Acc 504 module 3 Hw

Following are selected transactions Deshawn Company for 2010 and 2011.

2010

  Dec.

13  

Accepted a $28,000, 45-day, 7% note dated December 13 in granting Latisha Clark a time extension on her past-due account receivable.

31  

Prepared an adjusting entry to record the accrued interest on the Clark note.

2011

  Jan.

27  

Received Clark’s payment for principal and interest on the note dated December 13.

  Mar.

3  

Accepted a $22,000, 10%, 90-day note dated March 3 in granting a time extension on the pastdue account receivable of Shandi Company.

17  

Accepted a $20,000, 30-day, 8% note dated March 17 in granting Juan Torres a time extension on his past-due account receivable.

  Apr.

16  

Torres dishonors his note when presented for payment.

  May

1  

Wrote off the Torres account against the Allowance for Doubtful Accounts.

 June

1  

Received the Shandi payment for principal and interest on the note dated March 3.

Prepare journal entries for the above transactions for 2011. (Use 360 days a year. Do not round intermediate calculations and round your final answers to nearest dollar amount. Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

2011

  Jan.

27  

  Mar.

3  

17  

  Apr.

16  

  May

1  

  June

1  

Hawk Company establishes a $360 petty cash fund on September 9. On September 30, the fund shows $89 in cash along with receipts for the following expenditures: transportation-in, $53; postage expenses, $54; and miscellaneous expenses, $153. The petty cashier could not account for a $11 shortage in the fund. Hawk uses the perpetual system in accounting for merchandise inventory.

(1)

Prepare the September 9 entry to establish the fund. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Sept. 9

(2)

Prepare the September 30 entry to reimburse the fund. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Sept. 30

(3)

Prepare an October 1 entry to decrease the fund to $315. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Oct. 1

Frederick 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, 2011, its Cash account shows a $14,853 debit balance. Frederick Clinic's June 30 bank statement shows $14,746 on deposit in the bank.

a.

Outstanding checks as of June 30 total $2,295.

b.

The June 30 bank statement included a $65 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. Frederick 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 $2,346 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 Frederick Clinic using the above information (Input all amounts as positive values. Omit the "$" sign in your response):

FREDERICK CLINIC

Bank Reconciliation

June 30, 2011

$ 

$   

  Add

 Add

  Deduct

 Deduct

  Adjusted bank balance

$ 

 Adjusted book balance

$   

Frederick 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, 2011, its Cash account shows a $13,551 debit balance. Frederick Clinic's June 30 bank statement shows $12,803 on deposit in the bank.

a.

Outstanding checks as of June 30 total $2,076.

b.

The June 30 bank statement included a $65 debit memorandum for bank services.

c.

Check No. 919, listed with the canceled checks, was correctly drawn for $474 in payment of a utility bill on June 15. Frederick Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $511.

d.

The June 30 cash receipts of $2,796 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.

Prepare the adjusting journal entries that Frederick Clinic must record as a result of preparing the bank reconciliation. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

June 30

The following information is from the annual financial statements of Waseem Company.

2011

2010

2009

  Net sales

$

302,000

$

233,000

$

283,000

  Accounts receivable, net (year-end)

31,400

29,200

25,900

Compute its accounts receivable turnover for 2010 and 2011. (Round your answers to one decimal place.)

Accounts receivable turnover

2010

 times   

2011

 times   

Sami Company recorded the following selected transactions during November 2011:

Date

General Journal

Debit

Credit

Nov. 5

  Accounts Receivable—Surf Shop

4,591       

       Sales

4,591       

     10

  Accounts Receivable—Yum Enterprises

1,508       

       Sales

1,508       

     13

  Accounts Receivable—Matt Albin

884       

       Sales

884       

     21

  Sales Returns and Allowances

228       

       Accounts Receivable—Matt Albin

228       

    30

  Accounts Receivable—Surf Shop

3,144       

       Sales

3,144       

1.

Prepare a general ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Also open an accounts receivable subsidiary ledger having a T-account for each customer. Post these entries to both the general ledger and the accounts receivable ledger. (Record the transactions in the given order. Omit the "$" sign in your response.)

General Ledger

Accounts Receivable

  Bal.

Sales

Sales Returns and Allowances

Accounts Receivable Ledger

Surf  Shop

  Bal.

Yum Enterprises

Matt Albin

  Bal.

2.

Prepare a schedule of accounts receivable. (Omit the "$" sign in your response.)

Sami Company Schedule of Accounts Receivable November 30, 2011

$   

  Total

$   

Following are selected transactions Deshawn Company for 2010.

Dec.

13  

Accepted a $28,000, 45-day, 7% note dated December 13 in granting Latisha Clark a time extension on her past-due account receivable.

31  

Prepared an adjusting entry to record the accrued interest on the Clark note.

Prepare journal entries for the above transactions. (Use 360 days a year. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

2010

   Dec.

13  

31  

On June 30, Roman Co. has $154,700 of accounts receivable.

July

4  

Sold $8,810 of merchandise (that had cost $5,638) to customers on credit.

9  

Sold $21,658 of accounts receivable to Center Bank. Center charges a 5% factoring fee.

17  

Received $4,846 cash from customers in payment on their accounts.

27  

Borrowed $12,376 cash from Center Bank, pledging $16,089 of accounts receivable as security for the loan.

Prepare journal entries to record the above selected July transactions. (The company uses the perpetual inventory system.) (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

   July

4  

9  

17  

27  

Diablo Company applies the direct write-off method in accounting for uncollectible accounts.

June

11

Diablo determines that it cannot collect $9,200 of its accounts receivable from its customer Chaffey Company.

29

Chaffey Company unexpectedly pays its account in full to Diablo Company. Diablo records its recovery of this bad debt.

Prepare journal entries to record the above selected transactions of Diablo. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

  June

11  

29  

29  

At year-end (December 31), Alvare Company estimates its bad debts as 0.40% of its annual credit sales of $686,000. Alvare records its Bad Debts Expense for that estimate. On the following February 1, Alvare decides that the $343 account of P. Coble is uncollectible and writes it off as a bad debt. On June 5, Coble unexpectedly pays the amount previously written off.

Prepare the journal entries of Alvare to record these transactions and events of December 31, February 1, and June 5. (Omit the "$" sign in your response.)