Would it be considered unusual to find debits to fixed assets coming from a journal entry source

1. Would it be considered unusual to find debits to fixed assets coming from a journal entry source rather than a purchase journal? Explain.

2. Would it be normal to find entries to accumulated depreciation and depreciation expense to come from a journal entry source rather than another source?

3. Assume you were auditing FedEx and in your sample of debits to fixed assets, you find an entry for $500,000 with the following notation: "Capitalization of line capacity per CFO, amounts were originally in corrected recorded as an expense." Explain what you would do to complete the audit of this item. What evidence would you need to see to either corroborate or question the entry?


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Record the necessary journal entries from the following bank reconciliation information for July 31, 2011

10. Record the necessary journal entries from the following bank reconciliation information for July 31, 2011:

Bank Balance, July 31, 2011 $36,739
Checkbook Balance, July 31, 2011 36,444
Bank collection of note receivable 1,200 + 165 interest
Bank service charge 35
Deposits in transit 2,400
Outstanding checks 1,245
NSF check from customer 330
Correction of book error (check #456 written for $160, recorded at $610)—gas expense


Click here for the solution: Record the necessary journal entries from the following bank reconciliation information for July 31, 2011

A company that records credit purchases in a purchases journal and records purchases returns

ACC 225 Week 7

Exercise 7-16

A company that records credit purchases in a purchases journal and records purchases returns in a general journal made the following errors. Indicate when each error should be discovered.
1. Posted a purchases return to the Accounts Payable account and to the creditor’s subsidiary account but did not post the purchases return to the Inventory account.
2. Posted a purchases return to the Inventory account and to the Accounts Payable account but did not post to the creditor’s subsidiary account.
3. Correctly recorded a $4,000 purchase in the purchases journal but posted it to the creditor’s subsidiary account as a $400 purchase.
4. Made an addition error in determining the balance of a creditor’s subsidiary account.
5. Made an addition error in totaling the Office Supplies column of the purchases journal.


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Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co

Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co.

(a) On April 1, 2009, Quirk issued $500,000, 9% bonds for $537,868 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2019.
(b) On July 1, 2011 Quirk retired $150,000 of the bonds at 102 plus accrued interest. Quirk uses straight-line amortization.


Click here for the solution: Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co

Transaction data and journal entries for Pickert Real Estate Agency are presented in E3-7 and E3-8

E3-9 Transaction data and journal entries for Pickert Real Estate Agency are presented in E3-7 and E3-8.

Hint: Post journal entries and prepare a trial balance.

Instructions
(a) Post the transactions to T accounts
(b) Prepare a trial balance at October 31, 2010

Click here for the solution: Transaction data and journal entries for Pickert Real Estate Agency are presented in E3-7 and E3-8