1. at the end of the day, the cash register tape shows $993 in cash

1. at the end of the day, the cash register tape shows $993 in cash

1. at the end of the day, the cash register tape shows $993 in cash

1.  At the end of the day, the cash register tape shows $993 in cash sales but the count of cash in the register is $1,042. The proper entry to account for this excess includes a:
 
Debit to Cash Over and Short for $49.  
Credit to Cash Over and Short for $49.     
Credit to Cash for $49.  
Debit to Petty Cash for $49.  
Debit to Cash for $49. 
 
2.  A company that uses the net method of recording invoices made a purchase of $700 with terms of 2/10, n/30. The entry to record the purchase would include:
 
A credit to Cash for $686.  
A credit to Discounts Lost for $14.  
A debit to Merchandise Inventory for $686.
A debit to Discounts Lost for $14. 
A debit to Cash for $686. 
 
3.  If a check correctly written and paid by the bank for $493 is incorrectly recorded in the company’s books for $439, how should this error be treated on the bank reconciliation?
 
Subtract $54 from the bank’s balance and add $45 to the book’s balance.  
Add $54 to the book balance.  
Add $54 to the bank’s balance.  
Subtract $54 from the bank’s balance.  
Subtract $54 from the book balance.    
 
4.  At the end of the day, the cash register’s record shows $1,252, but the count of cash in the cash register is $1,246. The correct entry to record the cash sales is
 
Debit Cash $1,252; credit Sales $1,246, credit Cash Over and Short $6.  
Debit Cash Over and Short $6, credit Sales $6.  
Debit Cash $1,246; debit Cash Over and Short $6; credit Sales $1,252. 
Debit Cash $1,246; Credit Sales $1,246.  
Debit Cash $1,252; credit Sales $1,252. 
 
5.  The following information is available for Johnson Manufacturing Company at June 30:
 
Cash in bank account         $ 8,255 
Inventory of postage stamps92 
Money market fund balance     14,200 
Petty cash balance                 530 
NSF checks from customers returned by bank1,047 
Postdated checks received from customers   841 
Money orders                           2,057 
A nine-month certificate of deposit maturing on
December 31 of current year            9,800 
 
Based on this information, Johnson Manufacturing Company should report Cash and Cash Equivalents on June 30 of:
 
$20,642  
$22,985  
$24,124  
$24,032  
$25,042   
 
6.  The amount due on the maturity date of a $6,000, 60-day 8%, note receivable is (Use 360 days a year. Do not round intermediate calculations):
 
$6,480.  
$6,000.  
$5,920.  
$5,520.  
$6,080.   
 
7.  Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller’s $9,600, 90-day, 7% note. What entry should TechCom make on December 31, to record the accrued interest on the note? (Use 360 days a year. Do not round intermediate calculations.)
 
Debit Cash $28; credit Notes Receivable $28.  
Debit Cash $168; credit Interest Revenue $140; credit Interest Receivable $28.  
Debit Cash $140; credit Notes Receivable $140.  
Debit Interest Receivable $140; credit Interest Revenue $140.   
Debit Interest Receivable $28; credit Interest Revenue $28. 
 
8.  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            $ 443,000     Debit 
Allowance for Doubtful Accounts  1,330     Debit 
Net Sales                              2,180,000   Credit 
 
All sales are made on credit. Based on past experience, the company estimates 3.0% its outstanding receivables are uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
 
Debit Bad Debts Expense $13,290; credit Allowance for Doubtful Accounts $13,290. 
Debit Bad Debts Expense $66,730; credit Allowance for Doubtful Accounts $66,730.  
Debit Bad Debts Expense $14,620; credit Allowance for Doubtful Accounts $14,620.   
Debit Bad Debts Expense $65,400; credit Allowance for Doubtful Accounts $65,400.  
Debit Bad Debts Expense $64,070; credit Allowance for Doubtful Accounts $64,070. 
 
9.  Hankco accepts all major bank credit cards, including Omni Bank’s, which assesses a 4% charge on sales for using its card. On June 28, Hankco had $3,000 in Omni Card credit sales. What entry should Hankco make on June 28 to record the deposit?
 
Debit Accounts Receivable $2,880; debit Credit Card Expense $120; credit Sales $3,000.  
Debit Cash $2,880; debit Credit Card Expense $120; credit Sales $3,000.   
Debit Cash $3,120; credit Credit Card Expense $120; credit Sales $3,000.  
Debit Accounts Receivable $3,000; credit Sales $3,000.  
Debit Cash $3,000; credit Sales $3,000. 
 
10.  A company uses 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$ 360,000     debit 
Allowance for uncollectible accounts550   credit 
Net sales805,000    credit 
 
All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
 
Debit Bad Debts Expense $3,475; credit Allowance for Doubtful Accounts $3,475.  
Debit Bad Debts Expense $1,800; credit Allowance for Doubtful Accounts $1,800.  
Debit Bad Debts Expense $2,350; credit Allowance for Doubtful Accounts $2,350.  
Debit Bad Debts Expense $4,575; credit Allowance for Doubtful Accounts $4,575.  
Debit Bad Debts Expense $4,025; credit Allowance for Doubtful Accounts $4,025.
 
