Need Help Starting General Journal For Final Project.

e0201202AS03B-64
Assignment
Pack
Bookkeeping
Pack 3
This Assignment Pack contains the Quizzes you will need to complete your course.
The Lessons will tell you when to complete each Quiz. If you have not yet accessed
your Lessons, you can download your Electronic Lesson Book or order a printed copy
from the Student Site, www.uscareerinstitute.edu. If you have questions, please contact
Student Services at 1-800-347-7899.
No part of this document may be reproduced or transmitted in any form or by any means, electronic
or mechanical, for any purpose, without the express written permission of U.S. Career Institute.
Copyright © 2014, Weston Distance Learning, Inc. All Rights Reserved.
e0201202AS03B-64
For more information contact:
U.S. Career Institute
Fort Collins, CO 80525
www.uscareerinstitute.edu
Assignment Pack 3
Instructions for Quizzes
1. Be sure you’ve mastered the Lessons and Practice Exercises that this Quiz covers.
2. Mark your answers on the Quiz, and make sure to check your answers by reviewing the Lessons.
3. When you’re finished, decide how you will submit your answers and then follow the correct
instructions below. You may only submit your answers for a Quiz once. Important: When
submitting your Quiz, be sure to include your name, address, student ID number and course
code. Incomplete information may result in your Quiz not being processed.
Scanner Quiz Instructions
For a Quiz that contains only multiple-choice questions, please select the method of submission:
● Online: Submit your answers online and receive your grade immediately by submitting them to
the student site, www.uscareerinstitute.edu.
● Phone: Call the Quiz Line at 1-877-599-5857 and give your answers over the phone to receive
your grade immediately.
● Mail or Fax: Scanner Answer Sheets and addressed envelopes are included with each print
Assignment Pack. Transfer your Quiz answers to the Scanner Answer Sheet, using only blue
or black ink. Mail your Scanner Answer Sheet using the enclosed envelope, or fax the form to
1-877-599-5863.
Instructor-Graded Quiz Instructions
For the quickest response to instructor-graded Quizzes, simply e-mail your completed Quiz as an
attachment to your instructor at [email protected]. In most cases, you will receive
the graded Quiz back via e-mail within three business days.
To ensure your instructor can grade your Quiz electronically, please create documents using one of
the following preferred software programs: Microsoft® Word, Microsoft® Works or WordPerfect®.
Make sure to include your name, student ID, course code and Quiz number in the subject line of
your e-mail. Include your address in the e-mail. Finally, please note that these instructions only apply
to handwritten Quizzes. Thank you and good luck!
For a Quiz that contains Instructor-graded questions, please select the method of submission:
● Online: Submit your answers online for an instructor to review and grade by submitting them
to the student site, www.uscareerinstitute.edu.
● Mail or Fax: Scanner Answer Sheets and addressed envelopes are included with each print
Assignment Pack. Transfer your Quiz answers to the Answer Sheet, using only blue or black ink. Mail
your Cover Sheet and Answer Sheet using the enclosed envelope, or fax the form to 1-877-599-5863.
After you have submitted your Quiz answers, you may begin the next lesson. You do not need to wait
for your Quiz results to move on to the next lesson!
4 e0201202AS03B-64
Bookkeeping
e0201202AS03B-64 5
Assignment Pack 3
Quiz 13: Closing the Books
This is an Instructor-graded Quiz that should be submitted according to the instructions at the
beginning of this pack. The Quiz for this lesson consists of journalizing and posting all of the entries
in an accounting cycle for Bright Ideas Light Center. On the following pages, you’ll find the directions
and information you need to complete the Quiz. You will have one point deducted for each incorrect
initial entry. You will also have a point deducted for format errors.
General Instructions for Quiz 13
For this Quiz, you will complete the entire accounting cycle for Bright Ideas Light Center. This
business is owned by Alice Peterson, and her regular bookkeeper is out of town for the month of May
on personal business. Alice has hired you through a temporary service to fill in.
All of the information and forms you need to complete this Quiz follow. Before you begin, take a
moment to look through the packet and familiarize yourself with the items that are included:
³ Cover Sheet for submitting the assignment—Put this paper on top of the
packet when you submit it for evaluation to the school.
³ Checklist of Procedures—This list will guide you through each step of the
accounting cycle.
³ List of Transactions—These are the transactions for the business for the month
of May.
