The\u00a0account\u00a0balances\u00a0appearing\u00a0on\u00a0the\u00a0trial\u00a0balance\u00a0(below)\u00a0were\u00a0taken\u00a0from\u00a0the\u00a0general\u00a0ledger\u00a0of\u00a0Flap’s\u00a0Copy\u00a0Shop\u00a0at\u00a0September\u00a030,\u00a02012.\tAdditional\u00a0information\u00a0for\u00a0the\u00a0month\u00a0of\u00a0September\u00a0which\u00a0has\u00a0not\u00a0yet\u00a0been\u00a0recorded\u00a0in\u00a0the\u00a0accounts\u00a0is\u00a0as\u00a0follows:\t(a)\u00a0A\u00a0physical\u00a0count\u00a0of\u00a0supplies\u00a0indicates\u00a0$400\u00a0on\u00a0hand\u00a0at\u00a0September\u00a030.\t(b)\u00a0The\u00a0amount\u00a0of\u00a0insurance\u00a0that\u00a0expired\u00a0in\u00a0the\u00a0month\u00a0of\u00a0September\u00a0was\u00a0$300.\t(c)\u00a0Depreciation\u00a0on\u00a0equipment\u00a0for\u00a0September\u00a0was\u00a0$500.\t(d)\u00a0Rent\u00a0owed\u00a0on\u00a0the\u00a0copy\u00a0shop\u00a0for\u00a0the\u00a0month\u00a0of\u00a0September\u00a0was\u00a0$400\u00a0but\u00a0will\u00a0not\u00a0be\u00a0paid\u00a0until\u00a0July.\tFlap’s\u00a0Copy\u00a0Shop\tTrial\u00a0Balance\tFor\u00a0the\u00a0Month\u00a0Ended\u00a0September\u00a030,\u00a02012\tAccount\u00a0Titles\tDebit\tCredit\tCash\t$1,000\tSupplies\t1,100\tPrepaid\u00a0Insurance\t2,200\tEquipment\t24,000\tAccum.\u00a0Depreciation”\ufffd\u00a0Equipment\t$4,500\tAccounts\u00a0Payable\t2,400\tNotes\u00a0Payable\t4,000\tFlap’s\u00a0Capital\t15,300\tFlap’s\u00a0Drawings\t2,400\tService\u00a0Revenue\t4,900\tUtilities\u00a0Expense\t400\tTotals\t$31,100\t$31,100\tInstructions:\tPrepare\u00a0in\u00a0journal\u00a0form,\u00a0without\u00a0explanations,\u00a0the\u00a0end\u00a0of\u00a0month\u00a0adjusting\u00a0entries\u00a0for\u00a0Flap’s\u00a0Copy\u00a0Shop\u00a0for\u00a0the\u00a0month\u00a0of\u00a0September.\u00a0Prepare\u00a0a\u00a0partial\u00a0adjusted\u00a0trial\u00a0balance\u00a0for\u00a0the\u00a0accounts\u00a0provided.\u00a0Prepare\u00a0in\u00a0journal\u00a0form,\u00a0without\u00a0explanations,\u00a0the\u00a0end\u00a0of\u00a0month\u00a0closing\u00a0entries\u00a0for\u00a0Flap’s\u00a0Copy\u00a0Shop\u00a0for\u00a0the\u00a0month\u00a0of\u00a0September.\tAcct220\u00a0Page\u00a01\u00a0of\u00a09\tProblem\u00a02:\u00a015%\u00a0points:\tThe\u00a0following\u00a0information\u00a0is\u00a0available\u00a0for\u00a0Flip\u00a0Company:\tBeginning\u00a0inventory\u00a0600\u00a0units\u00a0at\u00a0$5\tFirst\u00a0purchase\u00a0900\u00a0units\u00a0at\u00a0$6\tSecond\u00a0purchase\u00a0500\u00a0units\u00a0at\u00a0$7.25\tAssume\u00a0that\u00a0Flip\u00a0uses\u00a0a\u00a0periodic\u00a0inventory\u00a0system\u00a0and\u00a0that\u00a0there\u00a0are\u00a0700\u00a0units\u00a0left\u00a0at\u00a0the\u00a0end\u00a0of\u00a0the\u00a0month.\u00a0(Round\u00a0all\u00a0final\u00a0answers\u00a0to\u00a0the\u00a0nearest\u00a0dollar.)\tInstructions:\ta.\u00a0Compute\u00a0the\u00a0cost\u00a0of\u00a0goods\u00a0available\u00a0for\u00a0sale.\tb.\u00a0Compute\u00a0the\u00a0value\u00a0of\u00a0ending\u00a0inventory\u00a0and\u00a0Cost\u00a0of\u00a0Good\u00a0Sold\u00a0under\u00a0the\t(1)\u00a0LIFO\u00a0method.\t(2)\u00a0FIFO\u00a0method.\t(3)\u00a0Average-cost\u00a0method\tProblem\u00a03:\u00a015%\u00a0points:\tThe\u00a0following\u00a0items\u00a0were\u00a0taken\u00a0from\u00a0the\u00a0post\u00a0adjusted\u00a0trial\u00a0balance\u00a0of\u00a0Flop\u00a0Company.