ACC 291T Week 5 Apply: Connect® Exercise (2019 New)

Review the Knowledge Check in preparation for this assignment.

Complete the Week 5 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

At the end of the year Stan Still Stationery Store had the following balances: Sales $610,000; Sales Discounts $2,560; Sales Returns and Allowances $14,800; Sales Salaries Expense $67,000. The Net Sales for the year are:

Multiple Choice

$607,440

$525,640

$592,640

$595,200

The worksheet of Bridget’s Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $58,875 on January 1, 2019, and $51,825 on December 31, 2019. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

Accounts

401 Sales $ 245,800 Cr.

451 Sales Returns and Allowances 4,260 Dr.

491 Miscellaneous Income 310 Cr.

501 Purchases 102,700 Dr.

502 Freight In 1,885 Dr.

503 Purchases Returns and Allowances 3,510 Cr.

504 Purchases Discounts 1,710 Cr.

611 Salaries Expense—Sales 44,400 Dr.

614 Store Supplies Expense 2,220 Dr.

617 Depreciation Expense—Store Equipment 1,420 Dr.

631 Rent Expense 12,600 Dr.

634 Utilities Expense 2,910 Dr.

637 Salaries Expense—Office 20,200 Dr.

640 Payroll Taxes Expense 5,100 Dr.

643 Depreciation Expense—Office Equipment 480 Dr.

646 Uncollectible Accounts Expense 630 Dr.

691 Interest Expense 560 Dr.

________________________________________

The worksheet of Bridget’s Office Supplies contains the following owner’s equity accounts.

Accounts

301 Bridget Swanson, Capital $ 62,860 Cr.

302 Bridget Swanson, Drawing 40,250 Dr.

________________________________________

Net income for the year $44,915.

The worksheet of Bridget’s Office Supplies contains the following asset and liability accounts. The balance of the Notes Payableaccount consists of notes that are due within a year.

Accounts

101 Cash $ 8,805 Dr.

107 Change Fund 410 Dr.

111 Accounts Receivable 5,050 Dr.

112 Allowance for Doubtful Accounts 770 Cr.

121 Merchandise Inventory 51,825 Dr.

131 Store Supplies 1,010 Dr.

133 Prepaid Interest 85 Dr.

141 Store Equipment 10,300 Dr.

142 Accum. Depreciation—Store Equipment 1,090 Cr.

151 Office Equipment 3,220 Dr.

152 Accum. Depreciation—Office Equipment 410 Cr.

201 Notes Payable 5,410 Cr.

203 Accounts Payable 3,635 Cr.

216 Interest Payable 65 Cr.

231 Sales Tax Payable 1,800 Cr.

________________________________________

Prepare a balance sheet dated December 31, 2019.

The worksheet of Bridget’s Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $58,175 on January 1, 2019, and $51,125 on December 31, 2019. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

Accounts

401 Sales $ 244,400 Cr.

451 Sales Returns and Allowances 4,190 Dr.

491 Miscellaneous Income 240 Cr.

501 Purchases 102,000 Dr.

502 Freight In 1,815 Dr.

503 Purchases Returns and Allowances 3,440 Cr.

504 Purchases Discounts 1,640 Cr.

611 Salaries Expense—Sales 43,700 Dr.

614 Store Supplies Expense 2,150 Dr.

617 Depreciation Expense—Store Equipment 1,350 Dr.

631 Rent Expense 11,900 Dr.

634 Utilities Expense 2,840 Dr.

637 Salaries Expense—Office 19,500 Dr.

640 Payroll Taxes Expense 4,400 Dr.

643 Depreciation Expense—Office Equipment 410 Dr.

646 Uncollectible Accounts Expense 560 Dr.

691 Interest Expense 420 Dr.

________________________________________

The worksheet of Bridget’s Office Supplies contains the following owner’s equity accounts. No additional investments were made during the period.

Accounts

301 Bridget Swanson, Capital $ 62,160 Cr.

302 Bridget Swanson, Drawing 41,000 Dr.

________________________________________

Net income for the year $47,435.

Prepare a statement of owner’s equity for the year ended December 31, 2019.

