PRINCIPLE OF ACCOUNTING 1 (POA 1)-TUESDAY CLASS

QUIZ-WFH W4
April 7, 2020
Mila A. Reyes

Problem 1 (30 minutes)

The following wereselected from among the transactions completed by Anggus Company
during January of the current year:

Jan. 3. Purchased merchandise on account from Plint Company, list price $20,000,
trade discount 35%, terms FOB shipping point, 2/10, n/30, with prepaid
transportation costs of $320 added to the invoice.

5. Purchased merchandise on account from Willem Company, $8,000, terrms

FOB destination, 1/10, n/30.

6. Sold merchandise on account to Silver Company, list price of $12,500, trade

discount 40%, terms 2/10, n/30.

7. Retruned $1,800 of merchandise purchased on January 5 from Willem

Company.

13. Paid Plint Company on account for the purchase of January 3, less discount.

15. Paid Willem Company on account fr purchase of Janaury 5, less return of

January 7 and discount.

16. Received cash on account from sale of January 6 to Silver Company, less
discount.

19. Sold merchandise on nonbank credit cards and reported accounts to the card
company, American Express, $6,459.

22. Sold merrchandise on account to Elf Company, $3,480, terms 2/10, n/30.

23. Sold merchandise for cash, $9,350.

25. Received merchandise returned by Elf Company from sale on Janaury 22,
$1,480.

31. Received cash from American Express for nonbank credit sales of January
19, less $225 service fee.
 Required:
Journalize the preceding transactions. The company is using periodic
inventory system.

Problem 2 (10 minutes)

Steps in accounting cycle

a. Closing entries are journalized and posted to the ledger.
b. Adjusting entries are journalized and posted to the ledger.
c. Transactions are posted to the ledger.
d. A post-closing trial balance is prepared.
e. Transactions are analyzed and recorde in the journal.
f. Financial statements are prepared.
g. A trial balance is prepared, adjustment data are assembled, and
an optional worksheet is completed.

Required:
Rearrange the preceding stepe in the accounting cycle in proper sequence.

Problem 3

The following data for adjustment were found on the books and records of Homer Slim
Company on 'December 31, 2019:

1. Sales salaries are uniformly $21,400 for a five-day workweek, ending Friday. The
last payday of the year was Friday, December 27.

2. Accrued fees earned but not yet recorded at December 31, $10,500.

3. Depreciation expense for the year on the equipment is $6,500.

4. The company has determined that the allowance for uncollectible accounts
should be $5,000

5. A three-year fire insurance policy was purchased on July 1, 2019, for $6,000. The
company debited Insurance expense for the entire amount.