³ Previous month’s financial statements:
± Income Statement for April—Refer to this to prepare the income
statement for May.
± Statement of Owner’s Equity for April—Refer to this to prepare the
statement of Owner’s Equity for May.
± Balance Sheet for April—Refer to this to prepare the balance sheet
for May.
³ General Journal—Four pieces of 2-column ledger paper are included for the
general journal.
³ Chart of Accounts—This is a list of all the ledger accounts for Bright Ideas
Light Center.
³ General Ledger—There is a page for each of the accounts listed in the Chart of
Accounts. Some of the accounts will have balances from the previous month.
³ Accounts Receivable Subsidiary Ledger—There are two accounts receivable accounts.
³ Accounts Payable Subsidiary Ledger—There are three accounts payable accounts.
³ Worksheet—Two 10-column ledgers are included for completing the worksheet.
6 e0201202AS03B-64
Bookkeeping
The instructions for this Quiz take you step-by-step through the accounting cycle. Check off each step
as you go. Remember that this is an open-book Quiz; refer to your lesson materials as necessary. You
may use a pen or pencil to make the journal and ledger entries and to prepare the worksheet. Be sure
that all of your numbers are easy to read. Corrections should be neat and clean. Each incorrect and
format error will result in a point lost.
Once you have completed all of the steps in the Quiz, fill out the Cover Sheet and mail the entire
packet to the school for evaluation.
Checklist of Procedures for Quiz 13
Use this list of procedures as your step-by-step guide for completing Quiz 13. Check off each step as
you go.
‰ 1. Using the general journal, record each of the 21 transactions listed on the
transaction list. Number the first page in your general journal as page #14.
Pages 1-13 have already been used previously. Remember that each transaction
will be entered twice—once as a debit and once as a credit.
‰ 2. Post all of the entries in the general journal to the general ledger accounts.
Remember that when you post the Accounts Receivable and the Accounts
Payable entries, you will also need to post those entries to the individual
accounts in the subsidiary ledgers.
‰ 3. Prepare a 10-column worksheet. Refer to the worksheet instructions and the
sample worksheet in the previous lesson. Following is a list of the adjustments
that will need to be made in columns 3 and 4:
³ Since this is a merchandising business, the inventory must be accounted
for. Do this by making a $9,000 credit entry for inventory (column 4) and a
$9,000 debit entry at the bottom of the worksheet under the title “Income
Summary.” Use the letter (a) to label this pair of adjustments.
³ Now make an adjustment for the current amount of inventory. Do this by
making a debit entry of $8,000 for inventory in column 3 (on the same line
as the $9,000 credit entry you just made). Make a credit entry for $8,000
under “Income Summary” at the bottom of the worksheet on the same line
as the $9,000 debit entry. Label this pair of adjustments (b).
³ Make an adjustment to prepaid insurance for the expired insurance in the
amount of $100. This will be a credit entry. Complete this adjustment by
making a debit entry for $100 in the account titled “Insurance Expense.”
Label this pair of entries (c).
³ Inventory of office supplies shows $251 worth of supplies are left. Subtract
the $251 from the balance in the office supplies account to figure the
amount of the adjustment you need to make. Once you get the adjustment
amount, make a credit entry for office supplies and a debit entry for the
same amount at the bottom of the worksheet in the account titled “Office
Supply Expense.” Label this pair of entries (d).
e0201202AS03B-64 7
Assignment Pack 3
³ Accumulative depreciation is figured at $200 for the building, and $20 for
the equipment. Make a credit entry for each amount in column 4—$200 for
Accumulated Depreciation—Building and $20 for Accumulated Depreciation—
Equipment. Alice only has one expense account for depreciation, so make a
debit entry for the total amount ($220) at the bottom of the worksheet under
“Depreciation Expense.” Label all three of these entries (e).
Hint: When you total columns 5 and 6 for the adjusted trial balance, the figures should equal
$135,374.
Type or clearly print the statements on plain pieces of paper.
‰ 4. Prepare an income statement. Use the worksheet to obtain the necessary figures
(columns 7 and 8) and refer to April’s income statement as a guide for setting up
the income statement.
‰ 5. Prepare a statement of owner’s equity. Use the net income amount from the
income statement prepared in step 4. The drawing account amount is found in
column 9. Use the previous month’s statement of owner’s equity as a guide for
setting up this statement.
