Need help starting general journal for final project.

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Assignment Pack

Bookkeeping Pack 3

This Assignment Pack contains the Quizzes you will need to complete your course. The Lessons will tell you when to complete each Quiz. If you have not yet accessed your Lessons, you can download your Electronic Lesson Book or order a printed copy from the Student Site, www.uscareerinstitute.edu. If you have questions, please contact Student Services at 1-800-347-7899.

No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of U.S. Career Institute.

Copyright © 2014, Weston Distance Learning, Inc. All Rights Reserved. e0201202AS03B-64

For more inFormation contact:

U.S. Career Institute Fort Collins, CO 80525

www.uscareerinstitute.edu

Assignment Pack 3

Instructions for Quizzes 1. Be sure you’ve mastered the Lessons and Practice Exercises that this Quiz covers. 2. Mark your answers on the Quiz, and make sure to check your answers by reviewing the Lessons. 3. When you’re finished, decide how you will submit your answers and then follow the correct

instructions below. You may only submit your answers for a Quiz once. Important: When submitting your Quiz, be sure to include your name, address, student ID number and course code. Incomplete information may result in your Quiz not being processed.

Scanner Quiz Instructions For a Quiz that contains only multiple-choice questions, please select the method of submission:

● Online: Submit your answers online and receive your grade immediately by submitting them to the student site, www.uscareerinstitute.edu.

● Phone: Call the Quiz Line at 1-877-599-5857 and give your answers over the phone to receive your grade immediately.

● Mail or Fax: Scanner Answer Sheets and addressed envelopes are included with each print Assignment Pack. Transfer your Quiz answers to the Scanner Answer Sheet, using only blue or black ink. Mail your Scanner Answer Sheet using the enclosed envelope, or fax the form to 1-877-599-5863.

Instructor-Graded Quiz Instructions For the quickest response to instructor-graded Quizzes, simply e-mail your completed Quiz as an attachment to your instructor at [email protected]. In most cases, you will receive the graded Quiz back via e-mail within three business days.

To ensure your instructor can grade your Quiz electronically, please create documents using one of the following preferred software programs: Microsoft® Word, Microsoft® Works or WordPerfect®. Make sure to include your name, student ID, course code and Quiz number in the subject line of your e-mail. Include your address in the e-mail. Finally, please note that these instructions only apply to handwritten Quizzes. Thank you and good luck!

For a Quiz that contains Instructor-graded questions, please select the method of submission:

● Online: Submit your answers online for an instructor to review and grade by submitting them to the student site, www.uscareerinstitute.edu.

● Mail or Fax: Scanner Answer Sheets and addressed envelopes are included with each print Assignment Pack. Transfer your Quiz answers to the Answer Sheet, using only blue or black ink. Mail your Cover Sheet and Answer Sheet using the enclosed envelope, or fax the form to 1-877-599-5863.

After you have submitted your Quiz answers, you may begin the next lesson. You do not need to wait for your Quiz results to move on to the next lesson!

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Assignment Pack 3

Quiz 13: Closing the Books This is an Instructor-graded Quiz that should be submitted according to the instructions at the beginning of this pack. The Quiz for this lesson consists of journalizing and posting all of the entries in an accounting cycle for Bright Ideas Light Center. On the following pages, you’ll find the directions and information you need to complete the Quiz. You will have one point deducted for each incorrect initial entry. You will also have a point deducted for format errors.

General Instructions for Quiz 13 For this Quiz, you will complete the entire accounting cycle for Bright Ideas Light Center. This business is owned by Alice Peterson, and her regular bookkeeper is out of town for the month of May on personal business. Alice has hired you through a temporary service to fill in.

All of the information and forms you need to complete this Quiz follow. Before you begin, take a moment to look through the packet and familiarize yourself with the items that are included:

³ Cover Sheet for submitting the assignment—Put this paper on top of the packet when you submit it for evaluation to the school.

³ Checklist of Procedures—This list will guide you through each step of the accounting cycle.

³ List of Transactions—These are the transactions for the business for the month of May.

³ Previous month’s financial statements:

± Income Statement for April—Refer to this to prepare the income statement for May.

± Statement of Owner’s Equity for April—Refer to this to prepare the statement of Owner’s Equity for May.

± Balance Sheet for April—Refer to this to prepare the balance sheet for May.

³ General Journal—Four pieces of 2-column ledger paper are included for the general journal.

³ Chart of Accounts—This is a list of all the ledger accounts for Bright Ideas Light Center.

³ General Ledger—There is a page for each of the accounts listed in the Chart of Accounts. Some of the accounts will have balances from the previous month.

³ Accounts Receivable Subsidiary Ledger—There are two accounts receivable accounts.

³ Accounts Payable Subsidiary Ledger—There are three accounts payable accounts.

