9 of 25 Refer to the following trial balance

| June 5, 2016

Question
9 of 25

Refer to the following trial balance.
Debit

Credit

Cash

$15,000

Accounts Receivable

42,000

Merchandise Inventory

60,000

Supplies

15,000

Land

300,000

Accounts Payable

$3,000

Notes Payable

25,000

Smith, Capital

326,000

Smith, Withdrawals

3,000

Sales Revenues

480,000

Sales Returns and Allowances

6,000

Sales Discounts

9,000

Cost of Goods Sold

240,000

Salaries Expense

15,000

Utility Expense

69,000

Rent Expense

54,000

Interest Expense

6,000

Totals

$834,000

$834,000

How much are net sales revenues?

$465,000
$480,000
$102,000
$96,000

Question
10 of 25

A company has four vendors, and the accounts payable subsidiary ledger shows the following balances:
Alpha

$275,821

Beta

143,474

Gamma

78,943

Delta

34,187

Calculate the accounts payable balance in the general ledger.

$419,295
$532,425
$275,821
$256,604

Question
11 of 25

Multi Corporation sold merchandise for $4,450 to Susan on credit. The cost of goods sold was $1,185. Assuming that the firm is following a perpetual inventory system, it will record $4,450 in the
general journal.
Accounts Receivable DR, Sales Revenue CR column of the sales journal.
Merchandise Inventory DR column of the purchases journal.
Accounts Receivable CR column of cash receipts journal.

Question
12 of 25

A company has a petty cash fund amount of $300. When replenished, it has petty cash receipts of $30 for gas expense, $32 for postage expense, $16 for supplies expense, and $10 for miscellaneous expenses. Assume the cash balance is not over or short. In the journal entry, Cash would be credited with
$88.
$72.
$62.
$78.

Question
13 of 25

The petty cash fund had an initial imprest balance of $200. It currently has $17 in cash, $3 in miscellaneous cash receipts and an additional $180 in specific cash receipts. The debit to Cash Short and Over would be
$0.
$17.
$180.
$183.

Question
14 of 25

A company received a bank statement showing a balance of $75,100. Reconciling items included outstanding checks of $2,250 and a deposit in transit of $9,500. What is the company’s adjusted bank balance?
$63,350
$67,850
$82,350
$65,600

Question
15 of 25

The following information is needed to reconcile the cash balance for Fire Steel Inc.

A deposit of $5,800 is in transit. Outstanding checks total $1,500. The book balance is $6,800 at February 28, 2013. The bookkeeper recorded a $1,740 check as $17,400 in payment of the current month’s rent. The bank balance at February 28, 2013 was $18,000. A deposit of $400 was credited by the bank for $4,000. A customer’s check for $3,700 was returned for nonsufficient funds.
The bank service charge is $60.
What was the adjusted book balance?

$18,720
$18,060
$18,700
$18,820

Question
16 of 25

The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debt expense. The company’s management estimates that 2% of net credit sales will be uncollectible for the year 2015. Net credit sales for the year amounted to $250,000. What will be the balance of the Allowance for Bad Debts reported on the balance sheet at December 31, 2015?
$7,275
$3,075
$7,000
$5,285

Question
17 of 25

The following information is from the 2015 records of Armand Camera Shop:
Accounts Receivable, December 31, 2015

$40,000 (debit)

Allowance for Bad Debts, December 31, 2015
prior to adjustment

1,500 (debit)

Net credit sales for 2015

175,000

Accounts written off as uncollectible during 2015

15,000

Cash sales during 2015

27,000

Bad debts expense is estimated by the percent-of-sales method. The management estimates that 3% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2015.

$5,250
$3,450
$2,250
$2,850

Question
18 of 25

Smart Art is a new establishment. During the first year, the company had credit sales of $40,000 and collections of credit sales of $36,000. One account for $650 was written off. The company decided to use the percent-of-sales method to account for bad debts expense and decided to use a factor of 2% for their year-end adjustment of bad debts expense. At the end of the year, what is the ending balance in Accounts Receivable?
$4,000
$3,600
$3,350
$3,200

Question
19 of 25

At the beginning of 2015, Peter Dots has the following ledger balances:
During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000, and $18,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance of Accounts Receivable would be

$40,000.
$62,000.
$80,000.
$18,000.

Question
20 of 25

A company purchased a used machine for $10,000. The machine required installation costs of $1,000 and insurance while in transit of $500. At which of the following amounts would the machine be recorded?
$10,000
$11,000
$10,500
$11,500

Question
21 of 25

A $40,000, four-month, 6.5% note payable was issued on October 1, 2015. Which of the following would be included in the journal entry required on the note’s maturity date by the borrower?
A credit to Note payable for $40,867
A credit to Cash for $40,000
A debit to Interest expense for $217
A debit to Interest payable for $217

Question
22 of 25

Jade signs a $6,500, 8.5%, six-month note dated November 1, 2013. The interest expense recorded for this note in 2013 will be
$133.
$92.
$276.
$184.

Question
23 of 25

Rocco worked 43 hours at his job during the first week of March, 2015. He is paid $14.50 per hour and receives overtime at the rate of time-and-one-half for hours worked over 40. What is Rocco’s gross pay for the week?
$623.50
$628.00
$645.25
$935.25

Question
24 of 25

Berkley’s gross pay for the month is $5,400. His deduction for federal income tax is based on a rate of 18%. He has no voluntary deductions. His yearly pay is under the limit for OASDI. What is the amount of Berkley’s net pay? (Assume a FICA—OASDI Tax of 4.2% and FICA—Medicare Tax of 1.45%.)
$4,122.90
$5,400.00
$5,094.90
$4,428.00

Question
25 of 25

Bike World offers warranties on all their bikes. They estimate warranty expense at 3.5% of sales. At the beginning of 2013, the Estimated Warranty Payable account had a credit balance of $1,200. During the year, Bike World had $295,000 of sales and had to pay out $5,300 in warranty payments. How much Warranty Expense will be reported on the 2013 income statement?
$6,225
$6,500

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