True or False

1.
False
2.
True
3.
True
4.
True
5.
False
6.
True
7.
True
8.
True
9.
False
10. False
11. False
12. True
13. True
14. False
15. False
16. False
17. False
18. True
19. False
20. True
21. False
22. True
23. True
24. True
25. False
26. True
27. True
28. False
29. True
30. False
31. True

Ch08-3
Ch08-5
Ch08-6
Made up
Made up
Made up
Ballada
Ballada
Made up
Made up
ACC101-1
ACC101-2
ACC101-3
ACC101-4
ACC101-5
ACC101-6
ACC101-7
ACC101-8
ACC101-9
ACC101-10
ACC101-11
ACC101-12
ACC101-13
ACC101-14
ACC101-15
ACC101-16
ACC101-17
ACC101-18
ACC101-19
ACC101-20
ACC101-21

Multiple Choice-conceptual
1.
A
Ch08-24
2.
C
Ch08-25
3.
B
Ch08-28
4.
D
Ch08-31
5.
B
Ch08-39
6.
B
Ch08-40
7.
D
Ch08-41
8.
A
Ch08-44
9.
A
Ch08-55
10. A
Ch08-58
11. C
12. B
13. C

14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.

B
A
A
B
B
D
B
D
C
B
C
C
A
B

Multiple choice-computational
28.. D
Ch08-86
29. B
Ch08-90
30. C
Ch08-91
31. B
32. D
33. D
34. D
Ch08-92
30,000 + 20,000 = 50,000.
35. A
Ch08-93
60,000 (30,000 + 20,000) = 10,000.
36. A
Ch08-94
The effect of the errors in ending
inventories reverse themselves in the
following year.
37. D
Ch08-95
38. D
Ch08-96
1,200 (1,200 .02) = 1,176.
39. D
Ch08-97
(16,000 1,200) .02 = 296.
40. B
Ch08-140
41. C
Ch08-141
20,000 .7 .8 = 11,200
(11,200 .98) + 400 = 11,376.
42. C
Pre-Dep1-7
43. B
Pre-Dep1-8
44. C
Pre-Dep1-9
45. C
Pre-Dep1-10
Open-ended Problems
1.
11,550,000
2.
7,500,000

3.
4.
5.
6.

600,000
1,425,000
1,200,000
150,000

Practice Problem #1
a. Merchandise Inventory
A/P

4,200

b.

500

A/P

4,200

Merchandise Inventory
c.

A/P

500
3,700

Cash
Merchandise Inventory
Practice Problem #2
a. Accounts Receivable/Jangle
Sales
Cash
Cost of Merchandise Sold
Merchandise Inventory
b.

c.
d.

e.

3,630
70

5,200
3,000

Accounts Receivable/Comet
Sales
Cost of Merchandise Sold
Merchandise Inventory

10

Transportation Out
Cash

400

Sales Returns & Allowances

Accounts Receivable/Comet
Merchandise Inventory
Cost of Merchandise Sold

2,000

Cash
Sales Discounts
Accounts Receivable/Jangle
$5,000 sale * 2% = $100 discount
$5,200 owed ($5,000 + $200 shipping)
- $100 discount = $5,100 rec

5,100
100

5,000
200
3,000
10
6
400
2,000

1,200

1,200

5,200

Cash
Sales Discounts
Accounts Receivable/Comet
$10,000 sale - $2,000 return = $8,000 owed
$8,000 * 1% = $80 discount
$8,000 owed - $80 discount = $7,920 received
Practice Problem #3
1. Inventory per count
Transaction
2
3
4
5
6
7
8
Inventory as corrected
2.

7,920
80
8,000

P704,670
31,260
----25,620
(31,314)
(34,560)
4,500
---------------P700,176

ADJUSTING JOURNAL ENTRIES

December 31, 2013
Transaction 3
Sales
Accounts Receivable

38,400

Transaction 4
Purchases
Accounts Payable

46,890

Transaction 8
Sales Returns and Allowances
Accounts Receivable

7,800

38,400

46,890

7,800

Practice Problem #4

Practice Problem #5