ACC422 – INTERMEDIATE FINANCIAL ACCOUNTING II Week 5 Final Exam

Brief Exercise 7-1

Kraft Enterprises owns the following assets at December 31, 2014.

What amount should be reported as cash?

Brief Exercise 7-2

Restin Co. uses the gross method to record sales made on credit. On June 1, 2014, it made sales of $50,000 with terms 3/15, n/45. On June 12, 2014, Restin received full payment for the June 1 sale.

Prepare the required journal entries for Restin Co. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)