‰ 6. Prepare a balance sheet. Use the equity amount from the newly prepared
statement of owner’s equity and columns 9 and 10 of the worksheet for the other
figures you need. Use the previous month’s balance sheet as a guide for setting
up this balance sheet.
‰ 7. Record the adjustments from columns 3 and 4 in the general journal. Remember to
write “Adjusting Entries” in the item column before you begin making these entries.
‰ 8. Post the adjustments to the general ledger. Write “Adjusting Entry” in the item
column for each entry.
‰ 9. Record the closing entries in the general journal. Remember to write “Closing
Entries” in the item column before making those entries. Close the sales account
and purchase returns allowances account by making the appropriate entries
in the general journal. (Use columns 7 and 8 on the worksheet to obtain your
figures.) Because these two accounts both have credit balances, it’s easier to close
them out together. When you make the journal entries, make a debit entry for
each of them separately and then make one credit entry in the total amount to
the income summary account.
‰ 10. Post the closing entries for the sales and purchase returns allowance accounts
as well as the credit to Income Summary to the general ledger. Write “Closing
Entry” in the item column.
‰ 11. Close the purchases account, the sales returns and allowances account, and the
expense accounts. Once again, these all carry debit balances, so it is easier to close
them out together. Start by making an entry to Income Summary. You will fill
in the debit amount after making the credit entries. Make credit entries in the
general journal for each of the amounts separately; then fill in one debit entry to
the Income Summary account for the total amount.
‰ 12. Post the closing entries for the purchases, sales returns and allowances and the
expense accounts to the general ledger as well as the debit to Income Summary.
8 e0201202AS03B-64
Bookkeeping
‰ 13. Close the income summary. Find the Income Summary account balance; determine
whether it is a credit or a debit balance and then make an opposite entry in the
general journal. Then make the appropriate entry into the Owner’s Equity account.
‰ 14. Post the entries made in step 13 to the general ledger.
‰ 15. Close the drawing account. Take the amount of the drawing account and make
a debit entry in the general journal to the Owner’s Equity account. Make an
offsetting credit entry in the same amount to the Drawing account.
‰ 16. Post the entries made in step 15 to the general ledger.
‰ 17. Prepare a post-closing trial balance from the remaining open accounts.
The totals of the debit and credit columns on this trial balance should match.
‰ 18. Assemble your packet in the following order:
± Quiz Cover Sheet
± journal
± general ledger
± subsidiary ledger
± financial statements
± 10-column worksheet
± post-closing trial balance
‰ 19. Gather all your papers and submit to the school.
List of Transactions
Date Description of Transaction
May 1 Check #79 in the amount of $45 was issued to pay phone bill for April.
May 3 Check #80 in the amount of $342 was issued to Electrifying Bulb Co. for
payment of April invoice. (The bulbs were purchased in April for resale.)
May 4 Julie Adams bought $230 worth of lamps, which were charged to her
account. Invoice #123 was issued.
May 5 Alice (the store owner) decided to write off Ed Miller’s long overdue
account for the amount of $34. She sends you a memo, dated May 4th,
requesting you to do so. (Hint: This is a Bad Debts Expense.)
May 6 Check #81 is issued in the amount of $31 to Paper Works for office
supplies, bought while at the store.
e0201202AS03B-64 9
Assignment Pack 3
List of Transactions, Continued
Date Description of Transaction
May 7 Weekly cash register summary received showing:
Total sales for week: $4,853
Sales Tax: $147 (Hint: Sales Tax Payable)
Cash received: $5,000
May 9 Check #82 in the amount of $55 was issued to pay utility bill for April.
May 10 Check #83 in the amount of $85 was issued to Paper Works for payment of
April invoice. (In April, the office supplies were bought on account.)
May 12 Alice purchased $420 worth of bulbs from Electrifying Bulb Co. on
account. The bulbs will be resold. Invoice #421 was issued to Alice by
Electrifying Bulb Co.
May 14 Weekly cash register summary received showing:
Total sales for week: $3,642
Sales tax: $98
Cash received: $3,740
May 15 Check #84 in the amount of $2,000 was issued to the payroll account to
cover the bimonthly salaries.
May 17 Check #85 in the amount of $125 was issued to Alice Peterson as a personal
draw on the Drawing account.
May 19 Alice purchased $1,000 worth of lamps for resale from Light House Supply
and put the amount on her account. Invoice #384 was issued to Alice.
