Homework Packet -151

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School

Harrisburg Area Community College *

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Course

151

Subject

Accounting

Date

Apr 30, 2024

Type

pdf

Pages

Uploaded by BailiffBravery9550

1 Homework This packet contains all of the homework problems required for this course. The problems receive points for completeness. Submissions can be completed in Excel, Word or completed on paper, photographed and uploaded as a PDF or JPEG. Once the homework is submitted for each chapter, I will upload the answers for the completed problems. It may be helpful work-on and submit these problems and receive the answer key, to ensure you understand how to complete any graded problems for the chapter. For further explanation, watch the Course Basics video (it is also located in the Course Basics module in the course Content. If you have any questions, post them in the Course Basics Question/Comment Discussion. Chapter 1 (10 pts) 1. State which balance, debit, or credit is normally held by the following accounts: 1.Cash 2.Dividends 3.Notes payable 4.Unearned revenue 5.Cost of goods sold 6.Prepaid rent 7.Accounts receivable 8.Capital stock 2. State if the following accounts need to be debited or credited: 1.Decrease Cash 2.Increase Retained Earnings 3.Increase Notes payable 4.Decrease Unearned revenue 5.Decrease Cost of goods sold 6.Increase Prepaid rent 7.Decrease Accounts receivable 8.Increase Capital stock 3. Jan Haley owns and operates Haley’s Dry Cleaners. The following occurred during December: a. On December 1, Haley prepaid rent on her store for December and January with $2,000 cash. b. December 1, Haley purchased insurance of $2,400 that will last six months. c. Haley paid $900 of her accounts payable balance. d. Haley paid off all of her salaries payable balance. e. Haley purchased supplies on account in the amount of $2,400. f. Haley paid her assistant of $1,000 in cash for work done in the first two weeks of December. g. Haley dry-cleaned clothes for customers on account in the amount of $8,000. h. Haley collected $6,300 of her accounts receivable balance. i. Haley paid tax of $750 in cash. Prepare the journal entry for each transaction. Fill in the T-accounts provided (numbers under the accounts are the prior balance in that account).

2 Opening T-Account Balances Make the following adjusting entries for the month of December and post them to the T-accounts: j. Prepaid rent for the month. k. Prepaid nsurance for the month. l. Haley owes her assistant $1,000 for work done during the last two weeks of December. m. An inventory of supplies shows $400 in supplies remaining on December 31. Prepare an income statement, statement of retained earnings, and balance sheet for Dec. 31.

3 Chapter 2 (3 pts) 1. Nuance uses the percentage of receivables method to estimate uncollectible accounts and assumes that 5 percent of accounts receivable will never be collected. Nuance had accounts receivable balance of $100,000 at the end of the year. 1. Prepare the entry to record Nuance’s bad debt expense for the year. 2. Show the net accounts receivable balance reported on the balance sheet. 3. Why are companies allowed to choose between methods of estimating bad debts instead of being required to use one method? Chapter 3 (10 pts.) 1. Bulsara Furniture uses a perpetual system and had the following transactions during September. Record the journal entries for the transactions. Sept. 1 Bulsara sold furniture on credit for $5,000 (3/10, N/30), with a cost of $3,500 3 Purchased furniture from Taylor, Co. for $720 cash 4 Bulsara purchased more inventory from Taylor, Co. on credit for $2,600, terms 1/20, N/30 5 A customer returned $300 worth of furniture purchased on Aug. 29. It had a cost of $210. 11 Bulsara received payment for the furniture sold on September 1. 15 Bulsara returned $600 of damaged furniture purchased on Sept. 4, to Taylor, Co. 18 Bulsara paid $200 in freight charges for tables ordered last month. 23 Paid Taylor, Co for the remaining amount owed on the Sept. 4 th purchase. 24 Bulsara sold $7,000 worth of furniture on credit. It had a cost of $4,900 and 2/10, N/30 terms. 31 Bulsara received payment for the merchandise it sold on Sept. 24

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