Reference no: EM132736993
Questions -
Problem 1: A) Assume that a cash register shows cash receipts of $612, but the count of cash in the register is $645. Record the journal entry for cash sales and the overage. (Account title, debit & credit)
B) Assume a cash register shows cash receipts of $550, but a count of the cash in the register is $546. Record the journal entry for cash sales and the shortage. (Account title, debit & credit)
Problem 2: A) A small company decides to set up a petty cash fund. A $100 check is drawn, cashed, and given to the petty cashier. Record the journal entry for the setup of this petty cash fund. (Account title, debit & credit)
B) During the month the petty cashier made several payments from petty cash:
Delivery expense $71.62
Office expense $11.85
Misc. expense $7.63
A check was given to the petty cashier for the total amount of these expenses, the purpose of this check is to reimburse the petty cash fund.
Record the journal entry for this transaction. (Account title, debit & credit)
Problem 3: On December 31, 2002, Doe Co.'s records show the following results for the year:
Cash Sales $1,650,000
Credit Sales $4,690,000
In addition, it's unadjusted trial balance includes the following items:
Accounts Receivable $1,360,000 debit
Prepare the adjusting entry for Doe Co. to recognize bad debts under each of the following independent assumptions:
A) Bad debts are estimated to be 3% of credit sales. (Account title, debit & credit)
B) Bad debts are estimated to be 2% of total sales. (Account title, debit & credit)
C) Analysis suggests 5% of accounts receivable at year-end are uncollectible. (Account title, debit & credit)
Problem 4: Assume the following information in regard to a depreciable asset.
Cost $660,000
Salvage Value $20,000
A) Calculate the yearly depreciation under the straight-line method, assuming a useful life of 10 years. Complete the journal entry to record yearly depreciation (Account title, debit & credit)
B) Calculate the yearly depreciation under the units-of-production method, assuming useful life of 10,000 units, and 500 units produced in the current year. Complete the journal entry to record yearly depreciation. (Account title, debit & credit)
C) Calculate the yearly depreciation under the double-declining balance method. Complete the journal entry to record yearly depreciation. (Account title, debit & credit)
Problem 5: A Company purchases land containing a mineral deposit for $1,000,000. The Company expects to be able to extract 250,000 tons of the mineral.
A) Calculate the depletion if 50,000 tons of the mineral are mines this year
B) Complete the journal entry to record the depletion for the year (Account title, debit & credit)