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Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 – 2020, PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: January 17, 2020, 20202020
Zacks Bike Hut Answer Book
1st Edition
Student Documents and
Evaluation Answers
Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 – 2020, PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: January 17, 2020, 20202020
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 2010.
The financial documents printed by your students will show a
year-date of the current year plus one.
Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 – 2020, PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: January 17, 2020, 20202020
Student Documents
for
June 3 – 9 Module 1
Answer Book
Zacks Bike Hut
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------
June 3 Cash 101 82.93
Service Fees Earned 411 77.50
Sales Tax Payable
Invoice: Z1604
205 5.43
June 3 Store Equipment 131 246.00
Store and Shop Supplies 127 65.00
Accounts Payable 201 311.00
Invoice: B5787
Vendor: 20500
Bingham Supply
June 4 Merchandise Inventory 115 1,960.00
Accounts Payable 201 1,960.00
Invoice: C5914
Vendor: 20750
Crater Bikes, Inc.
June 4 Store and Shop Supplies 127 34.25
Delivery Expense 606 7.75
Miscellaneous Expense 635 6.50
Cash 101 48.50
Check: 02611
Invoice: PCASH
June 5 Cash 101 5,537.25
Sales 401 5,175.00 Sales Tax Payable 205 362.25
Invoice: Z1605
June 5 Cost of Goods Sold 501 3,450.00
Merchandise Inventory 115 3,450.00
Invoice: Z1605
June 6 Merchandise Inventory 115 2,140.00
Accounts Payable 201 2,140.00
Invoice: AC111
Vendor: 20150
American Cycles
June 6 Advertising Expense 604 198.00
Cash 101 198.00
Check: 02612
Invoice: B2930
June 6 Accounts Payable 201 13,650.00
Cash 101 13,650.00
Check: 02612
Invoice: C5884
Vendor: 20750
Crater Bikes, Inc.
June 7 Cash 101 294.25
Unearned Lesson Fees 221 275.00
Sales Tax Payable
Invoice: Z1606
205 19.25
June 7 Cash 101 4,568.00
Accounts Receivable 105 4,568.00
Invoice: Z1531
Customer: 11110
Sierra Rough Necks
June 8 Cash 101 10,039.28
Sales 401 9,382.50
Sales Tax Payable 205 656.78
Invoice: Z1607
June 8 Cost of Goods Sold 501 6,255.00
Merchandise Inventory 115 6,255.00
Invoice: Z1607
June 9 Dividends Declared 311 6,500.00
Dividends Payable 207 6,500.00
Invoice: DIVDC
Answer Book
Zacks Bike Hut
Trial Balance
June 9, 2010
Account Titles Debit Credit
---------------------------------------------------------------
Cash 40,914.17
Petty Cash 50.00
Short-Term Investments 4,125.00
Accounts Receivable 6,355.00
Allowance for Doubtful Accounts 821.30
Accounts Rec. - Credit Card Co. 2,144.50
Notes Receivable 3,200.00
Merchandise Inventory 28,337.00
Prepaid Insurance 3,850.00
Store and Shop Supplies 1,411.25
Store Equipment 43,196.00
Accum. Dep.- Store Equipment 11,250.00
Shop Equipment 20,750.00
Accum. Deprec. - Shop Equipment 6,550.00
Delivery Van 33,400.00
Accum. Deprec. - Delivery Van 1,560.00
Land 48,000.00
Accounts Payable 5,747.50
Notes Payable 6,000.00
Sales Tax Payable 3,019.71
Dividends Payable 6,500.00
Unearned Lesson Fees 5,525.00
Long-Term Notes Payable 12,000.00
Common Stock 100,000.00
Retained Earnings 39,357.18
Dividends Declared 6,500.00
Sales 146,997.50
Sales Returns and Allowances 4,215.00
Service Fees Earned 11,588.50
Cost of Goods Sold 84,617.00
Transportation-In 1,220.00
Salaries and Wages Expense 13,741.25
Van Operating Expense 673.00
Advertising Expense 1,093.00
Delivery Expense 254.75
Credit Card Expense 59.40
Tools Expense 33.00
Rent Expense 2,500.00
Utilities Expense 739.20
Telephone Expense 501.50
Bank Service Charges 75.40
License Expense 402.12
Professional Services Exp. 380.00
Cash Short and Over 18.00
Discounts Lost 27.00
Miscellaneous Expense 44.90
Interest Earned 194.25
Dividends Earned 47.50
Miscellaneous Revenue 20.00
Income Taxes Expense 4,150.00
Interest Expense 201.00
---------- ----------
Total 357,178.44 357,178.44 ========== ==========
Answer Book
Zacks Bike Hut
Inventory Analysis
Last Activity Date: June 9, 2010
Stock
Number
Inventory
Item
Reorder
Point
Units
On Hand
Unit
Cost
At/Below
Reorder
A0008 ZIPP 900
2 0 2,085.00 Yes
A0016 SPEEDSTER R1 3 2 300.00 Yes
A0024 WINDOWS PEAK - DEEMA 2 3 3,450.00
A0026 WIKI PEAK 5 9 310.00
A0100 NOVARA 1 8 392.00
A0200 BOOT'R TEAM 2 4 1,100.00
A0300 CASCADE PEAK 2 2 900.00 Yes
B1010 T-5 FRAME 3 2 1,000.00 Yes
B1020 6 FT. CHROME FRAME 2 2 400.00 Yes
B1050 PEDALS (PAIR) 8 12 31.00
B1070 LOCK AND CABLE 8 12 18.00
B1090 STEEL SEAT POST 5 15 3.00
B1120 CHROME SEAT POST 5 15 5.50
B1140 18 INCH FLOOR PUMP 6 20 8.00
B1160 CUSTOM SEAT 8 4 27.50 Yes
B1180 LEATHER SEAT 8 7 41.50 Yes
B1300 PROTECTION COMBO 8 5 50.00 Yes
C2300 CUSTOM HELMET 8 16 30.00
C2355 HELMET DELUXE 8 7 65.00 Yes
Items At or Below Reorder Point: 9
Total Value of Inventory: $28,337.00
Student Documents
for
June 10 – 16 Module 2
Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
Answer Book
Zacks Bike Hut
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------
June 10 Allowance for Doubtful Accounts 106 565.00
Accounts Receivable 105 565.00
Invoice: WROFF
Customer: 10200
Sally Bridges
June 10 Cash 101 2,064.08 Credit Card Expense 607 80.42
Accounts Rec. - Credit
Invoice: CC411
Card Co. 107 2,144.50
June 11 Accounts Payable 201 20.50
Store and Shop Supplies 127 20.50
Invoice: B5787
Vendor: 20500
Bingham Supply
June 12 Accounts Payable 201 435.00
Cash
Check:
02615
101 435.00
Invoice: ZB538
Vendor: 25700
Zebra Bikes, Inc.
June 14 Accounts Rec. - Credit Card Co. 107 2,985.30
Sales 401 2,790.00
Sales Tax Payable Invoice: Z1608
205 195.30
June 14 Cost of Goods Sold 501 1,860.00
Merchandise Inventory 115 1,860.00
Invoice: Z1608
June 14 Accounts Payable 201 385.00
Cash
Check: 02617
Invoice: A3499
Vendor: 20150
American Cycles
101 385.00
June 15 Accounts Payable
201 1,960.00
Discounts Lost 633 40.00
Cash
Check:
02618
101 2,000.00
Invoice: Vendor:
C5914 20750
Crater Bikes, Inc.
June 15 Cash 101 5,175.00
Gain on Short-Term Invest. 731 1,050.00
Short-Term Investments
Invoice: STINV
103 4,125.00
June 16 Salaries and Wages Expense 601 582.75
Cash 101 582.75
Check: 02619
Invoice: PAYRL
Answer Book
Zacks Bike Hut
Trial Balance
June 16, 2010
Account Titles Debit Credit
---------------------------------------------------------------
Cash 44,750.50
Petty Cash 50.00
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Rec. - Credit Card Co.