Debit Credit

2019 (Adjustment a)

Dec. 31 Uncollectible Accounts Expense 4,380.00

Allowance for Doubtful Accounts 4,380.00

To record estimated loss from Uncollectible accounts based on 0.6% of net credit sales, $730,000

(Adjustment b)

31 Supplies Expense 5,200.00

Supplies 5,200.00

To record supplies used during the year

(Adjustment c)

31 Insurance Expense 1,500.00

Prepaid Insurance 1,500.00

To record expired insurance on 1-year $6,000 policy purchased on Oct. 1

(Adjustment d)

31 Depreciation. Exp.—Store Equipment 14,800.00

Accum. Depreciation—Store Equip. 14,800.00

To record depreciation

(Adjustment e)

31 Salaries Expense—Office 3,300.00

Salaries Payable 3,300.00

To record accrued salaries for Dec. 29–31

(Adjustment f)

31 Payroll Taxes Expense 252.45

Social Security Tax Payable 204.60

Medicare Tax Payable 47.85

To record accrued payroll taxes on accrued salaries: social security, 6.2% × 3,300 = $204.60; Medicare, 1.45% × 3,300 = $47.85

(Adjustment g)

31 Interest Expense 250.00

Interest Payable 250.00

To record accrued interest on a 4-month, 6% trade note payable dated Nov. 1: $25,000 × 0.06 × 2/12 = $250.00

(Adjustment h)

31 Interest Receivable 270.00

Interest Income 270.00

To record interest earned on 6-month, 8% note receivable dated Oct. 1: $9,000 × 0.12 × 3/12 = $270.00

________________________________________

Examine the above adjusting entries and determine which ones should be reversed. Show the reversing entries that should be recorded in the general journal as of January 1, 2020. (Record the entries in the order given. Round your answers to 2 decimal places.)

A company reported gross profit of $81,000, total operating expenses of $43,500 and interest income of $2,600. What is the income from operations?

Multiple Choice

$40,100

$34,900

$32,300

$37,500

The worksheet of Bridget’s Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $59,675 on January 1, 2019, and $52,625 on December 31, 2019. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

Accounts

401 Sales $ 248,200 Cr.

451 Sales Returns and Allowances 4,340 Dr.

491 Miscellaneous Income 390 Cr.

501 Purchases 103,500 Dr.

502 Freight In 1,965 Dr.

503 Purchases Returns and Allowances 3,590 Cr.

504 Purchases Discounts 1,790 Cr.

611 Salaries Expense—Sales 45,200 Dr.

614 Store Supplies Expense 2,300 Dr.

617 Depreciation Expense—Store Equipment 1,500 Dr.

631 Rent Expense 13,400 Dr.

634 Utilities Expense 2,990 Dr.

637 Salaries Expense—Office 21,000 Dr.

640 Payroll Taxes Expense 5,900 Dr.

643 Depreciation Expense—Office Equipment 560 Dr.

646 Uncollectible Accounts Expense 710 Dr.

691 Interest Expense 720 Dr.

________________________________________

Prepare a classified income statement for this firm for the year ended December 31, 2019.

The beginning capital balance shown on a statement of owner’s equity is $81,000. Net income for the period is $31,000. The owner withdrew $39,000 cash from the business and made no additional investments during the period. The owner’s capital balance at the end of the period is

Multiple Choice

$73,000.

$112,000.

$151,000.

$89,000.

For the current fiscal year, Purchases were $290,000, Purchase Returns and Allowances were $8,800, Purchase Discounts were $2,800 and Freight In was $38,000. If the beginning merchandise inventory was $64,500 and the ending merchandise inventory was $84,000, the Cost of Goods Sold is:

Multiple Choice

$335,900

$316,400

$296,900

$320,100

The beginning capital balance shown on a statement of owner’s equity is $160,000. Net income for the period is $56,000. The owner withdrew $28,000 cash from the business and made no additional investments during the period. The owner’s capital balance at the end of the period is

Multiple Choice

$188,000.

$244,000.

$216,000.

$160,000.

For the current fiscal year, Purchases were $190,000, Purchase Returns and Allowances were $3,400 and Freight In was $13,000. If the beginning merchandise inventory was $130,000 and the ending merchandise inventory was $79,000, the Cost of Goods Sold is:

Multiple Choice

$122,600

$250,600

$224,600

$257,400