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Four Accounting questions




Question;Problem 12 15 points;On December 16;2013, Mid-Night Auto Supply Co. accepted a $13,500 note receivable, at 12%, due;in 60 days. Note: The note was dated;December 16, 2013 (that was 15 days before the end of its annual accounting;period ended).;What journal;entries would Mid-Night Auto Supply Co. make for the following date?;A);December;16, 2013;B);December;31, 2013;C);February;14, 2014 (the noted is paid in full);Problem 13 15 points;The Bozo School;for Clowns established a $1,000 Petty Cash fund on January 2, 2014.;At the end of;January, Petty Cash fund included cash of $940.75 and receipts for the;following expenditures: $22.75 for freight, $7.65 postage and $24.85 office;Supplies.;Give the following;journal entries;A) To establish the Petty Cash fund.;B) To reimburse the Petty Cash fund at the end;of January.;C) It was decided that $1,000 was too much;money in the Petty Cash fund. Management;wants the Petty Cash Fund balance reduced;to $250.;Problem 14 15 points;Sear, Roebuck;Co. estimated it would loose as bad debts an amount equal to one half;of 1% of it?s;$450,000 credit sales made for the 2012.;On December 31, 2012, at the end;of the annual;accounting period, Sears, Roebuck & Co. made an entry to it?s Allowance for;Doubtful Accounts;equal to the estimate. Prior to this;entry the Allowance for Doubtful;Accounts had a;debit balance of $600. On April 1, 2013;Sears, Roebuck & Co. decided;the $340 account;of Ron Koplen was uncollectible and wrote it of as a bad debt. Two;months later, on;June 1, Ron Koplen paid in full Sear, Roebuck & Co. Give the entries;required by Sears;for the following transactions;A);December;31,2012;B);April;1, 2013;C);June;1, 2013;D);What;is the balance in the Allowance for Doubtful Accounts as of January 1, 2013?;Problem 15;10 points;An inexperienced;accountant made the following entries.;In each case, the date and the explanation to the entry is correct.;Dec. 17 Cash;2,940;Sales Discount 60;Accounts Receivable 3,000;Dec. 17 Cash??????????????3,000;Accounts Receivables?????????$3,000;(To;record collection of Dec 4 sales, terms 2/10, n/30;Dec 20;Cash;20,450;Notes Receivable;20,000;Interest Revenue 450;(Collection of $20,000, 9%;90 day note dated Sept. 21.;Interest had been accrued;through Nov. 30);Dec 27;Cash;1,000;Bad Debts Expense;1,000;(Collection of account;previously written off as uncollectible;under the allowance method);Dec 31;Bad Debts Expense 1,600;Allowance for Doubtful;Accounts 1,600;(To recognize estimated bad;debts based on 2% of net sales of $800,000.);INSTRUCTIONS;Prepare the;correcting entries or make the entries like it should have been originally;made.


Paper#37556 | Written in 18-Jul-2015

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