³ Worksheet—Two 10-column ledgers are included for completing the worksheet.

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The instructions for this Quiz take you step-by-step through the accounting cycle. Check off each step as you go. Remember that this is an open-book Quiz; refer to your lesson materials as necessary. You may use a pen or pencil to make the journal and ledger entries and to prepare the worksheet. Be sure that all of your numbers are easy to read. Corrections should be neat and clean. Each incorrect and format error will result in a point lost.

Once you have completed all of the steps in the Quiz, fill out the Cover Sheet and mail the entire packet to the school for evaluation.

Checklist of Procedures for Quiz 13 Use this list of procedures as your step-by-step guide for completing Quiz 13. Check off each step as you go.

� 1. Using the general journal, record each of the 21 transactions listed on the transaction list. Number the first page in your general journal as page #14. Pages 1-13 have already been used previously. Remember that each transaction will be entered twice—once as a debit and once as a credit.

� 2. Post all of the entries in the general journal to the general ledger accounts. Remember that when you post the Accounts Receivable and the Accounts Payable entries, you will also need to post those entries to the individual accounts in the subsidiary ledgers.

� 3. Prepare a 10-column worksheet. Refer to the worksheet instructions and the sample worksheet in the previous lesson. Following is a list of the adjustments that will need to be made in columns 3 and 4:

³ Since this is a merchandising business, the inventory must be accounted for. Do this by making a $9,000 credit entry for inventory (column 4) and a $9,000 debit entry at the bottom of the worksheet under the title “Income Summary.” Use the letter (a) to label this pair of adjustments.

³ Now make an adjustment for the current amount of inventory. Do this by making a debit entry of $8,000 for inventory in column 3 (on the same line as the $9,000 credit entry you just made). Make a credit entry for $8,000 under “Income Summary” at the bottom of the worksheet on the same line as the $9,000 debit entry. Label this pair of adjustments (b).

³ Make an adjustment to prepaid insurance for the expired insurance in the amount of $100. This will be a credit entry. Complete this adjustment by making a debit entry for $100 in the account titled “Insurance Expense.” Label this pair of entries (c).

³ Inventory of office supplies shows $251 worth of supplies are left. Subtract the $251 from the balance in the office supplies account to figure the amount of the adjustment you need to make. Once you get the adjustment amount, make a credit entry for office supplies and a debit entry for the same amount at the bottom of the worksheet in the account titled “Office Supply Expense.” Label this pair of entries (d).

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Assignment Pack 3

³ Accumulative depreciation is figured at $200 for the building, and $20 for the equipment. Make a credit entry for each amount in column 4—$200 for Accumulated Depreciation—Building and $20 for Accumulated Depreciation— Equipment. Alice only has one expense account for depreciation, so make a debit entry for the total amount ($220) at the bottom of the worksheet under “Depreciation Expense.” Label all three of these entries (e).

Hint: When you total columns 5 and 6 for the adjusted trial balance, the figures should equal $135,374.

Type or clearly print the statements on plain pieces of paper.

� 4. Prepare an income statement. Use the worksheet to obtain the necessary figures (columns 7 and 8) and refer to April’s income statement as a guide for setting up the income statement.

� 5. Prepare a statement of owner’s equity. Use the net income amount from the income statement prepared in step 4. The drawing account amount is found in column 9. Use the previous month’s statement of owner’s equity as a guide for setting up this statement.

� 6. Prepare a balance sheet. Use the equity amount from the newly prepared statement of owner’s equity and columns 9 and 10 of the worksheet for the other figures you need. Use the previous month’s balance sheet as a guide for setting up this balance sheet.

� 7. Record the adjustments from columns 3 and 4 in the general journal. Remember to write “Adjusting Entries” in the item column before you begin making these entries.

� 8. Post the adjustments to the general ledger. Write “Adjusting Entry” in the item column for each entry.

� 9. Record the closing entries in the general journal. Remember to write “Closing Entries” in the item column before making those entries. Close the sales account and purchase returns allowances account by making the appropriate entries in the general journal. (Use columns 7 and 8 on the worksheet to obtain your figures.) Because these two accounts both have credit balances, it’s easier to close them out together. When you make the journal entries, make a debit entry for each of them separately and then make one credit entry in the total amount to the income summary account.

� 10. Post the closing entries for the sales and purchase returns allowance accounts as well as the credit to Income Summary to the general ledger. Write “Closing Entry” in the item column.

� 11. Close the purchases account, the sales returns and allowances account, and the expense accounts. Once again, these all carry debit balances, so it is easier to close them out together. Start by making an entry to Income Summary. You will fill in the debit amount after making the credit entries. Make credit entries in the general journal for each of the amounts separately; then fill in one debit entry to the Income Summary account for the total amount.