5,790.00
2,985.30
256.30
Notes Receivable 3,200.00
Merchandise Inventory 26,477.00
Prepaid Insurance 3,850.00
Store and Shop Supplies 1,390.75
Store Equipment
Accum. Dep.- Store Equipment
Shop Equipment
Accum. Deprec. - Shop Equipment
Delivery Van
43,196.00
20,750.00
33,400.00
11,250.00
6,550.00
Accum. Deprec. - Delivery Van
Land
Accounts Payable
48,000.00
1,560.00
2,947.00
Notes Payable 6,000.00
Sales Tax Payable 3,215.01
Dividends Payable 6,500.00
Unearned Lesson Fees 5,525.00
Long-Term Notes Payable 12,000.00
Common Stock 100,000.00
Retained Earnings
Dividends Declared
Sales
Sales Returns and Allowances
Service Fees Earned
Cost of Goods Sold
6,500.00
4,215.00
86,477.00
39,357.18
149,787.50
11,588.50
Transportation-In 1,220.00
Salaries and Wages Expense 14,324.00
Van Operating Expense 673.00
Advertising Expense 1,093.00
Delivery Expense 254.75
Credit Card Expense 139.82
Tools Expense 33.00
Rent Expense 2,500.00
Utilities Expense 739.20
Telephone Expense 501.50
Bank Service Charges 75.40
License Expense 402.12
Professional Services Exp. 380.00
Cash Short and Over 18.00
Discounts Lost 67.00
Miscellaneous Expense Interest Earned
44.90
194.25
Dividends Earned 47.50
Gain on Short-Term Invest. 1,050.00
Miscellaneous Revenue 20.00
Income Taxes Expense 4,150.00
Interest Expense 201.00
---------- ----------
Total 357,848.24 357,848.24 ========== ==========
Answer Book
Zacks Bike Hut
Inventory Analysis
Last Activity Date: June 14, 2010
Stock
Number
Inventory
Item
Reorder
Point
Units
On Hand
Unit
Cost
At/Below
Reorder
A0008 ZIPP 900
2 0 2,085.00 Yes
A0016 SPEEDSTER R1 3 2 300.00 Yes
A0024 WINDOWS PEAK - DEEMA 2 3 3,450.00
A0026 WIKI PEAK 5 3 310.00 Yes
A0100 NOVARA 1 8 392.00
A0200 BOOT'R TEAM 2 4 1,100.00
A0300 CASCADE PEAK 2 2 900.00 Yes
B1010 T-5 FRAME 3 2 1,000.00 Yes
B1020 6 FT. CHROME FRAME 2 2 400.00 Yes
B1050 PEDALS (PAIR) 8 12 31.00
B1070 LOCK AND CABLE 8 12 18.00
B1090 STEEL SEAT POST 5 15 3.00
B1120 CHROME SEAT POST 5 15 5.50
B1140 18 INCH FLOOR PUMP 6 20 8.00
B1160 CUSTOM SEAT 8 4 27.50 Yes
B1180 LEATHER SEAT 8 7 41.50 Yes
B1300 PROTECTION COMBO 8 5 50.00 Yes
C2300 CUSTOM HELMET 8 16 30.00
C2355 HELMET DELUXE 8 7 65.00 Yes
Items At or Below Reorder Point: 10
Total Value of Inventory: $26,477.00
Answer Book
Zacks Bike Hut
Schedule of Accounts Receivable
Last Activity Date: June 10, 2010
Number Name Balance
10200 Sally Bridges $ .00
10325 Downieville Wheels 4,450.00
10360 Sugar Folley .00
10440 Mountaineers Bike Club .00
10525 Doris Highlander 140.00
10555 Highland Riders .00
10875 Shirley Rawlins .00
10900 49'er Riders .00
11110 Sierra Rough Necks .00
11500 Allen Yarborough 1,200.00
----------
Total Accounts Receivable $ 5,790.00 ==========
Answer Book
Zacks Bike Hut
All Accounts Receivable Customers
Number: 10200
Name: Sally Bridges
Address: 356 Plum Springs Ave. Downieville, CA
Date Explanation Debit Credit Balance
________________________________________________________________
Apr. 5 Z1449 565.00 565.00
June 10 WROFF 565.00 0.00
________________________________________________________________
Number: 10325
Name: Downieville Wheels
Address: 4455 Gold Pan Street Downieville, CA
Date Explanation Debit Credit Balance
________________________________________________________________
May 12 Z1568 4,450.00 4,450.00
________________________________________________________________
Number: 10360
Name: Sugar Folley
Address: 2535 Marysville Road. Camptonville, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
________________________________________________________________
Number: 10440
Name: Mountaineers Bike Club
Address: 4535 Coyote Street Grass Valley, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
________________________________________________________________
Number: 10525
Name: Doris Highlander
Address: 2789 Rock Court Granite Bay, CA
Date Explanation Debit Credit Balance
________________________________________________________________
May 12 Z1570 140.00 140.00
________________________________________________________________
Number: 10555
Name: Highland Riders
Address: 1367 Snow Cap Lane Tahoe City, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
________________________________________________________________
Number: 10875
Name: Shirley Rawlins
Address: 1900 Ridge Rd. N. San Juan, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
________________________________________________________________
Number: 10900
Name: 49'er Riders
Address: 5450 Canyon Ranch Road North Star, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
________________________________________________________________
Number: 11110
Name: Sierra Rough Necks
Address: 5000 Old Highway 49 Pendola, CA
Date Explanation Debit Credit Balance
________________________________________________________________
________________________________________________________________
Number: 11500
Name: Allen Yarborough
Address: 6888 Maryland Mine Road Sierra City, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Z1603 1,200.00 1,200.00
________________________________________________________________
May 3 Z1531 4,568.00 4,568.00
June 7 Z1531 4,568.00 0.00
Answer Book
Zacks Bike Hut
Schedule of Accounts Payable
Last Activity Date: June 15, 2010
Number Name Balance
20150 American Cycles $ 2,140.00
20500 Bingham Supply 807.00
20750 Crater Bikes .00
22600 Jurassic Bikes .00
23100 Moon Shine Sports .00
23700 Noreen's Freight Lines .00
24500 Packard Bicycles .00
25700 Zebra Bikes, Inc. .00 ----------
Total Accounts Payable $ 2,947.00 ==========
Answer Book
Zacks Bike Hut
All Accounts Payable Vendors
Number: 20150
Name: American Cycles
Address: 2100 Star Thistle Lane Auburn, CA Net 10
Date Explanation Debit Credit Balance
_______________________________________________________________
May 10 A3499 385.00 385.00
June 6 A4111 2,140.00 2,525.00
June 14 02615 A3499 385.00 2,140.00
_______________________________________________________________
Number:
Name:
20500
Bingham Supply
Address: 2406 Bay View Oakland, CA Net 30
Date Explanation Debit Credit Balance
_______________________________________________________________
May 8 B4855 516.50 516.50
June 3 B5787 311.00 827.50
June 11 B5787 20.50 807.00
_______________________________________________________________
Number:
Name:
20750
Crater Bikes
Address: 1234 Mt. Hood Drive Ashland, OR 2/10, n/30
Date Explanation Debit Credit Balance
_______________________________________________________________
May 27 C5884 13,650.00 13,650.00
June 4 C5914 1,960.00 15,610.00
June 6 02613 C5884 13,650.00 1,960.00
June 15 02616 C5914 1,960.00 0.00
_______________________________________________________________
Number: 22600
Name: Jurassic Bikes
Address: 2400 Main Street Lincoln, CA Net 10
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 Balance 0.00
_______________________________________________________________
Number: 23100
Name: Moon Shine Sports
Address: 4770 Yakama Lane Portland, OR Net 30
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 Balance 0.00
_______________________________________________________________
Number: 23700
Name: Noreen's Freight Lines
Address: 3500 North Canyon N. San Juan, CANet 15
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 Balance 0.00
_______________________________________________________________
Number:
Name:
24500
Packard Bicycles
Address: 6230 Gordon Bluff Ave. San Demas, CA 1/10, n/30
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 Balance 0.00
_______________________________________________________________
Number:
Name:
25700
Zebra Bikes, Inc.
Address: 4560 Bloomfield Road Gold Lake, CA 2/10, n/30
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 ZB538 435.00 435.00
June 12 02614 ZB538 435.00 0.00
_______________________________________________________________
Answer Book
Zacks Bike Hut
Inventory Item: ZIPP 900 Stock Number: A0008
Reorder Point: 2
Units Dr/Cr
Date InOut Check Vendor Customer Invoice Memo
Balance 3
June 08 3 CASH Z1607
____________________________________________________________
Beginning Units: 3 Unit Balance: 0
Units In: 0 Unit Cost: 2,085.00
Units Out: 3 FIFO Value: 0.00
____________________________________________________________
Answer Book
Zacks Bike Hut
Inventory Item: WIKI PEAK Stock Number: A0026
Reorder Point: 5
Units Dr/Cr
Date InOut Check Vendor Customer Invoice Memo
Balance 5
June 06 4 20150 AC111
June 14 6 CASH Z1608
____________________________________________________________
Beginning Units: 5 Unit Balance: 3
Units In: 4 Unit Cost: 310.00
Units Out: 6 FIFO Value: 930.00
____________________________________________________________
Answer Book
Zacks Bike Hut
Inventory Item: NOVARA Stock Number: A0100
Reorder Point: 1
Units Dr/Cr
Date InOut Check Vendor Customer Invoice Memo
Balance 3
June 04 5 20750 C5914
____________________________________________________________
Beginning Units: 3 Unit Balance: 8
Units In: 5 Unit Cost: 392.00
Units Out: 0 FIFO Value: 3,136.00
____________________________________________________________
Answer Book
Zacks Bike Hut
Inventory Item: CHROME SEAT POST Stock Number: B1120
Reorder Point: 5
Units Dr/Cr
Date In Out Check Vendor Customer Invoice Memo
Balance 15
____________________________________________________________
Beginning Units: 15 Unit Balance: 15
Units In: 0 Unit Cost: 5.50
Units Out: 0 FIFO Value: 82.50
____________________________________________________________
Answer Book
Zacks Bike Hut
Ledger Card
Account:
Date
101 Cash
Explanation
Debit
Credit
Balance
June 2 Beginning Balance 34,288.96
June 3 Z1604 82.93 34,371.89
June 4 02611 PCASH 48.50 34,323.39
June 5 Z1605 5,537.25 39,860.64
June 6 02612 B2930 198.00 39,662.64
June 6 02613 20750 C5884 13,650.00 26,012.64
June 7 Z1606 294.25 26,306.89
June 7 11110 Z1531 4,568.00 30,874.89
June 8 Z1607 10,039.28 40,914.17
June 10 CC411 2,064.08 42,978.25
June 12 02614 25700 ZB538 435.00 42,543.25
June 14 02615 20150 A3499 385.00 42,158.25
June 15 02616 20750 C5914 2,000.00 40,158.25
June 15 STINV 5,175.00 45,333.25
June 16 02617 PAYRL 582.75 44,750.50
Answer Book
Zacks Bike Hut
Ledger Card
Account: 105 Accounts Receivable
Date Explanation Debit Credit Balance
June 2 Beginning Balance 10,923.00
June 7 11110 Z1531 4,568.00 6,355.00
June 10 10200 WROFF 565.00 5,790.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 115 Merchandise Inventory
Date Explanation Debit Credit Balance
June 2 Beginning Balance 33,942.00
June 4 20750 C5914 1,960.00 35,902.00
June 5 Z1605 3,450.00 32,452.00
June 6 20150 AC111 2,140.00 34,592.00
June 8 Z1607 6,255.00 28,337.00
June 14 Z1608 1,860.00 26,477.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 201 Accounts Payable
Date Explanation Debit Credit Balance
June 2 Beginning Balance 14,986.50
June 3 20500 B5787 311.00 15,297.50
June 4 20750 C5914 1,960.00 17,257.50
June 6 20150 AC111 2,140.00 19,397.50
June 6 02613 20750 C5884 13,650.00 5,747.50
June 11 20500 B5787 20.50 5,727.00
June 12 02614 25700 ZB538 435.00 5,292.00
June 14 02615 20150 A3499 385.00 4,907.00
June 15 02616 20750 C5914 1,960.00 2,947.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 401 Sales
Date Explanation Debit Credit Balance
June 2 Beginning Balance 132,440.00
June 5 Z1605 5,175.00 137,615.00
June 8 Z1607 9,382.50 146,997.50
June 14 Z1608 2,790.00 149,787.50
Answer Book
Zacks Bike Hut
Ledger Card
Account: 501 Cost of Goods Sold
Date Explanation Debit Credit Balance
June 2 Beginning Balance 74,912.00
June 5 Z1605 3,450.00 78,362.00
June 8 Z1607 6,255.00 84,617.00
June 14 Z1608 1,860.00 86,477.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 505 Transportation-In
Date Explanation Debit Credit Balance
June 2 Beginning Balance 1,220.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 606 Delivery Expense
Date
June
Explanation
2 Beginning Balance
Debit Credit Balance
247.00
June 4 02611 PCASH 7.75 254.75
Answer Book
Zacks Bike Hut
Ledger Card
Account: 633 Discounts Lost
Date
June
Explanation
2 Beginning Balance
Debit Credit Balance
27.00
June 15 02616 20750 C5914 40.00 67.00
Mid-Project Evaluation
Questions and Answers
Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
MID-PROJECT EVALUATION NAME
ZACKS BIKE HUT CLASS DAY AND TIME DATE
1. What was the correct balance of the Cash account at the close of
business on June 4?
