Adjusting entries for petty cash fund

Running head: ACCOUNTING 1

ACCOUNTING 2

Question 1 (6 points)
A bank reconciliation revealed cash per the bank statement of $1,484, cash per company records of $1,681, bank charges of $11, deposits in transit of $317, outstanding checks of $221, and NSF checks of $90. The correct cash balance is?

Question 1 options: pick the correct answer below

$1,580

$1,479

$1,490

$1,777

Question 2 (7 points)

A bank reconciliation revealed bank charges of $11, outstanding checks of $221, and NSF checks of $90. The journal entry to cause the company records to match the correct adjusted ending cash balance includes:

Question 2 options: pick the correct answer below

a credit to cash for $101

a debit to cash for $90

a debit to cash for $11

a credit to cash for $322

Question 3 (7 points)

Alpha Company replenished a $500 petty cash fund. The petty cash box contained vouchers of $87 for postage, $173 for supplies, $58 for gasoline, and cash on hand of $182. The journal entry to reflect replenishment would include:

Question 3 options: pick the correct answer below

debits to expense of $318

a credit to Petty Cash for $318

a credit to Cash or $182

a debit to Cash for $318

Question 4 (7 points)

Trading securities were purchased for $100,000. Initially the investment climbed in value to $125,000. By year's end, it had decreased in value to $90,000. At what amount should the trading securities be reported on the year-end balance sheet?

Question 4 options: pick the correct answer below

$90,000

$100,000

$125,000

None of these.

Question 5 (6 points)
Alpha Company established a petty cash fund on 1/2/y2, of $800. Prepare the general journal entry, without explanation, to record this event?

Question 5 options:

General Journal:

Date

Accounts

Debit

Credit

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Question 6 (7 points)

Alpha Company was preparing its month-end bank reconciliation. The cash balance per the general ledger was $1,645. Alpha's accountant discovered that the bank had charged $15 in service charges for the month, that outstanding checks were $60, and that there were no deposits in transit. What is the correct adjusted ending cash balance?

Question 6 options:

Question 7 (7 points)

On 1/2/20X6, ALPHA acquired 100 shares of CHARLIE Corporation stock at $20 per share, 200 shares of DELTA Corporation stock at $40 per share, and 100 shares of ECHO Corporation stock at $30 per share. All of these shares were purchased as trading securities. The market price per share of these securities at the end of 20X6 and 20X7, respectively, are:

Company

12/31/x6

12/31/x7

CHARLIE

$8

$22

DELTA

$38

$34

ECHO

$34

$30

What is the balance sheet amount for trading securities at the end of 20X7?

Question 7 ans:

Question 8 (6 points)

Alpha Company sold goods to customers who used Under-the-Hill bank credit cards. Credit card sales on July 8, 2016 amounted to $12,000 and were subject to a 2.5% bank fee. Use this information to prepare the General Journal entry (without explanation) for July 8, 2016. If no entry is required then write "No Entry Required."

Question 8 options:

General Journal:

Date

Accounts

Debit

Credit

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Question 9 (8 points)

Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales on July 15, 2016 amounted to $25,000 and were subject to a 3.5% credit card company collection fee. Alpha Company collected payment from Worldwide Express on July 21. What amounts should be recorded for the following accounts for the July 21 collection?

1. Cash

2. Sales

3. Service Charge

4. Accounts Receivable

Question 10 (6 points)

Alpha Company uses the direct write-off method of recording uncollectible accounts. On August 15, 2016, Yankee Zulu filed for bankruptcy and informed Alpha that he would be unable to pay $550 owed to Alpha. Alpha is certain that it will be unable to collect the $550. Use this information to prepare the General Journal entry (without explanation) for August 15. If no entry is required then write "No Entry Required."

Question 10 options:

General Journal:

Date

Accounts

Debit

Credit

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Question 11 (9 points)

Alpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of:

Dollar Value

Age of Account

Estimated Collectible

$115,000

< 30 days old

98%

65,000

30 to 60 days old

85%

20,000

61 to 120 days old

75%

5,000

> 120 days old

10%

The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $2,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the:

1. Accounts Receivable

2. Allowance for Doubtful Accounts

3. Bad Debt Expense

Question 11 options:

Question 12 (6 points)

For the fiscal year ended December 31, 2016, Alpha Company had credits sales that amounted to $300,000. Historically, 2.5% of credit sales are uncollectible. Alpha Company uses the percentage of sales method to determine its uncollectible accounts. The balance before any end of the year adjusting entry in the Allowance for Uncollectable Accounts is a credit value of $1,575. Use this information to prepare the adjusting General Journal entry (without explanation) for the fiscal year. If no entry is required then write "No Entry Required."

Question 12 options:

General Journal:

Date

Accounts

Debit

Credit

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Question 13 (6 points)

Alpha Company uses an allowance method for recording bad debts. On July 15, 2016 Alpha Company was advised of the bankruptcy of the Broken Corporation and wrote off their $7,000 of accounts receivable. Suddenly, on August 25, 2016 Broken won the Maryland State Mega Millions. Without warning, on August 26, Alpha Company received in full the payment for Broken's past debt. Use this information to prepare the General Journal entries (without explanation) for the August 26, 2016 event. If no entry is required then write "No Entry Required."

Question 13 options:

General Journal:

Date

Accounts

Debit

Credit

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Question 14 (6 points)

Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal):

Alpha Company

December 31

Accounts

2016

2015

Accounts Receivable

$40,000

$32,000

Merchandise Inventory

57,000

50,000

Office Supplies

25,000

20,000

Credit Sales

950,000

740,000

Interest Income

25,000

20,000

Cost of Goods Sold

460,000

385,000

1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 times)

2. What is the FY 2016 days outstanding for accounts receivable ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word days. (Example 1.123 would be entered 1.1 days)

Question 14 options:

Question 15 (6 points)

On December 21, 2016, Alpha Company accepted from Bravo a $10,000, 90-day, 8% note in lieu of an existing $10,000 account receivable. Alpha Company's fiscal year-end is December 31. Use this information to prepare for the Alpha Company the General Journal entries (without explanation) for December 21, 2016. If no entry is required then write "No Entry Required."

Question 15 options:

General Journal:

Date

Accounts

Debit

Credit

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