Fluent Essays

Attached is a few question/journal entries The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $19,200, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,960. 3 Sold merchandise for $12,150 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $6,840. 4 Sold merchandise on account to Empire Co., $57,310, terms FOB shipping point, n/eom. The cost of merchandise sold was $31,970. 5 Sold merchandise for $28,950 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,460. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $14,800. The cost of merchandise sold was $8,010. 16 Sold merchandise on account to Targhee Co., $29,800, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,480. 18 Issued credit memo for $1,400 to Targhee Co. for damaged merchandise from sale on March 16 Record on page 11 of the journal 19 Sold merchandise on account to Vista Co., $7,750, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of merchandise sold was $4,600. 26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28 Received check for amount due from Vista Co. for sale of March 19. 31 Received check for amount due from Empire Co. for sale of March 4. 31 Paid Fleetwood Delivery Service $5,510 for delivery of merchandise in March to customers under shipping terms of FOB destination. Apr. 3 Paid City Bank $960 for service fees for handling MasterCard and American Express sales during March. 15 Paid $6,457 to state sales tax division for taxes owed on sales. Required: Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTS Amsterdam Supply Co. General Ledger ASSETS 110 Cash 121 Accounts Receivable-Empire Co. 122 Accounts Receivable-Equinox Co. 123 Accounts Receivable-Targhee Co. 124 Accounts Receivable-Vista Co. 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1   2   3   4   5   6   7   8   9   10   11   12   13   14   15   16   17   18   19   20   21   22   23   24   25   26   27   28   29   30   PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1   2   3   4   5   6   7   8   9   10   11   12   13   14   15   16   17   18   Nature of Uncollectible Accounts The XYZ Corporation owns and operates hotels and casinos including the XYZ Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, XYZ reported accounts receivable of $642,000 and allowance for doubtful accounts of $80,892. Patient Care manufactures and sells a wide range of healthcare products including Band-Aid® bandages and Tylenol®. As of a recent year, Patient Care reported accounts receivable of $863,000 and allowance for doubtful accounts of $39,698. a.  Compute the percentage of the allowance for doubtful accounts to the accounts receivable for the XYZ Corporation. Round your answer to one decimal place. fill in the blank 1% b.  Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. Round your answer to one decimal place. fill in the blank 2% c.  Possible reasons for the difference in the two ratios computed in (a) and (b) include: a. Casino operators historically lose money on operations. b. Casino operators have larger accounts receivable. c. Individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the excitement of gambling. d. Casino operations experience greater bad debt risk because it is difficult to control the creditworthiness of customers entering the casino.   May 1. Sold merchandise on account to Taiwan Palace Co., $36,000. The cost of the merchandise sold was $23,540. Aug. 30. Received $10,380 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible. Dec. 8. Reinstated the account of Taiwan Palace Co. that had been written off on August 30 and received $25,620 cash in full payment. Required: Journalize the above transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTSArizona Interiors CompanyGeneral Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Taiwan Palace Co. 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1   2   3   4   5   6   7   8   9   10   11   May 1 Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes:   Date of Note Face Amount Interest Rate Term of Note a. January 10* $40,000      5% 90 days     b. March 19 18,000     8  180 days     c. June 5 90,000     7  30 days     d. September 8 36,000     3  90 days     e. November 20 27,000     4  60 days     *Assume that February has 28 days. Assume 360-days in a year when computing the interest. Note Due Date Interest a. Apr. 10  $fill in the blank 2 b. Sept. 15  fill in the blank 4 c. July 5  fill in the blank 6 d. Dec. 7  fill in the blank 8 e. Jan. 19  fill in the blank 10 Accounts Receivable Turnover and Days' Sales in Receivables Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years:      Year 2    Year 1 Sales $2,824,735   $2,792,250   Accounts receivable 262,800   255,500   Assume that accounts receivable were $292,000 at the beginning of Year 1. a.  Compute the accounts receivable turnover for Year 2 and Year 1. Round your answer to one decimal place. Year 2: fill in the blank 1 Year 1: fill in the blank 2 b.  Compute the days' sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations. Year 2: fill in the blank 3 days Year 1: fill in the blank 4 days c.  The change in accounts receivable turnover from year 1 to year 2 indicates a(n) increase  in the efficiency of collecting accounts receivable and is a(n) favorable  change. The change in the days' sales in receivables indicates a(n)   change. 1. Creative Images Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the  fiscal year , the following balances were taken from the ledger of Creative Images Co.: Violet Lozano, Capital $930,000 Violet Lozano, Drawing 13,000 Fees Earned 703,500 Wages Expense 484,000 Rent Expense 66,500 Supplies Expense 12,000 Miscellaneous Expense 14,000 CHART OF ACCOUNTS Creative Images Co. General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Rent 14 Supplies LIABILITIES 21 Accounts Payable 22 Wages Payable 23 Unearned Fees EQUITY 31 Violet Lozano, Capital 32 Violet Lozano, Drawing REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 52 Rent Expense 53 Supplies Expense 54 Miscellaneous Expense JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1   Closing Entries             2   3   4   5   6   7   8   9