1.	Produce the journal entry to reimburse Petty Cash, using the following data
	Petty Cash Bank balance 1/1/11				$250.00
	Petty cash was used to pay for the following items:
	Postage				$37.00
	Office Supplies				$60.00
	Misc. Expense				$24.00
	Petty Cash Bank balance 1/31/11				$130.00
	Date		Account					Debit	Credit
2.	Please complete a bank reconciliation using the following information:
	Outstanding checks					$55,970
	Deposits in transit					$23,200
	Bank Service Charge not recorded on books					$15
	Interest earned on bank account					$226
	Balance per the Bank Statement					$33,291
	Cash balance per the general ledger					$310
Bank Balance					$33,291		Book Balance
	3.	The following is a partial trial balance for Dewey, Cheatem & Howe, Inc., which uses the percent of
		sales method for estimating bad debt expense. History shows that 5% of sales will be uncollectible.
		What is the amount of bad debt expense for the period? Cirlce the correct multiple choice answer.
		Accounts Receivable				150,000
		Allowance for Doubtful Accounts				0
		Sales				260,000
		A.	2,375
		B.	13,000
		C.	7,500
		D.	925
	4.	The Big Dog company records bad debt expense using the Allowance Method.
		The balance in Accounts Receivable at the end of the period is $66,000. History suggests that 3.5%
		of receivables will be uncollectible. The Allowance for Doubtful Accounts has a credit balance of $1,400.
		What is the correct entry to record estimated bad debt expense for the period?						Cirlce the correct multiple choice answer.
		A.	Credit Bad Debt Expense for $2,310, and debit the Allowance for Doubtful Accounts for $2,310
		B.	Debit Bad Debt Expense for $910, and credit the Allowance for Doubtful Accounts for $910
		C.	Debit Bad Debt Expense for $910, and credit Accounts Receivable for $910
		D.	Debit Bad Debt Expense for $2,310 and credit Accounts Receivable for $2,310
	5.	The Big Dog company is notified that one of it's customers (Jones) is filing for bankruptcy. The Accounts
		Receivable balance of the Jones account is $120, the total of which is uncollectible and will be written off.
		The Big Dog company uses the Allowance Method for recording bad debts. Writing off the Jones account
		will:	Cirlce the correct multiple choice answer.
		A.	Increase Accounts Receivable
		B.	Decrease Accounts Receivable
		C.	Increase Bad Debt Expense
		D.	Decrease Bad Debt Expense
	6.	Katz Co. made a $250 sale to a customer paying with a VISA credit card. Katz must remit the credit
		card sale to the credit card company and wait for payment. A 2% service fee is charged on all
		credit card sales. To record this sale, Katz will:				Cirlce the correct multiple choice answer.
		A.	Increase Sales by $245
		B.	Increase Accounts Receivable by $245
		C.	Increase Cash by $245
		D.	Increase Accounts Receivable by $250
	7.	Chicken Little Inc. receives a $23,000, 6%, 90 day note from the Henny Penny Co. as a promise to pay
		for goods Henny Penny purchased from Chicken Little. When Henney Penny pays the note at maturity,
		Chicken Little will record interest of:			Cirlce the correct multiple choice answer.
		A,	Interest Expense of $345
		B.	Interest Revenue of $1,380
		C,	Interest Expense of $1,380
		D,	Interest Revenue of $345
	8.	On November 1, 2011 Nehigh company takes a 12 month note from the local bank. The note has a face
		value of $35,000 and and interest rate of 4.5%. On December 31, 2011, Nehigh would record interest
		of:	Cirlce the correct multiple choice answer.
		A.	Interest Expense of $262.50
		B.	Interest Expense of $1,575.00
		C.	Interest Payable of $262.50
		D.	Both A and C
	9.	Sassy, Inc. has a 12 month, 4% Note Payable with a face value of $150,000, dated December 1, 2010
		On 12/1/2011, when Sassy Inc. pays the full amount of the note, the Interest Payable account has
		a balance of $5,500. Please use the space provided below to record the journal entry on 12/1/2011
		when the note is paid in full.
		Date						Debit	Credit
	10.	The following is information from the September 1, 2011 purchase of equipment:
		Equipment Cost			500,000
		Installation Cost			5,200
		Salvage Value			20,000
		Useful Life			4
		What is the amount of straight line depreciation that will be reported on December 31, 2011? Round to the nearest whole dollar
		Cirlce the correct multiple choice answer.
		A.	40,000
		B.	120,000
		C.	121,300
		D.	40,433
	11.	If it was determined that the equipment from (10) above actually has a useful life of 5 years
		instead of 4 years, what would be the annual depreciation expense amount
		for each of the remaining two years? (Assume three full years of depreciation have already
		been recorded.)		Cirlce the correct multiple choice answer.
		A.	68,050
		B.	181,950
		C.	70,650
		D.	60,650
	12.	On January 1, 2011 Level Company purchases a machine for $440,000 with an estimated
		useful life of 10 years and a salvage value of $30,000. What amount of depreciation expense
		will be recorded on December 31, 2011 if the Level company uses the Double Declining Balance
		method?	Cirlce the correct multiple choice answer.
		A.	44,000
		B.	41,000
		C.	82,000
		D.	88,000
	13.	Using the information from (12) above, what is the book value of the machine on January 1, 2012?
		A.	440,000
		B.	396,000
		C.	352,000
		D.	358,000
	14.	Using the information from (12) above, what is the amount of depreciation expense that should
		be reported for 2012?
		A.	70,400
		B.	88,000
		C.	72,600
		D.	79,500
	15.	Mooney's Inc. owns a trailer that cost $30,000, with an estimated useful life of 3 years and a
		salvage value of $1,500. Total Accumulated Depreciation of $24,000 was recorded on the day
		the trailer was sold for $7,000. What is the gain or loss on the sale of the trailer?
		A.	Neither a Gain or Loss
		B.	Gain of $500
		C.	Gain of $1,000
		D.	Loss of $1,000
	16.	Mooney's Inc. owns a second trailer that cost $30,000. They want to trade the trailer for a newer
		model. The new trailer costs $28,000, but the dealer will give Mooney a $2,000 trade-in
		allowance on the old trailer. Accumulated Depreciation totals $27,000 at the time of the
		trade-in. What is the amount of gain or loss on the trade-in of the old trailer?
		A.	Loss of $1,000
		B.	Gain of $1,000
		C.	Gain of $2,000
		D.	Loss of $8,000
	17.	Using the information from (16) above, please produce the journal entry to record the
		transaction, assuming Mooney paid cash for the new trailer.
							Debit	Credit