� 12. Post the closing entries for the purchases, sales returns and allowances and the expense accounts to the general ledger as well as the debit to Income Summary.

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� 13. Close the income summary. Find the Income Summary account balance; determine whether it is a credit or a debit balance and then make an opposite entry in the general journal. Then make the appropriate entry into the Owner’s Equity account.

� 14. Post the entries made in step 13 to the general ledger. � 15. Close the drawing account. Take the amount of the drawing account and make

a debit entry in the general journal to the Owner’s Equity account. Make an offsetting credit entry in the same amount to the Drawing account.

� 16. Post the entries made in step 15 to the general ledger. � 17. Prepare a post-closing trial balance from the remaining open accounts.

The totals of the debit and credit columns on this trial balance should match. � 18. Assemble your packet in the following order:

± Quiz Cover Sheet

± journal

± general ledger

± subsidiary ledger

± financial statements

± 10-column worksheet

± post-closing trial balance

� 19. Gather all your papers and submit to the school.

List of Transactions Date Description of Transaction May 1 Check #79 in the amount of $45 was issued to pay phone bill for April.

May 3 Check #80 in the amount of $342 was issued to Electrifying Bulb Co. for payment of April invoice. (The bulbs were purchased in April for resale.)

May 4 Julie Adams bought $230 worth of lamps, which were charged to her account. Invoice #123 was issued.

May 5 Alice (the store owner) decided to write off Ed Miller’s long overdue account for the amount of $34. She sends you a memo, dated May 4th, requesting you to do so. (Hint: This is a Bad Debts Expense.)

May 6 Check #81 is issued in the amount of $31 to Paper Works for office supplies, bought while at the store.

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Assignment Pack 3

List of Transactions, Continued Date Description of Transaction May 7 Weekly cash register summary received showing:

Total sales for week: $4,853 Sales Tax: $147 (Hint: Sales Tax Payable) Cash received: $5,000

May 9 Check #82 in the amount of $55 was issued to pay utility bill for April.

May 10 Check #83 in the amount of $85 was issued to Paper Works for payment of April invoice. (In April, the office supplies were bought on account.)

May 12 Alice purchased $420 worth of bulbs from Electrifying Bulb Co. on account. The bulbs will be resold. Invoice #421 was issued to Alice by Electrifying Bulb Co.

May 14 Weekly cash register summary received showing: Total sales for week: $3,642 Sales tax: $98 Cash received: $3,740

May 15 Check #84 in the amount of $2,000 was issued to the payroll account to cover the bimonthly salaries.

May 17 Check #85 in the amount of $125 was issued to Alice Peterson as a personal draw on the Drawing account.

May 19 Alice purchased $1,000 worth of lamps for resale from Light House Supply and put the amount on her account. Invoice #384 was issued to Alice.

May 20 Check #86 in the amount of $1,200 was issued to make the mortgage payment.

May 21 Weekly cash register summary received showing: Total sales for week: $1,423 Sales tax: $27 Cash received: $1,450

May 22 A check is received from customer Julie Adams in the amount of $150 for last month’s purchases. Credit invoice (receipt) #42 was issued.

May 25 Check #87 in the amount of $200 was issued to make the payment on a note for the month of May.

May 27 Alice returned some of the bulbs she had purchased earlier from Electrifying Bulb Co. Electrifying Bulb Co. credited Alice’s account for the amount of $200 and gave her credit invoice #18. (Hint: This is a Purchase Returns and Allowances transaction.)

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List of Transactions, Continued Date Description of Transaction May 31 Weekly cash register summary received showing:

Total sales for week: $2,546 Sales tax: $134 Cash received: $2,680

May 31 Check #88 in the amount of $3,000 was issued to the payroll account to cover the second half of the bimonthly payroll.

May 31 Check #89 was issued to a customer who returned a defective lamp for the amount of $56. The sales tax on the lamp was $3. (Hint: Sales returns and allowances = $53; sales tax payable = $3; cash = $56.) Sales returns slip #21 was issued.

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Assignment Pack 3

Bright Ideas Light Center Alice Peterson, Owner

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Bright Ideas Light Center

Income Statement For the month ending April 30, 20XX

Operating Revenue Sales $11,400 Less Sales Returns & Allowances 10 Total Sales $11,390

Cost of Goods Sold Beginning Inv. April 1st, 20XX $8,750 Purchases $3,000 Less Purchase Returns & Allowances 0 Net Purchases 3,000 Total Merchandise Available for Sale $11,750 Less ending Inventory April 30th, 20XX 9,000 Cost of Goods Sold 2,750 Gross profit on Sales $8,640

Operating Expenses Salary Expense $5,000 Utility Expense 60 Telephone Expense 48 Office Supply Expense 95 Insurance Expense 100 Depreciation Expense 220 Bad Debts Expense 0 Total Operating Expenses $5,523 Net Income for April, 20XX $3,117

