23930950_061061_mr

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Penn Foster College *

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50007RR

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Accounting

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Jan 9, 2024

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docx

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Name: Syed Rayan Ali Student Number: 23930950 Email: alirayan250@icloud.com Lesson Number: 061061 Dear Syed, Your grade of _94% has been posted to your record. I have highlighted the two incorrect answers below If you have any questions, please get in touch with your instructor. If you wish to review this, please call your instructor to go over it by phone. We want to hear from you! Please use this link to share your feedback with us. Best of luck with your studies! Sincerely, M.R. December 20, 2023 Answer Sheet 1_ The total assets the company has is $80,000. The formula you would use:  Liabilities + Equity = Total Assets $23,000 + $56,600 = $80,000 2_ The company would have a net loss of $3,500. The formula you would use to determine net income or loss is:  Total Sales – Expenses = Net Income/Loss $29,500 - $33,000 = Net Loss of $3,500 3_ The final balance of the Salaries Expense account is $1,225 and the balance would come in the debit side. $450 + $350 + $600 - $175 = $1,225 4_ The error that needed to be corrected was to debit cash for $375 and credit accounts payable for $375, because a journal entry uses a double entry, which comprises of 2 columns recording the credit and the debit. 5_ The adjusting journal entry on December 31 st would be debit insurance expense: $750 and credit prepaid insurance: $750. To calculate this, we divide $3,500 by 24 months, which is $150. Then, you multiply $150 by 5 months and it would be $750. 6_ The supplies expense for the period was $160. $200 - $40 = $160

Name: Syed Rayan Ali Student Number: 23930950 Email: alirayan250@icloud.com Lesson Number: 061061 7_ ABC Corp. cash account will be credited with $4,500, because the client didn’t pay within the 15 days period and paid on the 17 th day, thus the client will be getting any discount. 8_ The current liabilities of Bond and Associates is $19,000. In this, we consider Accounts Payable, Unearned Revenue, and Wages Payable a current liability. $8,500 + $6,000 + $4,500 = $19,000 9_ The Total cost of goods sold for June 14 is $456. Transaction Units Cost per unit Amount June 1 Inventory 5 $52 $260 June 4 Purchase 10 $55 $550 Total 15 $54 $810 June 7 Sale 12 $54 -$648 Total 3 $54 $162 June 11 Purchase 9 $58 $522 Total 12 $57 $684 June 14 Sale 8 $57 $ 456 -3 10_ The cost of goods sold is $1,300. We use the cost of goods sold = net sales – gross profit $4,500 - $3,200 = $1,300 11_ The inventory turnover is 2.77. The formula for inventory turnover is cogs/average inventory or in this case beginning inventory + ending inventory/ 2. $50,000/ $16,000 + $20,000/ 2 = 2.77 12_ The control element deals with establishing procedures such as handling incoming checks and the monitoring process deals with the oversight of the internal control system. 13_ Audit opinion is a statement which is made by an auditor regarding the company’s financial statements. 14_ The journal entry to record estimated uncollectible account is: Company name Debit Credit Bad debt expense $16,450 Allowance for Doubtful Acc. $16,450 To record estimated uncollectible accounts for the period 15_ The journal entry to record the estimated uncollectible accounts is: Bestway, Inc Debit Credit Bad debt expense $2,840 Allowance for Doubtful Acc. $2,840

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