Gold Run Snowmobile Answer Book - PKL Software · Answer Book Gold Run Snowmobile Trial Balance...

Gold Run Snowmobile Answer Book

5th Edition

Student Documents and

Evaluation Answers


5th Edition

Copyright © 2011 – 2020 PKL Software, Incorporated. All rights reserved.

www.pklsoftware.com

Last Revised: January 12, 2020

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Notes to Professors:

The year-dates of the financial documents in the Answer Book will

not reflect the current year, but will show a year-date of 2007.

The financial documents printed by your students will show a

year-date of the current year plus one.


5th Edition


www.pklsoftware.com



Student Documents

for

December 4 – 10 Module 1

The student is not required to print any documents for December 4 – 10.

These documents would be printed for audit purposes only.


5th Edition


www.pklsoftware.com



Answer Book

Gold Run Snowmobile

Trial Balance

December 10, 2007

Account Titles Debit Credit

-------------------------------------------------------------------------

Cash 40,556.39

Petty Cash 100.00

Short-Term Investments 14,150.00

Accounts Receivable 36,115.27

Allowance for Doubtful Accounts 107.50

Accounts Receivable, Credit Card Co. 8,142.50

Notes Receivable 9,600.00

Merchandise Inventory 183,669.35

Prepaid Insurance 4,220.00

Prepaid Property Tax 660.00

Store and Shop Supplies 2,292.26

Store Equipment and Fixtures 51,316.00

Accum. Deprec., Store Equipment and Fixtures 14,430.00

Shop Equipment 20,250.00

Accumulated Depreciation, Shop Equip. 6,750.00

Trucks 28,200.00

Accumulated Depreciation, Trucks 6,750.00

Land 109,500.00

Accounts Payable 137,962.26

Notes Payable 13,000.00

Sales Tax Payable 4,093.55

Unearned Storage Fees 11,015.00

Common Stock 250,000.00

Retained Earnings 44,825.79

Dividends Declared 11,500.00

Snowmobile and Accessories Sales 164,568.84

Sales Returns and Allowances 1,517.00

Service Fees Earned 10,982.50

Cost of Goods Sold 100,131.92

Transportation-In 715.00

Salaries and Wages Expense 17,015.00

Truck & Equipment Operating Expense 812.95

Advertising Expense 1,734.75

Delivery Expense 560.25

Credit Card Expense 805.00

Tools Expense 50.00

Rent Expense 12,000.00

Electric and Gas Expense 801.05

Telephone Expense 532.00

Bank Service Charges 65.00

License Expense 316.00

Professional Services Expense 413.00

Cash Short & Over 16.00

Discounts Lost 34.00

Miscellaneous Expense 71.75

Interest Earned 212.00

Dividends Earned 504.00

Miscellaneous Revenue 40.00

Income Taxes Expense 6,835.00

Interest Expense 329.00

---------- ----------

Total 665,133.94 665,133.94

========== ==========

Answer Book

Gold Run Snowmobile

Schedule of Accounts Receivable

Last Activity Date: December 8, 2007

Number Name Balance

10400 Mary Bermuda $ .00

10450 Colfax Sno Katts .00

10750 Alice Cordero .00

10930 Downieville Dusters 2,550.00

11000 Chris Enburger 435.00

11250 Cathi Grobowski .00

11340 Beverly Kline .00

11470 Ray Norburg 5,712.22

11510 Karen Osetto .00

11675 Cheryl Papini 398.00

11780 Running Ramblers 6,475.05

11800 Snowbirds .00

11925 Thunder Mountain, Inc. .00

11950 Ruth Yates 20,545.00

----------

Total Accounts Receivable $ 36,115.27 ==========

Answer Book

Gold Run Snowmobile

Schedule of Accounts Payable


Number Name Balance

20300 Buster Supply $ 509.76

21680 Butler & Kadnaso 14,795.00

22500 Fastwinn, Incorporated .00

23400 Inglass, Incorporated .00

24850 Morelli Sports Equipment 10,210.00

26500 Norton America 15,741.00

27000 Swift, Incorporated 62,320.50

28400 Trail-Tracker, Inc. 27,244.00

29650 Wind Dancer 7,142.00

----------

Total Accounts Payable $ 137,962.26 ==========

Answer Book

Inventory Analysis

Gold Run Snowmobile

Last Activity Date: December 2007

Stock

Number

Inventory

Item

Reorder

Point

Units

On Hand

Unit

Cost

At/Below

Reorder

T1500 TRAIL-TRACKER 1500 2 8 $ 4,116.00

T2000 TRAIL-TRACKER 2000 3 4 5,148.00

T3000 TRAIL-TRACKER 3000 3 4 5,390.00

T3300 TRAIL-TRACKER ENDURO 1 1 6,860.00 Yes

SW660 SWIFT ENDURO 1 9 5,940.00

SW999 SWIFT ARROW 1 1 9,900.00 Yes

SS100 NORTON TRAILER SOLO 2 12 490.00

SD200 NORTON TRAILER DUO 2 8 693.00

SSS30 QUAD HAULER 2 4 1,188.00

A1000 SNOWBOUND BATTERY 4 15 30.50

A1150 SUPER CHARGER BATT. 4 11 49.50

B1200 TIE DOWNS KIT 4 5 19.50

B1340 ENDURO ENGINE COWL 1 2 56.00

B2250 MAGNETO ASSEMBLY 2 0 94.50 Yes

B3000 CUSTOM DECAL KIT 5 30 32.00

B4400 MUFFLER PAK 3 5 65.30

B5600 OIL PUMP ASSEMBLY 1 2 64.50

B7777 LUGGAGE CARRIER 2 4 38.00

CC100 STANDARD SHOCK 9 20 17.50

CC555 SUPER DUTY SHOCK 9 1 27.25 Yes

EE222 FUEL TANK 6 GALLON 2 5 6.40

J1001 M WIND TEK SUIT MD 3 15 150.00

J2002 M WIND TEK SUIT LG 3 16 160.00

J3003 M WIND TEK SUIT XLG 3 8 175.00

J7777 W WIND TEK SUIT SM 3 5 120.00

J8888 W WIND TEK SUIT MD 3 12 130.00

J9999 W WIND TEK SUIT LG 3 14 140.00

LL244 SNOW MITTENS MEDIUM 6 8 20.25

LL355 SNOW MITTENS LARGE 6 12 22.40

LL466 COMPETITION GLOVES 4 3 79.00 Yes

M0300 W TRAIL BOOTS 6 24 55.00

M0440 M TRAIL BOOTS 6 4 65.00 Yes

M0555 RACING SHIRT 6 13 16.50

M1500 THERMAL SHIRT MD 6 0 14.25 Yes

M1650 THERMAL SHIRT LG 4 7 16.25

M2222 TUFF TURTLES 0 18 8.75

M3344 TUFF TURTLES H WT. 0 16 11.25

N6000 NEON CAP 0 36 6.00

N7500 KNIT CAPS 9 30 12.75

RR222 THERMAL FACEMASK 4 9 13.30

RR300 RACING FACEMASK 2 12 24.40

RR404 CRUZE HELMET 3 6 65.50

RR555 DELUXE RACING HELMET 6 25 95.00

RR900 HELMET BAG 2 2 21.25 Yes

RR925 CRUZE FACESHIELD 4 16 9.90

RR933 FOGGER FACESHIELD 4 6 12.40

RR999 HOT GRIPS 4 10 28.50

U0001 ACE GOGGLES 4 4 22.60 Yes

U0012 SPORT GLASSES 4 3 7.40 Yes

U1000 MICRO WINDSHIELD 1 1 44.10 Yes

U2200 FANNY PAKS 5 25 17.25

V0333 SNOWMOBILE COVER 2 1 58.80 Yes

V4400 SADDLE BAGS 2 2 36.00 Yes

W1111 SPEEDOMETER 2 10 29.40

W7777 TACHOMETER 2 0 31.36 Yes

XX111 GEARLUBE 1-GALLON 2 6 6.25

XX222 CRUZE OIL CASE 4 13 9.00

XX333 HOTSHOT OIL CASE 4 4 32.00 Yes

Z9000 TEAM TR-TRACKER BAG 1 0 22.00 Yes

ZZ100 TRAIL-TRACKER JACKET 2 2 63.50 Yes

Items At or Below Reorder Point: 17

Total Value of Inventory: 183,669.35

Answer Book

Gold Run Snowmobile

General Journal

Date Accounts and Explanation PR Debit Credit

----------------------------------------------------------------------------------

Dec. 4 Cash 101 108.61

Service Fees Earned 411 101.50 Sales Tax Payable 205 7.11

Invoice: G3005

Dec. 3 Cash 101 19.75

Miscellaneous Expense 635 19.75

Invoice: 56789

Dec. 3 Advertising Expense 604 19.75

Cash 101 19.75

Check: ERROR

Invoice: 56789

Dec. 4 Store Equipment and Fixtures 131 386.00

Store and Shop Supplies 127 123.76

Accounts Payable 201 509.76

Invoice: B5667

Vendor: 20300

Buster Supply

Dec. 4 Cash 101 7,944.75

Snowmobile and Accessories Sales 401 7,425.00

Sales Tax Payable 205 519.75

Invoice: G3007

Dec. 4 Cost of Goods Sold 501 5,940.00

Merchandise Inventory 115 5,940.00 Invoice: G3007

Dec. 5 Merchandise Inventory 115 148.50


Invoice: S4101

Vendor: 27000

Swift, Incorporated

Dec. 5 Store and Shop Supplies 127 23.50 Delivery Expense 606 25.25

Petty Cash 102 50.00 Cash 101 98.75

Check: 30091

Invoice: PCASH

Dec. 5 Cash 101 915.00

Unearned Storage Fees 221 915.00

Invoice: G3006

Dec. 6 Cash 101 385.00

Dividends Earned 713 385.00

Invoice: CASHD

Dec. 6 Merchandise Inventory 115 27,244.00

Accounts Payable 201 27,244.00

Invoice: T4357

Vendor: 28400

Trail-Tracker, Inc.

Dec. 6 Cash 101 659.98

Service Fees Earned 411 116.00

Snowmobile and Accessories Sales 401 500.80 Sales Tax Payable 205 43.18 Invoice: G3009

Dec. 6 Cost of Goods Sold 501 250.40

Merchandise Inventory 115 250.40

Invoice: G3009

Dec. 8 Accounts Receivable 105 260.05

Snowmobile and Accessories Sales 401 243.04


Invoice: G3010

Customer: 11780

Running Ramblers



Invoice: G3010

Customer: 11780

Running Ramblers

Dec. 8 Allowance for Doubtful Accounts 106 842.00

Accounts Receivable 105 842.00

Invoice: WROFF

Customer: 11250

Cathi Grobowski

Dec. 8 Cash 101 18,350.50


Sales Tax Payable 205 1,200.50

Invoice: G3011



Dec. 9 Accum. Deprec., Store Equipment and Fi 132 770.00

Store Equipment and Fixtures 131 770.00

Invoice: DONAT



Invoice: S4234

Vendor: 27000

Swift, Incorporated



Invoice: M4006

Vendor: 24850

Morelli Sports Equipment

Dec. 10 Dividends Payable 207 11,500.00

Cash 101 11,500.00 Check: 30092

Invoice: DPAID

Student Documents

for


The student is required to print all documents shown for December 11 – 17 except the

General Journal entries.


