Question 1The following information regarding cash for Alpha Company is provided for the month ending March 31,2016:Item...
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Question 1
The following information regarding cash for Alpha Company is provided for the month ending March 31,
2016:
Item
Amount
$25,000
Ending Cash per Bank Statement
$5,615
Note collected by bank included interest of $115
$55
Bank Service Charges
Deposits in Transit
$2,775
Outstanding Cheques
$4,500
$350
Customer Cheque returned NSF
A review of the bank statement reflected that cheque #224 recorded in the
company cheque register as $1,735 to settle an accounts payable, was paid by the bank for
the amount of $1,375. Use this information to prepare the compound General Journal entry
(without explanation) for March 31, 2016, to cause the company books to match the
adjusted cash balance based on the completed bank reconciliation. If no entry is required
then write "No Entry Required."
Date
Accounts
Debit
Credit
Question 2
Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales
on July 15, 2016 amounted to $20,000 and were subject to a 4.5% credit card company collection fee. Alpha
Company collected payment from Worldwide Express on July 21. Use this information to prepare the General
Journal entries (without explanation) for the July 15 sales & the July 21 collections. If no entry is required
then write "No Entry Required."
Date
Accounts
Debit
Credit
Question 3
On July 1, 2016, Alpha Company purchased for $76,000, equipment having a service life of eight years and an
estimated residual value of $4,000. Alpha has recorded depreciation of the equipment using the doubledeclining balance method. On December 31, 2019, before making any annual adjusting entries, the
equipment was sold for $20,000. Use this information to prepare all General Journal entries (without
explanation) required to record the sale event for December 31, 2019
Date
Accounts
Debit
Credit
Question 4
On July 1, 2016, Alpha Company purchased for $72,000, equipment having a service life of eight years and an
estimated residual value of $6,000. Alpha has recorded depreciation of the equipment using the doubledeclining balance method. On December 31, 2018, before making any annual adjusting entries, the
equipment was exchanged for new machinery having a fair value of $32,500. The transaction has commercial
substance. Use this information to prepare all General Journal entries (without explanation) required to
record the events for December 31, 2018.
Date
Accounts
Debit
Credit
Question 5
Alpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016,
Accounts Receivable has a balance that consists of:
Dollar Value
Age of Account
Estimated
Collectible
$115,000
< 30 days old
98%
85,000
30 to 60 days old
80%
50,000
61 to 120 days old
50%
10,000
> 120 days old
15%
The current unadjusted Allowance for Uncollectable Accounts balance is a debit balance of
$3,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the
adjusting entry is made, what will be the dollar balances in the:
1. Accounts Receivable
2. Allowance for Doubtful Accounts
3. Bad Debt Expense
1.
2.
3.
Question 6
Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are
normal):
Alpha Company
December 31
Accounts
Accounts Receivable
2016
2015
$40,500
$35,500
2,500
1,500
Merchandise Inventory
57,000
50,000
Office Supplies
25,000
20,000
Allowance for Doubtful Accounts
Credit Sales
960,000
740,000
Sales Discounts
10,000
9,000
Interest Income
25,000
20,000
460,000
385,000
Cost of Goods Sold
1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as a
number rounded to one decimal place followed by a space and the word times.
(Example 1.123 would be entered 1.1 times)
2. What is the FY 2016 days outstanding for accounts receivable ratio? Enter the
answer as a number rounded to one decimal place followed by a space and the
word days. (Example 1.123 would be entered 1.1 days)
1.
2.
Question 7
February 1, 2016, Alpha Company purchased land for the future factory location at a cost of $50,000. The
dilapidated building that was on the property was demolished so that construction could begin on the new
factory building. The new factory was completed on November 1, 2016. Costs incurred during this period
were:
Item
Demolition dilapidated building
Amount
$4,000
Architect Fees
$10,000
Legal Fees - for title search
$2,000
Interest During Active Construction Period
$18,750
Construction Costs
$500,000
Using this information, how much should be recorded as the cost of: (Enter only whole
dollar values.)
