NORTHERN VIRGINIA COMMUNITY COLLEGE Business and Social Science Division Woodbridge Campus Principles of Accounting I Take home (Chapters 4 - 6) Professor Dr. Mark DAntonio NAME:

NORTHERN VIRGINIA COMMUNITY COLLEGE

Business and Social Science Division

Woodbridge Campus

Principles of Accounting I       Take home (Chapters 4 - 6)

Professor Dr. Mark DAntonio

NAME:                   _____________________                                          

Answer all parts of all questions.  Show calculations where appropriate.

1.   You keep the accounting records for a small merchandising corporation which operates on a fiscal year that ends on December 31.  Using the separate general journal form provided, journalize the selected business transactions given below.  You may omit the explanations for your entries. (40 points)

2005

Dec.2    Purchased $6,000 worth of merchandise on credit                from Buy-Right Corp.  Their invoice #a210                 includes sales terms of 1/10, n/30, FOB shipping              point.

     3    Paid Express Shipping Company $150 for the delivery           of the merchandise you purchased from Buy-Right              Corp. on Dec. 2.

     4    Sold $10,000 worth of merchandise on credit to            Best Supply Co. on Invoice #2256, terms 2/10,             n/30, FOB shipping point.  The merchandise cost               $7,000. (Remember you need to do 2 entries here!)

     5    You discovered that some of the merchandise you                purchased from Buy-Right Corp. on Dec. 2 was              defective and had to be sent back.  You returned               $1,000 worth of merchandise.

     14   Received a check from Best Supply Co. for the             merchandise you had sold to them on Dec. 4, less               their applicable discount.

    Note: Print neatly and Skip a line between your entries

40 Points (Show work and circle the answer for each question)

Angel Inc. currently (on 1/1/2015) has 300,000 tons of gravel in their inventory (the balance sheet shows this is worth $300,000). On 1/10/2015 they make a gravel purchase: 200,000 at $1.50 per ton.  On 1/18/2015 they make a gravel purchase: 200,000 at $2.00 per ton.  On 1/23/2015 they make a gravel purchase: 200,000 at $2.50 per ton.

       On January 25^th of 2015 they sell 650,000 tons of mulch to George Mason University for $4.50 per ton.

1)      Calculate the Revenue = __________

2)      Fill out the inventory table below

3)      What is the COGS using FIFO =

4)      What is the REMAINING INVENTORY AMOUNT using FIFO =

5)      What is the COGS using LIFO =

6)      What is the REMAINING INVENTORY AMOUNT Using LIFO =

7)      What is the COGS using Weighted Average =

8)      What is the REMAINING INVENTORY AMOUNT using Weighted average =

The following information was available to reconcile Chisholm Company's book balance of cash with its bank statement balance as of December 31, 2010:

a.   After all posting was completed on December 31, the company's Cash account had a $9,675 debit balance, but    its bank statement showed a $9,000 balance.

b.   Check No. 409 for $1,125 was outstanding.

c.   In comparing the canceled checks returned with the   bank statement with the entries in the accounting    records, it was found that Check No. 437 for the   purchase of office supplies was correctly drawn for $419 but was erroneously entered in the accounting   records as though it were for $491.

d.   A debit memo for $455 listed a $440 NSF check plus a      $15 NSF charge.  The check had been received from Wayne Johnson as payment on his account and was    returned and uncollectible.

e.   Also enclosed with the statement was a $25 debit memo     for bank services.  It had not been recorded because     no previous notification had been received.

f.   The December 31 cash receipts, $1,392, were placed in     the bank's night depository after banking hours on    thatdate and this amount did not appear on the bank statement.

Required:

A.      Prepare a bank reconciliation for the company as of December 31, 2010. Be sure to label all numbers and clearly indicate whether you are adding or subtracting. (15 points)

B.   Prepare one (1) general journal entry necessary as a result of the bank reconciliation.  You may omit the explanation.  (5 points)