\u00a0(All\u00a0balances\u00a0are\u00a0normal.)\tMortgage\u00a0payable\u00a0$\u00a01,443\u00a0Accumulated\u00a0depreciation\u00a03,655\tPrepaid\u00a0expenses\u00a0880\u00a0Accounts\u00a0payable\u00a01,200\tEquipment\u00a011,000\u00a0Notes\u00a0payable\u00a0after\u00a02016\u00a01,444\tLong-term\u00a0investments\u00a01,100\u00a0Flop’s\u00a0capital\u00a010,480\tShort-term\u00a0investments\u00a01,756\u00a0Accounts\u00a0receivable\u00a02,690\tNotes\u00a0payable\u00a0in\u00a02015\u00a01,000\u00a0Inventories\u00a02,100\tCash\u00a01,696\u00a0Service\u00a0Revenue\u00a09,000\tRent\u00a0Expense\u00a01,000\u00a0Wages\u00a0Expense\u00a05,000\tUtilities\u00a0Expense\u00a01,000\tInstructions:\u00a0Prepare\u00a0a\u00a0classified\u00a0balance\u00a0sheet\u00a0in\u00a0good\u00a0form\u00a0as\u00a0of\u00a0December\u00a031,\u00a02014.\tAcct220\u00a0Page\u00a02\u00a0of\u00a09\tProblem\u00a04:\u00a010%\u00a0points:\tPrepare\u00a0journal\u00a0entries\u00a0to\u00a0record\u00a0the\u00a0following\u00a0transactions\u00a0entered\u00a0into\u00a0by\u00a0Flip\u00a0Company:\t2012\tJune\u00a01\u00a0Accepted\u00a0a\u00a0$10,000,\u00a012%,\u00a01-year\u00a0note\u00a0from\u00a0Flop\u00a0as\u00a0full\u00a0payment\u00a0on\u00a0her\u00a0account.\tNov.\u00a01\u00a0Sold\u00a0merchandise\u00a0on\u00a0account\u00a0to\u00a0Flap,\u00a0Inc.\u00a0for\u00a0$12,000,\u00a0terms\u00a02\/10,\u00a0n\/30.\tNov.\u00a05\u00a0Flap,\u00a0Inc.\u00a0returned\u00a0merchandise\u00a0worth\u00a0$500.\tNov.\u00a09\u00a0Received\u00a0payment\u00a0in\u00a0full\u00a0from\u00a0Flap,\u00a0Inc.\tDec.\u00a031\u00a0Accrued\u00a0interest\u00a0on\u00a0Flop’s\u00a0note.\t2013\tJune\u00a01\u00a0Flop\u00a0honored\u00a0her\u00a0promissory\u00a0note\u00a0by\u00a0sending\u00a0the\u00a0face\u00a0amount\u00a0plus\u00a0interest.\u00a0No\u00a0interest\u00a0has\u00a0been\u00a0accrued\u00a0in\u00a02013\tProblem\u00a05:\u00a010%\u00a0points:\tFlip\u00a0Company\u00a0purchased\u00a0equipment\u00a0on\u00a0July\u00a01,\u00a02011\u00a0for\u00a0$90,000.\u00a0It\u00a0is\u00a0estimated\u00a0that\u00a0the\u00a0equipment\u00a0will\u00a0have\u00a0a\u00a0$5,000\u00a0salvage\u00a0value\u00a0at\u00a0the\u00a0end\u00a0of\u00a0its\u00a05-year\u00a0useful\u00a0life.\u00a0It\u00a0is\u00a0also\u00a0estimated\u00a0that\u00a0the\u00a0equipment\u00a0will\u00a0produce\u00a0125,000\u00a0units\u00a0over\u00a0its\u00a05-year\u00a0life.\tInstructions\tAnswer\u00a0the\u00a0following\u00a0independent\u00a0questions.\t1.\u00a0Compute\u00a0the\u00a0amount\u00a0of\u00a0depreciation\u00a0expense\u00a0for\u00a0the\u00a0year\u00a0ended\u00a0December\u00a031,\u00a02011,\u00a0using\u00a0the\u00a0straight-line\u00a0method\u00a0of\u00a0depreciation.\t2.\u00a0If\u00a014,000\u00a0units\u00a0of\u00a0product\u00a0are\u00a0produced\u00a0in\u00a02011\u00a0and\u00a026,000\u00a0units\u00a0are\u00a0produced\u00a0in\u00a02012,\u00a0what\u00a0is\u00a0the\u00a0book\u00a0value\u00a0of\u00a0the\u00a0equipment\u00a0at\u00a0December\u00a031,\u00a02012?\u00a0The\u00a0company\u00a0uses\u00a0the\u00a0units-of-activity\u00a0depreciation\u00a0method.\t3.