Drill 9-D1 Determining accounts affected by adjusting …:钻9-d1确定受调整账户…
Drill 1-D1 Classifying assets, liabilities, and owner’s equity
INSTRUCTIONS:
Classify each item listed below as an asset, liability, or owner’s equity by placing a check
mark in the Asset, Liability, or Owner’s Equity column.
Owner’s Asset Liability Equity 1. Cash 2. Alice Jones, Capital 3. Prepaid Insurance 4. Steward Supply Company 5. Supplies 6. Any amount owed 7. Owner’s capital account 8. Anything owned
1
Drill 2-D1 Determining how revenue, expense, and withdrawal transactions
change an accounting equation
INSTRUCTIONS:
Decide which accounts in the accounting equation are changed by each of the following
transactions. Place a plus (+) in the appropriate column if the account is increased. Place
a minus (-) in the appropriate column if the account is decreased.
Transactions
1. Received cash from owner as an investment. 2. Received cash from sales.
3. Paid cash for telephone bill.
4. Paid cash for advertising.
5. Paid cash to owner for personal use. 6. Paid cash for rent.
Received cash from sales. 7.
8. Paid cash for equipment repairs.
9. Bought supplies on account from Maxwell Company. 10. Paid cash for insurance.
11. Received cash from sales.
12. Paid cash on account to Maxwell Company.
Owner’s Assets = Liabilities + Equity
Susan Trans. Prepaid Maxwell Cash + Supplies + = + Sanders, No. Insurance Company Capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
2
Drill 3-D1 Analyzing how transactions affect accounts The form for this drill is on the next page.
INSTRUCTIONS:
1. Using the following account titles, write the accounts affected by each transaction in
Column 2.
Cash Sales
Supplies Advertising Expense
Prepaid Insurance Miscellaneous Expense
Miller Supplies Rent Expense
Wayne Office Supplies Repair Expense
Jeff Dixon, Capital Utilities Expense
Jeff Dixon, Drawing
2. For each account title, write the account classification in Column 3.
3. For each account title, place a check mark in either Column 4 or 5 to indicate the
normal balance.
4. For each account title, place a check mark in either Column 6 or 7 to indicate if the
account is increased (+) or decreased (-) by this transaction.
For each account title, place a check mark in either Column 8 or 9 to indicate if the 5.
account is changed by a debit or a credit.
Transactions
1. Received cash from owner as an investment. 2. Paid cash for supplies.
3. Paid cash for insurance.
4. Bought supplies on account from Miller Supplies. 5. Received cash from sales.
6. Paid cash on account to Miller supplies.
7. Paid cash for rent.
8. Paid cash for repairs.
9. Paid cash for miscellaneous expense.
10. Paid cash for telephone bill (utilities expense). 11. Paid cash to owner for personal use.
(The form for Drill 3D-1 is on the next page.)
3
Drill 3-D1 Analyzing how transactions affect accounts (continued)
1 2 3 4 5 6 7 8 9 Account’s How Is Account Entered in Trans. Accounts Account Normal Balance Affected? Account as a No. Affected Classification Debit Credit + - Debit Credit 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
4
Drill 4-D1 Analyzing transactions
This drill provides continuing practice in analyzing transactions into debit and credit parts.
INSTRUCTIONS:
1. Using the following account titles, write the accounts affected by each transaction in
Column 2.
Cash Sales
Supplies Advertising Expense
Prepaid Insurance Miscellaneous Expense
Gable Supplies Rent Expense
Mary Jacobs, Capital Repair Expense
Mary Jacobs, Drawing Utilities Expense
2. For each account title, write the account classification in Column 3.
For each account title, place a check mark in either Column 4 or 5 to indicate the 3.
normal balance.
4. For each account title, place a check mark in either Column 6 or 7 to indicate if the
account is increased (+) or decreased (-) by this transaction. 5. For each account title, place a check mark in either Column 8 or 9 to indicate if the
account is changed by a debit or a credit.
Transactions
1. Paid cash for advertising.
2. Paid cash for repairs.
3. Received cash from owner as an investment.
4. Paid cash for miscellaneous expense.
5. Bought supplies on account from Gable Supplies.
6. Paid cash on account to Gable Supplies.
7. Paid cash for water bill.
8. Paid cash for supplies.
9. Paid cash for rent.
10. Paid cash to owner for personal use.
11. Received cash from sales.
12. Paid cash for insurance.
(The form for Drill 4D-1 is on the next page.)
