Accounting 205 Week 4 Assignment



Sample content

Week 4 Assignment

P7-31A

P8-32A

P8-26A

P8-27A

P7-27A

ACC 205

P7-31A

Part 1 : Before replenishment, petty cash fund must have cash of $330(500-170)

Part 2 : Journal Entry

Date Accounts and Explanations Debit Credit

June 1 Petty cash 500

Cash in bank 500

To open the petty cash funds.

June 30 Amusement expenditure (25+75) 100

Office materials expenditure (35+15) 50

Postage expenditure 20

Cash short and over 5

Cash ($500-$325) 175

July 1 Petty cash 50

Cash in bank 50

To enhance petty cash fund.

P8-32A

Part 1

2012

2011

90+145+290)/560

=(70+175+260)/600

Acid test ratio

= 0.94

=0.84

One days sale

=net sales/365

=5860/365

=5140/365

One day’s sales

= $16.05

=$14.08

Days in sale in

Aver. Net receivables/

One day’s sales

=((260+290)/2)/16.05

((250+260)/2)/14.08

Days in sales

17

18

Accounts receivable turnover

=net credit sales/average

=5860/((260+290)/2)

=5140/((250+260)/2

=21.31

=20.16

Part-2:

In 2011, acid test ratio is 0.84 while in 2012 it is 0.94 in which there is a significant improvement. This tendency is good for the organization. The one day’s sale is also good for the organization because it is improved from 2011 to 2012 and lastly, the accounts receivable improved from 2011 to 2012. This tendency is good for the organization.

P8-26A

Allowance Method

Journal Entry

Date

Accounts and Explanations

Debit

Credit

Sep

30

Accounts receivable

590,000

Sales income

590,000

30

Cash

627,000

Accounts receivable

627,000

30

Uncollectible account expenditure

17,700

($590,000 x .03)

Allowance for uncollectible accounts

17,700

30

Allowance for uncollectible accounts

7,000

Accounts receivable

7,000

Journal Entry

Date

Accounts and Explanations

Debit

Credit

Sep

30

Accounts receivable

590,000

Sales income

590,000

30

Cash

627,000

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