\u00a0If\u00a0the\u00a0company\u00a0uses\u00a0the\u00a0double-declining-balance\u00a0method\u00a0of\u00a0depreciation,\u00a0what\u00a0is\u00a0the\u00a0balance\u00a0of\u00a0the\u00a0Accumulated\u00a0Depreciation”\ufffdEquipment\u00a0account\u00a0at\u00a0December\u00a031,\u00a02013?\tAcct220\u00a0Page\u00a03\u00a0of\u00a09\tProblem\u00a06:\u00a010%\u00a0points:\tFlip\u00a0earns\u00a0a\u00a0salary\u00a0of\u00a0$7,500\u00a0per\u00a0month\u00a0during\u00a0the\u00a0year.\u00a0FICA\u00a0taxes\u00a0are\u00a08%\u00a0on\u00a0the\u00a0first\u00a0$100,000\u00a0of\u00a0gross\u00a0earnings.\u00a0Federal\u00a0unemployment\u00a0insurance\u00a0taxes\u00a0are\u00a06.2%\u00a0of\u00a0the\u00a0first\u00a0$7,000;\u00a0however,\u00a0a\u00a0credit\u00a0is\u00a0allowed\u00a0equal\u00a0to\u00a0the\u00a0state\u00a0unemployment\u00a0insurance\u00a0taxes\u00a0of\u00a05.4%\u00a0on\u00a0the\u00a0$7,000.\u00a0During\u00a0the\u00a0year,\u00a0$25,600\u00a0was\u00a0withheld\u00a0for\u00a0federal\u00a0income\u00a0taxes\u00a0and\u00a0$5,700\u00a0was\u00a0withheld\u00a0for\u00a0state\u00a0income\u00a0taxes.\tInstructions\t(a)\u00a0Prepare\u00a0a\u00a0journal\u00a0entry\u00a0summarizing\u00a0the\u00a0payment\u00a0of\u00a0Flip’s\u00a0total\u00a0salary\u00a0during\u00a0the\u00a0year.\t(b)\u00a0Prepare\u00a0a\u00a0journal\u00a0entry\u00a0summarizing\u00a0the\u00a0employer\u00a0payroll\u00a0tax\u00a0expense\u00a0on\u00a0Flip’s\u00a0salary\u00a0for\u00a0the\u00a0year.\t(c)\u00a0Determine\u00a0the\u00a0cost\u00a0of\u00a0employing\u00a0Flip\u00a0for\u00a0the\u00a0year.\tMultiple\u00a0choice\u00a0questions\u00a0allocated\u00a01%\u00a0point\u00a0each.\u00a0Make\u00a0your\u00a0selection\u00a0by\u00a0recording\u00a0the\u00a0letter\u00a0in\u00a0the\u00a0answer\u00a0box\u00a0provided.\tQuestion\u00a07:\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0are\u00a0the\u00a0same\u00a0under\u00a0both\u00a0GAAP\u00a0and\u00a0IFRS?\ta.\u00a0The\u00a0journal.\tb.\u00a0The\u00a0ledger.\tc.\u00a0The\u00a0chart\u00a0of\u00a0accounts.\td.\u00a0All\u00a0of\u00a0the\u00a0above.\te.\u00a0Only\u00a0a\u00a0&\u00a0c.\tQuestion\u00a08:\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0is\u00a0true?\ta.\u00a0Transaction\u00a0analysis\u00a0is\u00a0completely\u00a0different\u00a0under\u00a0IFRS\u00a0and\u00a0GAAP.\tb.\u00a0Most\u00a0transactions\u00a0are\u00a0recorded\u00a0differently\u00a0under\u00a0IFRS\u00a0and\u00a0GAAP.\tc.\u00a0Transaction\u00a0analysis\u00a0is\u00a0the\u00a0same\u00a0under\u00a0IFRS\u00a0and\u00a0GAAP,\u00a0but\u00a0some\u00a0transactions\u00a0are\u00a0recorded\u00a0differently.\td.\u00a0All\u00a0transactions\u00a0are\u00a0recorded\u00a0the\u00a0same\u00a0under\u00a0IFRS\u00a0and\u00a0GAAP.\tQuestion\u00a09:\u00a0Revenue\u00a0recognition\u00a0under\u00a0IFRS\u00a0is\ta.\u00a0substantially\u00a0different\u00a0from\u00a0revenue\u00a0recognition\u00a0under\u00a0GAAP.\tb.\u00a0generally\u00a0the\u00a0same\u00a0as\u00a0revenue\u00a0recognition\u00a0under\u00a0GAAP,\u00a0but\u00a0with\u00a0more\u00a0detailed\u00a0guidance.\tc.\u00a0generally\u00a0the\u00a0same\u00a0as\u00a0revenue\u00a0recognition\u00a0under\u00a0GAAP,\u00a0but\u00a0with\u00a0less\u00a0detailed\u00a0guidance.\td.