 
 

1. at the end of the day, the cash register tape shows $993 in cash

1.  At the end of the day, the cash register tape shows $993 in cash sales but the count of cash in the register is $1,042. The proper entry to account for this excess includes a:
 
Debit to Cash Over and Short for $49.  
Credit to Cash Over and Short for $49.     
Credit to Cash for $49.  
Debit to Petty Cash for $49.  
Debit to Cash for $49. 
 
2.  A company that uses the net method of recording invoices made a purchase of $700 with terms of 2/10, n/30. The entry to record the purchase would include:
 
A credit to Cash for $686.  
A credit to Discounts Lost for $14.  
A debit to Merchandise Inventory for $686.
A debit to Discounts Lost for $14. 
A debit to Cash for $686. 
 
3.  If a check correctly written and paid by the bank for $493 is incorrectly recorded in the company’s books for $439, how should this error be treated on the bank reconciliation?
 
Subtract $54 from the bank’s balance and add $45 to the book’s balance.  
Add $54 to the book balance.  
Add $54 to the bank’s balance.  
Subtract $54 from the bank’s balance.  
Subtract $54 from the book balance.    
 
4.  At the end of the day, the cash register’s record shows $1,252, but the count of cash in the cash register is $1,246. The correct entry to record the cash sales is
 
Debit Cash $1,252; credit Sales $1,246, credit Cash Over and Short $6.  
Debit Cash Over and Short $6, credit Sales $6.  
Debit Cash $1,246; debit Cash Over and Short $6; credit Sales $1,252. 
Debit Cash $1,246; Credit Sales $1,246.  
Debit Cash $1,252; credit Sales $1,252. 
 
5.  The following information is available for Johnson Manufacturing Company at June 30:
 
Cash in bank account         $ 8,255 
Inventory of postage stamps92 
Money market fund balance     14,200 
Petty cash balance                 530 
NSF checks from customers returned by bank1,047 
Postdated checks received from customers   841 
Money orders                           2,057 
A nine-month certificate of deposit maturing on
December 31 of current year            9,800 
 
Based on this information, Johnson Manufacturing Company should report Cash and Cash Equivalents on June 30 of:
 
$20,642  
$22,985  
$24,124  
$24,032  
$25,042   
 
6.  The amount due on the maturity date of a $6,000, 60-day 8%, note receivable is (Use 360 days a year. Do not round intermediate calculations):
 
$6,480.  
$6,000.  
$5,920.  
$5,520.  
$6,080.   
 
7.  Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller’s $9,600, 90-day, 7% note. What entry should TechCom make on December 31, to record the accrued interest on the note? (Use 360 days a year. Do not round intermediate calculations.)
 
Debit Cash $28; credit Notes Receivable $28.  
Debit Cash $168; credit Interest Revenue $140; credit Interest Receivable $28.  
Debit Cash $140; credit Notes Receivable $140.  
Debit Interest Receivable $140; credit Interest Revenue $140.   
Debit Interest Receivable $28; credit Interest Revenue $28. 
 
8.  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            $ 443,000     Debit 
Allowance for Doubtful Accounts  1,330     Debit 
Net Sales                              2,180,000   Credit 
 
All sales are made on credit. Based on past experience, the company estimates 3.0% its outstanding receivables are uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
 
Debit Bad Debts Expense $13,290; credit Allowance for Doubtful Accounts $13,290. 
Debit Bad Debts Expense $66,730; credit Allowance for Doubtful Accounts $66,730.  
Debit Bad Debts Expense $14,620; credit Allowance for Doubtful Accounts $14,620.   
Debit Bad Debts Expense $65,400; credit Allowance for Doubtful Accounts $65,400.  
Debit Bad Debts Expense $64,070; credit Allowance for Doubtful Accounts $64,070. 
 
9.  Hankco accepts all major bank credit cards, including Omni Bank’s, which assesses a 4% charge on sales for using its card. On June 28, Hankco had $3,000 in Omni Card credit sales. What entry should Hankco make on June 28 to record the deposit?
 
Debit Accounts Receivable $2,880; debit Credit Card Expense $120; credit Sales $3,000.  
Debit Cash $2,880; debit Credit Card Expense $120; credit Sales $3,000.   
Debit Cash $3,120; credit Credit Card Expense $120; credit Sales $3,000.  
Debit Accounts Receivable $3,000; credit Sales $3,000.  
Debit Cash $3,000; credit Sales $3,000. 
 
10.  A company uses 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$ 360,000     debit 
Allowance for uncollectible accounts550   credit 
Net sales805,000    credit 
 
All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
 
Debit Bad Debts Expense $3,475; credit Allowance for Doubtful Accounts $3,475.  
Debit Bad Debts Expense $1,800; credit Allowance for Doubtful Accounts $1,800.  
Debit Bad Debts Expense $2,350; credit Allowance for Doubtful Accounts $2,350.  
Debit Bad Debts Expense $4,575; credit Allowance for Doubtful Accounts $4,575.  
Debit Bad Debts Expense $4,025; credit Allowance for Doubtful Accounts $4,025.