ACC 201 Module 5 Quiz Chapter 6 (2014)

ACC 201 JUNE – AUG 2014 (1))
Assignment:Module 5 – Quiz –
Chapter 6

1.Waupaca Company establishes a $330 petty cash fund on
September 9. On September 30, the fund shows $111 in cash along with receipts
for the following expenditures: transportation costs of merchandise inventory
purchased, $42; postage expenses, $61; and miscellaneous expenses, $107. The
petty cashier could not account for a $9 shortage in the fund. Waupaca uses
the perpetual system in accounting for merchandise inventory.

(1)

Prepare the September 9 entry to
establish the fund.

(2)

Prepare the September
30 entry to reimburse the fund.

(3)

Prepare an October 1
entry to increase the fund to $405.

(2)

Merchandise Inventory:

2.Wright Company deposits all cash receipts on the day when
they are received and it makes all cash payments by check. At the close of
business on May 31, 2013, its Cash account shows a $29,500 debit balance. The
company’s May 31 bank statement shows $27,800 on deposit in the bank.

a.

The May 31 bank statement included
a $200 debit memorandum for bank services; the company has not yet recorded
the cost of these services.

b.

Outstanding checks as of May 31
total $6,600.

c.

May 31 cash receipts of $7,200
were placed in the bank’s night depository after banking hours and were not
recorded on the May 31 bank statement.

d.

In reviewing the bank statement, a
$500 check written by Smith Company was mistakenly drawn against Wright’s
account.

e.

A debit memorandum for $400 refers
to a $400 NSF check from a customer; the company has not yet recorded this
NSF check.

Prepare a bank reconciliation for
the company using the above information.

3.Del Gato Clinic deposits all cash receipts on the day when
they are received and it makes all cash payments by check. At the close of
business on June 30, 2013, its Cash account shows a $13,064 debit balance.
Del Gato Clinic’s June 30 bank statement shows $12,459 on deposit in the
bank.

a.

Outstanding checks as of June 30
total $2,001.

b.

The June 30 bank statement
included a $60 debit memorandum for bank services.

c.

Check No. 919, listed with the
canceled checks, was correctly drawn for $389 in payment of a utility bill on
June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities
Expense and a credit to Cash in the amount of $398.

d.

The June 30 cash receipts of
$2,555 were placed in the bank’s night depository after banking hours and
were not recorded on the June 30 bank statement.

Prepare a bank reconciliation for
Del Gato Clinic using the above information:

4.Bargains Co. reported annual net sales for 2012 and 2013
of $663,000 and $746,000, respectively. Its year-end balances of accounts
receivable follow: December 31, 2012, $58,000; and December 31, 2013,
$96,000.

(a)

Calculate its days’ sales
uncollected at the end of each year. (Round
your “Days’ Sales Uncollected” answer to 1 decimal place.)

[The following information applies to the questions displayed
below.]

Piere Imports uses the perpetual
system in accounting for merchandise inventory and had the following
transactions during the month of October.

Oct.

2

Purchased merchandise at a $3,400
price, invoice dated October 2, terms 1/10, n/30.

10

Received a $400 credit memorandum
(at full invoice price) for the return of merchandise that it purchased on
October 2.

17

Purchased merchandise at a $3,800
price, invoice dated October 16, terms 2/10, n/30.

26

Paid for the merchandise purchased
on October 17, less the discount.

31

Paid for the merchandise purchased
on October 2. Payment was delayed because the invoice was mistakenly filed
for payment today. This error caused the discount to be lost.

5.(a)

Prepare entries to record the
above transactions assuming that Piere Imports records invoices at gross
amounts.

6.(b)

Prepare entries to record the
above transactions assuming that Piere Imports records invoices at net
amounts.