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Cotter Corporation had the following selected transactions

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Question;Cotter Corporation had the following selected transactionsCotter Corporation had the following selected transactions for themonth of May, 20XX.May 4 Received $300 from E. Gilmour representing thebalance from a sale made in March.6 Made a of merchandise to W. Jones, No. 506, $890.7 E. Cotter invested additional cash of $6,000.8 Sold merchandise on credit to R. Hopkins, invoiceNo. 507, $2,000.11 Received payment from W. Jones for invoice No.506, less a 2% discount.13 R. Hopkins was granted a $90 credit for merchandisereturned.15 cash salefor the first half of the month totaled$740.19 Sold merchandise on account to R. Donovan,invoice No. 508, $1,250.21 Received payment from R. Hopkins for invoice No. 507, less return ofMay 13.25 Sold merchandise on account to D. Ruddy, invoice No. 509, $1,845.27 Obtained a short-term loan of $1,500 from a local bank.28 Received payment from R. Donovan for invoice No. 508, less a 2% discount.31 Cash sales for the second half of the month totaled $620.REQUIRED: Record the preceding transactions, using the sales journal, cashreceipts journal, and the general journal provided at the back of this unit andthen answer questions 1?3.1. The total of the cash column in the cash receipts journal isA. $13,257.20 C. $7,257.20B. $13,167.20 D. $7,167.202. The total of the sales journal for the month isA. $7,485. C. $5,985.B. $7,345. D. $5,895.3. Which of the following transactions will appear in the general journal?A. May 7 C. May 7 and 13B. May 13 D. May 7, 13, and 27Beezer?s Bargain Shop began operations on June 1, 20XX. The company?s bookkeeperdetermined that five books of original entry would have to be maintained:a cash receipts journal, a cash payments journal, a sales journal, a purchasesjournal, and a general journal. A chart of accounts was also set up and includedthe following accounts:Account Number Account Title100 Cash110 a r120 Office Supplies130 Prepaid Advertising140 Store Equipment200 a ppital310 Edward Beezer, Drawings400 Sales410 Sales Returns and Allowances420 Sales Discounts500 Purchases510 Purchase Returns and Allowances520 Purchase Discounts530 Transportation In600 Salaries Expense610 Utilities ExpenseDuring the month of June the following transactions were completed:June 1 Edward Beezer invested $20,000 in the business.1 Purchased merchandise from Zipay Brothers on account, $2,500, terms2/10, n/30.2 Purchased store equipment on account from Dante Company, $520.2 Purchased merchandise for cash, $1,500.3 Purchased merchandise from the IAC Company on account, $5,500, 1/10,n/30.4 Sold merchandise to D. Nazar Associated on account, $725, invoice No.1000, terms 2/10, n/30.4 Paid $85 for office supplies.4 Sold merchandise to H. Franklin, Inc. on account, $625, invoice No. 1001,terms 2/10, n/30.5 Cash sales for week, $920.5 Returned part of merchandise purchased from Zipay Brothers, who agreed toissue credit memorandum for $230.8 Purchased merchandise from Roosevelt Company on account, $1,100, terms1/10, n/30.8 Received payment from D. Nazar Associates for invoice No. 1000, lessdiscount.9 Sold merchandise to T. Connors & Sons on account, $2,000, invoice No.1002, terms 2/10, n/30.9 Paid Zipay Brothers for invoice of June 1, less merchandise returned anddiscount taken.10 Paid for three months? advertising expense in advance, $600.11 Paid IAC Company invoice of June 3, less discount.12 Cash sales for week, $3,140.12 Sold merchandise to Leonards Home Builders on account, $2,240, invoiceNo. 1003, terms 2/10, n/30.15 Paid salaries for first half of month, $640.Paid Dante Company one-half the ant due16 Purchased merchandise on account from the Bosak Company, $4,200, terms2/10, n/30.17 Paid Roosevelt Company invoice of June 8, less discount.17 Leonards Home Builders returned merchandise in the amount of $360. Creditwas given.18 Sold merchandise to Pollocks Hardware Store on account, $1,910, invoiceNo. 1004, terms 2/10, n/30.19 Received payment from T. Connors & Sons for invoice No. 1002, lessdiscount.19 Cash sales for week, $2,720.22 Received payment from Leonards Home Builders for invoice No. 1003, lessmerchandise returned and discount taken.22 Paid balance due to Dante Company.23 Paid transportation charges on merchandise received from Bosak Company,$95.24 Sold merchandise to C. Vingsen on account, $1,720, invoice No. 1005, terms2/10, n/30.25 Purchased merchandise on account from the Big M Supply House, $8,200,terms 2/10, n/30.25 Paid Bosak Company invoice of June 16, less discount.26 Cash sales for week, $2,220.26 Received payment from Pollocks Hardware Store for invoice No. 1004, lessdiscount.29 Paid Utility bill of $65.30 Paid salaries for second half of the month, $640.30 Received amount due from H. Franklin, Inc.30 Edward Beezer withdrew $700 from the business for his personal use.4. The total of the purchases journal on June 30 isA. $23,520. C. $22,020.B. $23,000. D. $21,500.5. The total of the sales discount in the cash receipts journal isA. $92.10. C. $137.50.B. $130.30. D. $195.40.6. Entries were recorded in the general journal for transactions onA. June 1, 5, and 17. C. June 1, 2, and 30.B. June 2, 17, and 30. D. June 2, 5, and 17.7. How many entries were made in the Other Accounts column of the cash paymentsjournal?A. 5 C. 7B. 6 D. 88. On June 30, the totals of the purchases journal and the Accounts Payable column ofthe cash payments journal are posted to the Accounts Payable In addition, individual postings are made from the general journal. After these entrieshave been posted to the general ledger from the journals, the balance in the accountspayable account isA. $21,500. C. $8,200.B. $8,430. D. $7,680.9. Which one of the following does not apply to payroll accounting?A. The calculations of the amount of taxes payable to the city.B. The recording of amounts owed to each employee for each pay period.C. The calculation of the amount to be accrued to each accounting period for GeneralExpenses.D. Determining the proper amounts to be withheld from employees? paycheques.10. Timesheets would be used in which one of the following payroll methods?A. Straight salary C. Hourly payrollB. Piecework rate D. Commission11. Which one of the following headings would not be used on a straight-salary method?A. Group Insurance C. Federal inc taxB. Overtime Pay D. Pension Plan12. Which one of the following would affect a company?s profit-and-loss statement?A. Sale Salaries C. Pension Plan PayableB. Group Insurance Payable D. Prepaid Insurance

 

Paper#43148 | Written in 18-Jul-2015

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