5th Edition


www.pklsoftware.com



Answer Book

Gold Run Snowmobile

Trial Balance

December 17, 2007


-------------------------------------------------------------------------

Cash 98,758.29

Petty Cash 100.00




Accounts Receivable, Credit Card Co. 500.75










Trucks 28,200.00


Land 109,500.00












Transportation-In 1,142.00


Truck & Equipment Operating Expense 812.95



Credit Card Expense 1,091.57

Tools Expense 50.00

Dep. Expense, Store Equipment and Fixtures 40.00












Gain on Sale of Assets 155.00

Gain on Short-Term Investments 1,424.75




---------- ----------

Total 710,067.91 710,067.91

========== ==========

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

101 Cash

Explanation

Debit

Credit

Balance

Dec. 3 Beginning Balance 23,791.30

Dec. 4 G3005 108.61 23,899.91

Dec. 3 56789 19.75 23,919.66

Dec. 3 ERROR 56789 19.75 23,899.91

Dec. 4 G3007 7,944.75 31,844.66

Dec. 5 30091 PCASH 98.75 31,745.91

Dec. 5 G3006 915.00 32,660.91

Dec. 6 CASHD 385.00 33,045.91

Dec. 6 G3009 659.98 33,705.89

Dec. 8 G3011 18,350.50 52,056.39

Dec. 10 30092 DPAID 11,500.00 40,556.39

Dec. 11 ASALE 320.00 40,876.39

Dec. 11 30093 K3111 199.75 40,676.64

Dec. 12 10750 RECOV 1,310.00 41,986.64

Dec. 12 CC301 7,355.18 49,341.82

Dec. 13 30094 35556 3,600.00 45,741.82

Dec. 13 11510 G3012 6,000.00 51,741.82

Dec. 13 30095 87333 370.00 51,371.82

Dec. 14 G3013 53,600.58 104,972.40

Dec. 14 30096 20300 B5667 453.76 104,518.64

Dec. 15 STINV 6,049.75 110,568.39

Dec. 15 11950 G2995 20,545.00 131,113.39

Dec. 15 30097 PAYRL 369.75 130,743.64

Dec. 15 30098 27000 S4101 148.50 130,595.14

Dec. 16 30099 28400 T4357 27,244.00 103,351.14

Dec. 17 30100 K3279 383.50 102,967.64

Dec. 17 BADCK 11510 G3012 6,000.00 96,967.64

Dec. 17 G3015 1,790.65 98,758.29

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

105 Accounts

Explanation

Receivable

Debit

Credit

Balance


Dec. 8 11780 G3010 260.05 36,957.27

Dec. 8 11250 WROFF 842.00 36,115.27

Dec. 12 10750 RECIV 1,310.00 37,425.27

Dec. 12 10750 RECOV 1,310.00 36,115.27

Dec. 13 11000 WROFF 435.00 35,680.27

Dec. 13 11510 G3012 8,697.79 44,378.06

Dec. 15 10400 G3014 645.10 45,023.16

Dec. 15 11950 G2995 20,545.00 24,478.16

Dec. 16 10400 G3014 CM307 47.94 24,430.22

Dec. 17 BADCK 11510 G3012 6,020.00 30,450.22

Answer Book

Gold Run Snowmobile

Ledger Card

Account: 107 Accounts Receivable, Credit Card Companies

Date Explanation Debit Credit Balance


Dec. 12 CC301 7,641.75 500.75

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

115 Merchandise

Explanation

Inventory

Debit

Credit

Balance


Dec. 4 G3007 5,940.00 103,186.77

Dec. 5 27000 S4101 148.50 103,335.27

Dec. 6 28400 T4357 27,244.00 130,579.27

Dec. 6 G3009 250.40 130,328.87

Dec. 8 11780 G3010 121.52 130,207.35

Dec. 8 G3011 13,720.00 116,487.35

Dec. 9 27000 S4234 62,172.00 178,659.35

Dec. 10 24850 M4006 5,010.00 183,669.35

Dec. 13 22500 44777 573.30 184,242.65

Dec. 13 11510 G3012 10,989.00 173,253.65

Dec. 14 G3013 39,897.00 133,356.65

Dec. 15 10400 G3014 207.20 133,149.45

Dec. 16 10400 G3014 CM307 22.40 133,171.85

Dec. 17 G3015 1,188.00 131,983.85

Dec. 17 22500 44777 DM211 58.80 131,925.05

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

201 Accounts

Explanation

Payable

Debit

Credit

Balance


Dec. 4 20300 B5667 509.76 43,387.76

Dec. 5 27000 S4101 148.50 43,536.26

Dec. 6 28400 T4357 27,244.00 70,780.26

Dec. 9 27000 S4234 62,172.00 132,952.26

Dec. 10 24850 M4006 5,010.00 137,962.26

Dec. 11 20300 B5667 56.00 137,906.26

Dec. 13 22500 44777 616.80 138,523.06

Dec. 14 30096 20300 B5667 453.76 138,069.30

Dec. 15 30098 27000 S4101 148.50 137,920.80

Dec. 16 30099 28400 T4357 27,244.00 110,676.80

Dec. 17 22500 44777 DM211 58.80 110,618.00

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

401 Snowmobile

Explanation

and Accessories Sales

Debit

Credit

Balance


Dec. 4 G3007 7,425.00 146,675.00

Dec. 6 G3009 500.80 147,175.80

Dec. 8 11780 G3010 243.04 147,418.84

Dec. 8 G3011 17,150.00 164,568.84

Dec. 13 11510 G3012 13,736.25 178,305.09

Dec. 14 G3013 50,094.00 228,399.09

Dec. 15 10400 G3014 414.40 228,813.49

Dec. 17 G3015 1,485.00 230,298.49

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

501 Cost of

Explanation

Goods Sold

Debit

Credit

Balance


Dec. 4 G3007 5,940.00 86,040.00

Dec. 6 G3009 250.40 86,290.40

Dec. 8 11780 G3010 121.52 86,411.92

Dec. 8 G3011 13,720.00 100,131.92

Dec. 13 11510 G3012 10,989.00 111,120.92

Dec. 14 G3013 39,897.00 151,017.92

Dec. 15 10400 G3014 207.20 151,225.12

Dec. 16 10400 G3014 CM307 22.40 151,202.72

Dec. 17 G3015 1,188.00 152,390.72

Answer Book

Gold Run Snowmobile

Ledger Card

Account: 505 Transportation-In


Dec. 3 Beginning Balance 715.00

Dec. 13 22500 44777 43.50 758.50

Dec. 17 30100 K3279 383.50 1,142.00

Answer Book

Gold Run Snowmobile

Ledger Card

Account: 606 Delivery Expense



Dec. 5 30091 PCASH 25.25 560.25

Dec. 11 30093 K3111 199.75 760.00

Answer Book

Gold Run Snowmobile



Number Name Balance

10400 Mary Bermuda $ 597.16


10750 Alice Cordero .00


11000 Chris Enburger .00



11470 Ray Norburg 5,712.22

11510 Karen Osetto 14,717.79



11800 Snowbirds .00


11950 Ruth Yates .00

----------


Answer Book

Gold Run Snowmobile

All Accounts Receivable Customers

Number:

Name:

Address:

Date

10400

Mary Bermuda

356 Cool Avenue

Explanation

Bend,

OR

Debit

Credit

Balance

Dec. 3 Balance 0.00

Dec. 15 G3014 645.10 645.10

Dec. 16 G3014 CM307 47.94 597.16

Number: 10450

Name: Colfax Sno Katts

Address: 4455 Gold Pan St. Colfax, CA


Dec. 3 Balance 0.00

Number: 10750

Name: Alice Cordero

Address: 2567 Rego Lane Oakland, CA


Dec. 3 Balance 0.00

Dec. 12 RECIV 1,310.00 1,310.00

Dec. 12 RECOV 1,310.00 0.00

Number: 10930

Name: Downieville Dusters

Address: 3000 Granite Ct. Pinecrest, CA


Oct. 3 G3768 2,550.00 2,550.00

Number: 11000

Name: Chris Enburger

Address: 2789 Rock Ct. Reno, NV


Sep. 3 G3688 435.00 435.00

Dec. 13 WRIFF 435.00 0.00

Number: 11250

Name: Cathi Grobowski

Address: 356 Hill Rd. Truckee, CA


July 8 G3501 842.00 842.00

Dec. 8 WROFF 842.00 0.00

Number: 11340

Name: Beverly Kline

Address: PO Box 267 Gold Run, CA


Dec. 3 Balance 0.00

Number: 11470

Name:

Address:

Date

Ray Norburg

124 Cedar Dr.

Explanation

Granite Bay, CA

Debit

Credit

Balance

Nov 26 G2999 5,712.22 5,712.22

Number: 11510

Name: Karen Osetto

Address: 1900 Ridge Rd. Bridge Bay, CA


Dec. 3 Balance 0.00

Dec. 13 G3012 8,697.79 8,697.79

Dec. 17 G3012 BADCK 6,020.00 14,717.79

Number: 11675

Name: Cheryl Papini

Address: 900 Ranch Rd. Fallon, NV


Nov 14 G3990 398.00 398.00

Number: 11780

Name: Running Ramblers

Address: 5000 Hiway Dr. Tahoe City, CA


Nov 15 G3928 6,215.00 6,215.00

Dec. 8 G3010 260.05 6,475.05

Number: 11800

Name: Snowbirds

Address: PO Box 7777 Truckee, CA


Dec. 3 Balance 0.00

Number: 11925

Name: Thunder Mountain, Inc.

Address: 1245 Valega St. Lassen, CA


Dec. 3 Balance 0.00

Number: 11950

Name: Ruth Yates

Address: 245 Redwood Ct. Granite Bay, CA


Nov 21 G2995 20,545.00 20,545.00

Dec. 15 G2995 20,545.00 0.00

Answer Book

Gold Run Snowmobile



Number Name Balance

20300 Buster Supply $ .00


22500 Fastwinn, Incorporated 558.00



26500 Norton America 15,741.00


28400 Trail-Tracker, Inc. .00

29650 Wind Dancer 7,142.00

----------

Total Accounts Payable $ 110,618.00

==========

Answer Book

Vendor Data

Number: 20300

Name: Buster Supply

Address: 1000 River Rd.

Date Explanation

Goose Cove, CA

Debit

Net 10

Credit

Balance

Dec. 3 Balance 00.00

Dec. 4 B5667 509.76 509.76

Dec. 11 B5667 56.00 453.76

Dec. 14 30096 B5667 453.76 0.00

Number: 21680

Name: Butler & Kadnaso

Address: 245 Barwell St. Truckee, CA Net 30


Nov. 26 21777 14,795.00 14,795.00

Number: 22500

Name: Fastwinn, Incorporated

Address: 999 Auburn Dr. Auburn, CA 2/10, n/30



Dec. 13 44777 616.80 616.80

Dec. 17 44777 DM211 58.80 558.00

Number:

Name:

Address:

23400

Inglass, Incorporated

3789 Highway 80

Gold Run, CA

Net

10



Number: 24850

Name: Morelli Sports Equipment

Address: 477 Yellowstone Casper, WY Net 30


Dec. 2 M2981 5,200.00 5,200.00

Dec. 10 M4006 5,010.00 10,210.00

Number: 26500

Name: Norton America

Address: 3588 Hillcrest St. Denver, CO 1/10, n/30


Nov. 18 N3302 15,741.00 15,741.00

Number:

Name:

27000

Swift, Incorporated

Address:

Date

5234 Walnut

Explanation

Bend, OR

Debit

1/10, n/30

Credit

Balance


Dec. 5 S4101 148.50 148.50

Dec. 9 S4234 62,172.00 62,320.50

Dec. 15 30098 S4101 148.50 62,172.00

Number: 28400

Name: Trail-Tracker, Inc.

Address: 2233 Baldwin

Date Explanation

Spencer, CO

Debit

2/10, n/30

Credit

Balance


Dec. 6 T4357 27,244.00 27,244.00

Dec. 16 30099 T4357 27,244.00 0.00

Number: 29650

Name: Wind Dancer

Address: Rt. 2, Box 24 Salmon, ID Net 30


Dec. 2 W6673 7,142.00 7,142.00

Answer Book

Inventory Analysis

Gold Run Snowmobile


Stock Inventory Reorder Units Unit At/Below

Number Item Point On Hand Cost Reorder

T1500 TRAIL-TRACKER 1500 2 8 $ 4,116.00

T2000 TRAIL-TRACKER 2000 3 2 5,148.00 Yes

T3000 TRAIL-TRACKER 3000 3 4 5,390.00















B7777 LUGGAGE CARRIER 2 4 38.00












LL466 COMPETITION GLOVES 4 3 79.00 Yes








N6000 NEON CAP 0 36 6.00

N7500 KNIT CAPS 9 30 12.75



RR404 CRUZE HELMET 3 6 65.50





RR999 HOT GRIPS 4 10 28.50



U1000 MICRO WINDSHIELD 1 6 44.10

U2200 FANNY PAKS 5 25 17.25

V0333 SNOWMOBILE COVER 2 4 58.80


Answer Book

Gold Run Snowmobile

Inventory Item: SWIFT ENDURO Stock Number: SW660

Reorder Point: 1

Units Dr/Cr

Date

Balance

In

2

Out Check Vendor Customer Invoice Memo

Dec. 04 1 CASH G3007

Dec. 09 8 27000 S4234

Dec. 14 5 11510 G3013

Beginning Units: 2 Unit Balance: 4

Units In: 8 Unit Cost: 5,940.00

Units Out: 6 FIFO Value: 23,760.00

Answer Book

Gold Run Snowmobile

Inventory Item: QUAD HAULER Stock Number: SSS30

Reorder Point: 2

Units Dr/Cr

Date In

Balance 0


Dec. 09 4

Dec. 17

1

27000

11510

S4234

G3015




Answer Book

Gold Run Snowmobile

Inventory Item: SNOW MITTENS LARGE Stock Number: LL355

Reorder Point: 6

Units Dr/Cr

Date In Out Check Vendor Customer Invoice Memo

Balance

Dec. 15

12

4

10400

G3014

Dec. 16 1 10400 G3014 CM307


Units In: 1 Unit Cost: 22.40

Units Out: 4 FIFO Value: 201.60

Answer Book

Gold Run Snowmobile

Inventory Item: SNOWMOBILE COVER Stock Number: V0333

Reorder Point: 2

Units Dr/Cr


Balance 1

Dec. 13 6 22500 44777

Dec. 15 2 10400 G3014

Dec. 17 1 22500 44777 DM211




Answer Book

Gold Run Snowmobile

Inventory Item: M WIND TEK SUIT MD Stock Number: J1001

Reorder Point: 3

Units Dr/Cr


Balance 1

Dec. 10 14 24850 M4006




Answer Book

Gold Run Snowmobile

Inventory Item: CRUZE FACESHIELD Stock Number: RR925

Reorder Point: 4

Units Dr/Cr


Balance 1

Dec. 05 15 27000 S4101




Answer Book

Gold Run Snowmobile

General Journal


----------------------------------------------------------------------------------