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Assignment Pack 3

Bright Ideas Light Center

Statement of Owner’s Equity For the month ending April 30, 20XX

Alice Peterson, Capital, April 1, 20XX $19,874 Net Income for April $3,117 Less Alice Peterson, Drawing 0 Increase in Capital 3,117 Alice Peterson, Capital, April 30, 20XX $22,991

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Bright Ideas Light Center

Balance Sheet For the month ending April 30, 20XX

ASSETS Current assets Cash $2,000 Accounts receivable 184 Inventory 9,000 Prepaid insurance 1,000 Office supplies 280 Total current assets $12,464 Fixed assets Land $50,000 Building $50,000 Less accumulated depreciation 14,400 35,600 Equipment 2,000 Less accumulated depreciation 1,200 800 Total fixed assets $ 86,400 Total assets $98,864

LIABILITIES AND EQUITY Current liabilities Notes payable $5,400 Accounts payable 427 Sales tax payable 46 Total current liabilities $5,873 Long-term liabilities Mortgage payable 70,000 Total liabilities $75,873

OWNER’S EQUITY Alice Peterson, Equity 22,991 Total Liabilities and Equity $98,864

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Assignment Pack 3

General Journal Page 14

Date Description P/R Dr Cr

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Bookkeeping

General Journal Page 15

Date Description P/R Dr Cr

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Assignment Pack 3

General Journal Page 16

Date Description P/R Dr Cr

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General Journal Page 16

Date Description P/R Dr Cr

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Assignment Pack 3

Chart of Accounts Assets 100 Cash 111 Accounts Receivable 121 Inventory 131 Prepaid Insurance 133 Office Supplies 141 Land 143 Building 144 Accumulated Depreciation-Building 145 Equipment 146 Accumulated Depreciation-Equipment

Liabilities 201 Notes Payable 202 Accounts Payable 231 Sales Tax Payable 251 Mortgage Payable

Owners’s Equity 301 Alice Peterson, Equity 302 Alice Peterson, Drawing 321 Income Summary

Revenue 401 Sales 402 Sales Returns & Allowances

Costs and Expenses 501 Purchases 521 Purchase Returns & Allowances 601 Salary Expense 605 Utility Expense 613 Telephone Expense 615 Office Supplies Expense 619 Insurance Expense 621 Depreciation Expense 623 Bad Debts Expense

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Assignment Pack 3

Account Cash Account No. 100

Date Item P/R Dr Cr

5-1 Balance 2 0 0 0 00

Account Accounts Receivable Account No. 111

Date Item P/R Dr Cr

5-1 Balance 1 8 4 00

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Account Inventory Account No. 121

Date Item P/R Dr Cr

5-1 Balance 9 0 0 0 00

Account Prepaid Insurance Account No. 131

Date Item P/R Dr Cr

5-1 Balance 1 0 0 0 00

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Assignment Pack 3

Account Office Supplies Account No. 133

Date Item P/R Dr Cr

5-1 Balance 2 8 0 00

Account Land Account No. 141

Date Item P/R Dr Cr

5-1 Balance 5 0 0 0 0 00

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Account Building Account No. 143

Date Item P/R Dr Cr

5-1 Balance 5 0 0 0 0 00

Account Accumulated Depreciation — Building Account No. 144

Date Item P/R Dr Cr

5-1 Balance 1 4 4 0 0 00

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Assignment Pack 3

Account Equipment Account No. 145

Date Item P/R Dr Cr

5-1 Balance 2 0 0 0 00

Account Accumulated Depreciation — Equipment Account No. 146

Date Item P/R Dr Cr

5-1 Balance 1 2 0 0 00

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Account Notes Payable Account No. 201

Date Item P/R Dr Cr

5-1 Balance 5 4 0 0 00

Account Accounts Payable Account No. 202

Date Item P/R Dr Cr

5-1 Balance 4 2 7 00

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Assignment Pack 3

Account Sales Tax Payable Account No. 231

Date Item P/R Dr Cr

5-1 Balance 4 6 00

Account Mortgage Payable Account No. 251

Date Item P/R Dr Cr

5-1 Balance 7 0 0 0 0 00

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Account Alice Peterson, Equity Account No. 301

Date Item P/R Dr Cr

5-1 Balance 2 2 9 9 1 00

Account Alice Peterson, Drawing Account No. 302

Date Item P/R Dr Cr

5-1 Balance 00

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Assignment Pack 3

Account Income Summary Account No. 321

Date Item P/R Dr Cr

5-1 Balance 00

Account Sales Account No. 401

Date Item P/R Dr Cr

5-1 Balance 00

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Account Sales Returns & Allowances Account No. 402

