financial accounting exam 06158300
1)
Liabilities
Stockholders' Equity
Assets
$23,500
$56,500
$80,000
2)
RE, Beg.
Sales
Expenses
Dividends
Net Loss
$65,000
$29,500
$33,000
$3,500
($3,500)
3)
Salaries Expense, Beg.
Increase
Decrease
Increase
Increase
Salaries Expense, Ending
$0
$450
$175
$600
$350
$1,225
4)
Purchases
Credit Cash
Debit Cash
Credit Accounts Payable
$375
$375
375
375
5)
Allied, Inc.
Insurance Policy
$3,600
Debit Insurance Expense
Credit Prepaid Insurance
1,800
1,800
6)
Supplies, Beginning
Supplies Purchased
Amount Paid
Supplies, End of the Year
$0
$200
$150
$40
Supplies, Ending
$160
Debit
7)
Invoice
$4,500
Credit Cash
$4,500
8)
Bond and Associates
Accumulated Depreciation
Accounts Payable
Accounts Receivable
Cash
Equipment
Land
Mortgage Payable
Prepaid Insurance
Supplies
Unearned Revenue
Wages Payable
$23,000
$8,500
$12,000
$3,500
$44,000
$21,000
$45,000
$7,500
$2,000
$6,000
$4,500
Current Liabilities
$19,000
9)
Olympic Enterprises
Date
June 1
June 4
June 7
June 11
June 14
Total
3%
0%
Quantity
Beginning Inventory
5
Purchase
10
Sale
12
Purchase
9
Sale
8
24
Average Unit Cost
Cost of Goods Sold
$55.50
$444
10)
Net Sales
Gross Profit
Ending Inventory
Beginning Inventory
$4,500
$3,200
$1,300
$1,800
Cost of Goods Sold
$1,300
11)
Goods available for sale
Beginning Inventory
Ending Inventory
Cost of Goods Sold
$40,000
$16,000
$20,000
$50,000
Inventory Turnover
12)
handling of incoming checks oversight of the internal control systems
2.78
Control activities
Monitoring
13)
An Audit Opinion is an evaluation of the company's financial statements performed by an independent accountant or auditor.
14)
Credit Sales
Allowance for Doubtful Accounts
Estimated Uncollectibles
$235,000
$7,250
7%
Estimated Uncollectible Accounts
$16,450
15)
Bestway, Inc.
Credit Sales
Allowance for Doubtful Accounts
Estimated Uncollectibles
$142,000
$643
2%
Debit Bad Debt Expense
Credit Allowance for Uncollectible Accounts
16)
Cost
Residual Value
Useful Life
2,840
2,840
Liabilities
Stockholders' Equity
Assets
$23,500
$56,500
$80,000
2)
RE, Beg.
Sales
Expenses
Dividends
Net Loss
$65,000
$29,500
$33,000
$3,500
($3,500)
3)
Salaries Expense, Beg.
Increase
Decrease
Increase
Increase
Salaries Expense, Ending
$0
$450
$175
$600
$350
$1,225
4)
Purchases
Credit Cash
Debit Cash
Credit Accounts Payable
$375
$375
375
375
5)
Allied, Inc.
Insurance Policy
$3,600
Debit Insurance Expense
Credit Prepaid Insurance
1,800
1,800
6)
Supplies, Beginning
Supplies Purchased
Amount Paid
Supplies, End of the Year
$0
$200
$150
$40
Supplies, Ending
$160
Debit
7)
Invoice
$4,500
Credit Cash
$4,500
8)
Bond and Associates
Accumulated Depreciation
Accounts Payable
Accounts Receivable
Cash
Equipment
Land
Mortgage Payable
Prepaid Insurance
Supplies
Unearned Revenue
Wages Payable
$23,000
$8,500
$12,000
$3,500
$44,000
$21,000
$45,000
$7,500
$2,000
$6,000
$4,500
Current Liabilities
$19,000
9)
Olympic Enterprises
Date
June 1
June 4
June 7
June 11
June 14
Total
3%
0%
Quantity
Beginning Inventory
5
Purchase
10
Sale
12
Purchase
9
Sale
8
24
Average Unit Cost
Cost of Goods Sold
$55.50
$444
10)
Net Sales
Gross Profit
Ending Inventory
Beginning Inventory
$4,500
$3,200
$1,300
$1,800
Cost of Goods Sold
$1,300
11)
Goods available for sale
Beginning Inventory
Ending Inventory
Cost of Goods Sold
$40,000
$16,000
$20,000
$50,000
Inventory Turnover
12)
handling of incoming checks oversight of the internal control systems
2.78
Control activities
Monitoring
13)
An Audit Opinion is an evaluation of the company's financial statements performed by an independent accountant or auditor.
14)
Credit Sales
Allowance for Doubtful Accounts
Estimated Uncollectibles
$235,000
$7,250
7%
Estimated Uncollectible Accounts
$16,450
15)
Bestway, Inc.
Credit Sales
Allowance for Doubtful Accounts
Estimated Uncollectibles
$142,000
$643
2%
Debit Bad Debt Expense
Credit Allowance for Uncollectible Accounts
16)
Cost
Residual Value
Useful Life
2,840
2,840