\u00a0exactly\u00a0the\u00a0same\u00a0as\u00a0revenue\u00a0recognition\u00a0under\u00a0GAAP.\tAcct220\u00a0Page\u00a04\u00a0of\u00a09\tQuestion\u00a010:\u00a0Both\u00a0IFRS\u00a0and\u00a0GAAP\u00a0require\u00a0disclosure\u00a0about\ta.\u00a0accounting\u00a0policies\u00a0followed.\tb.\u00a0judgements\u00a0that\u00a0management\u00a0has\u00a0made\u00a0in\u00a0the\u00a0process\u00a0of\u00a0applying\u00a0the\u00a0entity’s\u00a0accounting\u00a0policies.\tc.\u00a0the\u00a0key\u00a0assumptions\u00a0and\u00a0estimation\u00a0uncertainty.\td.\u00a0all\u00a0of\u00a0the\u00a0above.\te.\u00a0only\u00a0b\u00a0&\u00a0c.\tQuestion\u00a011:\u00a0The\u00a0use\u00a0of\u00a0fair\u00a0value\u00a0to\u00a0report\u00a0assets\ta.\u00a0is\u00a0not\u00a0allowed\u00a0under\u00a0GAAP\u00a0or\u00a0IFRS.\tb.\u00a0is\u00a0required\u00a0by\u00a0GAAP\u00a0and\u00a0IFRS.\tc.\u00a0is\u00a0increasing\u00a0under\u00a0GAAP\u00a0and\u00a0IFRS,\u00a0but\u00a0GAAP\u00a0has\u00a0adopted\u00a0it\u00a0more\u00a0broadly.\td.\u00a0is\u00a0increasing\u00a0under\u00a0GAAP\u00a0and\u00a0IFRS,\u00a0but\u00a0IFRS\u00a0has\u00a0adopted\u00a0it\u00a0more\u00a0broadly.\tQuestion\u00a012:\u00a0A\u00a0$100\u00a0petty\u00a0cash\u00a0fund\u00a0has\u00a0cash\u00a0of\u00a0$16\u00a0and\u00a0receipts\u00a0of\u00a0$81.\u00a0The\u00a0journal\u00a0entry\u00a0to\u00a0replenish\u00a0the\u00a0account\u00a0would\u00a0include\u00a0a\ta.\u00a0debit\u00a0to\u00a0Cash\u00a0for\u00a0$81.\tb.\u00a0credit\u00a0to\u00a0Petty\u00a0Cash\u00a0for\u00a0$84.\tc.\u00a0debit\u00a0to\u00a0Cash\u00a0Over\u00a0and\u00a0Short\u00a0for\u00a0$3.\td.\u00a0credit\u00a0to\u00a0Cash\u00a0for\u00a0$81.\tQuestion\u00a013:\u00a0In\u00a0preparing\u00a0its\u00a0bank\u00a0reconciliation\u00a0for\u00a0the\u00a0month\u00a0of\u00a0April\u00a02013,\u00a0Flip,\u00a0Inc.\u00a0has\u00a0available\u00a0the\u00a0following\u00a0information.\tBalance\u00a0per\u00a0bank\u00a0statement,\u00a04\/30\/13\u00a0$39,300\tNSF\u00a0check\u00a0returned\u00a0with\u00a04\/30\/13\u00a0bank\u00a0statement\u00a0470\tDeposits\u00a0in\u00a0transit,\u00a04\/30\/13\u00a05,000\tOutstanding\u00a0checks,\u00a04\/30\/13\u00a05,200\tBank\u00a0service\u00a0charges\u00a0for\u00a0April\u00a030\tWhat\u00a0should\u00a0be\u00a0the\u00a0adjusted\u00a0cash\u00a0balance\u00a0at\u00a0April\u00a030,\u00a02013?\ta.\u00a0$38,630.\tb.\u00a0$38,800.\tc.\u00a0$39,010.\td.\u00a0$39,100.\tQuestion\u00a014:\u00a0If\u00a0a\u00a0check\u00a0correctly\u00a0written\u00a0and\u00a0paid\u00a0by\u00a0the\u00a0bank\u00a0for\u00a0$591\u00a0is\u00a0incorrectly\u00a0recorded\u00a0on\u00a0the\u00a0company’s\u00a0books\u00a0for\u00a0$519,\u00a0the\u00a0appropriate\u00a0treatment\u00a0on\u00a0the\u00a0bank\u00a0reconciliation\u00a0would\u00a0be\u00a0to\ta.\u00a0deduct\u00a0$72\u00a0from\u00a0the\u00a0book’s\u00a0balance.\tb.\u00a0add\u00a0$72\u00a0to\u00a0the\u00a0book’s\u00a0balance.\tc.\u00a0deduct\u00a0$72\u00a0from\u00a0the\u00a0bank’s\u00a0balance.\td.\u00a0deduct\u00a0$591\u00a0from\u00a0the\u00a0book’s\u00a0balance.\tAcct220\u00a0Page\u00a05\u00a0of\u00a09\tQuestion\u00a015:\u00a0Flip\u00a0Company\u00a0had\u00a0net\u00a0credit\u00a0sales\u00a0during\u00a0the\u00a0year\u00a0of\u00a0$1,200,000\u00a0and\u00a0cost\u00a0of\u00a0goods\u00a0sold\u00a0of\u00a0$720,000.