1. Land
2. New Building
1.
2.
The following information regarding cash for Alpha Company is provided for the month ending March 31,
2016:
Item
Amount
$25,000
Ending Cash per Bank Statement
$5,615
Note collected by bank included interest of $115
$55
Bank Service Charges
Deposits in Transit
$2,775
Outstanding Cheques
$4,500
$350
Customer Cheque returned NSF
A review of the bank statement reflected that cheque #224 recorded in the
company cheque register as $1,735 to settle an accounts payable, was paid by the bank for
the amount of $1,375. Use this information to prepare the compound General Journal entry
(without explanation) for March 31, 2016, to cause the company books to match the
adjusted cash balance based on the completed bank reconciliation. If no entry is required
then write "No Entry Required."
Date
Accounts
Debit
Credit
Question 2
Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales
on July 15, 2016 amounted to $20,000 and were subject to a 4.5% credit card company collection fee. Alpha
Company collected payment from Worldwide Express on July 21. Use this information to prepare the General
Journal entries (without explanation) for the July 15 sales & the July 21 collections. If no entry is required
then write "No Entry Required."
Date
Accounts
Debit
Credit
Question 3
On July 1, 2016, Alpha Company purchased for $76,000, equipment having a service life of eight years and an
estimated residual value of $4,000. Alpha has recorded depreciation of the equipment using the doubledeclining balance method. On December 31, 2019, before making any annual adjusting entries, the
equipment was sold for $20,000. Use this information to prepare all General Journal entries (without
explanation) required to record the sale event for December 31, 2019
Date
Accounts
Debit
Credit
Question 4
On July 1, 2016, Alpha Company purchased for $72,000, equipment having a service life of eight years and an
estimated residual value of $6,000. Alpha has recorded depreciation of the equipment using the doubledeclining balance method. On December 31, 2018, before making any annual adjusting entries, the
equipment was exchanged for new machinery having a fair value of $32,500. The transaction has commercial
substance. Use this information to prepare all General Journal entries (without explanation) required to
record the events for December 31, 2018.
Date
Accounts
Debit
Credit
Question 5
Alpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016,
Accounts Receivable has a balance that consists of:
Dollar Value
Age of Account
Estimated
Collectible
$115,000
< 30 days old
98%
85,000
30 to 60 days old
80%
50,000
61 to 120 days old
50%
10,000
> 120 days old
15%
The current unadjusted Allowance for Uncollectable Accounts balance is a debit balance of
$3,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the
adjusting entry is made, what will be the dollar balances in the:
1. Accounts Receivable
2. Allowance for Doubtful Accounts
3. Bad Debt Expense
1.
2.
3.
Question 6
Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are
normal):
Alpha Company
December 31
Accounts
Accounts Receivable
2016
2015
$40,500
$35,500
2,500
1,500
Merchandise Inventory
57,000
50,000
Office Supplies
25,000
20,000
Allowance for Doubtful Accounts
Credit Sales
960,000
740,000
Sales Discounts
10,000
9,000
Interest Income
25,000
20,000
460,000
385,000
Cost of Goods Sold
1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as a
number rounded to one decimal place followed by a space and the word times.
(Example 1.123 would be entered 1.1 times)
2. What is the FY 2016 days outstanding for accounts receivable ratio? Enter the
answer as a number rounded to one decimal place followed by a space and the
word days. (Example 1.123 would be entered 1.1 days)
1.
2.
Question 7
February 1, 2016, Alpha Company purchased land for the future factory location at a cost of $50,000. The
dilapidated building that was on the property was demolished so that construction could begin on the new
factory building. The new factory was completed on November 1, 2016. Costs incurred during this period
were:
Item
Demolition dilapidated building
Amount
$4,000
Architect Fees
$10,000
Legal Fees - for title search
$2,000
Interest During Active Construction Period
$18,750
Construction Costs
$500,000
Using this information, how much should be recorded as the cost of: (Enter only whole
dollar values.)
1. Land
2. New Building
1.
2.