Dec. 11 Dep. Expense, Store Equip. and Fix. 610 40.00

Accum. Deprec., Store Equip. and Fix. 132 40.00

Invoice: ASALE

Dec. 11 Cash 101 320.00

Accum. Deprec., Store Equip. and Fix. 132 860.00

Store Equipment and Fixtures 131 1,025.00

Gain on Sale of Assets 721 155.00

Invoice: ASALE

Dec. 11 Delivery Expense 606 199.75

Cash 101 199.75 Check: 30093

Invoice: L3111

Dec. 11 Accounts Payable 201 56.00


Invoice: B5667

Vendor: 20300

Buster Supply

Dec. 12 Accounts Receivable 105 1,310.00

Allowance for Doubtful Accounts 106 1,310.00

Invoice: RECOV

Customer: 10750

Alice Cordero

Dec. 12 Cash 101 1,310.00

Accounts Receivable 105 1,310.00 Invoice: RECOV

Customer: 10750

Alice Cordero

Dec. 12 Cash 101 7,355.18

Credit Card Expense 607 286.57

Accounts Receivable, Credit Card Co. 107 7,641.75

Invoice: CC301

Dec. 13 Allowance for Doubtful Accounts 106 435.00

Accounts Receivable 105 435.00 Invoice: WROFF

Customer: 11000

Chris Enburger


Transportation-In 505 43.50

Accounts Payable 201 616.80 Invoice: 44777

Vendor: 22500

Fastwinn, Incorporated

Dec. 13 Shop Equipment 135 3,600.00

Cash 101 3,600.00 Check: 30094

Invoice: 35556

Dec. 13 Cash 101 6,000.00

Accounts Receivable 105 8,697.79

Snowmobile and Accessories Sales 401 13,736.25 Sales Tax Payable 205 961.54

Invoice: G3012

Customer: 11510

Karen Osetto


Merchandise Inventory

Invoice: G3012

Customer: 11510

Karen Osetto

115 10,989.00

Dec. 13 Advertising Expense 604 370.00

Cash 101 370.00 Check: 30095

Invoice: 87333

Dec. 14 Cash 101 53,600.58


Sales Tax Payable 205 3,506.58 Invoice: G3013


Merchandise Inventory 115 39,897.00

Invoice: G3013


Cash 101 453.76

Check: 30096

Invoice: B5667

Vendor: 20300

Buster Supply

Dec. 15 Cash 101 6,049.75

Gain on Short-Term Investments 731 1,424.75 Short-Term Investments 103 4,625.00 Invoice: STINV


Service Fees Earned 411 188.50 Snowmobile and Accessories Sales 401 414.40 Sales Tax Payable 205 42.20

Invoice: G3014

Customer: 10400

Mary Bermuda


Merchandise Inventory 115 207.20 Invoice: G3014

Customer: 10400

Mary Bermuda

Dec. 15 Cash 101 20,545.00

Accounts Receivable 105 20,545.00 Invoice: G2995

Customer: 11950

Ruth Yates

Dec. 15 Salaries and Wages Expense 601 369.75

Cash 101 369.75

Check: 30097

Invoice: PAYRL


Cash 101 148.50

Check: 30098

Invoice: S4101

Vendor: 27000

Swift, Incorporated

Dec. 16 Accounts Payable 201 27,244.00

Cash 101 27,244.00

Check: 30099

Invoice: T4357

Vendor: 28400

Trail-Tracker, Inc.

Dec. 16 Sales Tax Payable 205 3.14

Sales Returns and Allowances 402 44.80

Accounts Receivable 105 47.94

Invoice: G3014

Credit Memo: CM307

Customer: 10400

Mary Bermuda


Cost of Goods Sold 501 22.40

Invoice: G3014

Debit Memo: CM307

Customer: 10400

Mary Bermuda

Dec. 17 Transportation-In 505 383.50

Cash 101 383.50 Check: 30100

Invoice: K3279

Dec. 17 Accounts Receivable 105 6,020.00

Cash 101 6,000.00 Miscellaneous Revenue 741 20.00 Check: BADCK

Invoice: G3012

Customer: 11510

Karen Osetto

Dec. 17 Cash 101 1,790.65

Service Fees Earned 411 188.50 Snowmobile and Accessories Sales 401 1,485.00


Invoice: G3015





Invoice: 44777

Debit Memo: DM211

Vendor: 22500


Mid-Project Evaluation

Questions and Answers


5th Edition


www.pklsoftware.com



MID-PROJECT EVALUATION NAME

GOLD RUN SNOWMOBILE CLASS DAY AND TIME DATE

1. Do the totals on your printed Trial Balance match the figures shown Y

in the "Check It Out" box? Answer only Y for Yes or N for No.

2. What was the correct balance of the Cash account at the close of

business on December 5? List all numeric answers with dollars

and cents. Example: 147.00

$32,660.91

3. What invoice was paid in full with check number 30098 on

December 15? S4101

4. How many checks have been issued by the business during the C

period of December 4-11? (A) one (B) two (C) three (D) five

5. What is the current balance of the Buster Supply account? D

(A) $509.76 (B) $56.00 (C) $453.76 (D) $0.00

6. After the $56.00 return of supplies on December 11, what was the

balance of the Buster Supply account?

$453.76

7. What was the balance of the Fastwinn, Incorporated, account after the purchase of merchandise on December 13?

$616.80

8. How much did the debit memo of December 17 reduce the balance

owed to Fastwinn, Incorporated?

$58.80

9. What was the total (net) value of the merchandise purchased on account from Trail-Tracker, Inc., on December 6?

$27,244.00

10. If the Trail-Tracker, Inc., invoice (number T4357) had been filed on

the wrong date and not paid on time, what would have been the cost

for this error to Gold Run Snowmobile?

$556.00

11. Has the balance of accounts payable increased or decreased since A

December 3? (A) increased (B) decreased

12. Assuming that all discounts offered are taken, on what date is the B

balance owed to Swift, Incorporated due and payable?

(A) Dec. 14 (B) Dec. 19 (C) Dec. 29 (D) Jan. 10 (E) Jan. 18

MID-PROJECT EVALUATION GOLD RUN SNOWMOBILE

13. Assuming the Swift, Incorporated invoice is not paid on time as

intended, what will be the total amount of the discount lost? $628.00

14. On what date is the November 26 invoice from Butler & Kadnaso C

due and payable? (A) Dec. 14 (B) Dec. 24 (C) Dec. 26

(D) Jan. 10 (E) Jan. 13

15. Due to a filing error, the balance of one vendor's account has passed A

the discount period and the discount has been lost (the entry will be

recorded later). How much will this error cost Gold Run

Snowmobile? (A) $159.00 (B) $179.00 (C) $17.90

(D) $519.00 (E) $0.00

16. From December 1 to 17, several purchases of merchandise were made.

Identify by number the vendor who handled Gold Run’s largest

purchase.

27000

17. Does the Schedule of Accounts Payable match the balance of the Y Accounts Payable account? Answer only Y for Yes or N for No.

18. Which customer paid invoice number G2995 in full? 11950

19. On what date was customer invoice G2995 paid? (A) Dec. 15 A

(B) Dec. 19 (C) Dec. 25 (D) Jan. 14 (E) Jan. 15

20. Does the balance of the Schedule of Accounts Receivable match the Y

balance of the Accounts Receivable account?

Answer only Y for Yes or N for No.

21. What is the balance of Mary Bermuda's account? $597.16

22. How did Cathi Grobowski's account balance get reduced to $0.00? A

(A) It was a bad debt and was written off

(B) Cathi paid the bill

(C) Cathi returned merchandise

(D) None of the above.

23. Excluding customer write offs or recoveries, how many customer E

accounts have had no activity during December? (A) one (B) two

(C) three (D) five (E) seven


24. Has the balance of accounts receivable increased or decreased since B

December 3? (A) increased (B) decreased

25. What was the total amount of Snowmobile, Accessories, and Parts

Sales for the period of December 8-13?

(A) More than $100,000 (B) Exactly $83,112.69

(C) Slightly over $39,000 (D) Less than $20,000

(E) None of the above

E

26. If a freight invoice is received and charges listed are for shipments

of merchandise to Gold Run Snowmobile customers, what account

will be debited for this billing?

(A) Delivery Expense (B) Miscellaneous Expense

(C) Transportation-In (D) Merchandise Inventory

(E) Accounts Payable

A

27. What is the General Ledger account classification of the Dividends

Declared account? (A) Asset (B) Liability (C) Expense

(D) Revenue (E) None of the above.

E

28. How many inventory items are at or below the "reorder point"?

(A) 12 (B) 15 (C) 16 (D) 17 (E) None of the above.

C

29. How many inventory items are currently "out of stock"?

(A) 8 (B) 6 (C) 5 (D) 2 (E) 0

C

30. How many T3000 Snowmobiles are currently on hand?

(A) 0 (B) 4 (C) 5 (D) 6 (E) 9

B

31. Should a purchase order be sent to Trail-Tracker, Incorporated, for

additional inventory of snowmobiles?


Y

32. What is the inventory stock number for a Neon Cap? N6000

33. To what inventory item has stock number U0001 been assigned?

(A) Hot Grips (B) Ace Goggles (C) Saddle Bags

(D) Knit Caps (E) Neon Cap

B

34. How many units of stock number V0333 were returned to the D

vendor on December 17? (A) five (B) four (C) two (D) one

(E) none


35. How many units of stock number SW660 have been sold since

December 3? (A) 9 (B) 6 (C) 4 (D) 2 (E) 0

B

36 What is the current FIFO inventory value of all units of stock

number SW660? (A) $24,670 (B) $67,024 (C) $42,760

(D) $23,760 (E) $0

D

37. What is the current FIFO inventory value of all units of stock

number RR925? (A) $458.40 (B) $316.80 (C) $158.40

(D) $0.00 (E) None of the above.

C

38. How many units below the reorder point is the inventory for U0012?


B

39. How many SSS30 Quad Hauler Trailers were purchased on

December 9? (A) 0 (B) 1 (C) 2 (D) 4 (E) None of the above. D

40. What was the cost per unit of the SSS30 Quad Hauler Trailers

purchased on December 9? (A) $11.88 (B) $118.88

(C) $1,088.88 (D) $188.88 (E) $1,188.00

E

41. How many cases of Cruze oil are currently on hand?

(A) 5 (B) 10 (C) 13 (D) 15 (E) 0

C

42. All snowmobiles and snowmobile trailers carry a markup on cost of

25% (markup on selling price of 20%). What should be the retail

selling price of a Norton Trailer Duo, inventory number SD200?

(A) $490.00 (B) $693.00 (C) $866.25 (D) $1,188.88

(E) None of the above.

C

43. If the markup on selling price is 20%, what will be the retail selling

price of inventory item T2000, a Trail Tracker 2000 snowmobile?

(A) $6,178.60 (B) $6,435.00 C) $6,187.06 (D) $6,453.01


B

44. Answer questions 44-50 using the account balances at the close

of business activity, December 17. What is the total for Net

Snowmobile, Accessories, and Parts Sales?

$228,736.69

45. What is the Net value of Accounts Receivable? $29,682.72


46. What is the balance owed to Gold Run Snowmobile, Inc., by credit

card companies?

$500.75

47. As of December 17, how much will the freight costs for the

purchase of merchandise inventory add to the Cost of Goods Sold?

$1,142.00

48. How many dollars worth of merchandise (at retail) have been

returned by customers since December 3? $44.80

49. How much has it cost Gold Run Snowmobile, Inc., to send

merchandise to customers? $760.00

50. Check number 30094 was issued for $3,600 on December 13 as payment in full of invoice 35556. This expenditure is called:

(A) an ordinary repair (B) an extraordinary repair (C) a betterment (D) both A and C (E) None of the above.

B

Answer Book

MID PROJECT EVALUATION

ANSWER KEY

Gold Run Snowmobile

Question Your

Number Answer

----------------------------------------------------------------------

1. Do the totals on your printed Trial Balance match Y

the figures shown in the `Check It Out` box?

Answer Y for Yes and N for No.

2. What was the correct balance of the Cash account $32,660.91

at the close of business on December 5? List all

numeric answers with dollars and cents. Example:

147.00

3. What invoice was paid in full with check number S4101

30098 on December 15?

