Strayer university acc/557 entire couse (instant download) | English homework help
- Millenium purchased equipment for $35,000 at a going-out-of-business sale. The equipment was worth $45,000. Scott believes that the following entry should be made.
The ledgers of Mid City Galleries Inc. contain the following balances as of December 31, 2008. Income taxes are calculated at 30 percent of income. The galleries had 90,000 shares of common stock outstanding for the entire year. Total assets amounted to $7,509,000, and common stockholder's equity was $3,975,400. ACC 557 Chapter 8
Question E 8-5
Listed below are five procedures followed by The Beat Company. Several individuals operate the cash register using the same register drawer. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. Ellen May writes checks and also records cash payment journal entries. One individual orders inventory, while a different individual authorizes payments. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.
Instructions
Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.
E 8-7
James Hughes Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results. On July 10, James Hughes increased the fund from $100 to $150.
Instructions
Prepare journal entries for James Hughes Company for May 1, June 1, July 1, and July 10 The cash records of Givens Company show the following four situations. The June 30 bank reconciliation indicated that deposits in transit total $720. During July the general ledger account Cash shows deposits of $15,750, but the bank statement indicates that only $15,600 in deposits were received during the month. The June 30 bank reconciliation also reported outstanding checks of $680. During the month of July, Givens Company books show that $17,200 of checks were issued. The bank statement showed that $16,400 of checks cleared the bank in July. In September, deposits per the bank statement totaled $26,700, deposits per books were $25,400, and deposits in transit at September 30 were $2,100. In September, cash disbursements per books were $23,700, checks clearing the bank were $25,000, and outstanding checks at September 30 were $2,100. There were no bank debit or credit memoranda. No errors were made by either the bank or Givens Company.
Question E 8-14
Lipkus Company has recorded the following items in its financial records. The cash in bank is subject to a compensating balance of $5,000. The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. What amount should Lipkus report as "Cash and cash equivalents" on its balance sheet?
Question P8-2A
Winningham Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period.
Question P8-4A
The bank portion of the bank reconciliation for Backhaus Company at November 30, 2008, was as follows. The adjusted cash balance per bank agreed with the cash balance per books at November 30. The December bank statement showed the following checks and deposits. ACC 557 Chapter 9 9-3 The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000.
Question E9-6
On December 31, 2008, Jarnigan Co. estimated that 2% of its net sales of $400,000 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. On May 11, 2009, Jarnigan Co. determined that Terry Frye's account was uncollectible and wrote off $1,100. On June 12, 2009, Frye's paid the amount previously written off.
Instructions
Prepare the journal entries on December 31, 2008, May 11, 2009, and June 12, 2009.