Acc/531 Week 3

From the website, access file 3b, which has the unadjusted trial balance with the accounts in proper order. This file also contains an accounting “system” comprised of a series of linked spreadsheets. The linkages enable the effects of all accounting entries (journal, adjusting, and closing) to flow through to spreadsheets for the income statement, balance sheet, and statement of cash flows. You notice that for the fiscal year ended December 31, 2012, someone has made all the journal entries but none of the adjusting or closing entries.

a. According to the bank statement, how many checks were written from this account during the statement period? (0.5 points)

a. According to the bank statement, how many checks were written from this account during the statement period? (0.5 points)

The timing between sales and returns would need to be looked at to verify that false sales aren’t being recorded due to timing differences.

Reviewing the trial balance for the entire year to see all transaction are accurately accounted for.

Name: ________________________________ Date: _________________ [1]BASIC BANK01 - BAT 003 Which of the following statements is true? A. An asset account is increased by a credit B. An expense account is increase by a credit C. A revenue account is decreased by a credit D. An equity account is decreased by a debit [2]BASIC BANK02 - BAT 010 The Income Summary account contains: A. Total revenues and total expenses for the year B. Total assets and total liabilities at year end C. Total revenues, expenses, assets, and liabilities

(TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1,350 of office supplies were purchased. There was not a beginning balance and the one purchase was the only one for the month. At the end of the month $500 of supplies remained. Develop the adjusting entry. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (Points : 20)

The adjusted trial balance listed all of a company’s accounts and their corresponding balances rather than just those required to answer this question. There are 12 other amounts in the data given that are not relevant in determining the ending retained earnings balance. Yet students might mistakenly use these extra data, such as asset and liability balances, in calculating their answers. While there are many possibilities for incorrect answers, the structure of the MC item is limited to only three distracters.

(b) Compute Jones' accounts receivable turnover ratio for the year. The company does not believe it will have any bad debts. (Round answer to 2 decimal places.)

The company’s past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of April is

Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

38) Which of the following funds is accounted for on the modified accrual basis of accounting?

Holding the cash receipts book open to overstate the cash balance is a fraudulent, misleading, and an unethical activity. The financial vice president ought to not encourage that behavior and the controller ought to not be constrained to take after those instructions. The periodicity concept of bookkeeping states there should be consistency in closing the books of accounts. The receipts of September 1st or September 2nd cannot be included in adjusting for August 30th. It leads to total errors willfully done to compensate each of the prior errors. Willful errors

Our current total incurred is $3,000,000 & has been posted since 12/28/12; our paid to date is $2,181,420.88 with an outstanding loss reserve of $818,579.12. After booking the net payment of $454,463.08 our reserve will be $364,116.04.

b. Trace the line item “Balance per Bank Statement” – Accuracy and Existence (AU-C 315.A114 a-iii, b-i)