4. How many checks have been issued by the business C

during the period of December 4-11?

A) one

B) two

C) three

D) five

5. What is the current balance of the Buster Supply D

account?

A) $509.76

B) $56.00

C) $453.76

D) $0.00

6. After the $56.00 return of supplies on December $453.76

11, what was the balance of the Buster Supply

account?

7. What was the balance of the Fastwinn, $616.80

Incorporated, account after the purchase of

merchandise on December 13?

8. How much did the debit memo of December 17 reduce $58.80

the balance owed to Fastwinn, Incorporated?

9. What was the total (net) value of the merchandise $27,244.00

purchased on account from Trail-Tracker, Inc., on

December 6?

10. If the Trail-Tracker, Inc., invoice (number $556.00

T4357) had been filed on the wrong date and not

paid on time, what would have been the cost for

this error to Gold Run Snowmobile?

11. Has the balance of accounts payable increased or A

decreased since December 3?

A) increased

B) decreased

12. Assuming that all discounts offered are taken, on B

what date is the balance owed to Swift,

Incorporated due and payable?

A) Dec. 14

B) Dec. 19

C) Dec. 29

D) Jan. 10

E) Jan. 18

13. Assuming the Swift, Incorporated invoice is not $628.00

paid on time as intended, what will be the total

amount of the discount lost?

14. On what date is the November 26 invoice from C

Butler & Kadnaso due and payable?

A) Dec. 14

B) Dec. 24

C) Dec. 26

D) Jan. 10

E) Jan. 13

15. Due to a filing error, the balance of one A

vendor's account has passed the discount period

and the discount has been lost (the entry will be

recorded later). How much will this error cost

Gold Run Snowmobile?

A) $159.00

B) $179.00

C) $17.90

D) $519.00

E) $0.00

16. From December 1 to 17, several purchases of 27000

merchandise were made. Identify by number the

vendor who handled Gold Run’s largest purchase.

17. Does the Schedule of Accounts Payable match the Y

balance of the Accounts Payable account? Answer

only Y for Yes or N for No.

18. Which customer paid invoice number G2995 in full 11950

?

19. On what date was customer invoice G2995 paid? A

A) Dec. 15 B) Dec. 19 C) Dec. 25

D) Jan. 14 E) Jan. 15

20. Does the balance of the Schedule of Accounts Y

Receivable match the balance of the Accounts

Receivable account? Answer Y for Yes and N for

No.

21. What is the balance of Mary Bermuda's account? $597.16

22. How did Cathi Grobowski's account balance get A

reduced to $0.00?

A) It was a bad debt and was written off B) Cathi paid the bill C) Cathi returned merchandise D) None of the above.

23. Excluding customer write offs or recoveries, how E

many customer accounts have had no activity

during December?

A) one B) two C) three D) five E) seven

24. Has the balance of accounts receivable increased B

or decreased since December 3?

A) increased B) decreased

25. What was the total amount of Snowmobile, E

Accessories, and Parts Sales for the period of

December 8-13?

A) More than $100,000

B) Exactly $83,112.69

C) Slightly over $39,000 D) Less than $20,000 E) None of the above

26. If a freight invoice is received and charges A

listed are for shipments of merchandise to Gold

Run Snowmobile customers, what account will be

debited for this billing?

A) Delivery Expense B) Miscellaneous Expense C) Transportation-In D) Merchandise Inventory E) Accounts Payable

27. What is the General Ledger account classification E

of the Dividends Declared account?

A) Asset

B) Liability

C) Expense

D) Revenue

E) None of the above.

28. How many inventory items are at or below the C

`reorder point`?

A) 12

B) 15

C) 16

D) 17


29. How many inventory items are currently `out of C

stock`?

A) 8 B) 6 C) 5 D) 2 E) 0

30. How many T3000 Snowmobiles are currently on hand? B

A) 0 B) 4 C) 5 D) 6 E) 9

31. Should a purchase order be sent to Trail-Tracker, Y

Incorporated, for additional inventory of

snowmobiles? Answer Y for Yes and N for No.

32. What is the inventory stock number for a Neon N6000

Cap?

33. To what inventory item has stock number U0001 B

been assigned?

A) Hot Grips B) Ace Goggles C) Saddle Bags D) Knit Caps E) Neon Cap

34. How many units of stock number V0333 were D

returned to the vendor on December 17?

A) five B) four C) two D) one E) none

35. How many units of stock number SW660 have been B

sold since December 3?

A) 9 B) 6 C) 4 D) 2 E) 0

36. What is the current FIFO inventory value of all D

units of stock number SW660?

A) $24,670

B) $67,024

C) $42,760

D) $23,760

E) $0

37. What is the current FIFO inventory value of all C

units of stock number RR925?

A) $458.40

B) $316.80

C) $158.40

D) $0.00


38. How many units below the reorder point is the B

inventory for U0012?

A) 0

B) 1

C) 2

D) 4


39. How many SSS30 Quad Hauler Trailers were D

purchased on December 9?

A) 0 B) 1 C) 2 D) 4 E) None of the above.

40. What was the cost per unit of the SSS30 Quad E

Hauler Trailers purchased on December 9?

A) $11.88

B) $118.88

C) $1,088.88

D) $188.88

E) $1,188.00

41. How many cases of Cruze oil are currently on C

hand?

A) 5 B) 10 C) 13 D) 15 E) 0

42. All snowmobiles and snowmobile trailers carry a C

markup on cost of 25% (markup on selling price of

20%). What should be the retail selling price of

a Norton Trailer Duo, inventory number SD200?

A) $490.00

B) $693.00

C) $866.25

D) $1,188.88


43. If the markup on selling price is 20%, what will B

be the retail selling price of inventory item

T2000, a Trail Tracker 2000 snowmobile?

A) $6,178.60

B) $6,435.00

C) $6,187.06

D) $6,453.01


44. Answer questions 44-50 using the account balances $228,736.69

at the close of business activity, December 17.

What is the total for Net Snowmobile,

Accessories, and Parts Sales?

45. What is the Net value of Accounts Receivable? $29,682.72

46. What is the balance owed to Gold Run Snowmobile, $500.75

Inc., by credit card companies?

47. As of December 17, how much will the freight $1,142.00

costs for the purchase of merchandise inventory

add to the Cost of Goods Sold?

48. How many dollars worth of merchandise (at retail) $44.80

have been returned by customers since December 3?

49. How much has it cost Gold Run Snowmobile, Inc., $760.00

to send merchandise to customers?

50. Check number 30094 was issued for $3,600 on B

December 13 as payment in full of invoice 35556.

This expenditure is called:

A) an ordinary repair

B) an extraordinary repair

C) a betterment

D) both A and C


Student Documents

for





5th Edition


www.pklsoftware.com



Answer Book

Gold Run Snowmobile

Trial Balance

December 24, 2007


-------------------------------------------------------------------------

Cash 32,660.58

Petty Cash 100.00




Accounts Receivable, Credit Card Co. 500.75










Trucks 42,830.00


Land 109,500.00














Truck & Equipment Operating Expense 1,026.95




Tools Expense 50.00


Depreciation Expense, Shop Equipment 468.00

Depreciation Expense, Trucks 120.00

















Loss on Sale/Disposal of Assets 1,887.00

---------- ----------

Total 672,182.61 672,182.61

========== ==========

Answer Book

Gold Run Snowmobile



Number Name Balance



10750 Alice Cordero 162.64





11470 Ray Norburg 5,712.22

11510 Karen Osetto 14,717.79



11800 Snowbirds .00


11950 Ruth Yates 183.51

----------


Answer Book

Gold Run Snowmobile



Number Name Balance



22500 Fastwinn, Incorporated .00



26500 Norton America .00


28400 Trail-Tracker, Inc. .00

29650 Wind Dancer 7,142.00

----------


Answer Book

Inventory Analysis

Gold Run Snowmobile


Stock

Number

Inventory

Item

Reorder

Point

Units

On Hand

Unit

Cost

At/Below

Reorder

T1500 TRAIL-TRACKER 1500 2 6 $ 4,116.00


T3000 TRAIL-TRACKER 3000 3 4 5,390.00















B7777 LUGGAGE CARRIER 2 2 38.00 Yes












LL466 COMPETITION GLOVES 4 16 79.00








N6000 NEON CAP 0 36 6.00

N7500 KNIT CAPS 9 30 12.75



RR404 CRUZE HELMET 3 0 65.50 Yes





RR999 HOT GRIPS 4 10 28.50




U2200 FANNY PAKS 5 25 17.25



Answer Book

Gold Run Snowmobile

General Journal


----------------------------------------------------------------------------------

Dec. 18 Truck & Equipment Operating Expense 603 214.00

Cash 101 214.00 Check: 30101

Invoice: LR554

Dec. 18 Discounts Lost 633 159.00


Invoice: N3302

Vendor: 26500

Norton America


Cash 101 15,900.00 Check: 30102

Invoice: N3302

Vendor: 26500

Norton America

Dec. 18 Cash 101 1,100.00


Invoice: G2768

Customer: 10930

Downieville Dusters

Dec. 18 Notes Payable 203 11,000.00

Cash 101 11,000.00 Check: 30103

Invoice: NTPAY

Dec. 19 Cash 101 9,175.25


Sales Tax Payable 205 600.25 Invoice: G3106



Invoice: G3106


Cash 101 62,172.00

Check: 30104

Invoice: S4234

Vendor: 27000

Swift, Incorporated

Dec. 19 Cash 101 3,623.02

Snowmobile and Accessories Sales 401 3,386.00 Sales Tax Payable 205 237.02

Invoice: G3017




Transportation-In 505 310.00


Invoice: S4385

Vendor: 27000

Swift, Incorporated

Dec. 20 Cash 101 1,350.00

Unearned Storage Fees 221 1,350.00

Invoice: G3018


Cash 101 135.00

Check: 30105

Invoice: H3200





Invoice: G3019

Customer: 11950

Ruth Yates



Invoice: G3019

Customer: 11950

Ruth Yates



Invoice: M4577

Vendor: 24850

Morelli Sports Equipment

Dec. 22 Depreciation Expense, Trucks 612 120.00

Accumulated Depreciation, Trucks 140 120.00

Invoice: R2567

Dec. 22 Trucks 139 18,430.00

Accumulated Depreciation, Trucks 140 2,320.00

Cash 101 16,950.00

Trucks 139 3,800.00 Check: 30106

Invoice: R2567

Dec. 22 License Expense 628 540.00

Cash 101 540.00

Check: 30107

Invoice: DMV12


Cash 101 558.00 Check: 30108

Invoice: 44777

Vendor: 22500


Dec. 23 Store Equipment and Fixtures 131 2,426.76

Cash 101 2,426.76 Check: 30109

Invoice: X5001

Dec. 23 Store and Shop Supplies 127 385.50


Invoice: B6016

Vendor: 20300

Buster Supply

Dec. 23 Cash 101 4,857.59 Notes Receivable 109 10,000.00 Snowmobile and Accessories Sales 401 13,885.60

Sales Tax Payable 205 971.99 Invoice: G3020






Invoice: G3021

Customer: 10750

Alice Cordero



Invoice: G3021

Customer: 10750

Alice Cordero



Invoice: M4577

Debit Memo: DM212

Dec. 24 Cash 101 11,937.19



Invoice: G3022



Dec. 24 Depreciation Expense, Shop Equipment 611 468.00

Accumulated Depreciation, Shop Equip. 136 468.00

Invoice: ASALE

Dec. 24 Cash 101 1,995.00

Accumulated Depreciation, Shop Equip. 136 3,318.00

Loss on Sale/Disposal of Assets 821 1,887.00

Shop Equipment 135 7,200.00

Invoice: ASALE

Dec. 24 Cash 101 9,760.00

Interest Earned 711 160.00 Notes Receivable 109 9,600.00 Invoice: NTREC

Student Documents

for





5th Edition


www.pklsoftware.com


Answer Book


Gold Run Snowmobile

Trial Balance

December 31, 2007


-------------------------------------------------------------------------

Cash 65,067.23

Petty Cash 100.00














Trucks 42,830.00


Land 109,500.00



Discount on Notes Payable 600.00
















Tools Expense 103.45





















---------- ----------

Total 824,269.14 824,269.14

========== ==========

Answer Book

Gold Run Snowmobile



Number Name Balance








11470 Ray Norburg .00

11510 Karen Osetto 14,717.79



11800 Snowbirds .00


11950 Ruth Yates 183.51

----------


Answer Book

Gold Run Snowmobile



Number Name Balance


21680 Butler & Kadnaso .00

22500 Fastwinn, Incorporated 4,807.00

23400 Inglass, Incorporated 67.50



27000 Swift, Incorporated .00


29650 Wind Dancer 7,142.00

----------


Answer Book

Inventory Analysis

Gold Run Snowmobile


Stock

Number

Inventory

Item

Reorder

Point

Units

On Hand

Unit

Cost

At/Below

Reorder

T1500 TRAIL-TRACKER 1500 2 8 $ 4,116.00

T2000 TRAIL-TRACKER 2000 3 12 5,148.00




































N6000 NEON CAP 0 35 6.00

N7500 KNIT CAPS 9 30 12.75








RR999 HOT GRIPS 4 10 28.50




U2200 FANNY PAKS 5 23 17.25


V4400 SADDLE BAGS 2 7 36.00





XX333 HOTSHOT OIL CASE 4 24 32.00

Z9000 TEAM TR-TRACKER BAG 1 6 22.00

ZZ100 TRAIL-TRACKER JACKET 2 8 63.50



Answer Book

Gold Run Snowmobile

General Journal


----------------------------------------------------------------------------------

Dec. 26 Professional Services Expense 629 423.50

Cash 101 423.50 Check: 30110

Invoice: J2146

Dec. 26 Prepaid Insurance 121 975.00

Cash 101 975.00

Check: 30111

Invoice: B7676

Dec. 26 Advertising Expense 604 1,550.00

Cash 101 1,550.00

Check: 30112

Invoice: 32000

Dec. 26 Truck & Equipment Operating Expense 603 254.25

Cash 101 254.25

Check: 30113

Invoice: 44555



Invoice: T4587

Vendor: 28400

Trail-Tracker, Inc.



