ACCT 101 –Accounting I

Instructions – Please read carefully!

1. Write your name; student ID number and section number at the top of this cover sheet.
2. Check that your graded homework contains 7 pages (excluding cover page) and 5 questions.
3. Answer the following questions and upload it as Word file through Turnitin assignment submission in Moodle.
4. The similarity percentage should not be more than 30%.
5. The last day of submission is 14^th May 2020.

Answer the following questions

Question 1:  MULTIPLE CHOICE QUESTIONS: (A1, C1, D3) (8 Points)

1. Which financial statement displays the revenues and expenses of a company for a period of time?
2. Balance sheet.
3. Cash Flows
4. Owners’ Equity.
5. Income Statement.

2. Which account is not a liability account?
3. Buildings.
4. Loans.
5. Bonds.
6. Interest payable.

3. Which of these is not included as a separate item in the basic accounting equation:
4. Assets
5. Expenses.
6. Liabilities.
7. Owners’ Equity

4. The credit terms offered to a customer by a business firm are 10/10, n/30, which means that:
5. The customer must pay the bill within 10 days.
6. The customer can deduct a 10% discount if the bill is paid between the 10th and 30th day from the invoice date.
7. The customer can deduct a 10% discount if the bill is paid within 10 days of the invoice date.
8. Two sales returns can be made within 10 days of the invoice date and no returns thereafter.
9. Net sales equal:
10. sales revenue + Operating expenses.
11. sales revenue – COGS.
12. Sales revenue- sales discounts- sales allowance.
13. Sales revenue- sales discounts- sales allowance + fright- in.

6. In terms of FOB destination:
7. The ownership of the goods passes to the seller.
8. The ownership of the goods passes to the buyr.
9. The ownership of the goods passes to the public carrier.
10. The ownership of the goods remains with the seller.

7. In double-entry accounting system:
8. Debits must not equal credits.
9. Debits must exceed credits.
10. Credits must exceed debits.
11. Debits must equal credits.

8. The basic accounting equation cannot be restated as:
9. Assets – Liabilities = Owner’s Equity.
10. Assets – Owner’s Equity = Liabilities.
11. Owner’s Equity + Liabilities = Assets.
12. Assets + Liabilities = Owner’s Equity.

Question 2:( B1, C3, D3) (8 Points)        

The following information pertains to Manama Company:

Instructions

Prepare the journal entries for estimated bad debts assuming that doubtful accounts are estimated to be:

• 10% of accounts receivable.
• 10% of net sales.

Answer of Question 2:

Question 3: (B1, C1, D3) (8 Points)        

At the end of 2016 Fontana Company has the following account balances:  Purchases $710,000; Purchase Returns and Allowances $210,000; Purchase Discounts $50,000; and Freight-In $10,000; beginning inventory of $80,000; ending inventory $40,000; and net sales of $900,000.

Instructions: Prepare the Statement of cost of goods sold.

Answer of Question 3 :

Question 4:( B1, C3, D3) (8 Points)

Below are separet transactions for KFH Company for the month of August prepare the sutible journal entry under each transaction.

Answer of Question 4 :

Question 5 🙁 B1, C1, D3) (8 Points)

Mango Company uses a petty cash system. The fund was established on November 1 with a balance of $600. During November, the following petty cash receipts were found in the petty cash box:

1. Printing fees $90
2. Supplies expense $110
3. Fixing fees $80
4. Transportation expense $180
5. Refreshment expenses $120

The fund was replenished on November 25 when the fund contained $10 cash. On November 30, the amount in the fund was increased to $700.

Instructions:

Journalize the entries for Mango Company in November that pertains to the operations of the petty cash fund.

Answer of Question 5:

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