$34,323.39
2. What invoice was paid in full (check 02613) on June 6? C5884
Carefully examine the Accounts Payable Subsidiary Ledger for
the information to answer several of the following questions:
3. What was the balance of the Bingham Supply account before the
return of supplies on June 11?
$827.50
4. What was the balance of the Crater Bikes account after the purchase
of merchandise on June 4?
$15,610.00
5. If a $20,000 invoice from Zebra Bikes, Inc., was recorded net, and
then not paid within the 10-day discount period, what would be the
dollar cost to the business for this oversight?
$400.00
6. Since June 2, the balance of the accounts payable has: B
A. Increased
B. Decreased
C. Not Changed
7. Identify by number the vendor's account that is over five days past
due.
20500
Carefully examine the Accounts Receivable Subsidiary Ledger
for the information to answer several of the following questions:
8. 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.
9. Identify by customer number, which customer paid invoice number
Z1531 in full?
11110
10. By number (0, 1, 2, 3), how many customers have balances owed that 2
are partially or fully past due (Zacks Bike Hut extends net 30 credit
terms to all customers)?
MID-PROJECT EVALUATION ZACKS BIKE HUT
11. If a freight invoice is received, and charges listed are for shipments of B
merchandise to Zacks Bike Hut customers, this invoice will be
recorded as a debit to which account?
A. Merchandise Inventory
B. Delivery Expense
C. Transportation-In
D. Accounts Payable
Carefully examine the Inventory documents for the information
to answer several of the following questions. Answers must be in
a numeric (1, 2, 3, etc.) format.
12. How many inventory items are currently “out of stock”? 1
13. How many A0100 Novara bicycles are currently on hand? 8
14. Is there a need to order custom seats or protection combos? Y
Answer only Y for Yes or N for No.
15. What is the inventory stock number for a Custom Helmet? C2300
16. How many units of stock number A0026 have been sold since June 2? 6
17. How many A0026 bicycles were purchased on June 6? 4
Answer questions 18-20 using the balances at the close of business
activity, June 16.
18. What is the total for Net Sales? $145,572.50
19. Excluding Accounts Receivable – Credit Card Company, what is the
Net value of Accounts Receivable?
$5,533.70
20. What has been the recorded cost to date to Zacks Bike Hut, Inc., for
customers who have purchased merchandise using bank and company
credit cards?
$139.82
Answer Book
MID PROJECT EVALUATION
ANSWER KEY
Zacks Bike Hut
Question Your
Number Answer
----------------------------------------------------------------------
1. What was the correct balance of the Cash account $34,323.39
at the close of business on June 4?
2. What invoice was paid in full (check 02613) June C5884
6?
3. Carefully examine the Accounts Payable Subsidiary $827.50
Ledger for the information to answer several of
the following questions: What was the balance of
the Bingham Supply account before the return of
supplies on June 11?
4. What was the balance of the Crater Bikes account $15,610.00
after the purchase of merchandise on June 4?
5. If a $20,000 invoice from Zebra Bikes, Inc. was $400.00
recorded net, and then not paid within the 10-day
discount period, what would be the dollar cost to
the business for this oversight?
6. Since June 2, the balance of the accounts payable B
has: Answer by letter only (A, B, or C)
A) Increased
B) Decreased
C) Not changed
7. Identify by number the vendor's account that is 20500
over five days past due.
8. Carefully examine the Accounts Receivable Y
Subsidiary Ledger for the information to answer
several of the following questions: Does the
balance of the Schedule of Accounts Receivable
match the balance of the Accounts Receivable
account? Answer only Y for Yes or N for No.
9. Identify by customer number, which customer paid
invoice number Z1531 in full?
11110
10. By number (0, 1, 2, 3), how many customers have
balances owed that are partially or fully past
due (Zacks Bike Hut extends net 30-day credit to
all customers)?
2
11. If a freight invoice is received, and charges B
listed are for shipments of merchandise to Zacks
Bike Hut customers, this invoice will be will be
recorded as a debit to which account?
A) Merchandise Inventory
B) Delivery Expense
C) Transportation-In
D) Accounts Payable
12. Carefully examine the Inventory documents for the 1
information to answer several of the following
questions. Answers must be in a numeric (1, 2,
3, etc.) format. How many inventory items are
currently `out of stock`?
13. How many A0100 Novara bicycles are currently on 8
hand?
14. Is there a need to order custom seats or Y
protection combos? Answer only Y for Yes or N for
No.
15. What is the inventory stock number for a Custom C2300
Helmet?
16. How many units of stock number A0026 have been 6
sold since June 2?
17. How many A0026 bicycles were purchased on June 6? 4
18. Answer questions 18-20 using the balances at the $145,572.50
close of business activity, June 16. What is the
total for Net Sales?
19. Excluding Accounts Receivable – Credit Card $5,533.70
Company, what is the Net value of Accounts
Receivable?
20. What has been the recorded cost to date to Zacks $139.82
Bike Hut, Inc., for customers who have purchased
merchandise using bank and company credit cards?
Student Documents
for
June 17 – 23 Module 3
Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
Answer Book
Zacks Bike Hut
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------
June 17 Accounts Payable 201 516.50
Cash
Check: 02618
Invoice: B8455
Vendor: 20500
Bingham Supply
101 516.50
June 18 Notes Payable
203 6,000.00
Interest Expense 813 120.00
Cash
Check:
02619
101 6,120.00
Invoice: NTPAY
June 18 Cash 101 749.00
Unearned Lesson Fees 221 700.00
Sales Tax Payable
Invoice: Z1609
205 49.00
June 19 Merchandise Inventory 115 11,240.00
Accounts Payable 201 11,240.00
Invoice: J9888
Vendor: 22600
Jurassic Bikes
June 21 Cash 101 513.60
Sales 401 480.00
Sales Tax Payable
Invoice: Z1610
205 33.60
June 21 Cost of Goods Sold 501 320.00
Merchandise Inventory
Invoice: Z1610
115 320.00
June 21 Transportation-In 505 277.00
Accounts Payable
Invoice: N4201
Vendor: 23700
Noreen's Freight Lines
201 277.00
June 21 Accounts Receivable 105 565.00
Allowance for Doubtful Accounts
Invoice: REINS
Customer: 10200
Sally Bridges
106 565.00
June 21 Cash 101 565.00
Accounts Receivable 105 565.00
Invoice: Z1449
Customer: 10200
Sally Bridges
June 21 Store Equipment 131 2,054.40
Cash 101 2,054.40 Check: 02620
Invoice: 23111
June 21 Accounts Payable 201 1,000.00
Merchandise Inventory 115 1,000.00
Invoice: J9888
Debit Memo: DM014
Vendor: 22600
Jurassic Bikes
June 22 Sales Returns and Allowances 402 45.00 Sales Tax Payable 205 3.15
Cash
Check:
02621
101 48.15
Invoice: Z1610
Credit Memo: CM012
June 22 Merchandise Inventory 115 30.00
Cost of Goods Sold
Check: 02621
Invoice: Z1610
501 30.00
Debit Memo: CM012
June 23 Accounts Receivable 105 749.00
Cash 101 749.00
Check: NSFCK
Invoice: Z1609
Customer: 10440
Mountaineers Bike Club
June 23 Sales Tax Payable 205 3,264.01
Cash 101 3,264.01 Check: 20622
Invoice: SATAX
Answer Book
Zacks Bike Hut
Trial Balance
June 23, 2010
Account Titles Debit Credit
---------------------------------------------------------------
Cash 33,826.04
Petty Cash 50.00
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Rec. - Credit Card Co.
