As per HOMEWORKLIB POLICY and guideline, the first-four MCQs are answered below:
8.
Answer: b
Out of the choices given, the account “sales returns and allowances” has debit balance only; this is the contra of “sales revenue”; since sales revenue has normal credit balance, the sales returns and allowance account has normal debit balance for making contra adjustment.
9.
Answer: b
Merchandise Inventory should be debited, since the purchase increases inventory and it becomes an increase in asset.
Sales account should not be affected, because a purchase doesn’t mean that it has been sold.
10.
Answer: b
This would be the amount after deducting trade discount only. The credit term “2/10, n/30” should not be considered here – this would be applicable when the payment is made.
Required amount = Catalog price × (1 – trade discount)
= 15,000 × (1 – 0.30)
= 15,000 × 0.70
= 10,500
11.
Answer: b
This is called “FOB destination”.
Seller delivers goods at the buyer’s place, which is also called the destination.
“FOB” means free on board – once the goods are received, the buyer has to pay the relevant freight cost.
8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales...
1. The debit balance in Cash Short and Over at the end of an accounting period is reported asa. an expense on the income statementb. income on the income statementc. an asset on the balance sheetd. a liability on the balance sheet2. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts?a. debit Notes Receivable; credit Cashb. debit Cash; credit Miscellaneous Incomec. debit...
ity was recorded in the journal as $720. This 45. A check drawn by a company for $270 in payment of a liability was recorded item would be included on the bank reconciliation as an a. addition to the balance per the company's records b. addition to the balance per the bank statement c. deduction from the balance per the bank statement d. deduction from the balance per the company's records 46. Accompanying the bank statement was a debit memo...
EX 8-16 Bank reconciliation OBJ. 5 Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company's records, or (d) a deduction from the cash balance according to the company's records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.)...
Using the following information: a. The bank statement balance is $2,979. b. The cash account balance is $3,243. c. Outstanding checks amounted to $629. d. Deposits in transit are $782. e. The bank service charge is $102. f. A check for $62 for supplies was recorded as $53 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement Adjustments: $ 2,979 Outstanding checks Total adjustments...
Bank ReconciliationIdentify each of the following reconciling items as:a. an addition to the cash balance according to the bank statementb. a deduction from the cash balance according to the bank statementc. an addition to the cash balance according to the company's recordsd. a deduction from the cash balance according to the company's records(None of the transactions reported by bank debit and credit memos have been recorded by the company.)Item1. Bank service charges, $ 30.2. Check of a customer returned by...
McDermott Company's bank statement for September 30 showed an ending cash balance of $1,364. The company's Cash account in its general ledger showed a $1,010 debit balance. The following information was also available as of September 30. • The bank deducted $130 for an NSF check from a customer deposited on September 15. • The September 30 cash receipts, $1,260, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30...
blem 3. Bank Reconciliation and Journal Entries. 30 points (20 points for bank Pro reconciliation; 10 points for related journal entry). Required: Prepare a bank reconciiation as a result of as of S eptember 30. Prepare any necessary adjusting journal entries necessary the bank reconciliation. Brown Company's bank statement for September 30 showed a cash balance of $1,350. The company's Cash account in its general ledger showed a $995 debit balance. The following information was also available as of September...
Identify each of the following reconciling items as: An addition to the cash balance according to the bank statement. A deduction from the cash balance according to the bank statement. An addition to the cash balance according to the company's records. A deduction from the cash balance according to the company's records. Assume that none of the transactions reported by bank debit and credit memos have been recorded by the company. Write "entry" by items that will require a journal...
12. Inte al control d protects from e guarantee the company will campo d ensure that business Information is one the bar 13. The amount of deposits in Hount of deposits in transit is included a. deduction from the balance the company's b. deduction from the balance perbank e n e addition to the balance per bank statement d. addition to the balance per company books 14. The bank reconciliation a. should be prepared by an employee who records castrech...
McDermott Company's bank statement for September 30 showed an ending cash balance of $1,364. The company's Cash account in its general ledger showed a $1,010 debit balance. The following information was also available as of September 30. The bank deducted $130 for an NSF check from a customer deposited on September 15. • The September 30 cash receipts, $1,260, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the...