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Data Co Quiz




Data Co. has asked you to assist in the preparation of a bank reconciliation at the end of July. Answer questions 1-3 using the following code letters to indicate how the item described would be reported on the bank reconciliation.;A. Add to the bank statement balance;B. Deduct from the bank statement balance;C. Add to the book balance;D. Deduct from the book balance;E. Does not belong on the bank reconciliation;1. Note and interest collected by the bank for the company, $500 (plus $25 interest).;2. Deposit in transit, $400.;3. Check no. 662 for written for $730 was incorrectly recorded by the bank as $370.;4. If a bank reconciliation includes an NSF check for $45, the journal entry to record this reconciling item would include;A. a credit to Cash.;B. a debit to Cash.;C. a credit to Accounts Receivable.;D. no entry. No entry is required.;5. All of the following are procedures that should be followed for cash received by mail EXCEPT that;A. all incoming mail should be opened by a high-level, trusted employee.;B. the debit to the Cash account should match the bank deposit.;C. the controller should compare the day?s cash receipts to the bank deposit.;D. the remittance advices should be sent to the accounting department.;6. All of the following are internal controls over cash payments EXCEPT that;A. all payments should be made by check.;B. before payment is made, it should first be authorized by the treasurer.;C. the invoice should be compared with a copy of the purchase order and receiving report.;D. small payments should be made from a petty cash fund.;Table 7-1;On December 31, 2012, Zeb Company reported the following amounts and account balances (before;adjustments);Accounts Receivable $ 840,000;Allowance for Uncollectible Accounts, credit 22,050;Net Sales (all on credit) 3,850,000;7. Refer to Table 7-1. Zeb Co. estimates that its Uncollectible Account Expense is 2 ?% of net sales. The Uncollectible-Account Expense for 2012 should be;A. $21,000. C. $118,300.;B. $74,200. D. $ 96,250.;8. Refer to Table 7-1. Zeb Co. uses an aging schedule to estimate uncollectible accounts. The aging of accounts receivable and the percentage of each category that is estimated to be uncollectible is;Current $455,000 2%;1 - 30 days past due 315,000 15%;Over 30 days past due70,000 55%;The balance in the Allowance for Uncollectible Accounts after the adjustment should be;A. $ 94,850. C. $ 72,800.;B. $116,900. D. $169,050.;9. The December 31, 2011 balance sheet of Miller Company reported the following information;Accounts Receivable $197,400;Allowance for Uncollectible Accounts 8,600;During 2012, a $520 account receivable from Alexis Co. is written off. As a result;A. Miller?s net accounts receivable will equal $188,800.;B. Miller will record a debit to Uncollectible Account Expense for $520.;C. Miller?s net income will decrease by $520.;D. Miller will record a credit to Allowance for Uncollectible Accounts of $520.;10. On July 7 a 5%, 90 day, $2,600 note receivable is accepted from a customer for the sale of farm equipment. Which of the following is correct?;Due Date Maturity Value;A. 10/4 $2,600.00;B. 10/5 $2,730.00;C. 10/5 $2,632.50;D. 10/6 $2,632.50


Paper#74710 | Written in 18-Jul-2015

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