Date Item P/R Dr Cr

5-1 Balance 00

Account Purchases Account No. 501

Date Item P/R Dr Cr

5-1 Balance 00

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Assignment Pack 3

Account Purchases Returns & Allowances Account No. 521

Date Item P/R Dr Cr

5-1 Balance 00

Account Salary Expense Account No. 601

Date Item P/R Dr Cr

5-1 Balance 00

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Account Utility Expense Account No. 605

Date Item P/R Dr Cr

5-1 Balance 00

Account Telephone Expense Account No. 613

Date Item P/R Dr Cr

5-1 Balance 00

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Assignment Pack 3

Account Office Supply Expense Account No. 615

Date Item P/R Dr Cr

5-1 Balance 00

Account Insurance Expense Account No. 619

Date Item P/R Dr Cr

5-1 Balance 00

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Account Depreciation Expense Account No. 621

Date Item P/R Dr Cr

5-1 Balance 00

Account Bad Debts Expense Account No. 623

Date Item P/R Dr Cr

5-1 Balance 00

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Assignment Pack 3

Accounts Receivable

Name: Julie Adams

Date Item P/R Dr Cr Bal

5-1 Balance 1 5 0 00

Accounts Receivable

Name: Ed Miller

Date Item P/R Dr Cr Bal

5-1 Balance 3 4 00

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Accounts Payable

Name: Electrifying Bulb Co.

Date Item P/R Dr Cr Bal

5-1 Balance 3 4 2 00

Accounts Payable

Name: Light House Supply

Date Item P/R Dr Cr Bal

5-1 Balance 00

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Assignment Pack 3

Accounts Payable

Name: Paper Works

Date Item P/R Dr Cr Bal

5-1 Balance 8 5 00

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1 2 3 4 5 6 7 8 9 10

Unadjusted

Trial Balance Adjustments Adjusted Balance

Income Statement

Balance Sheet

Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr

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Assignment Pack 3

1 2 3 4 5 6 7 8 9 10

Unadjusted

Trial Balance Adjustments Adjusted Balance

Income Statement

Balance Sheet

Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr

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 Fold on dotted line This Space for Instructor Use

1. Fill in your student ID and your course code below.

STUDENT ID NUMBER COURSE CODE

2. Be sure your name and address are filled in below. 3. Transfer your answers to this cover sheet.

NAME

ADDRESS

CITY STATE ZIP

U.S. Career Institute 2001 Lowe Street Fort Collins, CO 80525

BK2

Grade: ___________

Bookkeeping Quiz 13

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Assignment Pack 3

Quiz 14: Banking This is a Scanner Quiz that should be submitted according to the instructions at the beginning of this pack.

Select the best single answer for items 1 through 25. Each correct answer is worth 4 points

1. There are _____ parts to a check. a. 20 b. 10 c. 5 d. 12

2. What does not appear on the back of the check? a. The endorsement b. The date c. The check number d. both b and c

3. The person writing the check (who has the account) is known as the _____. a. endorsee b. payee c. date d. drawer

4. The amount of the check appears in _____ places on the front of the check. a. two b. six c. one d. four

5. The reason a check is written appears on the line labeled _____ on the check. a. “Pay to the Order of ” b. “Date” c. “Reason” d. “For”

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6. A bank will not honor a check without a(n) _____. a. promissory note b. receipt c. authorizing signature d. stub attached

7. What information appears on the check stub? a. The check number b. Deposits made to the account c. The reason the check was written d. All of the above

8. The signature of the payee of a check is called the _____. a. authorizing signature b. sign-off c. endorsement d. drawer

9. Endorsement is a safeguard against _____. a. overpayment b. fraud c. bank error d. computer error

10. Ideally, when a business issues a check, it does so with a(n) _____ to provide a paper trail. a. supporting document b. endorsement c. overdraft d. training regiment

11. Invoices, bills and payroll summaries are all examples of _____. a. overdrafts b. supporting documents c. authorizing documents d. accounts

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Assignment Pack 3

12. Memos for payments must _____. a. list all the reasons for issuing the check b. be in triplicate c. be signed by an authorized person d. all of the above

13. A record of dealings with a bank is called a(n) _____. a. statement b. account summary c. transaction d. operating statement

14. Bringing all information from the check register and bank statements into agreement is known as _____. a. overall practice b. checks and balances c. unnecessary effort d. reconciliation

15. The reconciliation process consists of _____ steps. a. 5 b. 12 c. 9 d. 10

16. The third step in the reconciliation process is _____. a. sorting checks into numerical order b. verifying the amounts of each check c. check off the deposits shown on the bank statement d. finding the ending balance on the bank statement

17. After completing all the steps in the reconciliation process, the new balance _____. a. should match the reconciled balance b. will be larger than the reconciled balance c. will be smaller than the reconciled balance d. should match the final figure on the operating statement