May 20 Check #86 in the amount of $1,200 was issued to make the mortgage
payment.
May 21 Weekly cash register summary received showing:
Total sales for week: $1,423
Sales tax: $27
Cash received: $1,450
May 22 A check is received from customer Julie Adams in the amount of $150 for
last month’s purchases. Credit invoice (receipt) #42 was issued.
May 25 Check #87 in the amount of $200 was issued to make the payment on a
note for the month of May.
May 27 Alice returned some of the bulbs she had purchased earlier from
Electrifying Bulb Co. Electrifying Bulb Co. credited Alice’s account for the
amount of $200 and gave her credit invoice #18. (Hint: This is a Purchase
Returns and Allowances transaction.)
10 e0201202AS03B-64
Bookkeeping
List of Transactions, Continued
Date Description of Transaction
May 31 Weekly cash register summary received showing:
Total sales for week: $2,546
Sales tax: $134
Cash received: $2,680
May 31 Check #88 in the amount of $3,000 was issued to the payroll account to
cover the second half of the bimonthly payroll.
May 31 Check #89 was issued to a customer who returned a defective lamp for the
amount of $56. The sales tax on the lamp was $3. (Hint: Sales returns and
allowances = $53; sales tax payable = $3; cash = $56.) Sales returns slip #21
was issued.
e0201202AS03B-64 11
Assignment Pack 3
Bright Ideas
Light Center
Alice Peterson, Owner
12 e0201202AS03B-64
Bookkeeping
Bright Ideas Light Center
Income Statement
For the month ending April 30, 20XX
Operating Revenue
Sales $11,400
Less Sales Returns & Allowances 10
Total Sales $11,390
Cost of Goods Sold
Beginning Inv. April 1st, 20XX $8,750
Purchases $3,000
Less Purchase Returns & Allowances 0
Net Purchases 3,000
Total Merchandise Available for Sale $11,750
Less ending Inventory April 30th, 20XX 9,000
Cost of Goods Sold 2,750
Gross profit on Sales $8,640
Operating Expenses
Salary Expense $5,000
Utility Expense 60
Telephone Expense 48
Office Supply Expense 95
Insurance Expense 100
Depreciation Expense 220
Bad Debts Expense 0
Total Operating Expenses $5,523
Net Income for April, 20XX $3,117
e0201202AS03B-64 13
Assignment Pack 3
Bright Ideas Light Center
Statement of Owner’s Equity
For the month ending April 30, 20XX
Alice Peterson, Capital, April 1, 20XX $19,874
Net Income for April $3,117
Less Alice Peterson, Drawing 0
Increase in Capital 3,117
Alice Peterson, Capital, April 30, 20XX $22,991
14 e0201202AS03B-64
Bookkeeping
Bright Ideas Light Center
Balance Sheet
For the month ending April 30, 20XX
ASSETS
Current assets
Cash $2,000
Accounts receivable 184
Inventory 9,000
Prepaid insurance 1,000
Office supplies 280
Total current assets $12,464
Fixed assets
Land $50,000
Building $50,000
Less accumulated depreciation 14,400 35,600
Equipment 2,000
Less accumulated depreciation 1,200 800
Total fixed assets $ 86,400
Total assets $98,864
LIABILITIES AND EQUITY
Current liabilities
Notes payable $5,400
Accounts payable 427
Sales tax payable 46
Total current liabilities $5,873
Long-term liabilities
Mortgage payable 70,000
Total liabilities $75,873
OWNER’S EQUITY
Alice Peterson, Equity 22,991
Total Liabilities and Equity $98,864
e0201202AS03B-64 15
Assignment Pack 3
General Journal Page 14
Date Description P/R Dr Cr
16 e0201202AS03B-64
Bookkeeping
General Journal Page 15
Date Description P/R Dr Cr
e0201202AS03B-64 17
Assignment Pack 3
General Journal Page 16
Date Description P/R Dr Cr
18 e0201202AS03B-64
Bookkeeping
General Journal Page 16
Date Description P/R Dr Cr
e0201202AS03B-64 19
Assignment Pack 3
Chart of Accounts
Assets
100 Cash
111 Accounts Receivable
121 Inventory
131 Prepaid Insurance
133 Office Supplies