6,539.00
2,985.30
821.30
Notes Receivable 3,200.00
Merchandise Inventory 36,427.00
Prepaid Insurance 3,850.00
Store and Shop Supplies 1,390.75
Store Equipment
Accum. Dep.- Store Equipment
Shop Equipment
Accum. Deprec. - Shop Equipment
Delivery Van
45,250.40
20,750.00
33,400.00
11,250.00
6,550.00
Accum. Deprec. - Delivery Van
Land
Accounts Payable
48,000.00
1,560.00
12,947.50
Sales Tax Payable 30.45
Dividends Payable 6,500.00
Unearned Lesson Fees 6,225.00
Long-Term Notes Payable 12,000.00
Common Stock 100,000.00
Retained Earnings
Dividends Declared
Sales
Sales Returns and Allowances
Service Fees Earned
Cost of Goods Sold
6,500.00
4,260.00
86,767.00
39,357.18
150,267.50
11,588.50
Transportation-In 1,497.00
Salaries and Wages Expense 14,324.00
Van Operating Expense 673.00
Advertising Expense 1,093.00
Delivery Expense 254.75
Credit Card Expense 139.82
Tools Expense 33.00
Rent Expense 2,500.00
Utilities Expense 739.20
Telephone Expense 501.50
Bank Service Charges 75.40
License Expense 402.12
Professional Services Exp. 380.00
Cash Short and Over 18.00
Discounts Lost 67.00
Miscellaneous Expense
Interest Earned
44.90
194.25
Dividends Earned 47.50
Gain on Short-Term Invest. 1,050.00
Miscellaneous Revenue 20.00
Income Taxes Expense 4,150.00
Interest Expense 321.00
---------- ----------
Total 360,409.18 360,409.18
========== ==========
Answer Book
Zacks Bike Hut
Inventory Analysis
Last Activity Date: June 22, 2010
Stock
Number
Inventory
Item
Reorder
Point
Units
On Hand
Unit
Cost
At/Below
Reorder
A0008 ZIPP 900
2 4 2,085.00
A0016 SPEEDSTER R1 3 5 300.00
A0024 WINDOWS PEAK - DEEMA 2 3 3,450.00
A0026 WIKI PEAK 5 3 310.00 Yes
A0100 NOVARA 1 8 392.00
A0200 BOOT'R TEAM 2 4 1,100.00
A0300 CASCADE PEAK 2 2 900.00 Yes
B1010 T-5 FRAME 3 3 1,000.00 Yes
B1020 6 FT. CHROME FRAME 2 2 400.00 Yes
B1050 PEDALS (PAIR) 8 12 31.00
B1070 LOCK AND CABLE 8 12 18.00
B1090 STEEL SEAT POST 5 15 3.00
B1120 CHROME SEAT POST 5 15 5.50
B1140 18 INCH FLOOR PUMP 6 20 8.00
B1160 CUSTOM SEAT 8 4 27.50 Yes
B1180 LEATHER SEAT 8 7 41.50 Yes
B1300 PROTECTION COMBO 8 1 50.00 Yes
C2300 CUSTOM HELMET 8 13 30.00
C2355 HELMET DELUXE 8 7 65.00 Yes
Items At or Below Reorder Point: 8
Total Value of Inventory: $36,427.00
Student Documents
for
December 24 – 30 Module 4
Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
Answer Book
Zacks Bike Hut
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------
June 24 Cash 101 15,000.00
Notes Payable
Invoice:
NTPAY
203 15,000.00
June 26 Accounts Receivable 105 1,615.43
Sales 401 1,509.75 Sales Tax Payable 205 105.68
Invoice: Z1611
Customer: 10360
Sugar Folley
June 26 Cost of Goods Sold 501 1,006.50
Merchandise Inventory 115 1,006.50
Invoice: Z1611
Customer: 10360
Sugar Folley
June 28 Cash 101 99.51
Service Fees Earned 411 93.00
Sales Tax Payable
Invoice: Z1612
205 6.51
June 29 Accounts Payable 201 10,240.00
Cash
Check: 20624
Invoice: J9888
Vendor: 22600
Jurassic Bikes
101 10,240.00
June 29 Delivery Expense 606 173.00
Accounts Payable
Invoice: N5380
Vendor: 23700
Noreen's Freight Lines
201 173.00
June 29 Dividends Payable 207 6,500.00
Cash
Check: 02625
Invoice: DIVPD
101 6,500.00
June 30 Salaries and Wages Expense 601 472.75
Cash
Check: 02635
Invoice: PAYRL
101 472.75
June 30 Store and Shop Supplies 127 32.50
Tools Expense 608 14.50 Cash Short and Over 631 1.00
Cash
Check:
02626
101 48.00
Invoice: PCASH
June 30 Utilities Expense
625 412.54
Cash
Check:
02627
101 412.54
Invoice: 52233
June 30 Professional Services Exp. 629 575.00
Cash 101 575.00
Check: 02628
Invoice: HA301
June 30 Prepaid Insurance 121 1,425.00
Cash
Check:
02629
101 1,425.00
Invoice: 88899
June 30 Van Operating Expense 603 258.80
Cash
Check:
02630
101 258.80
Invoice: 56788
June 30 Bank Service Charges 627 34.50
Credit Card Expense 607 354.86
Cash 101 389.36
Check: BKR06
Invoice: BKR06
June 30 Cash 101 114.12
Interest Earned 711 114.12
Invoice: BKR06
Answer Book
Zacks Bike Hut
Trial Balance
June 30, 2010
Account Titles Debit Credit
---------------------------------------------------------------
Cash 28,993.46
Petty Cash 50.00
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Rec. - Credit Card Co.
8,154.43
2,985.30
821.30
Notes Receivable 3,200.00
Merchandise Inventory 35,420.50
Prepaid Insurance 5,275.00
Store and Shop Supplies 1,423.25
Store Equipment
Accum. Dep.- Store Equipment
Shop Equipment
Accum. Deprec. - Shop Equipment
Delivery Van
45,250.40
20,750.00
33,400.00
11,250.00
6,550.00
Accum. Deprec. - Delivery Van
Land
Accounts Payable
48,000.00
1,560.00
2,880.50
Notes Payable 15,000.00
Sales Tax Payable 142.64
Unearned Lesson Fees 6,225.00
Long-Term Notes Payable 12,000.00
Common Stock 100,000.00
Retained Earnings
Dividends Declared
Sales
Sales Returns and Allowances
Service Fees Earned
Cost of Goods Sold
6,500.00
4,260.00
87,773.50
39,357.18
151,777.25
11,681.50
Transportation-In 1,497.00
Salaries and Wages Expense 14,796.75
Van Operating Expense 931.80
Advertising Expense 1,093.00
Delivery Expense 427.75
Credit Card Expense 139.82
Tools Expense 47.50
Rent Expense 2,500.00
Utilities Expense 1,151.74
Telephone Expense 501.50
Bank Service Charges 75.40
License Expense 402.12
Professional Services Exp. 955.00
Cash Short and Over 19.00
Discounts Lost 67.00
Miscellaneous Expense
Interest Earned
44.90
194.25
Dividends Earned 47.50
Gain on Short-Term Invest. 1,050.00
Miscellaneous Revenue 20.00
Income Taxes Expense 4,150.00
Interest Expense 321.00
---------- ----------
Total 360,557.12 360,557.12
========== ==========
Answer Book
Zacks Bike Hut
Inventory Analysis
Last Activity Date: June 26, 2010
Stock
Number
Inventory
Item
Reorder
Point
Units
On Hand
Unit
Cost
At/Below
Reorder
A0008 ZIPP 900
2 4 2,085.00
A0016 SPEEDSTER R1 3 5 300.00
A0024 WINDOWS PEAK - DEEMA 2 3 3,450.00
A0026 WIKI PEAK 5 3 310.00 Yes
A0100 NOVARA 1 8 392.00
A0200 BOOT'R TEAM 2 4 1,100.00
A0300 CASCADE PEAK 2 1 900.00 Yes
B1010 T-5 FRAME 3 3 1,000.00 Yes
B1020 6 FT. CHROME FRAME 2 2 400.00 Yes
B1050 PEDALS (PAIR) 8 12 31.00
B1070 LOCK AND CABLE 8 12 18.00
B1090 STEEL SEAT POST 5 15 3.00
B1120 CHROME SEAT POST 5 15 5.50
B1140 18 INCH FLOOR PUMP 6 20 8.00
B1160 CUSTOM SEAT 8 4 27.50 Yes
B1180 LEATHER SEAT 8 6 41.50 Yes
B1300 PROTECTION COMBO 8 1 50.00 Yes
C2300 CUSTOM HELMET 8 13 30.00
C2355 HELMET DELUXE 8 6 65.00 Yes
Items At or Below Reorder Point: 8
Total Value of Inventory: $35,420.50
Answer Book
Zacks Bike Hut
Trial Balance After Bank Reconcilation
June 30, 2010
Account Titles Debit Credit
---------------------------------------------------------------
Cash 28,718.22
Petty Cash 50.00
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Rec. - Credit Card Co.