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18. If the new balance does not match the reconciled balance, you should _____. a. do nothing—these two balances do not have to match b. go through checkbook and make sure math is correct c. go through the reconciliation process and make sure you

didn’t miss an outstanding check or deposit d. both b and c

19. When a bank loans money, it usually charges _____ on that money. a. interest b. service maintenance c. accounting charges d. utility bills

20. Figure the interest on this loan: principal $1100, rate 5%, time 6 months. _____ a. $2.75 b. $27.50 c. $55.00 d. $270.50

21. When the amount of interest owed increases, it is said to have _____. a. grown b. accrued c. increased d. jumped

22. The three items used to figure interest are _____. a. principal, rate and time b. principal, time and days c. loan percentage, interest rate, due date d. principal, rate and percentage

23. Principal is the _____. a. total of all payments b. amount of money borrowed c. interest paid on the money d. basis for all decisions

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Assignment Pack 3

24. The document that lays out the terms of a loan is known as a(n) _____. a. agreement note b. usury c. promissory note d. argumentative agreement establishment

25. When interest is paid up front, the borrower has what type of note? a. Promissory normal b. Argumentative sliding scale c. Borrowing establishment usury d. Discounted

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Assignment Pack 3

Quiz 15: Payroll Records This is an Instructor-graded Quiz that should be submitted according to the instructions at the beginning of this pack.

Part 1 Select the best single answer for the following items. Each correct answer is worth 3 points. (60 points total).

1. There are generally four systems for paying employees: _____. a. hourly, salary, commission, piece rate b. contract, salary, weekly, cash c. hourly, contract, weekly salary, market rate d. piece rate, salary, hourly, invoice

2. The method for paying employees according to the amount they produce is called _____. a. salaried b. hourly employees c. piece rate d. none of the above

3. The guidelines listed by the _____ determine how taxes are collected from employees. a. Internal Revenue Service b. Federal Reserve c. Treasury Department d. Supreme Court

4. The IER is used to keep track of _____. a. when taxes have been paid b. an employee’s payroll deductions c. what time an employee came to work d. the employer’s Medicare Tax amount

5. The amount of money a worker earns before any withholdings are deducted is known as _____ wages. a. net b. adjusted c. gross d. unadjusted

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6. The record kept by the company for all employees’ payroll figures is called the _____. a. Form 940 b. Form W-3 c. payroll checking account d. payroll register

7. To figure the gross wages for an hourly employee, you multiply hours worked by the _____. a. number of days worked b. employee’s hourly wage c. company’s hours open d. amount the employee produced

8. Generally, overtime applies when an employee works more than _____ hours in a week. a. 25 b. 60 c. 40 d. 42

9. The amounts of money subtracted from a person’s paycheck are called _____. a. reductions b. credits c. commissions d. deductions

10. Worker’s compensation insurance is _____. a. required by law b. a federal tax c. part of the Medicare Tax d. optional in most states

11. Which of these items are usually listed on the paycheck stub? a. gross wages b. deductions c. net wages d. all of the above

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Assignment Pack 3

12. If Mark Martin’s gross wages are $948, what would his FICA deduction be at the rate of 6.2%? a. $64.38 b. $587.80 c. $61.78 d. $58.78

13. FICA is also known as _____ tax. a. welfare b. social security c. social services d. workers’ compensation

14. Because tax rates can change _____, it is important to have an up-to-date chart. a. from year-to-year b. hourly c. monthly d. weekly

15. A federal deposit is made by completing form _____. a. 8109 b. 8209 c. 1040 d. W-4

16. When making a federal deposit, the bank will issue a _____. a. form 8109 b. withholding tax memorandum receipt c. federal deposit receipt d. tax memorandum receipt

17. A journal entry for the federal deposit includes which accounts? a. FUTA Payable, Medicare Tax Payable, Cash b. FICA Payable, Medicare Tax Payable c. Federal Tax With. Payable, Cash d. Both b and c

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18. In the cash payments journal, the payables are entered into which column? a. Other Accounts Debit b. Cash Credit c. Acct. Payable Dr. d. Other Accounts Credit

19. The third quarter of the calendar year consists of _____. a. February, March, April b. April, May, June c. May, June, July d. July, August, September

20. On February 28, Bob’s Barber Shop owes $2,672 in taxes for the current quarter. When must those taxes be paid? a. At the end of the year b. By March 15 c. Within three banking days d. At the end of the quarter

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Assignment Pack 3

Part 2 For Part 2 of this Quiz, you will figure the payroll for XYZ Co. Each correct entry is worth 1 point (40 points total).