5
Drill 4-D1 Analyzing transactions (continued)
1 2 3 4 5 6 7 8 9 Account’s Normal How Is Account Entered in Trans. Accounts Account Balance Affected? Account as a No. Affected Classification Debit Credit + - Debit Credit 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
6
Drill 5-D1 Preparing a chart of accounts
INSTRUCTIONS:
1. The account descriptions in Column 1 below refer to the location of accounts in a
chart of accounts similar to the one for Encore Music on page 3 of the textbook. 2. In column 2, write the account number that would be assigned to the account
described in Column 1. Account numbers are assigned by 10s.
3. Check your answers with Encore Music’s chart of accounts, page 3. Determine if
your answers are the same for each account as shown on the chart of accounts.
1 2 Account Description Account Number
1. The first asset account
2. The first liability account
3. The first owner’s equity account
4. The first revenue account
5. The first expense account
6. The third asset account
7. The fourth expense account
8. The owner’s drawing account
9. The case account
10. The sales account
11. The owner’s capital account
7
Drill 5-D2 Analyzing posting from a general journal This drill provides continuing practice in analyzing transactions into debit and credit parts.
INSTRUCTIONS:
1. Use Encore Music’s chart of accounts illustrated on page 97. In column 1, write the
titles of the accounts affected by each transaction. 2. For each account title written in Column 1, place a check mark in either Column 2 or
3 to indicate if the transaction amount in the general journal will be posted to the
general ledger account as a debit or a credit.
Transactions
1. Received cash from owner as an investment.
2. Paid cash to owner for personal use.
3. Paid cash for supplies.
4. Bought supplies on account from Butler Cleaning Supplies.
Paid cash on account to Butler Cleaning Supplies. 5.
6. Paid cash for rent.
7. Paid cash for insurance.
8. Paid cash for telephone bill.
9. Paid cash for miscellaneous expense.
10. Received cash from sales.
11. Paid cash for advertising.
(The form for Drill 5D-2 is on the next page.)
8
Drill 5-D2 Analyzing posting from a general journal (continued)
1 2 3 4 How Accounts Trans. Accounts Affected Are Affected No. Debit Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
9
Drill 6-D1 Replenishing a petty cash fund
KeepClean replenished petty cash on the dates shown in Column 2 of the following table. The information in Columns 3 to 5 is obtained from the petty cash reports.
INSTRUCTIONS:
Use the T accounts below to analyze each transaction given in the table. Label each amount in the T accounts with the corresponding transaction letter.
1 2 3 4 5 Summary of Petty Cash Slips Trans. Replenished on Supplies Advertising Miscellaneous
A July 31 32.00 25.00
B August 31 21.00 20.00 5.00
C September 30 40.00 20.00 15.00
D October 31 10.00 20.00
Cash Advertising Expense
Supplies Miscellaneous Expense
10
Drill 7-D1 Extending account balances on a work sheet
INSTRUCTIONS:
1. Place a check mark in either Column 1 or 2 to indicate the Trial Balance column in
which each account’s balance will appear.
2. Place a check mark in Columns 5, 6, 7, or 8 to indicate the column to which each up-
to-date account balance will be extended.
1 2 5 6 7 8 Trial Balance Income Statement Balance Sheet Account Title Debit Credit Debit Credit Debit Credit
1. Advertising Expense
2. Bell Supply
3. Cash
4. Miscellaneous Expense
5. Maria Dorn, Capital
6. Maria Dorn, Drawing
7. Prepaid Insurance
8. Rent Expense
9. Repair Expense
10. Sales
11. Supplies
12. Utilities Expense
11
Drill 7-D2 Calculating net income or net loss on a work sheet
The column totals from five different work sheets are give on the form below.
INSTRUCTIONS:
Complete the following for each company. 1. Calculate the amount of net income or net loss. Write the amount on line 2 in the
correct columns. Label the amount as Net Income or Net Loss.
2. Add the amounts in each column. Write the totals on line 3.
3. Verify the accuracy of your proving totals.
Income Statement Balance Sheet Debit Credit Debit Credit
Company A
1. Column totals $9,000 $9,500 $35,500 $35,000 2. 3. Proving totals
Company B
1. Column totals $1,500 $2,000 $7,500 $7,000 2. 3. Proving totals
Company C
1. Column totals $5,200 $4,800 $26,500 $26,900 2. 3. Proving totals
Company D
1. Column totals $5,300 $8,150 $34,950 $32,100 2. 3. Proving totals
Company E
1. Column totals $5,300 $4,130 $33,400 $34,570 2. 3. Proving totals
12
Drill 8-D1 Classifying accounts
A form containing account titles is shown below.
INSTRUCTIONS:
1. For each account title on the chart, place a check mark in either Column 2, 3, 4, 5, or
6 to indicate the classification of each account. 2. Place a check mark in either Column 7 or 8 to indicate on which financial statement
each account will be reported.
1 2 3 4 5 6 7 8 Account Classification Financial Statement Account Title Owner’s RevenuIncome Balance Asset Liability Expense Equity e Statement Sheet
1. Cash
2. Alice Wayne, Capital
3. Alice Wayne, Drawing
4. Advertising Expense
5. Coen Office Supplies
6. Insurance Expense
7. Miscellaneous Expense
8. Mercer Supplies
9. Prepaid Insurance
10. Rent Expense
11. Sales
12. Supplies
13. Supplies Expense
13
Drill 9-D1 Determining accounts affected by adjusting and closing entries A form containing account titles is shown below.
INSTRUCTIONS:
1. For each account title on the chart, place a check mark in either Column 2 or 3 to
indicate whether the account is affected by an adjusting entry. 2. For each account title on the chart, place a check mark in either Column 4 or 5 to
indicate whether the account is affected by a closing entry. 3. For each account title on the chart, place a check mark in either Column 6 or 7 to
indicate whether the account has a balance after closing entries are posted.
1 2 3 4 5 6 7 After Closing Account Is Affected Account Is Affected Entries Are Posted, by an Adjusting by a Closing Entry Account Has a Account Title Entry Balance Yes No Yes No Yes No
1. Advertising Expense
2. Baer Supplies
3. Cash
4. Gates Office Supplies
5. Irma Downs, Capital
6. Irma Downs, Drawing
7. Income Summary
8. Insurance Expense
9. Miscellaneous Expense
10. Prepaid Insurance
11. Rent Expense
12. Sales
13. Supplies
14. Supplies Expense
15. Utilities Expense
14
Drill 10-D1 Analyzing special journal entries
A form showing the amount columns of a purchases, cash payments, and general journal
is shown below.
INSTRUCTIONS:
For each of the following transactions, write the debit and credit amounts in the columns
in which the transaction would be journalized.
Transactions
1. Purchased merchandise on account from Klein Co., $900.00. 2. Purchased merchandise for cash, $200.00.
3. Paid cash for office supplies, $75.00.
4. Paid cash on account to Matson Company, $750.00. 5. Paid cash for advertising, $85.00.
6. Irma Gilbert, partner, withdrew cash for personal use, $1,000.00. 7. Bought store supplies on account from Central Supply, $240.00. 8. Bought office supplies on account from Cratin Supply, $125.00. 9. Discovered that a transaction for office supplies bought last month was journalized
and posted in error as a debit to Prepaid Insurance instead of Supplies—Office,
$60.00.
10. Alex Jensen, partner, withdrew merchandise for personal use, $95.00.
Purchases Cash Payments Journal General Journal Journal
Purchases General Transaction Debit Accts. Cash Debit Credit Accts. Pay. Pay. Debit Credit Debit Credit Credit
1. Debit amount
Credit amount
2. Debit amount
Credit amount
3. Debit amount
Credit amount
4. Debit amount
Credit amount
5. Debit amount
Credit amount
6. Debit amount
Credit amount
7. Debit amount
Credit amount
8. Debit amount
Credit amount
9. Debit amount
Credit amount
10. Debit amount
Credit amount
15
Drill 11-D1 Analyzing special journal entries
A form showing the amount columns of a sales and cash receipts journal is shown below.
INSTRUCTIONS:
For each of the following transactions, write the debit and credit amounts in the columns
in which the transaction would be journalized. Add a 6% sales tax to each sale.
Transactions
1. Recorded cash and credit card sales, $2,700.00, plus sales tax. 2. Sold merchandise on account to Melissa Bedo, $180.00, plus sales tax. 3. Sold merchandise on account to Kim Lea, $170.00, plus sales tax. 4. Received cash on account from Maria Jones, $148.40.
5. Received cash on account from Jack Mumford, $79.50.
6. Recorded cash and credit card sales, $2,375.00, plus sales tax.
Sales Journal Cash Receipts Journal Trans. Accts. Sales Sales General Accts. Sales Sales Cash Rec. Credit Tax Pay. Rec. Credit Tax Pay. Debit Debit Credit Debit Credit Credit Credit
1.
2.
3.
4.
5.
6.
16
Drill 12-D1 Analyzing posting transactions
A form for analyzing posting is on the next page.
INSTRUCTIONS:
1. For each of the following transactions, write the titles of the general ledger and
subsidiary ledger accounts affected by the transaction in Column 1. 2. Place a check mark in Column 2, 3, 4, or 5 to show how the amount for the account in
Column 1 will be posted.
Transactions
1. Paid cash on account to Casa Enterprises.
2. Paid cash for rent.
3. Sold merchandise on account to Allison Hartley, plus sales tax. 4. Discovered that a payment for advertising was journalized and posted in error as a
debit to Miscellaneous Expense instead of Advertising Expense.
Paid cash for office supplies. 5.
6. Joyce Bealing, partner, withdrew merchandise for personal use. 7. Received cash on account from Ben Choate.
8. Purchased merchandise on account from Irvine Products. 9. Purchased merchandise for cash.
10. Recorded cash and credit card sales plus sales tax. 11. Michael Zolty, partner, withdrew cash for personal use. 12. Bought store supplies on account from Carter Supply.
(The form is on the next page)
17
Drill 12-D1 Analyzing posting transactions (continued)
1 2 3 4 5 6 Amounts posted individually to Amounts not posted General Accounts Accounts TransAccounts Affected individually Ledger Payable Receivable . to any Ledger Ledger ledger 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
18
Drill 13-D1 Calculating employee total earnings.
Information taken from employee time cards is given in the form below.
INSTRUCTIONS:
For each employee, calculate the amount of regular, overtime, and total earnings. Overtime hours are paid at one and one-half times the regular rate.
Hours Worked Earnings Employee Regular Total Number Rate Earnings Regular Overtime Regular Overtime
1 40 1 $6.00
2 40 5 9.00
3 30 0 6.50
4 25 0 7.75
5 40 4 8.50
6 35 0 7.00
19
Drill 13-D2 Determining payroll tax withholdings
Information taken from a semimonthly payroll register is given in the form below.
INSTRUCTIONS:
1. Use the federal income tax withholding tax tables in your textbook to determine the
amount of federal income tax that must be withheld for each of the eight employees.
Write the amount in the Federal Income Tax Withholding column.
2. Calculate the amount of employee social security tax to be withheld for each
employee and record the amount in the Social Security Tax Withholding column. Use
a tax rate of 6.5% on total earnings.
3. Calculate the amount of employee Medicare tax to be withheld for each employee
and record the amount in the Medicare Tax Withholding column. Use a tax rate of
1.5% on total earnings.
Employee Marital No. of Total Federal Social Medicare Name Status Withholding Earnings Income Tax Security Tax Tax Allowances Withholding Withholding Withholding
Adams, Winston J. M 2
Forte, Peter A. M 3
Gable, Joanne M. S 2
Jenkins, Mary A. M 5
Little, Edward L. S 1
Nelson, Janice S. S 2
Pate, Kimberly N. S 1
Sanders, Michael M 3
M.
20
Drill 14-D1 Analyzing payroll transactions Payroll information for two businesses is given in the table below.
Federal Employee Employer Employee Employer Fed. State Total Income Social Social Business Medicare Medicare Unempl. Unempl. Earnings Tax Security Security Tax Tax Tax Tax Withheld Tax Tax
A $9,000.00 $1,350.00 $585.00 $135.00 $585.00 $135.00 $72.00 $486.00
B 4,200.00 590.00 338.00 63.00 338.00 63.00 33.60 226.80
INSTRUCTIONS:
1. Use the T accounts below to analyze the payroll entry to record payment of a payroll
for each business. Label the amounts for this transaction as (a).
2. Use the T accounts below to analyze the payroll entry to record the employer’s
payroll taxes. Label the amounts for this transaction as (b).
Business A Business B
Cash Cash
Employee Income Tax Payable Employee Income Tax Payable
Social Security Tax Payable Social Security Tax Payable
Medicare Tax Payable Medicare Tax Payable
Unemploy. Tax Payable--Federal Unemploy. Tax Payable--Federal
Unemploy. Tax Payable--State Unemploy. Tax Payable--State
Payroll Taxes Expense Payroll Taxes Expense
Salary Expense Salary Expense
21
Drill 14-D2 Calculating employer payroll taxes
Payroll information taken from a payroll register and employee earnings records is given below.
INSTRUCTIONS:
1. Calculate the amount of earnings subject to unemployment taxes. Unemployment
taxes are owed on the first $7,000.00 of earnings for each employee. 2. Calculate the amount of employer payroll taxes owed for the May 1-15 pay period.
Employer payroll tax rates are as follows: Social Security, 6.5%; Medicare, 1.5%;
federal unemployment, 0.8%; and state unemployment, 5.4%.
Employee Name Accumulated Earnings Total Earnings Unemployment April 30 For May 1-15 Taxable Pay Period Earnings
Blette, Kathryn C. $4,689.00 $586.00
Easton, Phillip W. 3,882.50 427.00
Goodpast, Sandra V. 8,450.00 1,045.00
Lake, Margaret Y. 5,725.90 827.75
Raymond, Peter L. 7,329.00 945.60
Saenz, Raul J. 10,426.00 1,236.00
Williams, Patricia A. 4,107.25 518.50
Totals $5,585.85
Social Security Tax Payable
Medicare Tax Payable
Unemployment Tax Payable—Federal
Unemployment Tax Payable--State
22
Drill 15-D1 Analyzing adjusting entries
The following chart contains adjustment information related to the preparation of work sheets for three businesses.
BusinesAccount Title and Balance End-of-Fiscal-Period Information s
A 1. Merchandise Inventory ........ $148,000.00 Merchandise inventory ................ $134,000.00
2. Supplies—Office .................... 5,750.00 Office supplies inventory ............. 4,200.00
3. Supplies—Store ..................... 4,920.00 Store supplies inventory .............. 3,840.00
4. Prepaid Insurance ................. 1,860.00 Value of prepaid insurance .......... 1,240.00
B 1. Merchandise Inventory ........ $182,000.00 Merchandise inventory ................ $166,000.00
2. Supplies—Office .................... 4,680.00 Office supplies inventory ............. 3,460.00
3. Supplies—Store ..................... 5,930.00 Store supplies inventory .............. 4,320.00
4. Prepaid Insurance ................. 2,520.00 Value of prepaid insurance .......... 1,260.00
C 1. Merchandise Inventory ........ $166,500.00 Merchandise inventory ................ $178,000.00
2. Supplies—Office .................... 5,460.00 Office supplies inventory ............. 4,520.00
3. Supplies—Store ..................... 6,480.00 Store supplies inventory .............. 4,960.00
4. Prepaid Insurance ................. 2,160.00 Value of prepaid insurance .......... 1,080.00
INSTRUCTIONS:
For each business, analyze the adjustments for merchandise inventory, office supplies, store supplies, and prepaid insurance. List the accounts affected and the amounts for each of the adjustments. List the account titles in Column 3 and the adjustment amounts in either Column 4 or 5. The form for this Drill is on the next page.
(The form is on the next page)
23
Drill 15-D1 Analyzing adjusting entries (continued)
1 2 3 4 5 Adjustment Column Adjustment Business Accounts Affected Number Debit Credit A 1.
2.
3.
4.
B 1.
2.
3.
4.
C 1.
2.
3.
4.
24
Drill 16-D1 Analyzing adjusting entries Information from the work sheets of three businesses is given below.
INSTRUCTIONS:
Calculate the net income or net loss for each business. Write the answer in the last
column and use a plus sign (+) to indicate a net income and a minus sign (-) to indicate a
net loss.
BusinesAccount Title Trial Income Statement Balance Net Income (+) s Balance Sheet Or Debit Credit Debit Debit Net Loss (-) A Merchandise Inventory ...... $225,000.00 $214,000.00
Sales ...................................... $162,400.00
Purchases ............................. $64,600.00
Total Expenses .................... 42,300.00 A Merchandise Inventory ...... $225,000.00 $214,000.00
Sales ...................................... $162,400.00
Purchases ............................. $64,600.00
Total Expenses .................... 42,300.00 0 A Merchandise Inventory ...... $225,000.00 $214,000.00
Sales ...................................... $162,400.00
Purchases ............................. $64,600.00
Total Expenses .................... 42,300.00
25
Drill 17-D1 Analyzing closing entries
The following information is from the work sheet of Novak’s Sport Center.
Income Statement Account Title Debit Credit
Income Summary 12,000.00
Sales 236,000.00
Purchases 94,400.00
Advertising Expense 3,250.00
Credit Card Fee Expense 2,130.00
Insurance Expense 2,520.00
Miscellaneous Expense 1,380.00
Rent Expense 14,400.00
Supplies Expense—Office 2,980.00
Supplies Expense--Store 3,120.00
INSTRUCTIONS:
1. Write each account title on a T account below. 2. Enter the balance for each account on the appropriate debit or credit side of the T
account. Label the balance “Bal.”
3. Enter the debit and credit amounts to close the income statement credit balance
account. Label these entries “a.”
4. Enter the debit and credit amounts to close the income statement debit balance
accounts. Label these entries “b.”
26
Drill 18-D1 Calculating trade and purchases discounts
The list price, trade discount rate, and purchases discount rate for four different purchases
are given below.
INSTRUCTIONS:
For each purchase, calculate the (a) trade discount, (b) invoice amount, (c) purchases
discount, and (d) cash amount after discounts.
(a) (b) (c) (d) Pur. List Trade Purchases Cash Inv. Price Discount Discount Trade Invoice Purchases Amount No. Rate Rate Discount Amount Discount after Discounts
1 $1,000.00 40% 2%
2 400.00 30% 3%
3 600.00 25% 1%
4 250.00 50% 2%
27
Drill 18-D2 Calculating petty cash short and petty cash over
Information about petty cash transactions for four different companies is given in the chart below.
INSTRUCTIONS:
For each company, determine the amount, if any, of petty cash short or petty cash over. Indicate petty cash over with a plus sign (+) and petty cash short with a minus sign (-).
Petty Cash Record Amount of Cash Over Distribution of Payments Amount of (+) Company Cash in Beginning Or Advertising Miscellaneous Cash Box Balance Supplies Cash Short Expense Expense (-)
1 $300.00 $46.25 $76.32 $91.87 $85.56
2 250.00 24.76 82.35 18.21 120.68
3 150.00 12.43 51.45 14.15 78.97
4 200.00 53.98 25.34 34.25 84.43
28
Drill 19-D1 Analyzing posting transactions
A form for analyzing posting is on the next page.
INSTRUCTIONS:
1. For each of the following transactions, write the titles of the general ledger and
subsidiary ledger accounts affected by the transaction in Column 2. 2. Place a check mark in Column 3, 4, or 5 to show how the amount for the account in
Column 1 will be posted.
Transactions
1. Sold merchandise on account to James Harding, plus sales tax. 2. Recorded cash and credit card sales, plus sales tax.
3. Received cash on account from Accent Company, no sales discount. 4. Grant credit to Richco for merchandise returned, plus sales tax. 5. Sold merchandise on account to Kennel Co., plus sales tax
Granted credit to Silver Star for damaged merchandise, plus sales tax. 6.
7. Discovered that a sale on account to Rebecca Hind was incorrectly charged to
Rebecca Hindle.
8. Received cash on account from Forms Co., less sales discount and sales tax.
is on the next page) (The form
29
Drill 19-D1 Analyzing posting transactions (continued)
1 2 3 4 5 Amounts posted Amounts individually to not posted TransAccounts Affected individually General Accounts . to any Ledger Receivable ledger Ledger 1.
2.
3.
4.
5.
6.
7.
8.
30
Drill 19-D2 Calculating sales discounts and cash receipts
INSTRUCTIONS:
1. Information about six sales invoices is given below. Use a sales tax rate of 6% and a
cash discount rate of 2%.
2. For Sales No. S1, S2, S3, and S4, calculate the sales discount amount, sales tax
reduction, and amount of the cash receipt after the discount is taken. 3. For Sales No. S5 and S6, calculate the sales tax on the credit memorandum amount.
Also calculate the sales discount, sales tax reduction, and amount of the cash receipt
for the invoices less the credit memorandums.
Sales Sales Credit Sales Sales Cash Sale Sale Invoice Tax on Tax Memo. Discount Tax Receipt No. Amount Amount Credit Amount Amount Amount Reduction Amount Memo.
S1 1,750.00 105.00 1,855.00 ----- -----
S2 955.00 57.30 1,012.30 ----- -----
S3 2,566.20 153.97 2,720.17 ----- -----
S4 3,621.00 217.26 3,838.26 ----- -----
S5 1,625.00 97.50 1,722.50 150.00
S6 2,892.00 173.52 3,065.52 225.00
31
Drill 20-D1 Calculating estimated uncollectible accounts expense A form showing summary information for the fiscal period ended December 31 of the
current year is shown below.
INSTRUCTIONS:
For each of the six stores, calculate the following:
a. Uncollectible accounts expense.
b. Balance of Allowance for Uncollectible Accounts after adjustment.
c. Book value of accounts receivable after adjustment. Use a balance of $25,000 for
accounts receivable for each store.
Estimated (b) Uncollectible Balance of (a) Balance of (c) Total Accounts as Allowance for Uncollectible Allowance for Book Value Store Sales on Percentage Uncollectible Accounts Uncollectible of Accounts Account of Accounts before Expense Accounts after Receivable Sales on Adjustment Adjustment Account
1 $48,700.00 0.6% $32.00 Credit
2 73,900.00 0.5% 63.00 Credit
3 95,200.00 1.0% 24.00 Debit
4 61,400.00 0.7% 79.00 Credit
5 54,800.00 0.4% 0
6 89,600.00 0.8% 57.00 Debit
32
Drill 20-D2 Calculating estimated uncollectible accounts expense
INSTRUCTIONS:
On the form below, analyze each entry. For each entry, indicate how each account is
affected by writing one of the following: DR if debited, CR if credit, or NE if no entry is made.
General Ledger Accounts Receivable Allowance for Uncollectible Ledger Accounts Transaction Cash Uncollectible Accounts Customer Receivable Accounts Expense Account 1. Adjusting entry for
uncollectible accounts expense at
end of fiscal period
2. Wrote off an
uncollectible account
3. Collected account
previously written off
1) Entry 1:
2.) Entry 2:
33
Drill 21-D1 Calculating depreciation and book value of plant assets A form showing summary information about ten plant assets is given below.
INSTRUCTIONS:
For each of the six stores, calculate three amounts:
a. The amount of depreciation for the first year using the straight-line method.
Calculate the time of depreciation to the nearest number of months. Round
amounts to the nearest cent.
b. Annual depreciation using the straight-line method. Round amounts to the nearest
cent.
c. The amount of total accumulated depreciation that should be recorded through
December 31, 20X6. Round amounts to the nearest cent.
d. Ending book value of each plant asset as of December 31, 20X6.
(c) (a) Total Plant Est. Est. (b) (d) Date Original First Accum. AsseSalvage Useful Annual Book Value Bought Cost Year’s Deprec. t Value Life Deprec. 12/31/X6 Deprec. As of 12/31/X6
1 Jan. 1, 20X1 $1,050.00 $150.00 6 years
2 July 1, 20X1 4,700.00 400.00 10 years
3 Apr. 1, 20X2 25,500.00 1,500.00 15 years
4 Sept. 1, 20X2 12,800.00 1,250.00 7 years
5 Mar. 1, 20X3 10,700.00 1,100.00 8 years
6 Aug. 1, 20X4 6,200.00 500.00 5 years
7 Dec. 31, 20X4 930.00 110.00 4 years
8 Oct. 1, 20X5 2,700.00 300.00 3 years
9 May 1, 20X6 15,600.00 3,600.00 8 years
10 Nov. 1, 20X6 7,800.00 240.00 9 years
34
Drill 22-D1 Calculating cost of ending inventory using fifo, lifo, and weighted-
average methods
Accounting records at Zapata Company show the following beginning inventory and
purchases for Inventory Item No. 87.
Purchase Unit Total Units Dates Price Cost
January 1, beginning inventory ......... 5 $20.00 $100.00
March 20, purchase.............................. 7 22.00 154.00
May 12, purchase ................................. 8 24.00 192.00
September 24, purchase ...................... 12 25.00 300.00
November 16, purchase ...................... 8 27.00 216.00
Total available ...................................... 40 $962.00
Units sold .............................................. 26
Units in inventory, December 31 ....... 14
INSTRUCTIONS:
Calculate the total cost of ending inventory on December 31 using the fifo, lifo, and
weighted-average methods.
FIFO Method:
LIFO Method:
Weighted-Average Method:
35
Drill 23-D1 Calculating maturity dates and interest on notes
INSTRUCTIONS:
For each of the notes in the form below, calculate (1) the maturity date and (2) the
interest.
No. of Date of Principal Interest (1) (2) Time of Note Note Note of Note Rate Maturity Date Interest
1 Jan. 4 400.00 9% 30 days
2 Mar. 21 800.00 11% 1 year
3 May 8 1,200.00 13% 60 days
4 July 15 1,700.00 12% 6 months
5 Sept. 1 2,000.00 10% 90 days
36
Drill 23-D2 Analyzing notes payable and notes receivable transactions
INSTRUCTIONS:
1. For each transaction, write the titles of the accounts affected in the Account Affected
column. Notes Payable is abbreviated NP; notes receivable is abbreviated NR.
2. For each account title, place a check mark in the Debit or Credit column to show
whether the account is debited or credit.
Transactions
1. Issued a 1-year, 12% note. NP136.
2. Received a 60-day, 14% note for an extension of time on an account. NR26. 3. Issued a 6-month, 10% note. NP137.
4. Received a 1-year, 10% note for an extension of time on an account. NR27. 5. Issued a 30-day, 15% note for an extension of time on an account payable. NP140. 6. Paid cash for the maturity value of NP136.