8,154.43
2,985.30
821.30
Notes Receivable 3,200.00
Merchandise Inventory 35,420.50
Prepaid Insurance 5,275.00
Store and Shop Supplies 1,423.25
Store Equipment
Accum. Dep.- Store Equipment
Shop Equipment
Accum. Deprec. - Shop Equipment
Delivery Van
45,250.40
20,750.00
33,400.00
11,250.00
6,550.00
Accum. Deprec. - Delivery Van
Land
Accounts Payable
48,000.00
1,560.00
2,880.50
Notes Payable 15,000.00
Sales Tax Payable 142.64
Unearned Lesson Fees 6,225.00
Long-Term Notes Payable 12,000.00
Common Stock 100,000.00
Retained Earnings
Dividends Declared
Sales
Sales Returns and Allowances
Service Fees Earned
Cost of Goods Sold
6,500.00
4,260.00
87,773.50
39,357.18
151,777.25
11,681.50
Transportation-In 1,497.00
Salaries and Wages Expense 14,796.75
Van Operating Expense 931.80
Advertising Expense 1,093.00
Delivery Expense 427.75
Credit Card Expense 494.68
Tools Expense 47.50
Rent Expense 2,500.00
Utilities Expense 1,151.74
Telephone Expense 501.50
Bank Service Charges 109.90
License Expense 402.12
Professional Services Exp. 955.00
Cash Short and Over 19.00
Discounts Lost 67.00
Miscellaneous Expense
Interest Earned
44.90
308.37
Dividends Earned 47.50
Gain on Short-Term Invest. 1,050.00
Miscellaneous Revenue 20.00
Income Taxes Expense 4,150.00
Interest Expense 321.00
---------- ----------
Total 360,671.24 360,671.24
========== ==========
BANK RECONCILIATION NAME
ZACKS BIKE HUT SECTION DATE
BANK RECONCILIATION
ZACKS BIKE HUT
June 30
Book Balance: $28,993.46
Add: Interest Earned 114.12
Total $29,107.58
Deduct: Bank Service Charge $34.50
Credit Card Expense $354.86
$389.36
Reconciled Book Balance:
$28,718.22
==============
Bank Balance:
$30,877.51
Add: Deposit in Transit: $99.51
Total $30,977.02
Debit: Outstanding Checks:
Check No. 02628 $575.00
Check No. 02629 $1,425.00
Check No. 02630 $258.80
$2,258.80
Reconciled Bank Balance:
$282,718.22
==============
Student Documents
for
Adjusting and Closing Entries Module 5
Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
Answer Book
Zacks Bike Hut
Income Statement
For the Quarter Ended June 30
Revenues:
Sales $ 151,777.25
Less: Sales Returns and Allowances 4,260.00
----------
Net Sales $ 147,517.25
----------
Cost of Goods Sold:
Cost of Goods Sold $ 87,773.50
Transportation-In 1,497.00
----------
Total Cost of Good Sold 89,270.50
----------
Gross Profit From Sales $ 58,246.75
Fees Earned:
Service Fees Earned $ 11,681.50
Lesson Fees Earned 4,850.00
----------
Total Fees Earned 16,531.50
----------
Total Gross Profit From Sales and Fees Earned $ 74,778.25
----------
Operating Expenses:
Selling Expenses:
Salaries and Wages Expense $ 14,937.05
Store & Shop Supplies Expense 498.85
Van Operating Expense 931.80
Advertising Expense 994.00
Delivery Expense 427.75
Credit Card Expense 494.68
Tools Expense 47.50
Depreciation Expense, Store Equipment 1,225.00
Depreciation Expense - Shop Equipment 735.00
Depreciation Expense - Delivery Van 1,480.00 ----------
Total Selling Expense $ 21,771.63
----------
General and Adminstrative Expenses:
Rent Expense $ 2,500.00
Insurance Expense 2,925.00
Bad Debt Expense 142.10
Property Tax Expense 0.00
Utilties Expense 1,151.74
Telephone Expense 501.50
Bank Service Charges 109.90
License Expense 402.12
Professional Services Expense 955.00
Cash Short and Over 19.00
Discounts Lost 67.00
Miscellaneous Expense 44.90
----------
Total General and Adminstrative Expenses $ 8,818.26
----------
Total Operating Expenses $ 30,589.89
----------
Income From Operations $ 44,188.36
----------
Other Revenues and Expenses:
Interest Earned $ 338.77
Dividends Earned 47.50
Gain on Short-Term Investments 1,050.00
Miscellaneous Revenue 20.00
----------
Total Other Revenues: $ 1,456.27
----------
Income Taxes Expense $ 6,515.00
Interest Expense 523.50
----------
Total Other Expenses: $ 7,038.50
----------
Net Other Expenses 5,582.23
----------
Net Income $ 38,606.13
==========
Answer Book
Zacks Bike Hut
Balance Sheet
June 30, 2011
ASSETS
Current Assets:
Cash $ 28,718.22
Petty Cash 50.00
Accounts Receivable $ 8,154.43
Allowance - Doubt. Accts 963.40
----------
Net Realizable Value 7,191.03
Accts. Rec., Credit Card Comp. 2,985.30
Notes Receivable 3,200.00
Interest Receivable 30.40
Merchandise Inventory 35,420.50
Prepaid Insurance 2,350.00
Prepaid Advertising 99.00
Store and Shop Supplies 924.40
----------
Total Current Assets $ 80,968.85
----------
Plant and Equipment
Store Equipment $ 45,250.40
Accumulated Depreciation 12,475.00
----------
Book Value $ 32,775.40
----------
Shop Equipment 20,750.00
Accumulated Depreciation 7,285.00
----------
Book Value $ 13,465.00
----------
Delivery Van 33,400.00
Accumulated Depreciation 3,040.00
----------
Book Value $ 30,360.00
----------
Land 48,000.00
----------
Total Plant and Equipment 124,600.40
----------
Total Assets $ 205,569.25
==========
LIABILITIES
Current Liabilities
Accounts Payable $ 2,880.50
Notes Payable 15,000.00
Sales Tax Payable 142.64
Salaries and Wages Payable 140.30
Income Taxes Payable 2,365.00
Interest Payable 202.50
Unearned Lesson Fees 1,375.00
----------
Total Current Liabilities $ 22,105.94
Long-Term Notes Payable 12,000.00
----------
Total Liabilities $ 34,105.94
STOCKHOLDERS'EQUITY
Common Stock $ 100,000.00
Retained Earnings 71,463.31
----------
Total Stockholder's Equity 171,463.31
----------
Total Liabilities and Owner's Equity $ 205,569.25
==========
Answer Book
Zacks Bike Hut
Retained Earnings Statement
For the Quarter Ended June 30,
----------------------------------------------------------------
Retained earnings, March 31, 2011 $ 39,357.18
Add: Net Income $ 38,606.13
Less: Dividends declared 6,500.00
----------
Net increase in retained earnings 32,106.13
----------
Retained earnings, June 30, 2011 $ 71,463.31
==========
Answer Book
Zacks Bike Hut
General Journal
Date Accounts and Explanation PR Debit Credit
----------------------------------------------------------------------
June 30 Insurance Expense 622 2,925.00
Prepaid Insurance
Adjusting Entry
121 2,925.00
June 30 Store and Shop Supplies Exp. 602 498.85
Store and Shop Supplies
Adjusting Entry
127 498.85
June 30 Salaries and Wages Expense 601 140.30
Salaries and Wages Payable
Adjusting Entry
209 140.30
June 30 Prepaid Advertising 125 99.00
Advertising Expense
Adjusting Entry
604 99.00
June 30 Deprec. Exp. - Store Equipment 610 1,225.00
Accum. Dep.- Store Equipment
Adjusting Entry
132 1,225.00
June 30 Deprec. Exp. - Shop Equipment 611 735.00
Accum. Deprec. - Shop Equipment
Adjusting Entry
136 735.00
June 30 Deprec. Exp. - Delivery Equip. 612 1,480.00
Accum. Deprec. - Delivery Van 140 1,480.00
Adjusting Entry
June 30 Unearned Lesson Fees 221 4,850.00
Lesson Fees Earned 421 4,850.00
Adjusting Entry
June 30 Interest Receivable 113 30.40
Interest Earned 711 30.40
Adjusting Entry
June 30 Interest Expense 813 22.50
Interest Payable 215 22.50
Adjusting Entry
June 30 Interest Expense 813 180.00
Interest Payable 215 180.00
Adjusting Entry
June 30 Income Taxes Expense 811 2,365.00
Income Taxes Payable 213 2,365.00
Adjusting Entry
June 30 Bad Debt Expense 623 142.10
Allowance for Doubtful Accounts 106 142.10
Adjusting Entry
Answer Book
Zacks Bike Hut
Adjusted Trial Balance
June 30, 2010
Account Titles Debit Credit
---------------------------------------------------------------
Cash 28,718.22
Petty Cash 50.00
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Rec. - Credit Card Co.
