1.On December 31 of the current year, a company\'s unadjusted trial balance incl
ID: 2382019 • Letter: 1
Question
1.On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $100,334; Allowance for Doubtful Accounts, credit balance of $1,405. What amount should be debited to Bad Debts Expense, assuming 5% of outstanding accounts receivable at the end of the current year are considered uncollectible? $1,405 $5,016.7 $6,421.7 $3,611.7 $98,9292. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 2889 for December's utilities was correctly written and drawn for $190 but was erroneously entered in the accounting records as $910. The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?
$720 decrease to Cash and a $720 decrease to Utility Expense. $720 increase to Cash and a $720 decrease to Utility Expense. $560 decrease to Cash and a $560 decrease to Utility Expense. $560 increase to Cash and a $660 decrease to Utility Expense. $910 increase to Cash.
3. A company had inventory on November 1 of 6 units at a cost of $10 each. On November 2, they purchased 11 units at $11 each. On November 6, they purchased 7 units at $13 each. On November 8, 9 units were sold for $22 each. Using the FIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?
$179 $165 $167 $150 $159
4. A company had the following purchases during the current year: January: 46 units at $120 February: 56 units at $130 May: 51 units at $140 September: 48 units at $150 November: 46 units at $160
On December 31, there were 116 units remaining in ending inventory. These 116 units consisted of 20 from January, 22 from February, 24 from May, 22 from September and 28 from November. Using the specific identification method, what is the cost of the ending inventory?
$16,100 $16,400 $15,080 $16,240 $17,400
5. Based on the following information, determine the current assets, assuming all accounts have a normal balance?
Cash $6,814 Dividends $2,600 Accounts receivable 14,333 Consulting fees earned 14,318 Office supplies 2,685 Rent expense 3,733 Land 37,753 Salaries expense 6,702 Office equipment 15,135 Telephone expense 620 Accounts payable 6,523 Miscellaneous expense 340 Common stock 55,090 Retained Earnings ? $76,720 $23,832 $61,613 $38,967 $61,585 1.On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $100,334; Allowance for Doubtful Accounts, credit balance of $1,405. What amount should be debited to Bad Debts Expense, assuming 5% of outstanding accounts receivable at the end of the current year are considered uncollectible? $1,405 $5,016.7 $6,421.7 $3,611.7 $98,929
2. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 2889 for December's utilities was correctly written and drawn for $190 but was erroneously entered in the accounting records as $910. The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?
$720 decrease to Cash and a $720 decrease to Utility Expense. $720 increase to Cash and a $720 decrease to Utility Expense. $560 decrease to Cash and a $560 decrease to Utility Expense. $560 increase to Cash and a $660 decrease to Utility Expense. $910 increase to Cash.
3. A company had inventory on November 1 of 6 units at a cost of $10 each. On November 2, they purchased 11 units at $11 each. On November 6, they purchased 7 units at $13 each. On November 8, 9 units were sold for $22 each. Using the FIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?
$179 $165 $167 $150 $159
4. A company had the following purchases during the current year: January: 46 units at $120 February: 56 units at $130 May: 51 units at $140 September: 48 units at $150 November: 46 units at $160
On December 31, there were 116 units remaining in ending inventory. These 116 units consisted of 20 from January, 22 from February, 24 from May, 22 from September and 28 from November. Using the specific identification method, what is the cost of the ending inventory?
$16,100 $16,400 $15,080 $16,240 $17,400
5. Based on the following information, determine the current assets, assuming all accounts have a normal balance?
Cash $6,814 Dividends $2,600 Accounts receivable 14,333 Consulting fees earned 14,318 Office supplies 2,685 Rent expense 3,733 Land 37,753 Salaries expense 6,702 Office equipment 15,135 Telephone expense 620 Accounts payable 6,523 Miscellaneous expense 340 Common stock 55,090 Retained Earnings ? $76,720 $23,832 $61,613 $38,967 $61,585
Explanation / Answer
1. amount to be debited to Bad debt expense= 100334*5% = 5016.7
2. $720 increase to Cash and a $720 decrease to Utility Expense.
3. Value of inventory= 8*11+7*13= $179
4.cost of ending inventory= 20*120+22*130+24*140+22*150+28*160= 16400
5.Current assets = 6814+14333+2685+37753+15135=76720
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