\u00a0The\u00a0balance\u00a0in\u00a0accounts\u00a0receivable\u00a0at\u00a0the\u00a0beginning\u00a0of\u00a0the\u00a0year\u00a0was\u00a0$180,000,\u00a0and\u00a0the\u00a0end\u00a0of\u00a0the\u00a0year\u00a0it\u00a0was\u00a0$120,000.\u00a0What\u00a0was\u00a0the\u00a0accounts\u00a0receivable\u00a0turnover\u00a0ratio?\ta.\u00a05.0\tb.\u00a06.7\tc.\u00a08.0\td.\u00a010.0\tQuestion\u00a016:\u00a0The\u00a0financial\u00a0statements\u00a0of\u00a0Flip\u00a0Manufacturing\u00a0Company\u00a0report\u00a0net\u00a0sales\u00a0of\u00a0$400,000\u00a0and\u00a0accounts\u00a0receivable\u00a0of\u00a0$80,000\u00a0and\u00a0$40,000\u00a0at\u00a0the\u00a0beginning\u00a0and\u00a0end\u00a0of\u00a0the\u00a0year,\u00a0respectively.\u00a0What\u00a0is\u00a0the\u00a0average\u00a0collection\u00a0period\u00a0for\u00a0accounts\u00a0receivable\u00a0in\u00a0days?\ta.\u00a040\u00a0days\tb.\u00a050\u00a0days\tc.\u00a054.7\u00a0days\td.\u00a080\u00a0days\tQuestion\u00a017:\u00a0Cash\u00a0equivalents\u00a0include\u00a0each\u00a0of\u00a0the\u00a0followingexcept\ta.\u00a0bank\u00a0certificates\u00a0of\u00a0deposit.\tb.\u00a0money\u00a0market\u00a0funds.\tc.\u00a0petty\u00a0cash.\td.\u00a0U.S.\u00a0Treasury\u00a0bills.\tQuestion\u00a018:\u00a0Flip\u00a0Company\u00a0is\u00a0building\u00a0a\u00a0new\u00a0plant\u00a0that\u00a0will\u00a0take\u00a0three\u00a0years\u00a0to\u00a0construct.\u00a0The\u00a0construction\u00a0will\u00a0be\u00a0financed\u00a0in\u00a0part\u00a0by\u00a0funds\u00a0borrowed\u00a0during\u00a0the\u00a0construction\u00a0period.\u00a0There\u00a0are\u00a0significant\u00a0architect\u00a0fees,\u00a0excavation\u00a0fees,\u00a0and\u00a0building\u00a0permit\u00a0fees.\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0statements\u00a0is\u00a0true?\ta.\u00a0Excavation\u00a0fees\u00a0are\u00a0capitalized\u00a0but\u00a0building\u00a0permit\u00a0fees\u00a0are\u00a0not.\tb.\u00a0Architect\u00a0fees\u00a0are\u00a0capitalized\u00a0but\u00a0building\u00a0permit\u00a0fees\u00a0are\u00a0not.\tc.\u00a0Interest\u00a0is\u00a0capitalized\u00a0during\u00a0the\u00a0construction\u00a0as\u00a0part\u00a0of\u00a0the\u00a0cost\u00a0of\u00a0the\u00a0building.\td.\u00a0The\u00a0capitalized\u00a0cost\u00a0is\u00a0equal\u00a0to\u00a0the\u00a0contract\u00a0price\u00a0to\u00a0build\u00a0the\u00a0plant\u00a0less\u00a0any\u00a0interest\u00a0on\u00a0borrowed\u00a0funds.\tQuestion\u00a019:\u00a0Depreciation\u00a0is\u00a0the\u00a0process\u00a0of\u00a0allocating\u00a0the\u00a0cost\u00a0of\u00a0a\u00a0plant\u00a0asset\u00a0over\u00a0its\u00a0service\u00a0life\u00a0in\ta.\u00a0an\u00a0equal\u00a0and\u00a0equitable\u00a0manner.\tb.\u00a0an\u00a0accelerated\u00a0and\u00a0accurate\u00a0manner.\tc.\u00a0a\u00a0systematic\u00a0and\u00a0rational\u00a0manner.\td.\u00a0a\u00a0conservative\u00a0market-based\u00a0manner.\tAcct220\u00a0Page\u00a06\u00a0of\u00a09\tQuestion\u00a020:\u00a0Sales\u00a0taxes\u00a0collected\u00a0by\u00a0a\u00a0retailer\u00a0are\u00a0expenses\ta.\u00a0of\u00a0the\u00a0retailer.\tb.\u00a0of\u00a0the\u00a0customers.\tc.\u00a0of\u00a0the\u00a0government.\td.\u00a0that\u00a0are\u00a0not\u00a0recognized\u00a0by\u00a0the\u00a0retailer\u00a0until\u00a0they\u00a0are\u00a0submitted\u00a0to\u00a0the\u00a0government.