141 Land
143 Building
144 Accumulated Depreciation-Building
145 Equipment
146 Accumulated Depreciation-Equipment
Liabilities
201 Notes Payable
202 Accounts Payable
231 Sales Tax Payable
251 Mortgage Payable
Owners’s Equity
301 Alice Peterson, Equity
302 Alice Peterson, Drawing
321 Income Summary
Revenue
401 Sales
402 Sales Returns & Allowances
Costs and Expenses
501 Purchases
521 Purchase Returns & Allowances
601 Salary Expense
605 Utility Expense
613 Telephone Expense
615 Office Supplies Expense
619 Insurance Expense
621 Depreciation Expense
623 Bad Debts Expense
20 e0201202AS03B-64
Bookkeeping
e0201202AS03B-64 21
Assignment Pack 3
Account Cash Account No. 100
Date Item P/R Dr Cr
5-1 Balance 2 0 0 0 00
Account Accounts Receivable Account No. 111
Date Item P/R Dr Cr
5-1 Balance 1 8 4 00
22 e0201202AS03B-64
Bookkeeping
Account Inventory Account No. 121
Date Item P/R Dr Cr
5-1 Balance 9 0 0 0 00
Account Prepaid Insurance Account No. 131
Date Item P/R Dr Cr
5-1 Balance 1 0 0 0 00
e0201202AS03B-64 23
Assignment Pack 3
Account Office Supplies Account No. 133
Date Item P/R Dr Cr
5-1 Balance 2 8 0 00
Account Land Account No. 141
Date Item P/R Dr Cr
5-1 Balance 5 0 0 0 0 00
24 e0201202AS03B-64
Bookkeeping
Account Building Account No. 143
Date Item P/R Dr Cr
5-1 Balance 5 0 0 0 0 00
Account Accumulated Depreciation — Building Account No. 144
Date Item P/R Dr Cr
5-1 Balance 1 4 4 0 0 00
e0201202AS03B-64 25
Assignment Pack 3
Account Equipment Account No. 145
Date Item P/R Dr Cr
5-1 Balance 2 0 0 0 00
Account Accumulated Depreciation — Equipment Account No. 146
Date Item P/R Dr Cr
5-1 Balance 1 2 0 0 00
26 e0201202AS03B-64
Bookkeeping
Account Notes Payable Account No. 201
Date Item P/R Dr Cr
5-1 Balance 5 4 0 0 00
Account Accounts Payable Account No. 202
Date Item P/R Dr Cr
5-1 Balance 4 2 7 00
e0201202AS03B-64 27
Assignment Pack 3
Account Sales Tax Payable Account No. 231
Date Item P/R Dr Cr
5-1 Balance 4 6 00
Account Mortgage Payable Account No. 251
Date Item P/R Dr Cr
5-1 Balance 7 0 0 0 0 00
28 e0201202AS03B-64
Bookkeeping
Account Alice Peterson, Equity Account No. 301
Date Item P/R Dr Cr
5-1 Balance 2 2 9 9 1 00
Account Alice Peterson, Drawing Account No. 302
Date Item P/R Dr Cr
5-1 Balance 00
e0201202AS03B-64 29
Assignment Pack 3
Account Income Summary Account No. 321
Date Item P/R Dr Cr
5-1 Balance 00
Account Sales Account No. 401
Date Item P/R Dr Cr
5-1 Balance 00
30 e0201202AS03B-64
Bookkeeping
Account Sales Returns & Allowances Account No. 402
Date Item P/R Dr Cr
5-1 Balance 00
Account Purchases Account No. 501
Date Item P/R Dr Cr
5-1 Balance 00
e0201202AS03B-64 31
Assignment Pack 3
Account Purchases Returns & Allowances Account No. 521
Date Item P/R Dr Cr
5-1 Balance 00
Account Salary Expense Account No. 601
Date Item P/R Dr Cr
5-1 Balance 00
32 e0201202AS03B-64
Bookkeeping
Account Utility Expense Account No. 605
Date Item P/R Dr Cr
5-1 Balance 00
Account Telephone Expense Account No. 613
Date Item P/R Dr Cr
5-1 Balance 00
e0201202AS03B-64 33
Assignment Pack 3
Account Office Supply Expense Account No. 615
Date Item P/R Dr Cr
5-1 Balance 00
Account Insurance Expense Account No. 619
Date Item P/R Dr Cr
5-1 Balance 00
34 e0201202AS03B-64
Bookkeeping
Account Depreciation Expense Account No. 621
Date Item P/R Dr Cr
5-1 Balance 00
Account Bad Debts Expense Account No. 623
Date Item P/R Dr Cr
5-1 Balance 00
e0201202AS03B-64 35
Assignment Pack 3
Accounts Receivable
Name: Julie Adams
Date Item P/R Dr Cr Bal
5-1 Balance 1 5 0 00
Accounts Receivable
Name: Ed Miller
Date Item P/R Dr Cr Bal
5-1 Balance 3 4 00
36 e0201202AS03B-64
Bookkeeping
Accounts Payable
Name: Electrifying Bulb Co.