8,154.43
2,985.30
963.40
Notes Receivable 3,200.00
Interest Receivable 30.40
Merchandise Inventory 35,420.50
Prepaid Insurance 2,350.00
Prepaid Advertising 99.00
Store and Shop Supplies 924.40
Store Equipment
Accum. Dep.- Store Equipment
Shop Equipment
Accum. Deprec. - Shop Equipment
Delivery Van
45,250.40
20,750.00
33,400.00
12,475.00
7,285.00
Accum. Deprec. - Delivery Van
Land
Accounts Payable
48,000.00
3,040.00
2,880.50
Notes Payable 15,000.00
Sales Tax Payable 142.64
Salaries and Wages Payable 140.30
Income Taxes Payable 2,365.00
Interest Payable 202.50
Unearned Lesson Fees 1,375.00
Long-Term Notes Payable 12,000.00
Common Stock 100,000.00
Retained Earnings
Dividends Declared
Sales
Sales Returns and Allowances
Service Fees Earned
6,500.00
4,260.00
39,357.18
151,777.25
11,681.50
Lesson Fees Earned
Cost of Goods Sold
87,773.50
4,850.00
Transportation-In 1,497.00
Salaries and Wages Expense 14,937.05
Store and Shop Supplies Exp. 498.85
Van Operating Expense 931.80
Advertising Expense 994.00
Delivery Expense 427.75
Credit Card Expense 494.68
Tools Expense 47.50
Deprec. Exp. - Store Equipment 1,225.00
Deprec. Exp. - Shop Equipment 735.00
Deprec. Exp. - Delivery Equip. 1,480.00
Rent Expense 2,500.00
Insurance Expense 2,925.00
Bad Debt Expense 142.10
Utilities Expense 1,151.74
Telephone Expense 501.50
Bank Service Charges 109.90
License Expense 402.12
Professional Services Exp. 955.00
Cash Short and Over 19.00
Discounts Lost 67.00
Miscellaneous Expense 44.90
Interest Earned 338.77
Dividends Earned 47.50
Gain on Short-Term Invest. 1,050.00
Miscellaneous Revenue 20.00
Income Taxes Expense 6,515.00
Interest Expense 523.50
---------- ----------
Total 366,991.54 366,991.54 ========== ==========
Answer Book
Zacks Bike Hut
Post-Closing Trial Balance
June 30, 2010
Account Titles Debit Credit
---------------------------------------------------------------
Cash 28,718.22
Petty Cash 50.00
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Rec. - Credit Card Co.
8,154.43
2,985.30
963.40
Notes Receivable 3,200.00
Interest Receivable 30.40
Merchandise Inventory 35,420.50
Prepaid Insurance 2,350.00
Prepaid Advertising 99.00
Store and Shop Supplies 924.40
Store Equipment
Accum. Dep.- Store Equipment
Shop Equipment
Accum. Deprec. - Shop Equipment
Delivery Van
45,250.40
20,750.00
33,400.00
12,475.00
7,285.00
Accum. Deprec. - Delivery Van
Land
Accounts Payable
48,000.00
3,040.00
2,880.50
Notes Payable 15,000.00
Sales Tax Payable 142.64
Salaries and Wages Payable 140.30
Income Taxes Payable 2,365.00
Interest Payable 202.50
Unearned Lesson Fees 1,375.00
Long-Term Notes Payable 12,000.00
Common Stock 100,000.00
Retained Earnings
----------
71,463.31
----------
Total 229,332.65 ==========
229,332.65 ==========
Answer Book
Zacks Bike Hut
Inventory Analysis
Last Activity Date: June 26, 2010
Stock
Number
Inventory
Item
Reorder
Point
Units
On Hand
Unit
Cost
At/Below
Reorder
A0008 ZIPP 900
2 4 2,085.00
A0016 SPEEDSTER R1 3 5 300.00
A0024 WINDOWS PEAK - DEEMA 2 3 3,450.00
A0026 WIKI PEAK 5 3 310.00 Yes
A0100 NOVARA 1 8 392.00
A0200 BOOT'R TEAM 2 4 1,100.00
A0300 CASCADE PEAK 2 1 900.00 Yes
B1010 T-5 FRAME 3 3 1,000.00 Yes
B1020 6 FT. CHROME FRAME 2 2 400.00 Yes
B1050 PEDALS (PAIR) 8 12 31.00
B1070 LOCK AND CABLE 8 12 18.00
B1090 STEEL SEAT POST 5 15 3.00
B1120 CHROME SEAT POST 5 15 5.50
B1140 18 INCH FLOOR PUMP 6 20 8.00
B1160 CUSTOM SEAT 8 4 27.50 Yes
B1180 LEATHER SEAT 8 6 41.50 Yes
B1300 PROTECTION COMBO 8 1 50.00 Yes
C2300 CUSTOM HELMET 8 13 30.00
C2355 HELMET DELUXE 8 6 65.00 Yes
Items At or Below Reorder Point: 8
Total Value of Inventory: $35,420.50
Answer Book
Zacks Bike Hut
Schedule of Accounts Receivable
Last Activity Date: June 26, 2010
Number Name Balance
10200 Sally Bridges $ .00
10325 Downieville Wheels 4,450.00
10360 Sugar Folley 1,615.43
10440 Mountaineers Bike Club 749.00
10525 Doris Highlander 140.00
10555 Highland Riders .00
10875 Shirley Rawlins .00
10900 49'er Riders .00
11110 Sierra Rough Necks .00
11500 Allen Yarborough 1,200.00
----------
Total Accounts Receivable $ 8,154.43 ==========
Answer Book
Zacks Bike Hut
All Accounts Receivable Customers
Number: 10200
Name: Sally Bridges
Address: 356 Plum Springs Ave. Downieville, CA
Date Explanation Debit Credit Balance
________________________________________________________________
________________________________________________________________
Number: 10325
Name: Downieville Wheels
Address: 4455 Gold Pan Street Downieville, CA
Date Explanation Debit Credit Balance
________________________________________________________________
May 12 Z1568 4,450.00 4,450.00
________________________________________________________________
Number: 10360
Name: Sugar Folley
Address: 2535 Marysville Road. Camptonville, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
June 26 Z1611 1,615.43 1,615.43
________________________________________________________________
________________________________________________________________
Number: 10525
Name: Doris Highlander
Address: 2789 Rock Court Granite Bay, CA
Date Explanation Debit Credit Balance
________________________________________________________________
May 12 Z1570 140.00 140.00
________________________________________________________________
Number: 10555
Name: Highland Riders
Address: 1367 Snow Cap Lane Tahoe City, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
Apr. 5 Z1449 565.00 565.00
June 10 WROFF 565.00 0.00
June 21 REINS 565.00 565.00
June 21 Z1449 565.00 0.00
Number:
Name:
Address:
Date
10440
Mountaineers Bike Club
4535 Coyote Street
Explanation
Grass Valley, CA
Debit Credit
Balance
________________________________________________________________
June 2 Balance 0.00
June 23 Z1609 NSFCK 749.00 749.00
________________________________________________________________
Number: 10875
Name: Shirley Rawlins
Address: 1900 Ridge Rd. N. San Juan, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
________________________________________________________________
Number: 10900 Name: 49'er Riders
Address: 5450 Canyon Ranch Road North Star, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Balance 0.00
________________________________________________________________
Number: 11110
Name: Sierra Rough Necks
Address: 5000 Old Highway 49 Pendola, CA
Date Explanation Debit Credit Balance
________________________________________________________________
________________________________________________________________
Number: 11500
Name: Allen Yarborough
Address: 6888 Maryland Mine Road Sierra City, CA
Date Explanation Debit Credit Balance
________________________________________________________________
June 2 Z1603 1,200.00 1,200.00
________________________________________________________________
May 3 Z1531 4,568.00 4,568.00
June 7 Z1531 4,568.00 0.00
Answer Book
Zacks Bike Hut
Schedule of Accounts Payable
Last Activity Date: June 29, 2010
Number Name Balance
20150 American Cycles $ 2,140.00
20500 Bingham Supply 290.50
20750 Crater Bikes .00
22600 Jurassic Bikes .00
23100 Moon Shine Sports .00
23700 Noreen's Freight Lines 450.00
24500 Packard Bicycles .00
25700 Zebra Bikes, Inc. .00 ----------
Total Accounts Payable $ 2,880.50 ==========
Answer Book
Zacks Bike Hut
All Accounts Payable Vendors
Number: 20150
Name: American Cycles
Address: 2100 Star Thistle Lane Auburn, CA Net 10
Date Explanation Debit Credit Balance
_______________________________________________________________
May 10 A3499 385.00 385.00
June 6 A4111 2,140.00 2,525.00
June 14 02615 A3499 385.00 2,140.00
_______________________________________________________________
Number:
Name:
20500
Bingham Supply
Address: 2406 Bay View Oakland, CA Net 30
Date Explanation Debit Credit Balance
_______________________________________________________________
May 8 B4855 516.50 516.50
June 3 B5787 311.00 827.50
June 11 B5787 20.50 807.00
June 17 02618 B8455 516.50 290.50
_______________________________________________________________
Number:
Name:
20750
Crater Bikes
Address: 1234 Mt. Hood Drive Ashland, OR 2/10, n/30
Date Explanation Debit Credit Balance
_______________________________________________________________
May 27 C5884 13,650.00 13,650.00
June 4 C5914 1,960.00 15,610.00
June 6 02613 C5884 13,650.00 1,960.00
June 15 02616 C5914 1,960.00 0.00
_______________________________________________________________
Number: 22600
Name: Jurassic Bikes
Address: 2400 Main Street Lincoln, CA Net 10
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 Balance 0.00
June 19 J9888 11,240.00 11,240.00
June 21 J9888 DM014 1,000.00 10,240.00
June 29 20624 J9888 10,240.00 0.00
_______________________________________________________________
Number: 23100
Name: Moon Shine Sports
Address: 4770 Yakama Lane Portland, OR Net 30
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 Balance 0.00
_______________________________________________________________
Number: 23700
Name: Noreen's Freight Lines
Address: 3500 North Canyon N. San Juan, CANet 15
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 Balance 0.00
June 21 N4201 277.00 277.00
June 29 N5380 173.00 450.00
_______________________________________________________________
Number:
Name:
24500
Packard Bicycles
Address: 6230 Gordon Bluff Ave. San Demas, CA 1/10, n/30
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 Balance 0.00
_______________________________________________________________
Number:
Name:
25700
Zebra Bikes, Inc.
