Financial Accounting Final Exam Review
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
Financial Accounting
Final Exam Review
1. Prepare the general journal entry for the following events. Assume each company uses a perpetual inventory system:
May 12th : TLSO Inc., a company located in Hamilton, Ontario, made a cash sale of $1,999. The taxes in Ontario are 13% HST. The cost of the sold merchandise is $1,450.
|
General Journal |
Page ____ |
|||
|
Date |
Account Titles and Explanations |
PR |
Debit |
Credit |
|
May 12th |
Cash (1,999 + 259.87) |
|
2,258.87 |
|
|
|
HST Payable (1,999 x .13) |
|
|
259.87 |
|
|
Sales |
|
|
1,999 |
|
|
|
|
|
|
|
May 12th |
Cost of Goods Sold |
|
1,450 |
|
|
|
Merchandise Inventory |
|
|
1,450 |
May 14th : CCC Co., a company located in Winnipeg, Manitoba, made a cash sale of $4,499. The taxes in Manitoba are 5% GST and 7% PST. The cost of the merchandise was $3,350.
|
General Journal |
Page ____ |
|||
|
Date |
Account Titles and Explanations |
PR |
Debit |
Credit |
|
May 14 |
Cash |
|
5,038.88 |
|
|
|
GST Payable (4,499 x 0.05) |
|
|
224.95 |
|
|
PST Payable (4,499 x 0.07) |
|
|
314.93 |
|
|
Sales |
|
|
4,499 |
|
|
|
|
|
|
|
May 14 |
Cost of Goods Sold |
|
3,350 |
|
|
|
Merchandise Inventory |
|
|
3,350 |
2. Prepare the general journal entry for the following events involving property taxes for BAC Co. The company’s fiscal year-end is December 31st . The company does adjusting at the end of the year.
March 1st : Received the property tax bill for the year. The property tax bill is for $15,000 and must be paid by May 31st .
|
General Journal |
Page ____ |
|||
|
Date |
Account Titles and Explanations |
PR |
Debit |
Credit |
|
March 1st |
Property Tax Expense |
|
2,500 |
|
|
|
Property Tax Payable |
|
|
2,500 |
15,000 x 2/12 = 2,500
May 31st : Paid the property tax bill for the year.
|
General Journal |
Page ____ |
|||
|
Date |
Account Titles and Explanations |
PR |
Debit |
Credit |
|
May 31st |
Property Tax Payable (first 2 months) |
|
2,500 |
|
|
|
Property Tax Expense (15,000 x 3/12) |
|
3,750 |
|
|
|
Prepaid Property Tax (15,000 x 7/12) |
|
8,750 |
|
|
|
Cash |
|
|
15,000 |
3. Prepare the general journal entries for the following events involving short-term notes payable for TTH Inc. The company’s fiscal year-end is December 31st .
December 1st : Borrowed $45,000 by signing a 5-month short-term note payable beginning today at 4.5%
|
General Journal |
Page ____ |
|||
|
Date |
Account Titles and Explanations |
PR |
Debit |
Credit |
|
Dec 1st |
Cash |
|
45,000 |
|
|
|
Notes Payable |
|
|
45,000 |
December 31st : Recorded the accrued interest on the note payable. I = PRT = $45,000 x 0.045 x 1 /12 = 168.75
|
General Journal |
Page ____ |
|||
|
Date |
Account Titles and Explanations |
PR |
Debit |
Credit |
|
Dec 31st |
Interest Expense |
|
168.75 |
|
|
|
Interest Payable |
|
|
168.75 |
May 1st : TTH Inc. honoured the note payable when presented for payment.
|
General Journal |
Page ____ |
|||
|
Date |
Account Titles and Explanations |
PR |
Debit |
Credit |
|
May 1st |
Interest Payable |
|
168.75 |
|
|
|
Interest Expense ($45,000 x 0.045 x 4/12) |
|
675.00 |
|
|
|
Notes Payable |
|
45,000 |
|
|
|
Cash |
|||
2022-04-15