\tQuestion\u00a021:\u00a0Flip’s\u00a0Market\u00a0recorded\u00a0the\u00a0following\u00a0events\u00a0involving\u00a0a\u00a0recent\u00a0purchase\u00a0of\u00a0merchandise:\tReceived\u00a0goods\u00a0for\u00a0$50,000,\u00a0terms\u00a02\/10,\u00a0n\/30.\tReturned\u00a0$1,000\u00a0of\u00a0the\u00a0shipment\u00a0for\u00a0credit.\tPaid\u00a0$250\u00a0freight\u00a0on\u00a0the\u00a0shipment.\tPaid\u00a0the\u00a0invoice\u00a0within\u00a0the\u00a0discount\u00a0period.\tAs\u00a0a\u00a0result\u00a0of\u00a0these\u00a0events,\u00a0the\u00a0company’s\u00a0inventory\u00a0increased\u00a0by\ta.\u00a0$48,020.\tb.\u00a0$48,265.\tc.\u00a0$48,270.\td.\u00a0$49,250.\tQuestion\u00a022:\u00a0Closing\u00a0entries\u00a0are\u00a0made\ta.\u00a0in\u00a0order\u00a0to\u00a0terminate\u00a0the\u00a0business\u00a0as\u00a0an\u00a0operating\u00a0entity.\tb.\u00a0so\u00a0that\u00a0all\u00a0assets,\u00a0liabilities,\u00a0and\u00a0owner’s\u00a0capital\u00a0accounts\u00a0will\u00a0have\u00a0zero\u00a0balances\u00a0when\u00a0the\u00a0next\u00a0accounting\u00a0period\u00a0starts.\tc.\u00a0in\u00a0order\u00a0to\u00a0transfer\u00a0net\u00a0income\u00a0(or\u00a0loss)\u00a0and\u00a0owner’s\u00a0drawings\u00a0to\u00a0the\u00a0owner’s\u00a0capital\u00a0account.\td.\u00a0so\u00a0that\u00a0financial\u00a0statements\u00a0can\u00a0be\u00a0prepared.\tQuestion\u00a023:\u00a0Flip\u00a0Company\u00a0purchased\u00a0merchandise\u00a0from\u00a0Flop\u00a0Company\u00a0with\u00a0freight\u00a0terms\u00a0of\u00a0FOB\u00a0shipping\u00a0point.\u00a0The\u00a0freight\u00a0costs\u00a0will\u00a0be\u00a0paid\u00a0by\u00a0the\ta.\u00a0seller.\tb.\u00a0buyer.\tc.\u00a0transportation\u00a0company.\td.\u00a0buyer\u00a0and\u00a0the\u00a0seller.\tQuestion\u00a024:\u00a0A\u00a0Sales\u00a0Returns\u00a0and\u00a0Allowances\u00a0account\u00a0is\u00a0notdebited\u00a0if\u00a0a\u00a0customer\ta.\u00a0returns\u00a0defective\u00a0merchandise.\tb.\u00a0receives\u00a0a\u00a0credit\u00a0for\u00a0merchandise\u00a0of\u00a0inferior\u00a0quality.\tc.\u00a0utilizes\u00a0a\u00a0prompt\u00a0payment\u00a0incentive.\td.\u00a0returns\u00a0goods\u00a0that\u00a0are\u00a0not\u00a0in\u00a0accordance\u00a0with\u00a0specifications.\tAcct220\u00a0Page\u00a07\u00a0of\u00a09\tQuestion\u00a025:\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0statements\u00a0is\u00a0incorrect?\ta.\u00a0A\u00a0major\u00a0consideration\u00a0in\u00a0developing\u00a0an\u00a0accounting\u00a0system\u00a0is\u00a0cost\u00a0effectiveness.\tb.\u00a0When\u00a0an\u00a0accounting\u00a0system\u00a0is\u00a0designed,\u00a0no\u00a0consideration\u00a0needs\u00a0to\u00a0be\u00a0given\u00a0to\u00a0the\u00a0needs\u00a0and\u00a0knowledge\u00a0of\u00a0the\u00a0various\u00a0users.\tc.\u00a0The\u00a0accounting\u00a0system\u00a0should\u00a0be\u00a0able\u00a0to\u00a0accommodate\u00a0a\u00a0variety\u00a0of\u00a0users\u00a0and\u00a0changing\u00a0information\u00a0needs.\td.\u00a0To\u00a0be\u00a0useful,\u00a0information\u00a0must\u00a0be\u00a0understandable,\u00a0relevant,\u00a0reliable,\u00a0timely,\u00a0and\u00a0accurate.\tQuestion\u00a026:\u00a0Flip\u00a0is\u00a0warehouse\u00a0custodian\u00a0and\u00a0also\u00a0maintains\u00a0the\u00a0accounting\u00a0record\u00a0of\u00a0the\u00a0inventory\u00a0held\u00a0at\u00a0the\u00a0warehouse.