Invoice: 45801

Vendor: 22500



Cash 101 14,795.00

Check: 30114

Invoice: 21777

Vendor: 21680

Butler & Kadnaso

Dec. 26 Cash 101 29,400.00 Discount on Notes Payable 204 600.00 Notes Payable 203 30,000.00 Invoice: DISNP

Dec. 26 Sales Tax Payable 205 11,330.73

Cash 101 11,330.73 Check: 30115

Invoice: SALTX

Dec. 26 Cash 101 5,712.22


Invoice: G2999

Customer: 11470

Ray Norburg



Invoice: T4608

Vendor: 28400

Trail-Tracker, Inc.

Dec. 28 Merchandise Inventory 115 820.00 Transportation-In 505 67.00


Invoice: 45905

Vendor: 22500


Dec. 28 Accounts Receivable, Credit Card Co. 107 11,010.30



Invoice: G3023





Invoice: C3112

Vendor: 23400


Dec. 28 Notes Receivable 109 25,000.00 Cash 101 34,537.48 Snowmobile and Accessories Sales 401 55,642.50 Sales Tax Payable 205 3,894.98 Invoice: G3042



Invoice: G3042

Dec. 28 Cash 101 201.70

Service Fees Earned 411 188.50 Sales Tax Payable 205 13.20

Invoice: G3025

Dec. 29 Cash 101 1,110.00

Unearned Storage Fees 221 1,110.00 Invoice: G3026

Dec. 29 Cash 101 208.12




Invoice: G3027



Invoice: G3027


Cash 101 13,774.00

Check: 30116

Invoice: S4385

Vendor: 27000

Swift, Incorporated

Dec. 30 Sales Returns and Allowances 402 12.00


Cash 101 12.84

Check: 30117

Invoice: G3037

Credit Memo: CM308


Cost of Goods Sold 501 6.00 Check: 30117

Invoice: G3037

Debit Memo: CM308

Dec. 30 Cash Short & Over 631 1.00

Miscellaneous Expense 635 18.00


Cash 101 54.10

Check: 30118

Invoice: PCASH


Cash 101 289.00

Check: 30119

Invoice: PAYRL

Dec. 31 Tools Expense 608 53.45

Cash 101 53.45 Check: 30120

Invoice: 76611

Dec. 31 Cash 101 4,749.00

Short-Term Investments 103 4,625.00 Gain on Short-Term Investments 731 124.00

Invoice: INVST

Dec. 31 Cash 101 79.56

Interest Earned 711 79.56

Invoice: BKREC

Dec. 31 Bank Service Charges 627 43.18

Cash 101 43.18

Check: BKREC

Invoice: BKREC

Dec. 31 Credit Card Expense 607 487.53

Cash 101 487.53

Check: BKREC

Invoice: BKREC

BANK RECONCILIATION NAME

GOLD RUN SNOWMOBILE, INCORPORATED SECTION DATE

BANK RECONCILIATION

GOLD RUN SNOWMOBILE, INCORPORATED.

DECEMBER 31

Book Balance: $65,067.23

Add: Interest Earned 79.56

Total $65,146.79

Deduct: Bank Service Charge $43.18

Credit Card Expense $487.53

$530.71

Reconciled Book Balance

$64,616.08

==============

Bank Balance:

$65,163.63

Add: Late Deposit $1,110.00

Total $66,273.63

Deduct: Outstanding Checks

Check No. 30112 $1,550.00

Check No. 30118 $54.10

Check No. 30120 $53.45

$1,657.55

Reconciled Bank Balance

$64,616.08

==============

Answer Book

Gold Run Snowmobile

Trial Balance After Bank Reconcilation

December 31, 2007


-------------------------------------------------------------------------

Cash 64,616.08

Petty Cash 100.00














Trucks 42,830.00


Land 109,500.00








































---------- ----------

Total 824,348.70 824,348.70

========== ==========

Student Documents

for

Adjusting and Closing Entries Module 5

The student is required to print all documents shown for Adjusting and Closing entries

except the General Journal entries.


5th Edition


www.pklsoftware.com



Answer Book

Gold Run Snowmobil

Adjusted Trial Balance

December 31, 2007


-------------------------------------------------------------------------

Cash 64,616.08

Petty Cash 100.00



Allowance for Doubtful Accounts 1,520.50



Interest Receivable 60.28



Prepaid Advertising 1,050.00






Trucks 42,830.00


Land 109,500.00





Salaries and Wages Payable 127.50

Income Taxes Payable 2,052.00








Storage Fees Earned 11,120.00




Store & Shop Supplies Expense 1,416.36






Dep. Expense, Store Equipment and Fixtures 2,165.00

Depreciation Expense, Shop Equipment 1,028.00



Insurance Expense 1,555.00

Bad Debt Expense 753.00

Property Tax Expense 660.00

















---------- ----------

Total 830,406.64 830,406.64

========== ==========

Answer Book

Gold Run Snowmobile

Income Statement

For the Quarter Ended December 31, 2007

Revenues:

Snowmobile and Accessories Sales $ 333,548.84

Less: Sales Returns and Allowances 1,573.80

----------

Net Sales $ 331,975.04

----------

Cost of Goods Sold:

Cost of Goods Sold $ 233,867.02


----------

Total Cost of Good Sold 235,386.02

----------

Gross Profit From Sales $ 96,589.02

Fees Earned:

Service Fees Earned $ 11,751.00

Storage Fees Earned 11,120.00

----------

Total Fees Earned 22,871.00

----------

Total Gross Profit From Sales and Fees Earned $ 119,460.02

----------

Operating Expenses:

Selling Expenses:

Salaries and Wages Expense $ 17,801.25

Store & Shop Supplies Expense 1,416.36






Depreciation Expense, Store & Shop Equipment 2,165.00

Depreciation Expense, Shop Equipment 1,028.00


----------

Total Selling Expense $ 29,873.43

----------

General and Adminstrative Expenses:

Rent Expense $ 12,000.00

Insurance Expense 1,555.00

Bad Debt Expense 753.00

Property Tax Expense 660.00








Miscellaneous Expense 89.75 ----------

Total General and Adminstrative Expenses $ 18,401.48

----------

Total Operating Expenses $ 48,274.91

----------

Income From Operations $ 71,185.11

----------

Other Revenues and Expenses:

Interest Earned $ 511.84





----------

Total Other Revenues: $ 2,779.59

----------

Income Taxes Expense $ 8,887.00



Loss on Short-Term Investments 0.00

----------

Total Other Expenses: $ 11,153.00

----------

Net Other Expenses 8,373.41

----------

Net Income $ 62,811.70

==========

Answer Book

Gold Run Snowmobile

Balance Sheet

December 31, 2007

ASSETS

Current Assets:

Cash $ 64,616.08

Petty Cash 100.00


Accounts Receivable $ 23,984.15


----------

Net Realizable Value of Accounts Receivable 22,463.65

Accts. Rec., Credit Card Comp. 11,079.39








----------

Total Current Assets $ 298,750.65

Plant and Equipment

Store Equipment and Fixtures $ 52,717.76

Accumulated Depreciation 15,735.00

----------

Book Value $ 36,982.76

----------



----------


----------

Trucks 42,830.00


----------


----------

Land $ 109,500.00 ----------

Total Plant and Equipment 196,572.60

----------

Total Assets $ 495,323.25 ==========

LIABILITIES

Current Liabilities

Accounts Payable $ 108,560.00

Notes Payable $ 32,000.00

Discount on Notes Payable 550.00 31,450.00

----------


Dividends Payable 0.00


Estimated Property Tax Payable 0.00


Interest Payable 0.00


----------

Total Current Liabilities $ 149,185.76

STOCKHOLDERS'EQUITY

Common Stock $ 250,000.00


----------

Total Stockholder's Equity 346,137.49

----------

Total Liabilities and Owner's Equity $ 495,323.25

==========

Answer Book

Gold Run Snowmobile

Retained Earnings Statement

For the Quarter Ended December 31, 2007

---------------------------------------------------------------------------

Retained earnings, September 30, 2007 44,825.79

Add: Net Income 62,811.70

Less: Dividends declared 11,500.00

----------

Net increase in retained earnings 51,311.70

----------

Retained earnings, December 31, 2007 96,137.49

==========

Answer Book

Gold Run Snowmobile



Number Name Balance








11470 Ray Norburg .00

11510 Karen Osetto 14,717.79



11800 Snowbirds .00


11950 Ruth Yates 183.51

----------


Answer Book

Gold Run Snowmobile

All Accounts Receivable Customers

Number:

Name:

Address:

Date

10400

Mary Bermuda

356 Cool Avenue

Explanation

Bend,

OR

Debit

Credit

Balance

Dec. 3 Balance 0.00

Dec. 15 G3014 645.10 645.10

Dec. 16 G3014 CM307 47.94 597.16

Number: 10450

Name: Colfax Sno Katts

Address: 4455 Gold Pan St. Colfax, CA


Dec. 3 Balance 0.00

Number: 10750

Name: Alice Cordero

Address: 2567 Rego Lane Oakland, CA


Dec. 3 Balance 0.00

Dec. 12 RECIV 1,310.00 1,310.00

Dec. 12 RECOV 1,310.00 0.00

Dec. 23 G3021 162.64 162.64

Number: 10930

Name: Downieville Dusters

Address: 3000 Granite Ct. Pinecrest, CA


Oct. 3 G3768 2,550.00 2,550.00

Dec. 18 G2768 1,100.00 1,450.00

Number: 11000

Name: Chris Enburger

Address: 2789 Rock Ct. Reno, NV


Sep. 3 G3688 435.00 435.00

Dec. 13 WRIFF 435.00 0.00

Number: 11250

Name: Cathi Grobowski

Address: 356 Hill Rd. Truckee, CA


July 8 G3501 842.00 842.00

Dec. 8 WROFF 842.00 0.00

Number: 11340

Name: Beverly Kline

Address: PO Box 267 Gold Run, CA


Dec. 3 Balance 0.00

Number:

Name:

Address:

Date

11470

Ray Norburg

124 Cedar Dr.

Explanation

Granite Bay, CA

Debit

Credit

Balance

Nov 26 G2999 5,712.22 5,712.22

Dec. 26 G2999 5,712.22 0.00

Number: 11510

Name: Karen Osetto

Address: 1900 Ridge Rd. Bridge Bay, CA


Dec. 3 Balance 0.00

Dec. 13 G3012 8,697.79 8,697.79

Dec. 17 G3012 BADCK 6,020.00 14,717.79

Number: 11675

Name: Cheryl Papini

Address: 900 Ranch Rd. Fallon, NV


Nov 14 G3990 398.00 398.00

Number: 11780

Name: Running Ramblers

Address: 5000 Hiway Dr. Tahoe City, CA


Nov 15 G3928 6,215.00 6,215.00

Dec. 8 G3010 260.05 6,475.05

Number: 11800

Name: Snowbirds

Address: PO Box 7777 Truckee, CA


Dec. 3 Balance 0.00

Number: 11925

Name: Thunder Mountain, Inc.

