A+ Answers of the following Questions

1. Online learning is impossible without:
a. Information literacy.
b. Media literacy.
c. The use of the textbooks.
d. An internet connection.

 
2. Achieving goals you set is greatly helped by:
a. Writing down your long-term goals.
b. Your learning style.
c. Managing your time efficiently.
d. Getting good grades.

 
3. To actively read means to:
a. Read aloud
b. Concentrate on understanding.
c. Read fast.
d. Minimize note-taking.

1. A company made a bank deposit on September 30 that did not appear on the bank statement dated as of September 30. In preparing the September 30 bank reconciliation, the company should:
A)Deduct the deposit from the bank statement balance.
B)Send the bank a debit memorandum.
C)Deduct the deposit from the September 30 book balance and add it to the October 1 book balance.
D)Add the deposit to the book balance of cash.
E)Add the deposit to the bank statement balance.

2. The interest accrued on $6,500 at 6% for 60 days is:
A)$36.
B)$42.
C)$65.
D)$180.
E)$420.

3. The amount of bad debt expense can be estimated by:
A)The percent of sales method.
B)The direct charge-off method.
C)The aging of accounts receivable method.
D)Only A & C.
E)All of the above.

1. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:
A)Direct write-off method.
B)Aging of accounts receivable method.
C)Percentage of sales method.
D)Aging of investments method.
E)Percent of accounts receivable method.

2. A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:
Accounts receivable..................$355,000 debit
Allowance for uncollectible accounts...     500 credit
Net Sales............................ 800,000 credit
All sales are made on credit. Based on past experience, the company estimates 0.6% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
A)$1,275
B)$1,775
C)$4,500
D)$4,800
E)$5,500

3. Lomax Enterprises purchased a depreciable asset for $22,000 on March 1, 20007. The asset will be depreciated on the straight-line method over its four-year useful life. Assuming the asset's value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, 2010?
A)$5,000.00
B)$4,166.67
C)$16,666.68
D)$20,000.00
E)$19,166.67

1. The straight-line method depreciation method and the double-declining-balance depreciation method:
A)Produce the same total depreciation over an asset's useful life.
B)Produce the same depreciation expense each year.
C)Produce the same book value each year.
D)Are acceptable for tax purposes only.
E)Are the only acceptable methods of depreciation for financial reporting.

2. A method that allocates an equal portion of the total depreciable cost for a plant asset to each unit produced is called:
A)Accelerated depreciation.
B)Declining-Balance depreciation.
C)Straight-line depreciation.
D)Units-of-production depreciation.
E)Modified accelerated cost recovery system (MACRS) depreciation.

3. A depreciation method that necessarily produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years is a (an):
A)Double-declining balance method.
B)Book value depreciation method.
C)Straight-line depreciation method.
D)Units-of-production depreciation method.
E)Unrealized depreciation method.

1. Steve's skateboards use the perpetual inventory system and had the following sales transaction during April:
April 2   Sold merchandise to Happy Hobby Shop on credit for $4,800, terms 1/15, n/60. The items sold a had a cost of $2,700.
April 4   Happy Hobby Shop returned merchandise that had a selling price of $200. The cost of the merchandise returned was $110.
April 13 Happy Hobby Shop paid for the merchandise sold on April 2, taking any appropriate discount earned.

Prepare the journal entries that Steve Skateboards must make to record these transactions.

2. A company made the following merchandise purchases and sales during the month of July:

July 1    purchased 380    units at    $15 each
July 5    purchased 270    units at    $20 each
July 9    sold 500        units at    $55 each
July 14   purchased 300    units at    $24 each
July 20   sold 250        units at    $55 each
July 30   purchased 250    units at    $30 each
There was no beginning inventory. If the company uses the first-in, first-out method and the perpetual system, what would be the cost of the ending inventory?

3. Brown Company's bank statement for September 30 showed a cash balance of $1,350. The company's cash account in its general ledger showed a $995 debit balance. The following information was also available as of September 30.
a. A customer's check for $100 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company's account a $25 processing fee.
b. The September 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement.
c. A $15 debit memorandum for checks printed by the September 30 bank was included with the canceled checks.
d. Outstanding checks amounted to $1,145.
e. A customer's note for $900 was collected by the bank. A collection fee of $25 was deducted by the bank and the difference was deposited in the account.
f. Included with the canceled checks was a check for $275, drawn on another company, Browne Inc.
Prepare a bank reconciliation as of September 30.