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1) The account balances appearing in the adjusted trial balance columns are extended to
the ______________ columns and the ______________ columns.
2) The following information was used to prepare the March 2014, bank reconciliation
for Walker Machine Works. Identify the items that require adjustment to the cash
balance per books and prepare the appropriate adjusting entries.
1>Included with the bank statement materials was a check from Bob Simpson for $40
stamped "NSF."
2>A personal deposit by Annie Walker to her personal account in the amount of $300
for dividends on her General Electric common stock was credited to the company
account.
3>The bank statement included a debit memorandum for $22.00 for two books of blank
checks for Walker Machine Works.
4>The bank statement contains a credit memorandum for $24.75 interest on the average
checking account balance.
5>The daily deposits of March 30 and March 31, for $3,362 and $3,125 respectively,
were not included in the bank statement postings.
6>Two checks totaling $316.86, which were outstanding at the end of February, cleared
in March and were returned with the March statement.
7>The bank statement included a credit memorandum dated March 28, 2012, for $45.00
for the monthly interest on a 6-month, $15,000 certificate of deposit that the company
owns.
8>Four checks, #8712, #8716, #8718, #8719, totaling $5,369.65, did not clear the bank
during March.
9>On March 24, 2012, Walker Machine Works delivered to the bank for collection a
$4,500,
3-month note from Don Decker. A credit memorandum dated March 29, 2012, indicated
the collection of the note and $90.00 of interest.
10>The bank statement included a debit memorandum for $25.00 for the collection
service on the above note and interest.
3) Collection of a note receivable will result in a credit to ______________ for the face
value of the note and a credit to ______________.
4) If the actual direct labor hours worked is greater than the standard hours, the labor
quantity variance will be ___________________, and the labor rate variance will be
____________________ if the standard rate of pay is greater than the actual rate of pay.
5) Distinguish between a reversing entry and an adjusting entry. Are reversing entries
required?
6) The Tomato Factory manufactures spaghetti sauce through two production
departments: Cooking and Packaging. For the month of February, the work in process
accounts show the following debits:
CookingPackaging
Beginning work in process$ -0-$ 6,000
Materials40,00026,000
Labor16,0008,000
Overhead30,00019,000
Costs transferred in65,000
Instructions
Journalize the February transactions that involved the work in process accounts.
7) On January 1, 2014, Trapp Enterprises issued 9%, 10-year bonds with a face amount
of $900,000 at 96 . Interest is payable semiannually on June 30 and December 31 . The
bonds were issued for an effective interest rate of 10%.
Instructions
Prepare the entries to record the issuance of the bonds and the first semiannual interest
payment assuming that the company uses effective-interest amortization.
8) A disbursement system that uses wire, telephone, computers, etc., to transfer cash
from one location to another is referred to as ______________.