Address: 1245 Valega St. Lassen, CA


Dec. 3 Balance 0.00

Number: 11950

Name: Ruth Yates

Address: 245 Redwood Ct. Granite Bay, CA


Nov 21 G2995 20,545.00 20,545.00

Dec. 15 G2995 20,545.00 0.00

Dec. 21 G3019 183.51 183.51

Answer Book

Gold Run Snowmobile



Number Name Balance


21680 Butler & Kadnaso .00

22500 Fastwinn, Incorporated 4,807.00

23400 Inglass, Incorporated 67.50



27000 Swift, Incorporated .00


29650 Wind Dancer 7,142.00

----------

Total Accounts Payable $ 108,560.00

==========

Answer Book

Gold Run Snowmobile

Vendor Data

Number:

Name:

20300

Buster Supply

Address:

Date

1000 River Rd.

Explanation

Goose Cove, CA

Debit

Net 10

Credit

Balance


Dec. 4 B5667 509.76 509.76

Dec. 11 B5667 56.00 453.76

Dec. 14 30096 B5667 453.76 0.00

Dec. 21 B6016 385.50 385.50

Number: 21680

Name: Butler & Kadnaso

Address: 245 Barwell St.

Date Explanation

Truckee, CA Net

Debit

30

Credit

Balance

Nov. 26 21777 14,795.00 14,795.00

Dec. 26 30114 21777 14,795.00 0.00

Number: 22500

Name: Fastwinn, Incorporated

Address: 999 Auburn Dr. Auburn, CA 2/10, n/30



Dec. 13 44777 616.80 616.80

Dec. 17 44777 DM211 58.80 558.00

Dec. 22 30108 44777 558.00 0.00

Dec. 26 45801 3,920.00 3,920.00

Dec. 28 45905 887.00 4,807.00

Number:

Name:

Address:

23400


3789 Highway 80

Gold

Run, CA

Net

10



Dec. 28 C3112 67.50 67.50

Number: 24850

Name: Morelli Sports Equipment

Address: 477 Yellowstone Casper, WY Net 30


Dec. 2 M2981 5,200.00 5,200.00

Dec. 10 M4006 5,010.00 10,210.00

Dec. 21 M4577 1,185.00 11,395.00

Dec. 24 M4577 DM212 158.00 11,237.00

Number:

Name:

Address:

26500

Norton America

3588 Hillcrest St.

Denver,

CO

1/10, n/30


Nov. 18 N3302 15,741.00 15,741.00

Dec. 18 N3302 159.00 15,900.00

Dec. 18 30102 N3302 15,900.00 0.00

Number: 27000

Name: Swift, Incorporated

Address: 5234 Walnut

Date Explanation

Bend, OR

Debit

1/10, n/30

Credit

Balance


Dec. 5 S4101 148.50 148.50

Dec. 9 S4234 62,172.00 62,320.50

Dec. 15 30098 S4101 148.50 62,172.00

Dec. 19 30104 S4234 62,172.00 0.00

Dec. 20 S4385 13,774.00 13,774.00

Dec. 30 30116 S4385 13,774.00 0.00

Number: 28400

Name: Trail-Tracker, Inc.

