I just need help with this cause I'm stupid
Financial Accounting Exam #3 (round all answers except payroll to whole dollar amounts) 1. You are the bookkeeper for a growing company in the valley. The owner tells you on April 12, 2019 he established a petty cash fund of $400. On April 30, they have $125 in the petty cash box. He gives you receipts for the following expenses during the month: Office lunch - $60; Postage - $23; Janitorial service - $180. Prepare the following journal entries: a. April 12 to establish the fund. b. April 30 to reimburse the fund. c. May 1 to increase the fund to $500. 2. You need to reconcile the checking account for your client for April 30, 2019. The Quickbooks file shows a balance of $8,564 in the checking account on April 30. The bank statement shows a balance of $7,682. Prepare a bank reconciliation using the following information: a. The bank statement shows a service charge of $5 which has not been entered in QuickBooks yet. b. There are 3 outstanding checks in the following amounts - $1,000; $245; and $523. c. A deposit made and posted in Quickbooks on April 30 is not listed on the bank statement (has not cleared yet) for $2,667. d. A check for $166 on the statement was incorrectly posted in Quickbooks for $144. 3. On April 2, 2019, you present a client, Bob, with his completed tax return along with his bill for $750, which you record in your books. By August 15, 2019, you figure out Bob isn’t going to pay, since he just gave you a sob story about his financial woes. Miraculously, Bob wins $5,000 with a pull-tab and sends you a check for $750 on September 10, 2019. You use the direct write off method of accounting for bad debts. Prepare the journal entries for the following transactions: a. Record the sales transaction on 4/2/19. b. You write off the receivable on 8/15/19. c. Record the recovery of the bad debt and receipt of payment. 4. Your bookkeeping client shows the following in their unadjusted trial balance for December 31, 2019. They use the allowance method of accounting for bad debts. Debit Credit Accounts Receivable 125,467 Allowance for doubtful accounts 1,462 Cash sales 62,870 Credit sales 98,680 a. Prepare the adjusting entry to record bad debt expense assuming uncollectables are estimated to be 2% of total sales. b. Prepare a journal entry for January 15, 2019, writing off the total receivables for Fred, totaling $465. c. Prepare the journal entries to record the receipt of full payment from Fred on May 22, 2019. 5. Prepare journal entries for the following transactions. Assume no reversing entries are used. a. You accept a 60-day 6% note receivable dated November 15, 2019 to cover $1,500 in accounts receivable for a past due account for Joe. b. You accrue the interest earned on December 31, 2019. c. On January 14, 2020 Joe honors his note and pays all money owed. 6. Your client purchases a facility for his business on April 1, 2019. He pays $300,000 for the building and ½ acre of land. The MatSu Borough values the land at $50,000 and the building at $200,000. Your client has $10,000 of land improvements (landscaping) done prior to beginning operations on April 2,2019. The facility is expected to last 10 years and the landscaping 5 years. The client uses the straight-line method of depreciation. a. Determine the apportioned cost of the building and land. b. Considering all the above, determine the total depreciation expense for 2019. c. How would fixed assets (PP&E) be presented on the balance sheet for 2019? (show what that section of the Balance Sheet would look like.) 7. Your client sells 2 desks (original cost $800 each), for $200 total in cash on June 15, 2017. The desks were fully depreciated as of 2014 and had no salvage value considered. The desks were recorded in the asset account “Furniture & Fixtures”. a. Prepare the journal entry(ies) required to record the sale of the assets. 8. Your client buys a new van for his business on January 1, 2017. The sale price of the new van is $52,000. Your client pays $8,000 in cash for a down payment, $40,000 in a 7% 5-year note payable, and trades in an old van that originally cost $25,000 and $20,000 of depreciation had been recorded with no salvage value. a. Prepare the journal entry for the purchase of the new van. You will need to incorporate all facets of the exchange with the old van. (The asset account for the van is “Vehicles”). b. Given the payments on the loan are made annually and are equal for the life of the loan, what is the annual payment for the note? c. How much interest will be paid in total over the life of the loan? 9. Below are 4 employees for a client and payroll needs to be completed. Employees contribute 5% of their gross pay to the retirement plan, and the employer matches this. The pay period is for April 30, 2017. FICA-SS are 6.2% of the first $118,500 of wages, FICA-MC are 1.45% of all wages, and FUTA is 6% of the first $7,000. All payroll calculations are calculated to the penny. Cumulative Current Federal Tax Pay Gross Pay Withholding Susan 117,200.00 5,310.00 940.00 Dan 70,512.00 3,840.00 580.00 Melanie 51,118.00 2,970.00 460.00 Roger 5,180.00 1,690.00 240.00 a. Calculate the employer and employee contribution to FICA and FUTA for the pay period (there is no SUTA for this exercise). b. Calculate the Net Pay for each employee for the pay period. c. Prepare the journal entry to record the accrued payroll and liabilities for the period. d. Prepare the journal entry to record the employer’s cash payment of the net payroll. e. Prepare the journal entry to record the employer’s payroll taxes and benefits contribution. f. Prepare the entry to record the payment of all liabilities to the appropriate entity. 10. Your client issues a bond with a par value of $50,000 on January 1, 2017. The bonds mature in 5 years and pay 12% interest in semi-annual payments. On the issue date, the annual market rate for the bonds is 8%. a. What is the amount of each semi-annual payment? b. Compute the price of the bond on the date of issue. c. Prepare the journal entry to record the bond’s issuance.