\u00a0An\u00a0assessment\u00a0of\u00a0this\u00a0situation\u00a0indicates\ta.\u00a0documentation\u00a0procedures\u00a0are\u00a0violated.\tb.\u00a0independent\u00a0internal\u00a0verification\u00a0is\u00a0violated.\tc.\u00a0segregation\u00a0of\u00a0duties\u00a0is\u00a0violated.\td.\u00a0establishment\u00a0of\u00a0responsibility\u00a0is\u00a0violated.\tQuestion\u00a027:\u00a0Flip\u00a0Company\u00a0purchases\u00a0a\u00a0new\u00a0delivery\u00a0truck\u00a0for\u00a0$60,000.\u00a0The\u00a0sales\u00a0taxes\u00a0are\u00a0$4,000.\u00a0The\u00a0logo\u00a0of\u00a0the\u00a0company\u00a0is\u00a0painted\u00a0on\u00a0the\u00a0side\u00a0of\u00a0the\u00a0truck\u00a0for\u00a0$1,600.\u00a0The\u00a0truck\u00a0license\u00a0is\u00a0$160.\u00a0The\u00a0truck\u00a0undergoes\u00a0safety\u00a0testing\u00a0for\u00a0$290.\u00a0What\u00a0does\u00a0Flip\u00a0record\u00a0as\u00a0the\u00a0cost\u00a0of\u00a0the\u00a0new\u00a0truck?\ta.\u00a0$66,050\tb.\u00a0$65,890\tc.\u00a0$64,000\td.\u00a0$65,600\tQuestion\u00a028:\u00a0A\u00a0company\u00a0purchased\u00a0factory\u00a0equipment\u00a0on\u00a0April\u00a01,\u00a02012\u00a0for\u00a0$80,000.\u00a0It\u00a0is\u00a0estimated\u00a0that\u00a0the\u00a0equipment\u00a0will\u00a0have\u00a0an\u00a0$10,000\u00a0salvage\u00a0value\u00a0at\u00a0the\u00a0end\u00a0of\u00a0its\u00a010-year\u00a0useful\u00a0life.\u00a0Using\u00a0the\u00a0straight-line\u00a0method\u00a0of\u00a0depreciation,\u00a0the\u00a0amount\u00a0to\u00a0be\u00a0recorded\u00a0as\u00a0depreciation\u00a0expense\u00a0at\u00a0December\u00a031,\u00a02012\u00a0is\ta.\u00a0$8,000.\tb.\u00a0$7,000.\tc.\u00a0$5,250.\td.\u00a0$6,000.\tQuestion\u00a029:\u00a0Flip’s\u00a0Boutique\u00a0has\u00a0total\u00a0receipts\u00a0for\u00a0the\u00a0month\u00a0of\u00a0$30,660\u00a0including\u00a0sales\u00a0taxes.\u00a0If\u00a0the\u00a0sales\u00a0tax\u00a0rate\u00a0is\u00a05%,\u00a0what\u00a0are\u00a0Flip’s\u00a0sales\u00a0for\u00a0the\u00a0month?\ta.\u00a0$29,127\tb.\u00a0$29,200\tc.\u00a0$32,193\td.\u00a0It\u00a0cannot\u00a0be\u00a0determined.\tAcct220\u00a0Page\u00a08\u00a0of\u00a09\tQuestion\u00a030:\u00a0Flip\u00a0Electric\u00a0began\u00a0operations\u00a0in\u00a02012\u00a0and\u00a0provides\u00a0a\u00a0one\u00a0year\u00a0warranty\u00a0on\u00a0the\u00a0products\u00a0it\u00a0sells.\u00a0They\u00a0estimate\u00a0that\u00a010,000\u00a0of\u00a0the\u00a0200,000\u00a0units\u00a0sold\u00a0in\u00a02012\u00a0will\u00a0be\u00a0returned\u00a0for\u00a0repairs\u00a0and\u00a0that\u00a0these\u00a0repairs\u00a0will\u00a0cost\u00a0$8\u00a0per\u00a0unit.\u00a0The\u00a0cost\u00a0of\u00a0repairing\u00a08,000\u00a0units\u00a0presented\u00a0for\u00a0service\u00a0in\u00a02012\u00a0was\u00a0$64,000.\u00a0Flip\u00a0should\u00a0report\ta.\u00a0warranty\u00a0expense\u00a0of\u00a0$16,000\u00a0for\u00a02012.\tb.\u00a0warranty\u00a0expense\u00a0of\u00a0$80,000\u00a0for\u00a02012.\tc.\u00a0warranty\u00a0liability\u00a0of\u00a0$80,000\u00a0on\u00a0December\u00a031,\u00a02012.\td.\u00a0no\u00a0warranty\u00a0obligation\u00a0on\u00a0December\u00a031,\u00a02012,\u00a0since\u00a0this\u00a0is\u00a0only\u00a0a\u00a0contingent\u00a0liability.