Address: 2233 Baldwin

Date Explanation

Spencer, CO

Debit

2/10, n/30

Credit

Balance


Dec. 6 T4357 27,244.00 27,244.00

Dec. 16 30099 T4357 27,244.00 0.00

Dec. 26 T4587 32,928.00 32,928.00

Dec. 27 T4608 51,993.00 84,921.00

Number: 29650

Name: Wind Dancer

Address: Rt. 2, Box 24 Salmon, ID Net 30


Dec. 2 W6673 7,142.00 7,142.00

Answer Book

Inventory Analysis

Gold Run Snowmobile


Stock Inventory Reorder Units Unit At/Below

Number Item Point On Hand Cost Reorder

T1500 TRAIL-TRACKER 1500 2 8 $ 4,116.00

T2000 TRAIL-TRACKER 2000 3 12 5,148.00




































N6000 NEON CAP 0 35 6.00

N7500 KNIT CAPS 9 30 12.75








RR999 HOT GRIPS 4 10 28.50




U2200 FANNY PAKS 5 23 17.25


V4400 SADDLE BAGS 2 7 36.00





XX333 HOTSHOT OIL CASE 4 24 32.00

Z9000 TEAM TR-TRACKER BAG 1 6 22.00

ZZ100 TRAIL-TRACKER JACKET 2 8 63.50



Answer Book

Gold Run Snowmobile

Inventory Item: TRAIL-TRACKER 1500 Stock Number: T1500

Reorder Point: 2

Units Dr/Cr

Date

Balance

In

4


Dec. 06 4 28400 T4357

Dec. 24 2 10750 G3022

Dec. 26 8 28400 T4587






Answer Book

Gold Run Snowmobile

Inventory Item: TRAIL-TRACKER 2000 Stock Number: T2000

Reorder Point: 3

Units Dr/Cr

Date

Balance

In

4


Dec. 13 2 11510 G3012

Dec. 27 10 28400 T4608




Answer Book

Gold Run Snowmobile

Inventory Item: SWIFT ENDURO Stock Number: SW660

Reorder Point: 1

Units Dr/Cr

Date

Balance

In

2



Dec. 09 8 27000 S4234

Dec. 14 5 11510 G3013





Answer Book

Gold Run Snowmobile

Inventory Item: QUAD HAULER Stock Number: SSS30

Reorder Point: 2

Units Dr/Cr

Date

Balance

In

0


Dec. 09

Dec. 17

Dec. 20

4

3

1

27000

27000

11510

S4234

G3015

S4385

Dec. 23 1 20300 G3020




Answer Book

Gold Run Snowmobile

Inventory Item: COMPETITION GLOVES Stock Number: LL466

Reorder Point: 4

Units Dr/Cr


Balance 3

Dec. 21 15 24850 M4577

Dec. 24 2 24850 M4577 DM212




Answer Book

Gold Run Snowmobile

Inventory Item: NEON CAP

Reorder Point: 0

Units

Stock Number: N6000

Dr/Cr

Date In Out Check

Balance 36

Dec. 29 2

Vendor Customer

CASH

Invoice

G3027

Memo

Dec. 30 1 30118 CASH G3037 CM308




Answer Book

Gold Run Snowmobile

Inventory Item: TEAM TR-TRACKER BAG Stock Number: Z9000

Reorder Point: 1

Units Dr/Cr

Date In

Balance 0


Dec. 27 6 28400 T4608




Answer Book

Gold Run Snowmobile

Post-Closing Trial Balance

December 31, 2007


-------------------------------------------------------------------------

Cash 64,616.08

Petty Cash 100.00















Trucks 42,830.00


Land 109,500.00









Retained Earnings 96,137.49 ---------- ----------

Total 522,518.91 522,518.91

========== ==========

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

101 Cash

Explanation

Debit

Credit

Balance


Dec. 4 G3005 108.61 23,899.91

Dec. 3 56789 19.75 23,919.66

Dec. 3 ERROR 56789 19.75 23,899.91

Dec. 4 G3007 7,944.75 31,844.66

Dec. 5 30091 PCASH 98.75 31,745.91

Dec. 5 G3006 915.00 32,660.91

Dec. 6 CASHD 385.00 33,045.91

Dec. 6 G3009 659.98 33,705.89

Dec. 8 G3011 18,350.50 52,056.39

Dec. 10 30092 DPAID 11,500.00 40,556.39

Dec. 11 ASALE 320.00 40,876.39

Dec. 11 30093 K3111 199.75 40,676.64

Dec. 12 10750 RECOV 1,310.00 41,986.64

Dec. 12 CC301 7,355.18 49,341.82

Dec. 13 30094 35556 3,600.00 45,741.82

Dec. 13 11510 G3012 6,000.00 51,741.82

Dec. 13 30095 87333 370.00 51,371.82

Dec. 14 G3013 53,600.58 104,972.40

Dec. 14 30096 20300 B5667 453.76 104,518.64

Dec. 15 STINV 6,049.75 110,568.39

Dec. 15 11950 G2995 20,545.00 131,113.39

Dec. 15 30097 PAYRL 369.75 130,743.64

Dec. 15 30098 27000 S4101 148.50 130,595.14

Dec. 16 30099 28400 T4357 27,244.00 103,351.14

Dec. 17 30100 K3279 383.50 102,967.64

Dec. 17 BADCK 11510 G3012 6,000.00 96,967.64

Dec. 17 G3015 1,790.65 98,758.29

Dec. 18 30101 LR554 214.00 98,544.29

Dec. 18 30102 26500 N3302 15,900.00 82,644.29

Dec. 18 10930 G2768 1,100.00 83,744.29

Dec. 18 30103 NTPAY 11,000.00 72,744.29

Dec. 19 G3106 9,175.25 81,919.54

Dec. 19 30104 27000 S4234 62,172.00 19,747.54

Dec. 19 G3017 3,623.02 23,370.56

Dec. 20 G3018 1,350.00 24,720.56

Dec. 21 30105 H3200 135.00 24,585.56

Dec. 22 30106 R2567 16,950.00 7,635.56

Dec. 22 30107 DMV12 540.00 7,095.56

Dec. 22 30108 22500 44777 558.00 6,537.56

Dec. 23 30109 X5001 2,426.76 4,110.80

Dec. 23 G3020 4,857.59 8,968.39

Dec. 24 G3022 11,937.19 20,905.58

Dec. 24 ASALE 1,995.00 22,900.58

Dec. 24 NTREC 9,760.00 32,660.58

Dec. 26 30110 J2146 423.50 32,237.08

Dec. 26 30111 B7676 975.00 31,262.08

Dec. 26 30112 32000 1,550.00 29,712.08

Dec. 26 30113 44555 254.25 29,457.83

Dec. 26 30114 21680 21777 14,795.00 14,662.83

Dec. 26 DISNP 29,400.00 44,062.83

Dec. 26 30115 SALTX 11,330.73 32,732.10

Dec. 26 11470 G2999 5,712.22 38,444.32

Dec. 28 G3042 34,537.48 72,981.80

Dec. 28 G3025 201.70 73,183.50

Dec. 29 G3026 1,110.00 74,293.50

Dec. 29 G3027 208.12 74,501.62

Dec. 30 30116 27000 S4385 13,774.00 60,727.62

Dec. 30 30117 G3037 CM308 12.84 60,714.78

Dec. 30 30118 PCASH 54.10 60,660.68

Dec. 30 30119 PAYRL 289.00 60,371.68

Dec. 31 30120 76611 53.45 60,318.23

Dec. 31 INVST 4,749.00 65,067.23

Dec. 31 BKREC 79.56 65,146.79

Dec. 31 BKREC BKREC 43.18 65,103.61

Dec. 31 BKREC BKREC 487.53 64,616.08

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

105 Accounts

Explanation

Receivable

Debit

Credit

Balance


Dec. 8 11780 G3010 260.05 36,957.27

Dec. 8 11250 WROFF 842.00 36,115.27

Dec. 12 10750 RECIV 1,310.00 37,425.27

Dec. 12 10750 RECOV 1,310.00 36,115.27

Dec. 13 11000 WROFF 435.00 35,680.27

Dec. 13 11510 G3012 8,697.79 44,378.06

Dec. 15 10400 G3014 645.10 45,023.16

Dec. 15 11950 G2995 20,545.00 24,478.16

Dec. 16 10400 G3014 CM307 47.94 24,430.22

Dec. 17 BADCK 11510 G3012 6,020.00 30,450.22

Dec. 18 10930 G2768 1,100.00 29,350.22

Dec. 21 11950 G3019 183.51 29,533.73

Dec. 23 10750 G3021 162.64 29,696.37

Dec. 26 11470 G2999 5,712.22 23,984.15

Answer Book

Gold Run Snowmobile

Ledger Card

Account: 107 Accounts

Date Explanation

Receivable, Credit Card Companies

Debit Credit

Balance


Dec. 12 CC301 7,641.75 500.75

Dec. 28 G3023 11,010.30 11,511.05

Dec. 31 Adjusting Entry 431.66 11,079.39

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

115 Merchandise

Explanation

Inventory

Debit

Credit

Balance


Dec. 4 G3007 5,940.00 103,186.77

Dec. 5 27000 S4101 148.50 103,335.27

Dec. 6 28400 T4357 27,244.00 130,579.27

Dec. 6 G3009 250.40 130,328.87

Dec. 8 11780 G3010 121.52 130,207.35

Dec. 8 G3011 13,720.00 116,487.35

Dec. 9 27000 S4234 62,172.00 178,659.35

Dec. 10 24850 M4006 5,010.00 183,669.35

Dec. 13 22500 44777 573.30 184,242.65

Dec. 13 11510 G3012 10,989.00 173,253.65

Dec. 14 G3013 39,897.00 133,356.65

Dec. 15 10400 G3014 207.20 133,149.45

Dec. 16 10400 G3014 CM307 22.40 133,171.85

Dec. 17 G3015 1,188.00 131,983.85

Dec. 17 22500 44777 DM211 58.80 131,925.05

Dec. 19 G3106 6,860.00 125,065.05

Dec. 19 G3017 1,693.00 123,372.05

Dec. 20 27000 S4385 13,464.00 136,836.05

Dec. 21 11950 G3019 35.00 136,801.05

Dec. 21 24850 M4577 1,185.00 137,986.05

Dec. 23 G3020 11,100.80 126,885.25

Dec. 23 10750 G3021 76.00 126,809.25

Dec. 24 M4577 DM212 158.00 126,651.25

Dec. 24 G3022 8,925.00 117,726.25

Dec. 26 28400 T4587 32,928.00 150,654.25

Dec. 26 22500 45801 3,920.00 154,574.25

Dec. 27 28400 T4608 51,993.00 206,567.25

Dec. 28 22500 45905 820.00 207,387.25

Dec. 28 G3023 8,232.00 199,155.25

Dec. 28 G3042 44,514.00 154,641.25

Dec. 29 G3027 46.50 154,594.75

Dec. 30 30117 G3037 CM308 6.00 154,600.75

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

201 Accounts

Explanation

Payable

Debit

Credit

Balance


Dec. 4 20300 B5667 509.76 43,387.76

Dec. 5 27000 S4101 148.50 43,536.26

Dec. 6 28400 T4357 27,244.00 70,780.26

Dec. 9 27000 S4234 62,172.00 132,952.26

Dec. 10 24850 M4006 5,010.00 137,962.26

Dec. 11 20300 B5667 56.00 137,906.26

Dec. 13 22500 44777 616.80 138,523.06

Dec. 14 30096 20300 B5667 453.76 138,069.30

Dec. 15 30098 27000 S4101 148.50 137,920.80

Dec. 16 30099 28400 T4357 27,244.00 110,676.80

Dec. 17 22500 44777 DM211 58.80 110,618.00

Dec. 18 26500 N3302 159.00 110,777.00

Dec. 18 30102 26500 N3302 15,900.00 94,877.00

Dec. 19 30104 27000 S4234 62,172.00 32,705.00

Dec. 20 27000 S4385 13,774.00 46,479.00

Dec. 21 24850 M4577 1,185.00 47,664.00

Dec. 22 30108 22500 44777 558.00 47,106.00

Dec. 21 20300 B6016 385.50 47,491.50

Dec. 24 M4577 DM212 158.00 47,333.50

Dec. 26 28400 T4587 32,928.00 80,261.50

Dec. 26 22500 45801 3,920.00 84,181.50

Dec. 26 30114 21680 21777 14,795.00 69,386.50

Dec. 27 28400 T4608 51,993.00 121,379.50

Dec. 28 22500 45905 887.00 122,266.50

Dec. 28 23400 C3112 67.50 122,334.00

Dec. 30 30116 27000 S4385 13,774.00 108,560.00

Answer Book

Gold Run Snowmobile

Ledger Card

Account: 305 Retained

Date Explanation

Earnings

Debit

Credit

Balance


Dec. 31 Closing Entry 62,811.70 107,637.49


Answer Book

Gold Run Snowmobile

Ledger Card

Account: 401 Snowmobile and Accessories Sales



Dec. 4 G3007 7,425.00 146,675.00

Dec. 6 G3009 500.80 147,175.80

Dec. 8 11780 G3010 243.04 147,418.84

Dec. 8 G3011 17,150.00 164,568.84

Dec. 13 11510 G3012 13,736.25 178,305.09

Dec. 14 G3013 50,094.00 228,399.09

Dec. 15 10400 G3014 414.40 228,813.49

Dec. 17 G3015 1,485.00 230,298.49

Dec. 19 G3106 8,575.00 238,873.49

Dec. 19 G3017 3,386.00 242,259.49

Dec. 21 11950 G3019 70.00 242,329.49

Dec. 23 G3020 13,885.60 256,215.09

Dec. 23 10750 G3021 152.00 256,367.09

Dec. 24 G3022 11,156.25 267,523.34

Dec. 28 G3023 10,290.00 277,813.34

Dec. 28 G3042 55,642.50 333,455.84

Dec. 29 G3027 93.00 333,548.84

Dec. 31 Closing Entry 333,548.84 0.00

Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

411 Service

Explanation

Fees Earned

Debit

Credit Balance


Dec. 4 G3005 101.50 10,866.50

Dec. 6 G3009 116.00 10,982.50

Dec. 15 10400 G3014 188.50 11,171.00

Dec. 17 G3015 188.50 11,359.50

Dec. 21 11950 G3019 101.50 11,461.00

Dec. 28 G3025 188.50 11,649.50

Dec. 29 G3027 101.50 11,751.00


Answer Book

Gold Run Snowmobile

Ledger Card

Account:

Date

501 Cost of

Explanation

Goods Sold

Debit

Credit

Balance


Dec. 4 G3007 5,940.00 86,040.00

Dec. 6 G3009 250.40 86,290.40

Dec. 8 11780 G3010 121.52 86,411.92

Dec. 8 G3011 13,720.00 100,131.92

Dec. 13 11510 G3012 10,989.00 111,120.92

Dec. 14 G3013 39,897.00 151,017.92

Dec. 15 10400 G3014 207.20 151,225.12

Dec. 16 10400 G3014 CM307 22.40 151,202.72

Dec. 17 G3015 1,188.00 152,390.72

Dec. 19 G3106 6,860.00 159,250.72

Dec. 19 G3017 1,693.00 160,943.72

Dec. 21 11950 G3019 35.00 160,978.72

Dec. 23 G3020 11,100.80 172,079.52

Dec. 23 10750 G3021 76.00 172,155.52

Dec. 24 G3022 8,925.00 181,080.52

Dec. 28 G3023 8,232.00 189,312.52

Dec. 28 G3042 44,514.00 233,826.52

Dec. 29 G3027 46.50 233,873.02

Dec. 30 30117 G3037 CM308 6.00 233,867.02


Answer Book

Gold Run Snowmobile

Ledger Card

Account: 607 Credit Card Expense



Dec. 12 CC301 286.57 1,091.57

Dec. 31 BKREC BKREC 487.53 1,579.10

Dec. 31 Adjusting Entry 431.66 2,010.76


Answer Book

Gold Run Snowmobile

Ledger Card

Account: 711 Interest Earned



Dec. 24 NTREC 160.00 372.00

Dec. 31 BKREC 79.56 451.56

Dec. 31 Adjusting Entry 60.28 511.84

Dec. 31 Closing Entry 511.84 0.00

Answer Book

Gold Run Snowmobile

Ledger Card

Account: 901 Income Summary

Date Explanation

Debit

Credit Balance





Answer Book

Gold Run Snowmobile

General Journal


----------------------------------------------------------------------------------

Dec. 31 Store & Shop Supplies Expense 602 1,416.36

Store and Shop Supplies 127 1,416.36

Adjusting Entry

Dec. 31 Insurance Expense 622 1,555.00

Prepaid Insurance 121 1,555.00

Adjusting Entry

Dec. 31 Prepaid Advertising 125 1,050.00

Advertising Expense 604 1,050.00

Adjusting Entry

Dec. 31 Property Tax Expense 624 660.00

Prepaid Property Tax 124 660.00 Adjusting Entry


Salaries and Wages Payable 209 127.50

Adjusting Entry

Dec. 31 Dep. Expense, Store Equipment and Fixt 610 2,125.00

Accum. Deprec., Store Equipment and Fi 132 2,125.00

Adjusting Entry

Dec. 31 Depreciation Expense, Shop Equipment 611 560.00

Accumulated Depreciation, Shop Equip. 136 560.00

Adjusting Entry

Dec. 31 Depreciation Expense, Trucks 612 380.16

Accumulated Depreciation, Trucks 140 380.16

Adjusting Entry

Dec. 31 Interest Receivable 113 60.28


Adjusting Entry

Dec. 31 Interest Expense 813 50.00

Discount on Notes Payable 204 50.00 Adjusting Entry

Dec. 31 Unearned Storage Fees 221 11,120.00

Storage Fees Earned 421 11,120.00

Adjusting Entry

Dec. 31 Income Taxes Expense 811 2,052.00

Income Taxes Payable 213 2,052.00

Adjusting Entry

Dec. 31 Bad Debt Expense 623 753.00

Allowance for Doubtful Accounts 106 753.00 Adjusting Entry

Dec. 31 Credit Card Expense 607 431.66

Accounts Receivable, Credit Card Co. 107 431.66

Adjusting Entry

Answer Book

Gold Run Snowmobile

General Journal


----------------------------------------------------------------------------------

Dec. 31 Snowmobile and Accessories Sales 401 333,548.84

Service Fees Earned 411 11,751.00 Storage Fees Earned 421 11,120.00


Dividends Earned 713 504.00 Gain on Sale of Assets 721 155.00

Gain on Short-Term Investments 731 1,548.75 Miscellaneous Revenue 741 60.00

Income Summary 901 359,199.43

Closing Entry

Dec. 31 Income Summary 901 296,387.73

Sales Returns and Allowances 402 1,573.80 Cost of Goods Sold 501 233,867.02

Transportation-In 505 1,519.00

Salaries and Wages Expense 601 17,801.25

Store & Shop Supplies Expense 602 1,416.36

Truck & Equipment Operating Expense 603 1,281.20 Advertising Expense 604 2,604.75 Delivery Expense 606 962.50

Credit Card Expense 607 2,010.76

Tools Expense 608 103.45 Dep. Expense, Store Equipment and Fixt 610 2,165.00 Depreciation Expense, Shop Equipment 611 1,028.00 Depreciation Expense, Trucks 612 500.16 Rent Expense 621 12,000.00

Insurance Expense 622 1,555.00

Bad Debt Expense 623 753.00

Property Tax Expense 624 660.00

Electric and Gas Expense 625 801.05 Telephone Expense 626 532.00

Bank Service Charges 627 108.18

License Expense 628 856.00 Professional Services Expense 629 836.50 Cash Short & Over 631 17.00

Discounts Lost 633 193.00 Miscellaneous Expense 635 89.75

Income Taxes Expense 811 8,887.00

Interest Expense 813 379.00 Loss on Sale/Disposal of Assets 821 1,887.00

Closing Entry

Dec. 31 Income Summary 901 62,811.70

Retained Earnings 305 62,811.70 Closing Entry

Dec. 31 Retained Earnings 305 11,500.00

Dividends Declared 311 11,500.00

Closing Entry

Final Project Evaluation

Questions and Answers


5th Edition


www.pklsoftware.com



FINAL PROJECT EVALUATION NAME

GOLD RUN SNOWMOBILE CLASS DAY AND TIME DATE

1. Does the balance of the Schedule of Accounts Receivable match the Y

Accounts Receivable account balance?


2. Which customer has the smallest outstanding balance on December

31? (Identify by customer number.)

10750

3. A credit memo was issued to Mary Bermuda on December 16.

What was the number of the sales invoice for this transaction?

G3014

4. What amount of the balance owed by the Running Ramblers is past

due? (Gold Run Snowmobile, Inc. extends net 30 credit terms to all

customers).

$6,215.00

5. Which customer charged merchandise on account on December 21?

(Identify by customer number.) 11950

6. What is the invoice number of the $1,185.00, December 21 entry to

the Accounts Payable account?

M4577

7. Identify by number the vendor who sold merchandise to Gold Run

Snowmobile on December 21st.

24850

8. By what date should the Inglass, Inc., balance be paid? B

(A) January 6 (B) January 7 (C) January 8 (D) February 6


9. The Morelli Sports Equipment debit memo was for a return of

merchandise from what original purchase invoice number?

M4577

10. What was the balance owed to Morelli Sports Equipment before the

posting of the debit memo? $11,395.00

11. If the Trail-Tracker, Inc., account is not paid in full within the

discount period for each of the outstanding invoices, what will be

the total amount of the discounts lost?

$1,733.08

12. Examine the Fastwinn, Incorporated account. In order to take the

discount offered, which outstanding invoice must be paid in full no

later than January 7? (Identify by invoice number.)

45905

FINAL PROJECT EVALUATION GOLD RUN SNOWMOBILE

13. How much cash was paid out on December 26? $29,328.48

14. A Swift, Incorporated purchase invoice was paid in full on

December 30. What was the number of the invoice paid?

S4385

15. What was the number of the check issued December 30 to Swift

Incorporated for payment?

30116

16. Check number 30116 was issued on what date? B

(A) December 20 (B) December 30 (C) December 31

(D) January 2 (E) None of the above.

17. What was the amount of check 30116? (A) $14,071 E

(B) $15,066 (C) $16,501 (D) $18,736 (E) None of the above.

18. What was the reason for the December 17 credit entry of $6,000 to C

the Cash Account? (A) Paid a past due balance

(B) Paid rent (C) Received a NSF check

(D) Wrote a bad check (E) None of the above.

19. For the month of December, how many Service Fees Earned C

transactions were charged by customers?

(A) 0 (B) 1 (C) 2 (D) 4 (E) 6

20. How many inventory items are now out of stock? D


21. How many inventory items with only three units in stock are at or B

below the reorder point?

(A) 0 (B) 1 (C) 2 (D) 3 (E) More than 10

22. How many CC100 units are in stock? C

(A) 10 (B) 14 (C) 18 (D) 24 (E) 36

23. How many Trail-Tracker 1500 units were issued (sold) during D

December? (A) 1 (B) 4 (C) 6 (D) 8 (E) None of the above.