There are four forms included for this purpose: time cards, IERs, payroll register and general journal. Using these forms, complete each step as explained below:

1. Complete the time cards for employees Joan Williams and Allen Richards. Add up the total hours worked and figure the gross wages. Remember that any hours worked over 40 are considered overtime. Use 7/7/XX as the date paid and write your own initials in the “By” box.

2. Complete Joan’s and Allen’s IERs. Use the tables below to obtain the amount of federal and state withholding you must deduct. Figure FICA at 6.2% (Hint: multiply by .062) and figure Medicare Tax at 1.45% (Hint: multiply by .0145).

WITHHOLDING TABLES

Federal Withholding—Weekly Payroll Period—Employee Married The Wages Are And the number of withholding allowances is At least But less than 0 1 2 3 4 5 6 7 8 9

180 200 20 18 16 14 12 10 8 6 4 2 200 220 25 23 21 18 16 14 11 9 7 5 220 240 30 27 25 23 20 18 16 13 11 9 240 260 35 32 30 27 24 22 20 17 15 12

State Withholding—Weekly Payroll Period—Employee Married The Wages Are And the number of withholding allowances is At least But less than 0 1 2 3 4 5 6 7 8 9

180 200 1 1 0 0 0 0 0 0 0 0 200 220 2 2 1 1 0 0 0 0 0 0 220 240 3 3 2 2 1 1 0 0 0 0 240 260 4 4 3 3 2 2 1 1 0 0

3. a. Enter the information for Joan and Allen into the payroll register.

b. Total the columns in the payroll register.

c. Make the appropriate entries in the general journal. XYZ Company has a separate payroll checking account.

d. Figure the employer’s tax for FICA and Medicare (Hint: It matches the FICA and Medicare the employees pay). Make these entries in the general journal.

4. Figure XYZ’s total tax liability as of this pay period.

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 Fold on dotted line This Space for Instructor Use

1. Fill in your student ID and your course code below.

STUDENT ID NUMBER COURSE CODE

2. Be sure your name and address are filled in below. 3. Transfer your answers to this cover sheet.

NAME

ADDRESS

CITY STATE ZIP

U.S. Career Institute 2001 Lowe Street Fort Collins, CO 80525

BK2

Grade: ___________

Bookkeeping Quiz 15

Part 1—Transfer your answers for questions 1-20.

1. _____

2. _____

3. _____

4. _____

5. _____

6. _____

7. _____

8. _____

9. _____

10. _____

11. _____

12. _____

13. _____

14. _____

15. _____

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18. _____

19. _____

20. _____

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Part 2 TIME CARD

Name Joan Williams SS # 111-11-1111 Date Morning Afternoon Hours

In Out In Out 7-1-XX 8:00 12:00 1:00 5:00 8 7-2-XX 8:30 12:30 1:00 5:30 8.5 7-3-XX 8:00 12:00 1:00 5:30 8.5 7-4-XX 8:00 12:00 1:00 5:00 8 7-5-XX 7:30 12:00 1:00 6:00 9.5 Total Hours Worked Wage Calculation Hours Rate Total Regular Hours 5.00/hr Overtime Hours 7.50/hr Gross Wages Paid Check #424 By

TIME CARD Name Allen Richards SS # 222-22-2222 Date Morning Afternoon Hours

In Out In Out 7-1-XX 9:00 12:00 1:00 7:00 9 7-2-XX 9:00 12:00 1:00 6:00 8 7-3-XX 9:00 12:00 1:00 6:00 8 7-4-XX 9:00 12:00 1:00 7:00 9 7-5-XX 9:00 12:00 1:00 7:30 9.5 Total Hours Worked Wage Calculation Hours Rate Total Regular Hours 5.00/hr Overtime Hours 7.50/hr Gross Wages Paid Check #423 By

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Assignment Pack 3

Individual Earnings Record for 20XX Last Name Williams First Name Joan Exemptions 3 Soc. Sec. #111-111-1111 Marital Status M Rate of Pay $5.00/hr

Date Hours Earnings Deductions Net Pay Ck #

No. Wk Ended

Reg O/T Regular Overtime Total Fed Tax FICA Medicare State Tax

Total Deductions

1 7/5 424

Individual Earnings Record for 20XX Last Name Richards First Name Allen Exemptions 2 Soc. Sec. #222-22-2222 Marital Status M Rate of Pay $5.00/hr

Date Hours Earnings Deductions Net Pay Ck #

No. Wk Ended

Reg O/T Regular Overtime Total Fed Tax FICA Medicare State Tax

Total Deductions

1 7/5 423

PAYROLL REGISTER WEEK BEGINNING 7/1/XX ENDING 7/5/XX ABC Company

Name # Exm

Martial Status

YTD Earnings

Hrs Wkd

Rate Earnings YTD Earnings

Deductions Net Amount

CK #

Reg O/T Gross Fed Tax

FICA Medicare State Tax

Oth- er

Edward Adams 2 M 6760.00 48 5.00 200.00 60.00 260.00 7020.00 30.00 16.12 3.77 3.00 207.11 421