Address: 4560 Bloomfield Road Gold Lake, CA 2/10, n/30
Date Explanation Debit Credit Balance
_______________________________________________________________
June 2 ZB538 435.00 435.00
June 12 02614 ZB538 435.00 0.00
_______________________________________________________________
Answer Book
Zacks Bike Hut
Inventory Item: WINDOWS PEAK - DEEMAX Stock Number: A0024
Reorder Point: 2
Units Dr/Cr
Date InOut Check Vendor Customer Invoice Memo
Balance 4
June 05 1 CASH Z1605
____________________________________________________________
Beginning Units: 4 Unit Balance: 3
Units In: 0 Unit Cost: 3,450.00
Units Out: 1 FIFO Value: 10,350.00
____________________________________________________________
Answer Book
Zacks Bike Hut
Inventory Item: CASCADE PEAK Stock Number: A0300
Reorder Point: 2
Units Dr/Cr
Date InOut Check Vendor Customer Invoice Memo
Balance 1
June 06 1 20150 AC111
June 26 1 10360 Z1611
____________________________________________________________
Beginning Units: 1 Unit Balance: 1
Units In: 1 Unit Cost: 900.00
Units Out: 1 FIFO Value: 900.00
____________________________________________________________
Answer Book
Zacks Bike Hut
Inventory Item: PROTECTION COMBO Stock Number: B1300
Reorder Point: 8
Units Dr/Cr
Date InOut Check Vendor Customer Invoice Memo
Balance 5
June 21 4 CASH Z1610
____________________________________________________________
Beginning Units: 5 Unit Balance: 1
Units In: 0 Unit Cost: 50.00
Units Out: 4 FIFO Value: 50.00
____________________________________________________________
Answer Book
Zacks Bike Hut
Inventory Item: CUSTOM HELMET Stock Number: C2300
Reorder Point: 8
Units Dr/Cr
Date In Out Check Vendor Customer Invoice Memo
Balance 16
June 21 4 CASH Z1610
June 22 1 02621 CASH Z1610 CM012
____________________________________________________________
Beginning Units: 16 Unit Balance: 13
Units In: 1 Unit Cost: 30.00
Units Out: 4 FIFO Value: 390.00
____________________________________________________________
Answer Book
Zacks Bike Hut
Ledger Card
Account:
Date
101 Cash
Explanation
Debit
Credit
Balance
June 2 Beginning Balance 34,288.96
June 3 Z1604 82.93 34,371.89
June 4 02611 PCASH 48.50 34,323.39
June 5 Z1605 5,537.25 39,860.64
June 6 02612 B2930 198.00 39,662.64
June 6 02613 20750 C5884 13,650.00 26,012.64
June 7 Z1606 294.25 26,306.89
June 7 11110 Z1531 4,568.00 30,874.89
June 8 Z1607 10,039.28 40,914.17
June 10 CC411 2,064.08 42,978.25
June 12 02614 25700 ZB538 435.00 42,543.25
June 14 02615 20150 A3499 385.00 42,158.25
June 15 02616 20750 C5914 2,000.00 40,158.25
June 15 STINV 5,175.00 45,333.25
June 16 02617 PAYRL 582.75 44,750.50
June 17 02618 20500 B8455 516.50 44,234.00
June 18 02619 NTPAY 6,120.00 38,114.00
June 18 Z1609 749.00 38,863.00
June 21 Z1610 513.60 39,376.60
June 21 10200 Z1449 565.00 39,941.60
June 21 02620 23111 2,054.40 37,887.20
June 22 02621 Z1610 CM012 48.15 37,839.05
June 23 NSFCK 10440 Z1609 749.00 37,090.05
June 23 20622 SATAX 3,264.01 33,826.04
June 24 NTPAY 15,000.00 48,826.04
June 28 Z1612 99.51 48,925.55
June 29 20624 22600 J9888 10,240.00 38,685.55
June 29 02625 DIVPD 6,500.00 32,185.55
June 30 02635 PAYRL 472.75 31,712.80
June 30 02626 PCASH 48.00 31,664.80
June 30 02627 52233 412.54 31,252.26
June 30 02628 HA301 575.00 30,677.26
June 30 02629 88899 1,425.00 29,252.26
June 30 02630 56788 258.80 28,993.46
June 30 BKR06 BKR06 389.36 28,604.10
June 30 BKR06 114.12 28,718.22
Answer Book
Zacks Bike Hut
Ledger Card
Account: 105 Accounts Receivable
Date Explanation Debit Credit Balance
June 2 Beginning Balance 10,923.00
June 7 11110 Z1531 4,568.00 6,355.00
June 10 10200 WROFF 565.00 5,790.00
June 21 10200 REINS 565.00 6,355.00
June 21 10200 Z1449 565.00 5,790.00
June 23 NSFCK 10440 Z1609 749.00 6,539.00
June 26 10360 Z1611 1,615.43 8,154.43
Answer Book
Zacks Bike Hut
Ledger Card
Account: 115 Merchandise Inventory
Date Explanation Debit Credit Balance
June 2 Beginning Balance 33,942.00
June 4 20750 C5914 1,960.00 35,902.00
June 5 Z1605 3,450.00 32,452.00
June 6 20150 AC111 2,140.00 34,592.00
June 8 Z1607 6,255.00 28,337.00
June 14 Z1608 1,860.00 26,477.00
June 19 22600 J9888 11,240.00 37,717.00
June 21 Z1610 320.00 37,397.00
June 21 22600 J9888 DM014 1,000.00 36,397.00
June 22 02621 Z1610 CM012 30.00 36,427.00
June 26 10360 Z1611 1,006.50 35,420.50
Answer Book
Zacks Bike Hut
Ledger Card
Account: 201 Accounts Payable
Date Explanation Debit Credit Balance
June 2 Beginning Balance 14,986.50
June 3 20500 B5787 311.00 15,297.50
June 4 20750 C5914 1,960.00 17,257.50
June 6 20150 AC111 2,140.00 19,397.50
June 6 02613 20750 C5884 13,650.00 5,747.50
June 11 20500 B5787 20.50 5,727.00
June 12 02614 25700 ZB538 435.00 5,292.00
June 14 02615 20150 A3499 385.00 4,907.00
June 15 02616 20750 C5914 1,960.00 2,947.00
June 17 02618 20500 B8455 516.50 2,430.50
June 19 22600 J9888 11,240.00 13,670.50
June 21 23700 N4201 277.00 13,947.50
June 21 22600 J9888 DM014 1,000.00 12,947.50
June 29 20624 22600 J9888 10,240.00 2,707.50
June 29 23700 N5380 173.00 2,880.50
Answer Book
Zacks Bike Hut
Ledger Card
Account: 305 Retained Earnings
Date Explanation Debit Credit Balance
June 2 Beginning Balance 39,357.18
June 30 Closing Entry 38,606.13 77,963.31
June 30 Closing Entry 6,500.00 71,463.31
Answer Book
Zacks Bike Hut
Ledger Card
Account: 401 Sales
Date Explanation Debit Credit Balance
June 2 Beginning Balance 132,440.00
June 5 Z1605 5,175.00 137,615.00
June 8 Z1607 9,382.50 146,997.50
June 14 Z1608 2,790.00 149,787.50
June 21 Z1610 480.00 150,267.50
June 26 10360 Z1611 1,509.75 151,777.25
June 30 Closing Entry 151,777.25 0.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 411 Service Fees Earned
Date Explanation Debit Credit Balance
June 2 Beginning Balance 11,511.00
June 3 Z1604 77.50 11,588.50
June 28 Z1612 93.00 11,681.50
June 30 Closing Entry 11,681.50 0.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 501 Cost of Goods Sold
Date Explanation Debit Credit Balance
June 2 Beginning Balance 74,912.00
June 5 Z1605 3,450.00 78,362.00
June 8 Z1607 6,255.00 84,617.00
June 14 Z1608 1,860.00 86,477.00
June 21 Z1610 320.00 86,797.00
June 22 02621 Z1610 CM012 30.00 86,767.00
June 26 10360 Z1611 1,006.50 87,773.50
June 30 Closing Entry 87,773.50 0.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 813 Interest Expense
Date
June
2
Explanation
Beginning Balance
Debit Credit Balance
201.00
June 18 02619 NTPAY 120.00 321.00
June 30 Adjusting Entry 22.50 343.50
June 30 Adjusting Entry 180.00 523.50
June 30 Closing Entry 523.50 0.00
Answer Book
Zacks Bike Hut
Ledger Card
Account: 901 Income Summary
Date
June
2
Explanation
Beginning Balance
Debit Credit Balance
0.00
June 30 Closing Entry 169,765.02 169,765.02
June 30 Closing Entry 131,158.89 38,606.13
June 30 Closing Entry 38,606.13 0.00
Final Project Evaluation
Questions and Answers
Zacks Bike Hut Answer Book 1st Edition
Copyright © 2010 PKL Software, Incorporated. All rights reserved. www.pklsoftware.com
Last Revised: April 2, 2010
FINAL PROJECT EVALUATION NAME
ZACKS BIKE HUT CLASS DAY AND TIME DATE
1. Which customer has the largest outstanding balance on June 30
(Identify by customer number)? 10325
2. Is the balance of Doris Highlander account past due as of June 30? Y
Answer Y for Yes or N for No.
