Posted: February 8th, 2019
The following information regarding cash for Alpha Company
Question 1The following information regarding cash for Alpha Company is provided for the month ending March 31,2016:ItemAmount$25,000Ending Cash per Bank Statement$5,615Note collected by bank included interest of $115$55Bank Service ChargesDeposits in Transit$2,775Outstanding Cheques$4,500$350Customer Cheque returned NSFA review of the bank statement reflected that cheque #224 recorded in thecompany cheque register as $1,735 to settle an accounts payable, was paid by the bank forthe amount of $1,375. Use this information to prepare the compound General Journal entry(without explanation) for March 31, 2016, to cause the company books to match theadjusted cash balance based on the completed bank reconciliation. If no entry is requiredthen write "No Entry Required."DateAccountsDebitCreditQuestion 2Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card saleson July 15, 2016 amounted to $20,000 and were subject to a 4.5% credit card company collection fee. AlphaCompany collected payment from Worldwide Express on July 21. Use this information to prepare the GeneralJournal entries (without explanation) for the July 15 sales & the July 21 collections. If no entry is requiredthen write "No Entry Required."DateAccountsDebitCreditQuestion 3On July 1, 2016, Alpha Company purchased for $76,000, equipment having a service life of eight years and anestimated residual value of $4,000. Alpha has recorded depreciation of the equipment using the doubledeclining balance method. On December 31, 2019, before making any annual adjusting entries, theequipment was sold for $20,000. Use this information to prepare all General Journal entries (withoutexplanation) required to record the sale event for December 31, 2019DateAccountsDebitCreditQuestion 4On July 1, 2016, Alpha Company purchased for $72,000, equipment having a service life of eight years and anestimated residual value of $6,000. Alpha has recorded depreciation of the equipment using the doubledeclining balance method. On December 31, 2018, before making any annual adjusting entries, theequipment was exchanged for new machinery having a fair value of $32,500. The transaction has commercialsubstance. Use this information to prepare all General Journal entries (without explanation) required torecord the events for December 31, 2018.DateAccountsDebitCreditQuestion 5Alpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016,Accounts Receivable has a balance that consists of:Dollar ValueAge of AccountEstimatedCollectible$115,000< 30 days old98%85,00030 to 60 days old80%50,00061 to 120 days old50%10,000> 120 days old15%The current unadjusted Allowance for Uncollectable Accounts balance is a debit balance of$3,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After theadjusting entry is made, what will be the dollar balances in the:1. Accounts Receivable2. Allowance for Doubtful Accounts3. Bad Debt Expense1.2.3.Question 6Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances arenormal):Alpha CompanyDecember 31AccountsAccounts Receivable20162015$40,500$35,5002,5001,500Merchandise Inventory57,00050,000Office Supplies25,00020,000Allowance for Doubtful AccountsCredit Sales960,000740,000Sales Discounts10,0009,000Interest Income25,00020,000460,000385,000Cost of Goods Sold1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as anumber rounded to one decimal place followed by a space and the word times.(Example 1.123 would be entered 1.1 times)2. What is the FY 2016 days outstanding for accounts receivable ratio? Enter theanswer as a number rounded to one decimal place followed by a space and theword days. (Example 1.123 would be entered 1.1 days)1.2.Question 7February 1, 2016, Alpha Company purchased land for the future factory location at a cost of $50,000. Thedilapidated building that was on the property was demolished so that construction could begin on the newfactory building. The new factory was completed on November 1, 2016. Costs incurred during this periodwere:ItemDemolition dilapidated buildingAmount$4,000Architect Fees$10,000Legal Fees – for title search$2,000Interest During Active Construction Period$18,750Construction Costs$500,000Using this information, how much should be recorded as the cost of: (Enter only wholedollar values.)1. Land2. New Building1.2.