\tQuestion\u00a031:\u00a0Partners\u00a0Flip\u00a0and\u00a0Flop\u00a0have\u00a0capital\u00a0balances\u00a0in\u00a0a\u00a0partnership\u00a0of\u00a0$80,000\u00a0and\u00a0$120,000,\u00a0respectively.\u00a0They\u00a0agree\u00a0to\u00a0share\u00a0profits\u00a0and\u00a0losses\u00a0as\u00a0follows:\tFlip\u00a0Flop\tAs\u00a0salaries\u00a0$20,000\u00a0$24,000\tAs\u00a0interest\u00a0on\u00a0capital\u00a0at\u00a0the\u00a0beginning\u00a0of\u00a0the\u00a0year\u00a010%\u00a010%\tRemaining\u00a0profits\u00a0or\u00a0losses\u00a050%\u00a050%\tIf\u00a0income\u00a0for\u00a0the\u00a0year\u00a0was\u00a0$60,000,\u00a0what\u00a0will\u00a0be\u00a0the\u00a0distribution\u00a0of\u00a0income\u00a0to\u00a0Flip?\ta.\u00a0$26,000\tb.\u00a0$34,000\tc.\u00a0$20,000\td.\u00a0$28,000\tAcct220\u00a0Page\u00a09\u00a0of\u00a09<\/p>\n","protected":false},"excerpt":{"rendered":"
The\u00a0account\u00a0balances\u00a0appearing\u00a0on\u00a0the\u00a0trial\u00a0balance\u00a0(below)\u00a0were\u00a0taken\u00a0from\u00a0the\u00a0general\u00a0ledger\u00a0of\u00a0Flap’s\u00a0Copy\u00a0Shop\u00a0at\u00a0September\u00a030,\u00a02012. Additional\u00a0information\u00a0for\u00a0the\u00a0month\u00a0of\u00a0September\u00a0which\u00a0has\u00a0not\u00a0yet\u00a0been\u00a0recorded\u00a0in\u00a0the\u00a0accounts\u00a0is\u00a0as\u00a0follows: (a)\u00a0A\u00a0physical\u00a0count\u00a0of\u00a0supplies\u00a0indicates\u00a0$400\u00a0on\u00a0hand\u00a0at\u00a0September\u00a030. (b)\u00a0The\u00a0amount\u00a0of\u00a0insurance\u00a0that\u00a0expired\u00a0in\u00a0the\u00a0month\u00a0of\u00a0September\u00a0was\u00a0$300. (c)\u00a0Depreciation\u00a0on\u00a0equipment\u00a0for\u00a0September\u00a0was\u00a0$500. (d)\u00a0Rent\u00a0owed\u00a0on\u00a0the\u00a0copy\u00a0shop\u00a0for\u00a0the\u00a0month\u00a0of\u00a0September\u00a0was\u00a0$400\u00a0but\u00a0will\u00a0not\u00a0be\u00a0paid\u00a0until\u00a0July. Flap’s\u00a0Copy\u00a0Shop Trial\u00a0Balance For\u00a0the\u00a0Month\u00a0Ended\u00a0September\u00a030,\u00a02012 Account\u00a0Titles Debit Credit Cash $1,000 Supplies 1,100 Prepaid\u00a0Insurance 2,200 Equipment 24,000 Accum.\u00a0Depreciation”\ufffd\u00a0Equipment $4,500 Accounts\u00a0Payable 2,400 Notes\u00a0Payable 4,000 Flap’s\u00a0Capital 15,300 Flap’s\u00a0Drawings 2,400 Service\u00a0Revenue 4,900 Utilities\u00a0Expense 400 Totals $31,100 $31,100 Instructions: Prepare\u00a0in\u00a0journal\u00a0form,\u00a0without\u00a0explanations,\u00a0the\u00a0end\u00a0of\u00a0month\u00a0adjusting\u00a0entries\u00a0for\u00a0Flap’s\u00a0Copy\u00a0Shop\u00a0for\u00a0the\u00a0month\u00a0of\u00a0September.\u00a0Prepare\u00a0a\u00a0partial\u00a0adjusted\u00a0trial\u00a0balance\u00a0for\u00a0the\u00a0accounts\u00a0provided.\u00a0Prepare\u00a0in\u00a0journal\u00a0form,\u00a0without\u00a0explanations,\u00a0the\u00a0end\u00a0of\u00a0month\u00a0closing\u00a0entries\u00a0for\u00a0Flap’s\u00a0Copy\u00a0Shop\u00a0for\u00a0the\u00a0month\u00a0of\u00a0September. Acct220\u00a0Page\u00a01\u00a0of\u00a09 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200732","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200732"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200732\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}