24. On what date were the 15 pairs of competition gloves (LL466) C

purchased? (A) Dec 2 B) Dec 18 (C) Dec 21 (D) Dec 31



25. What is the FIFO inventory value of the 35 Neon Caps (N6000) in C

stock? (A) $20.00 (B) $200.00 (C) $210.00

(D) $245.00 (E) None of the above.

26. What is the FIFO inventory value of stock number SSS30? B

(A) $1,188 (B) $5,940 (C) $4,940 (D) $3,654


27. A total of 21 Trail-Tracker snowmobiles are currently in stock. C

What is the total amount of cash tied up in this inventory at this

time?

(A) $100,000 (B) $100,070 (C) $100,094 (D) $100,195

(E) $102,094

28. If the transportation-in costs had been reduced to zero through more E

successful negotiation of merchandise contracts, what would be the

corrected Gross Profit From Sales?

(A) $102,567.98 (B) $97,423.00 (C) $96,798.56 (D) $95,784.68


29. Total Cost of Goods Sold is what percent of Net Sales? Round all

percentage answers to two decimal positions (14.57689% =

14.58%). If you are taking the online examination, DO NOT

write the word percent or use the percent sign (%) in your

answer.

70.90

30. Last quarter the Total Selling Expenses were 10.59% of total net Y

revenues. Has this quarter, ending December 31, been an

improvement over last quarter?


31. Salaries and Wages Expense is what percent of the total net

revenues (net sales and fees earned)? If you are taking the online

examination, DO NOT write the word percent or use the percent

sign (%) in your answer.

5.02

32. Compared to the December 3 (beginning merchandise inventory

balance), the December 31 ending merchandise inventory has

increased by what percent? If you are taking the online

examination, DO NOT write the word percent or use the percent

sign (%) in your answer.

41.67


33. What is the book value of Store Equipment and Fixtures? C

(A) $33,333.75 (B) $33,563.65 (C) $36,982.76

(D) $37,998.98 (E) None of the above.

34. Does Gold Run Snowmobile have enough cash on hand to meet N

current liabilities? Answer only Y for Yes or N for No.

35. What is the Net Accounts Receivable balance? B

(A) $23,333.75 (B) $22,463.65 (C) $23,600.65


36. Plant and Equipment assets are what percent of the total assets of the C

business? (A) 39.99% (B) 39.75% (C) 39.69%

(D) $38.67% (E) None of the above.

37. If an additional $500 was written off as an uncollectible bad debt, C

what would be the new Net Accounts Receivable balance?

(A) $21,333.75 (B) $22,111.65 (C) $22,463.65


38. On the December 31 Balance Sheet, what is the "net worth" (total

stockholders' equity) of the business?

$346,137.49

39. Calculate the current ratio of Gold Run Snowmobile. (List the

numeric amount to 2 decimal places. Example: 3.01)

2.00

40. What is the working capital of Gold Run Snowmobile? $149,564.89

41. After closing, what is the balance of Dividends Declared? C

(A) the same as net income

(B) the same as dividends payable (C) $0.00

(D) Dividends Earned (E) None of the above.

42. What has been the Net increase in Retained Earnings this quarter? $51,311.70

43. What must be the last account listed on the Gold Run Snowmobile E

Post-Closing Trial Balance? (A) Cash (B) Income Summary

(C) Capital Stock (D) Withdrawals (E) Retained Earnings


44 After closing, what is the balance of the Income Summary account?

(A) the same as net income

(B) the same as retained earnings

E

(C) the same balance as the Cash account

(D) Both A and B (E) None of the above.

45. If you discovered that a December 31 adjusting entry for accrued

Service Fees totaling $100 had not been recorded and that $50 of

Miscellaneous Expense had been recorded in error in Supplies

C

Expense, correcting these errors would change the operating income

of Gold Run Snowmobile by what total amount? (A) $0.00 (B) $50.00 (C) $100.00 (D) $150.00


46. If the total for Service Fees Earned and Storage Fees Earned could $76,102.86

be increased by 25% with only a $450 increase in Salaries and

Wages Expense and a $350 increase in Advertising Expense, what

would be the new total for Income From Operations?

47. If $800 of Delivery Expense charges were found to be recorded in

the Transportation In account, the Cost of Goods Sold and Gross

$62,811.70

Profit would change by $800. If this error was corrected, what

would be the corrected balance of the Net Income?

48. If it was discovered that the December 26 purchase invoice from

Trail-Tracker had not been entered on the books, but the

merchandise had been counted in the ending inventory, would

A

Accounts Payable be:

(A) overstated (B) understated (C) unchanged

49. If an audit determined that due to "shrinkage" the ending inventory

was overstated by $1,500, would the reported Net Income of the

business be:

A

(A) overstated (B) understated (C) unchanged

50. If "shrinkage" of $1,000 was reported after the inventory was 501

officially counted on December 31, the Merchandise Inventory

account would be credited for the $1,000. The missing inventory

item/s would be accounted for in the entry and the perpetual

inventory system would be brought up-to-date. Identify by account

number the single account to be debited in this journal entry.

Answer Book

FINAL PROJECT EVALUATION

ANSWER KEY

Gold Run Snowmobile

Question Your

Number Answer

----------------------------------------------------------------------

1. Does the balance of the Schedule of Accounts Y

Receivable match the Accounts Receivable account

balance? Answer only Y for Yes or N for No.

2. Which customer has the smallest outstanding 10750

balance on December 31? (Identify by customer

number.)

3. A credit memo was issued to Mary Bermuda on G3014

December 16. What was the number of the sales

invoice for this transaction?

4. What amount of the balance owed by the Running $6,215.00

Ramblers is past due? (Gold Run Snowmobile, Inc.

extends net 30 credit terms to all customers).

5. Which customer charged merchandise on account on 11950

December 21? (Identify by customer number.)

6. What is the invoice number of the $1,185.00, M4577

December 21 entry to the Accounts Payable

account?

7. Identify by number the vendor who sold 24850

merchandise to Gold Run Snowmobile on December

21st.

8. By what date should the Inglass, Inc., balance be B

paid?

A) January 6 B) January 7 C) January 8 D) February 6 E) None of the above.

9. The Morelli Sports Equipment debit memo was for a M4577

return of merchandise from what original purchase

invoice number?

10. What was the balance owed to Morelli Sports $11,395.00

Equipment before the posting of the debit memo?

11. If the Trail-Tracker, Inc., account is not paid $1,733.08

in full within the discount period for each of

the outstanding invoices, what will be the total

amount of the discounts lost?

12. Examine the Fastwinn, Incorporated account. In 45905

order to take the discount offered, which

outstanding invoice must be paid in full no later

than January 7? (Identify by invoice number.)

13. How much cash was paid out on December 26? $29,328.48

14. A Swift, Incorporated purchase invoice was paid S4385

in full on December 30. What was the number of

the invoice paid?

15. What was the number of the check issued December 30116

30 to Swift Incorporated for payment?

16. Check number 30116 was issued on what date? B

A) December 20 B) December 30 C) December 31 D) January 2 E) None of the above.

17. What was the amount of check 30116? E

A) $14,071

B) $15,066

C) $16,501

D) $18,736


18. What was the reason for the December 17 credit C

entry of $6,000 to the Cash Account?

A) Paid a past due balance B) Paid rent C) Received a NSF check D) Wrote a bad check E) None of the above.

19. For the month of December, how many Service Fees C

Earned transactions were charged by customers?

A) 0 B) 1 C) 2 D) 4 E) 6

20. How many inventory items are now out of stock? D


21. How many inventory items with only three units in B

stock are at or below the reorder point?

A) 0 B) 1 C) 2 D) 3 E) More than 10

22. How many CC100 units are in stock? C

A) 10 B) 14 C) 18 D) 24 E) 36

23. How many Trail-Tracker 1500 units were issued D

(sold) during December?


24. On what date were the 15 pairs of competition C

gloves (LL466) purchased?

A) Dec 2 B) Dec 18 C) Dec 21 D) Dec 31 E) None of the above.

25. What is the FIFO inventory value of the 35 Neon C

Caps (N6000) in stock?

A) $20.00

B) $200.00

C) $210.00

D) $245.00


26. What is the FIFO inventory value of stock number B

SSS30?

A) $1,188

B) $5,940

C) $4,940

D) $3,654


27. A total of 21 Trail-Tracker snowmobiles are C

currently in stock. What is the total amount of

cash tied up in this inventory at this time?

A) $100,000

B) $100,070

C) $100,094

D) $100,195

E) $102,094

28. If the transportation-in costs had been reduced E

to zero through more successful negotiation of

merchandise contracts, what would be the

corrected Gross Profit From Sales?

A) $102,567.98

B) $97,423.00

C) $96,798.56

D) $95,784.68


29. Total Cost of Goods Sold is what percent of Net 70.90

Sales? Round all percentage answers to two

decimal positions (14.57689% = 14.58%). If you

are taking the online examination, DO NOT write

the word percent or use the percent sign (%) in

your answer.

30. Last quarter the Total Selling Expenses were Y

10.59% of total net revenues. Has this quarter,

ending December 31, been an improvement over last

quarter? Answer Y for Yes or N for No.

31. Salaries and Wages Expense is what percent of the 5.02

total net revenues (net sales and fees earned)?

If you are taking the online examination, DO NOT

write the word percent or use the percent sign

(%) in your answer.

32. Compared to the December 3 (beginning merchandise 41.67

inventory balance), the December 31 ending

merchandise inventory has increased by what

percent? If you are taking the online

examination, DO NOT write the word percent or use

the percent sign (%) in your answer.

33. What is the book value of Store Equipment and C

Fixtures?

A) $33,333.75

B) $33,563.65

C) $36,982.76

D) $37,998.98


34. Does Gold Run Snowmobile have enough cash on hand N

to meet current liabilities? Answer only Y for

Yes or N for No.

35. What is the Net Accounts Receivable balance? B

A) $23,333.75

B) $22,463.65

C) $23,600.65

D) $24,998.98

E) None of the above

36. Plant and Equipment assets are what percent of C

the total assets of the business?

A) 39.99%

B) 39.75%

C) 39.69%

D) $38.67%


37. If an additional $500 was written off as an C

uncollectible bad debt, what would be the new Net

Accounts Receivable balance?

A) $21,333.75

B) $22,111.65

C) $22,463.65

D) $23,998.98


38. On the December 31 Balance Sheet, what is the $346,137.49

‘net worth’ (total stockholders' equity) of the

business?

39. Calculate the current ratio of Gold Run 2.00

Snowmobile. (List the numeric amount to 2 decimal

places. Example: 3.01)

40. What is the working capital of Gold Run $149,564.89

Snowmobile?

41. After closing, what is the balance of Dividends C

Declared?

A) the same as net income B) the same as dividends payable C) $0.00

D) Dividends Earned E) None of the above.

42. What has been the Net increase in Retained $51,311.70

Earnings this quarter?

43. What must be the last account listed on the Gold E

Run Snowmobile Post-Closing Trial Balance?

A) Cash B) Income Summary C) Capital Stock D) Withdrawals E) Retained Earnings

44. After closing, what is the balance of the Income E

Summary account?

A) the same as net income B) the same as retained earnings C) the same balance as the Cash account D) Both A and B E) None of the above.

45. If you discovered that a December 31 adjusting C

entry for accrued Service Fees totaling $100 had

not been recorded and that $50 of Miscellaneous

Expense had been recorded in error in Supplies

Expense, correcting these errors would change the

operating income of Gold Run Snowmobile by what

total amount?

A) $0.00

B) $50.00

C) $100.00

D) $150.00


46. If the total for Service Fees Earned and Storage $76,102.86

Fees Earned could be increased by 25% with only a

$450 increase in Salaries and Wages Expense and a

$350 increase in Advertising Expense, what would

be the new total for Income From Operations?

47. If $800 of Delivery Expense charges were found to $62,811.70

be recorded in the Transportation In account, the

Cost of Goods Sold and Gross Profit would change

by $800. If this error was corrected, what would

be the corrected balance of the Net Income?

48. If it was discovered that the December 26 A

purchase invoice from Trail-Tracker had not been

entered on the books, but the merchandise had

been counted in the ending inventory, would Accounts

Payable be:

A) overstated B) understated C) unchanged

49. If an audit determined that due to `shrinkage` A

the ending inventory was overstated by $1,500,

would the reported Net Income of the business be:

A) overstated B) understated C) unchanged

50. If `shrinkage` of $1,000 was reported after the 501

inventory was officially counted on December 31,

the Merchandise Inventory account would be

credited for the $1,000. The missing inventory

item/s would be accounted for in the entry and

the perpetual inventory system would be brought

up-to-date. Identify by account number the

single account to be debited in this journal

entry.

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