems c