1) After Picard Company had completed all posting for the month of December, the
sum of the balances in the following accounts payable subsidiary ledger did not agree
with the balance of the control account in the general ledger.
NameRykers
Address286 Buck Avenue
DateItemPost. Ref.DebitCreditBalance
Dec.2P252,4002,400
NameGeordie Company
Address818 Western Avenue
DateItemPost. Ref.DebitCreditBalance
Dec.1Balance7,600
10CP237,600
20P323,3003,300
29J158004,100
NameLaforge Company
Address90210 Baker Boulevard
DateItemPost. Ref.DebitCreditBalance
Dec.1Balance9,900
18CP289,900
29P3410,500600
NameDeanna Troi
Address2720 Sommers Avenue
DateItemPost. Ref.DebitCreditBalance
Dec.8P276,0006,000
27P338,00014,000
NameOBrien Supplies
Address1560 Puckett Street
DateItemPost. Ref.DebitCreditBalance
Dec.1Balance8,200
7P265,60013,800
12J1162012,180
20CP296,00018,180
The balance in the Accounts Payable control account of $36,580 has been verified as
correct. Also assume that the journals references in the Post Ref. columns of the
accounts payable subsidiary ledger have been verified as correct.
Instructions
Determine the errors in the preceding accounts payable subsidiary accounts and prepare
a corrected schedule of accounts payable.
2) ______________ analysis, also called trend analysis, is a technique for evaluating a
percentage increase or decrease for a financial statement item over a period of time.
3) Journalize the following transactions for Xiu Xiu Company for June 2014, the
companys first month of operations. You may omit explanations for the transactions.
1>Purchased equipment on account for $9,000.
2>Billed customers $5,000 for services performed.
3>Made payment of $2,300 on account for equipment purchased earlier in month.
4>Collected $2,900 on customer accounts.
4) Indicate whether the following items would appear on the balance sheet (BS),
income statement (IS), or owner’s equity statement (OE).
1>Advertising expense
2>Accounts receivable
3>Owners drawings
4>Rent revenue
5>Salaries and wages payable
6>Supplies
5) Valquez Manufacturing Company combines its operating expenses for budget
purposes in a selling and administrative expense budget. For the first quarter of 2014,
the following data are developed:
1>Sales: 20,000 units; unit selling price:$35
2>Variable costs per dollar of sales:
Sales commissions6%
Delivery expense2%
Advertising4%
3>Fixed costs per quarter:
Sales salaries$24,000
Office salaries17,000
Depreciation5,000
Insurance1,000
Utilities2,000
Instructions
Prepare a selling and administrative expense budget for the first quarter of 2014.
6) Two permanent accounts that are part of the stockholders’ equity in a corporation are
______________ and ______________.
7) The management of Ocean Industries estimates that credit sales for August,
September, October, and November will be $540,000, $750,000, $840,000, and
$480,000, respectively. Experience has shown that collections are made as follows:
In month of sale25%
In first month after sale60%
In second month after sale10%
Instructions
Determine the collections from customers in October and November. Show all
computations.
8) On October 1, Head and Heart Companys petty cash fund of $150 is replenished.
The fund contains cash of $30, and receipts for supplies of $75 and postage of $45.
Prepare the journal entry to record the replenishment of the petty cash fund.