Alice Johnson 4 M 6650.00 45 5.00 200.00 37.50 237.50 6887.50 20.00 14.73 3.44 1.00 198.33 422

Allen Richards 6335.00 181.94 423

Joan Williams 5915.00 183.02 424

TOTALS 770.40

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PAYROLL REGISTER WEEK BEGINNING 7/1/XX ENDING 7/5/XX ABC Company

Name # Exm

Martial Status

YTD Earnings

Hrs Wkd

Rate Earnings YTD Earnings

Deductions Net Amount

CK #

Reg O/T Gross Fed Tax

FICA Medicare State Tax

Oth- er

Edward Adams 2 M 6760.00 48 5.00 200.00 60.00 260.00 7020.00 30.00 16.12 3.77 3.00 207.11 421

Alice Johnson 4 M 6650.00 45 5.00 200.00 37.50 237.50 6887.50 20.00 14.73 3.44 1.00 198.33 422

Allen Richards 6335.00 181.94 423

Joan Williams 5915.00 183.02 424

TOTALS 770.40

General Journal Page 10

XYZ Company

20XX Description P/R Dr Cr 7-7 Salary expense

Federal Tax Payable FICA Payable Medicare Payable State Tax Payable Salaries Payable Payroll ending 7-7-XX

Salaries Payable Cash Check issued to Payroll

Payroll Taxes Expense FICA Payable Medicare Tax Payable Employer Payroll Contribution

XYZ’s total tax liability is: _________________

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Assignment Pack 3

Quiz 16: Computerized Bookkeeping This is a Scanner Quiz that should be submitted according to the instructions at the beginning of this pack.

Select the best single answer for the following items. Each correct answer is worth 4 points (100 points total).

1. QuickBooks is an example of _____. a. personal finance software b. medical billing software c. personal tax preparation software d. accounting software

2. Most large corporations _____ have a single accounting program they use. a. will b. will not c. work hard to d. never

3. Spreadsheets can be used to _____. a. calculate inventory b. compare expenses c. complete a payroll register d. all of the above

4. IT stands for _____. a. information terminology b. internal technology c. information technology d. internet technology

5. Medical billing software might be used by _____. a. physician’s offices b. patients c. insurance companies d. nurses

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6. Spreadsheets have no use in bookkeeping because they are formatted like accounting software. a. True b. False

7. Specialty accounting programs have been developed to _____. a. provide services for businesses where standard accounting software

will not work b. provide software programmers with accounting software c. help physician’s offices bill for their services d. both a and c

8. When accounting software sets up accounts payable files, there will be an account for each _____. a. customer b. item purchased c. creditor d. address

9. When writing a check with personal accounting software, the new balance is figured _____. a. automatically b. by hand c. incorrectly d. by calculations

10. Personal account software can manage _____ accounts. a. savings b. investment c. retirement d. all of the above

11. After the initial setup, when entering a new company in QuickBooks Pro, you manually enter accounts receivable and accounts payable accounts after entering contact information. a. True b. False

12. QuickBooks Pro does NOT track any banking information. a. True b. False

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Assignment Pack 3

13. Accounting software programs start by having you enter _____. a. accounts receivable and payable information b. your personal business information c. the accounts you wish to use d. inventory

14. Tax preparation software can suggest deductions that you might not think of. However, the software will NOT be able to check for errors. a. True b. False

15. TurboTax works very much like a(n) _____. a. flow chart b. checklist c. interview d. spreadsheet

16. For security purposes, the IRS discourages electronic return filing. a. True b. False

17. Information is entered into a tax preparation program through a series of _____. a. data ports b. databases c. prompts d. spreadsheets

18. What types of information are entered into tax preparation software? a. Name b. Address c. Withholdings d. All of the above

19. Which of the following is not a selection on QuickBooks Pro? a. A/R Aging Summary b. Receive Payment c. Make Deposits d. Reports

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20. Aging of receivables for the business can be viewed from which page in QuickBooks Pro? a. A/R Balances b. A/R Aging Summary c. Assets: Aging d. Online Banking

21. Large corporations could use different software programs to handle _____. a. accounts payable b. accounts receivable c. inventory d. all of the above

22. Understanding manual bookkeeping is NOT necessary if you have access to a software program. a. True b. False

23. The first step in entering your company’s important information involves listing the people you do business with. This could include customers, vendors and employees. a. True b. False

24. Using a personal financial software program will help you create a _____ you can adhere to. a. business plan b. savings account c. debt d. budget

25. Quicken® is an example of a(n) _____. a. personal finance program b. small business accounting software c. accounts payable program d. prognostication program