Received cash for the maturity value of NR26. 7.
8. Paid cash for the maturity value of NP137.
9. Maker dishonored NR27, due today.
Trans. Accounts Affected Debit Credit No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
37
Drill 24-D1 Analyzing entries for notes receivable and accrued revenue
INSTRUCTIONS:
For each of the following entries, indicate by a check mark which account(s) should be debited and which account(s) should be credited.
Entries
1. Received a note receivable from a customer for an extension of time on account. 2. Recorded an adjusting entry at the end of the fiscal period for interest earned but not
yet received.
3. Recorded closing entry for interest income account.
4. Recorded reversing entry for accrued interest income.
5. Received cash for maturity value of a note receivable accepted in the previous fiscal
period for a business that uses reversing entries.
Notes Accounts Interest Interest Income Cash Entry Receivable Receivable Receivable Income Summary No. Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
1.
2.
3.
4.
5.
38
Drill 24-D2 Analyzing entries for notes payable and accrued expenses
INSTRUCTIONS:
1. For each of the following entries, indicate by a check mark which account(s) should
be debited and which account(s) should be credited.
Entries
1. Issued a note payable to a vendor for an extension of time on an account payable. 2. Recorded an adjusting entry at the end of the fiscal period for interest incurred but not
yet paid.
3. Recorded closing entry for interest expense account.
4. Recorded reversing entry for accrued interest expense.
5. Paid cash for maturity value of a note payable issued in the previous fiscal period for
a business that uses reversing entries.
Notes Accounts Interest Interest Income Cash Entry Payable Payable Payable Expense Summary No. Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
1.
2.
3.
4.
5.
39
Drill 25-D1 Analyzing adjustments on a work sheet
INSTRUCTIONS:
For each of the adjustments in Column 1, write the title of the account debited in Column
2 and the title of the account credited in Column 3.
1 2 3 Adjustment Account Debited Account Credited
1. Supplies
2. Accrued interest income
3. Merchandise inventory (increased)
4. Merchandise inventory (decreased)
5. Uncollectible accounts expense
6. Prepaid insurance
7. Depreciation expense
8. Accrued interest expense
9. Additional federal income tax owed
40
Drill 25-D2 Extending account balances on a work sheet
INSTRUCTIONS:
For each of the accounts in Column 1, place a check mark in the work sheet column to
which the account balance should be extended.
1 2 3 4 5 Account Income Statement Balance Sheet Debit Credit Debit Credit
1. Allowance for Uncollectible Accts.
2. Sales Returns and Allowances
3. Notes Payable
4. Retained Earnings
5. Accounts Receivable
6. Purchases Discount
7. Merchandise Inventory
8. Dividends
9. Federal Income Tax Expense
10. Accumulated Depreciation
41
Drill 26-D1 Classifying a corporation’s revenue, cost, and expense accounts.
INSTRUCTIONS:
For each of the accounts in the form below, place a check mark in the column that
correctly classified the account.
Contra Contra OperatinCost OperatinOperatinCost Other Other Accounts g Of g g Of Revenue Expense Revenue Mdse. Expense Revenue Mdse.
1. Advertising Expense 2. Sales 3. Interest Income 4. Salary Expense 5. Sales Returns & Allowances 6. Purchases 7. Depreciation Expense 8. Purchases Discount 9. Interest Expense 10. Sales Discount 11. Uncollectible Accounts Expense 12. Purchases Returns and Allowances 13. Gain on Plant Assets 14. Utilities Expense 15. Cash Short and Over (cash short)
42
Drill 26-D2 Classifying a corporation’s asset, liability, and stockholders’ equity
accounts, cost, and expense accounts.
INSTRUCTIONS:
1. For each of the accounts in the form below, place a check mark in the column that
correctly classified the account.
Contra Contra Long-Stock- Current Plant Current Accounts Current Plant Term holders’ Asset Asset Liability Asset Asset Liability Equity 1. Cash 2. Accumulated Depreciation 3. Federal Income Tax Payable 4. Prepaid Insurance 5. Notes Payable 6. Interest Receivable 7. Accounts Payable 8. Notes Receivable 9. Office Equipment 10. Interest Payable 11. Capital Stock 12. Mortgage Payable 13. Employee Income Tax Payable 14. Dividends Payable 15. Retained Earnings 16. Petty Cash 17. Accum. Deprec.—Store Equipment 18. Medicare Tax Payable 19. Merchandise Inventory 20. Allow. For Uncollectible Accounts
43