Date Item P/R Dr Cr Bal
5-1 Balance 3 4 2 00
Accounts Payable
Name: Light House Supply
Date Item P/R Dr Cr Bal
5-1 Balance 00
e0201202AS03B-64 37
Assignment Pack 3
Accounts Payable
Name: Paper Works
Date Item P/R Dr Cr Bal
5-1 Balance 8 5 00
38 e0201202AS03B-64
Bookkeeping
1 2 3 4 5 6 7 8 9 10
Unadjusted
Trial Balance Adjustments Adjusted Balance
Income
Statement
Balance Sheet
Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
e0201202AS03B-64 39
Assignment Pack 3
1 2 3 4 5 6 7 8 9 10
Unadjusted
Trial Balance Adjustments Adjusted Balance
Income
Statement
Balance Sheet
Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
40 e0201202AS03B-64
Bookkeeping
e0201202AS03B-64 41
Fold on dotted line
This Space for Instructor Use
1. Fill in your student ID and your course code below.
STUDENT ID NUMBER COURSE CODE
2. Be sure your name and address are filled in below.
3. Transfer your answers to this cover sheet.
NAME
ADDRESS
CITY STATE ZIP
U.S. Career Institute
2001 Lowe Street
Fort Collins, CO 80525
BK2
Grade: ___________
Bookkeeping
Quiz 13
42 e0201202AS03B-64
Bookkeeping
e0201202AS03B-64 43
Assignment Pack 3
Quiz 14: Banking
This is a Scanner Quiz that should be submitted according to the instructions at the beginning of
this pack.
Select the best single answer for items 1 through 25. Each correct answer is worth 4 points
1. There are _____ parts to a check.
a. 20
b. 10
c. 5
d. 12
2. What does not appear on the back of the check?
a. The endorsement
b. The date
c. The check number
d. both b and c
3. The person writing the check (who has the account) is known as the _____.
a. endorsee
b. payee
c. date
d. drawer
4. The amount of the check appears in _____ places on the front of the check.
a. two
b. six
c. one
d. four
5. The reason a check is written appears on the line labeled _____ on the check.
a. “Pay to the Order of ”
b. “Date”
c. “Reason”
d. “For”
44 e0201202AS03B-64
Bookkeeping
6. A bank will not honor a check without a(n) _____.
a. promissory note
b. receipt
c. authorizing signature
d. stub attached
7. What information appears on the check stub?
a. The check number
b. Deposits made to the account
c. The reason the check was written
d. All of the above
8. The signature of the payee of a check is called the _____.
a. authorizing signature
b. sign-off
c. endorsement
d. drawer
9. Endorsement is a safeguard against _____.
a. overpayment
b. fraud
c. bank error
d. computer error
10. Ideally, when a business issues a check, it does so with a(n) _____ to provide a paper
trail.
a. supporting document
b. endorsement
c. overdraft
d. training regiment
11. Invoices, bills and payroll summaries are all examples of _____.
a. overdrafts
b. supporting documents
c. authorizing documents
d. accounts
e0201202AS03B-64 45
Assignment Pack 3
12. Memos for payments must _____.
a. list all the reasons for issuing the check
b. be in triplicate
c. be signed by an authorized person
d. all of the above
13. A record of dealings with a bank is called a(n) _____.
a. statement
b. account summary
c. transaction
d. operating statement
14. Bringing all information from the check register and bank statements into agreement
is known as _____.