3. On or before what date should the balance owed by customer Allen C
Yarborough be received?
A. July 30
B. July 10
C. July 2
D. August 2
4. What was the balance owed to Bingham Supply before the supplies
were returned on June 11? $827.50
5. How many debit memos for the return of merchandise have been A
issued during June?
A. 1
B. 2
C. 3
D. 4
6. Examine the Crater Bikes account. What was the net cost of the
merchandise purchase listed on invoice C5884? $13,650.00
7. If the Crater Bikes invoice of May 27 had not been paid on time, what
would have been the cost of this management error? Remember that
the invoices are recorded net.
$278.57
8. What amount is currently owed to Jurassic Bikes? C
A. $10,240.00
B. $11,240.00
C. $0.00
D. $1,000.00
E. None of the above
9. During your accounting internship (June 3-30), the balance of the B
Accounts Payable account has:
A. increased.
B. decreased.
C. not changed.
FINAL PROJECT EVALUATION ZACKS BIKE HUT
10. During the period of your accounting internship, the balance of the B
Cash account:
A. increased.
B. decreased.
C. did not change.
11. Has the correct Cash balance fallen below $30,000.00 at any time Y
during your internship? Answer Y for Yes or N for No.
12. How much cash was paid out by check on June 29? $16,740.00
13. The June 23 credit entry of $749.00 to the Cash Account was for the D
payment of:
A. Transportation In
B. Delivery Expense
C. Supplies
D. None of the above
14. How many inventory items are at or below the reorder point? D
A. One
B. Two
C. Three
D. Eight
E. None of the above.
15. How many A0016 inventory items are currently in stock? D
A. One
B. Two
C. Three
D. Five
E. None of the above.
16. How many of the following inventory items (A0008, A0300, B1010, C
C2300, and C2355) are at or below the reorder point?
A. One
B. Two
C. Three
D. Four
E. None of the above.
FINAL PROJECT EVALUATION ZACKS BIKE HUT
17. Round all percentage answers to two decimal positions: (4.57689% = B
4.58%). Total Cost of Goods Sold is what percent of Net Sales?
A. 60.25%
B. 60.52%
C. 65.20%
D. 62.50%
E. None of the above.
18. Total Gross Profit is what percent of the total of Net Sales and Total A
Fees Earned?
A. 45.58%
B. 48.78%
C. 49.07%
D. 56.94%
E. None of the above.
19. Income From Operations is what percent of Total Net Revenues? C
A. 24.48%
B. 25.95%
C. 26.94%
D. 28.76%
E. None of the above.
20. Last quarter the Total Selling Expenses were 9.14% of Total Net N
Revenues. Has this quarter, ending June 30, been an improvement
over last quarter? Answer Y for Yes or N for No.
21. Salaries and Wages Expense is what percent of Total Net Revenues? C
A. 9.84%
B. 10.13%
C. 9.11%
D. 9.25%
22. What is the current ratio for Zacks Bike Hut (current assets divided by B
current liabilities)?
A. 3.18:1
B. 3.66:1
C. 2.37:1
D. 6.78:1
FINAL PROJECT EVALUATION ZACKS BIKE HUT
23. Sales Returns and Allowances is what percent of Sales? A
A. 2.81%
B. 2.89%
C. 2.00%
D. 2.18%
24. Does Zacks Bike Hut have enough cash on hand to meet the current Y
debt? Answer Y for Yes or N for No.
25. What is the net realizable value of the Accounts Receivable? $7,191.03
26. What has been the Net increase in Retained Earnings this quarter? $32,106.13
27. What must be the last account listed on the Post-Closing Trial C
Balance?
A. Common Stock
B. Dividends Declared
C. Retained Earnings
D. Cash
28. After closing, what is the balance of the Income Summary account? D
A. $34,105.94
B. $44,188.36
C. $38,606.13
D. $0.00
29. If the transportation-in costs had been reduced to zero through more
successful negotiation of merchandise contracts, what would be the
Gross Profit on Sales?
$59,743.75
30. If $400.00 of Delivery Expense charges was found to be recorded in C
the Transportation-In account, and this error was corrected, the Gross
Profit would change by $400.00 and the balance of Net Income be:
A. increased.
B. decreased.
C. unchanged.
Answer Book
FINAL PROJECT EVALUATION
ANSWER KEY
Zacks Bike Hut
Question Your
Number Answer
----------------------------------------------------------------------
1. Which customer has the largest outstanding 10325
balance on June 30 (Identify by customer number)?
2. Is the balance of Doris Highlander account past Y
due as of June 30? Answer Y for Yes or N for No.
3. On or before what date should the balance owed by C
customer Allen Yarborough be received?
A) July 30
B) July 10
C) July 2
D) August 2
4. What was the balance owed to Bingham Supply $827.50
before the supplies were returned on June 11?
5. How many debit memos for the return of A
merchandise have been issued during June?
A) 1
B) 2
C) 3
D) 4
6. Examine the Crater Bikes account. What was the $13,650.00
net cost of the merchandise purchase listed on
invoice C5884?
7. If the Crater Bikes invoice of May 27 had not $278.57
been paid on time, what would have been the cost
for this management error? Remember that the
invoices are recorded net.
8. What amount is currently owed to Jurassic Bikes? C
A) $10,240.00
B) $11,240.00
C) $0.00
D) $1,000.00
E) None of the above
9. During your accounting internship (June 3-30), B
the balance of the Accounts Payable account has:
A) increased.
B) decreased.
C) not changed.
10. During the period of your accounting internship, B
the balance of the Cash account:
A) increased.
B) decreased.
C) did not change.
11. Has the correct Cash balance fallen below $30,000 Y
at any time during your internship? Answer Y for
Yes or N for No.
12. How much cash was paid out by check on June 29? $16,740.00
13. The June 23 credit entry of $749.00 to the Cash D
Account was for the payment of:
A) Transportation-In
B) Delivery Expense
C) Supplies
D) None of the above
14. How many inventory items are at or below the D
reorder point?
A) One
B) Two
C) Three
D) Eight
E) None of the above
15. How many A0016 inventory items are currently in D
stock?
A) One
B) Two
C) Three
D) Five
E) None of the above
16. How many of the following inventory items (A0008, C
A0300, B1010, C2300, and C2355) are at or below
the reorder point?
A) One
B) Two
C) Three
D) Four
E) None of the above
17. Round all percentage answers to two decimal B
positions: (4.57689% = 4.58%). Total Cost of
Goods Sold is what percent of Net Sales?
A) 60.25%
B) 60.52%
C) 65.20%
D) 62.50%
E) None of the above
18. Total Gross Profit is what percent of the total A
A)
of Net Sales and Total Fees Earned?
45.58%
B) 48.78%
C) 49.07%
D)
E)
56.94%
None of the above
19.
A)
Income From Operations is what percent of Total
Net Revenues?
24.48%
C
B) 25.95%
C) 26.94%
D)
E)
28.76%
None of the above
20. Last quarter the Total Selling Expenses were
9.14% of Total Net Revenues. Has this quarter,
N
ending June 30, been an improvement over last
quarter? Answer Y for Yes or N for No.
21. Salaries and Wages Expense is what percent of C
Total Net Revenues?
A) 9.84%
B) 10.13%
C) 9.11%
D) 9.25%
22. What is the current ratio for Zacks Bike Hut B
(current assets divided by current liabilities)?
A) 3.18:1
B) 3.66:1
C) 2.37:1
D) 6.78:1
23. Sales Return and Allowances is what percent of A
Sales?
A) 2.81%
B) 2.89%
C) 2.00%
D) 2.18%
24. Does Zacks Bike Hut have enough cash on hand to Y
meet current debt? Answer Y for Yes or N for No.
25. What is the net realizable value of the Accounts $7,191.03
Receivable?
26. What has been the Net increase in Retained $32,106.13
Earnings this quarter?
27. What must be the last account listed on the C
Post-Closing Trial Balance for Zacks Bike Hut?
A) Common Stock
B) Dividends Declared
C) Retained Earnings
D) Cash
28. After closing, what is the balance of the Income D
Summary account?
A) $34,105.94
B) $44,188.36
C) $38,606.13
D) $0.00
29. If the transportation-in costs had been reduced $59,743.75
to zero through more successful negotiation of
merchandise contracts, what would be the Gross
Profit on Sales?
30. If $400 of Delivery Expense charges was found to C
be recorded in the Transportation-In account, and
this error was corrected, the Gross Profit would
change by $400 and the balance of Net Income be:
A) increased
B) decreased
C) unchanged