a. overall practice
b. checks and balances
c. unnecessary effort
d. reconciliation
15. The reconciliation process consists of _____ steps.
a. 5
b. 12
c. 9
d. 10
16. The third step in the reconciliation process is _____.
a. sorting checks into numerical order
b. verifying the amounts of each check
c. check off the deposits shown on the bank statement
d. finding the ending balance on the bank statement
17. After completing all the steps in the reconciliation process, the new balance _____.
a. should match the reconciled balance
b. will be larger than the reconciled balance
c. will be smaller than the reconciled balance
d. should match the final figure on the operating statement
46 e0201202AS03B-64
Bookkeeping
18. If the new balance does not match the reconciled balance, you should _____.
a. do nothing—these two balances do not have to match
b. go through checkbook and make sure math is correct
c. go through the reconciliation process and make sure you
didn’t miss an outstanding check or deposit
d. both b and c
19. When a bank loans money, it usually charges _____ on that money.
a. interest
b. service maintenance
c. accounting charges
d. utility bills
20. Figure the interest on this loan: principal $1100, rate 5%, time 6 months. _____
a. $2.75
b. $27.50
c. $55.00
d. $270.50
21. When the amount of interest owed increases, it is said to have _____.
a. grown
b. accrued
c. increased
d. jumped
22. The three items used to figure interest are _____.
a. principal, rate and time
b. principal, time and days
c. loan percentage, interest rate, due date
d. principal, rate and percentage
23. Principal is the _____.
a. total of all payments
b. amount of money borrowed
c. interest paid on the money
d. basis for all decisions
e0201202AS03B-64 47
Assignment Pack 3
24. The document that lays out the terms of a loan is known as a(n) _____.
a. agreement note
b. usury
c. promissory note
d. argumentative agreement establishment
25. When interest is paid up front, the borrower has what type of note?
a. Promissory normal
b. Argumentative sliding scale
c. Borrowing establishment usury
d. Discounted
48 e0201202AS03B-64
Bookkeeping
e0201202AS03B-64 49
Assignment Pack 3
Quiz 15: Payroll Records
This is an Instructor-graded Quiz that should be submitted according to the instructions at the
beginning of this pack.
Part 1
Select the best single answer for the following items. Each correct answer is worth 3 points.
(60 points total).
1. There are generally four systems for paying employees: _____.
a. hourly, salary, commission, piece rate
b. contract, salary, weekly, cash
c. hourly, contract, weekly salary, market rate
d. piece rate, salary, hourly, invoice
2. The method for paying employees according to the amount they produce is called _____.
a. salaried
b. hourly employees
c. piece rate
d. none of the above
3. The guidelines listed by the _____ determine how taxes are collected from employees.
a. Internal Revenue Service
b. Federal Reserve
c. Treasury Department
d. Supreme Court
4. The IER is used to keep track of _____.
a. when taxes have been paid
b. an employee’s payroll deductions
c. what time an employee came to work
d. the employer’s Medicare Tax amount
5. The amount of money a worker earns before any withholdings are deducted is known
as _____ wages.
a. net
b. adjusted
c. gross
d. unadjusted
50 e0201202AS03B-64
Bookkeeping
6. The record kept by the company for all employees’ payroll figures is called the _____.
a. Form 940
b. Form W-3
c. payroll checking account
d. payroll register
7. To figure the gross wages for an hourly employee, you multiply hours worked by the _____.
a. number of days worked
b. employee’s hourly wage
c. company’s hours open
d. amount the employee produced
8. Generally, overtime applies when an employee works more than _____ hours in a week.
a. 25
b. 60
c. 40
d. 42
9. The amounts of money subtracted from a person’s paycheck are called _____.
a. reductions
b. credits
c. commissions
d. deductions
10. Worker’s compensation insurance is _____.
a. required by law
b. a federal tax
c. part of the Medicare Tax
d. optional in most states
11. Which of these items are usually listed on the paycheck stub?
a. gross wages
b. deductions
c. net wages
d. all of the above
e0201202AS03B-64 51
Assignment Pack 3
12. If Mark Martin’s gross wages are $948, what would his FICA deduction be at the rate
of 6.2%?
a. $64.38
b. $587.80
c. $61.78
d. $58.78
13. FICA is also known as _____ tax.
a. welfare
b. social security
c. social services
d. workers’ compensation
14. Because tax rates can change _____, it is important to have an up-to-date chart.
a. from year-to-year
b. hourly
c. monthly
d. weekly
15. A federal deposit is made by completing form _____.
a. 8109
b. 8209
c. 1040
d. W-4
16. When making a federal deposit, the bank will issue a _____.
a. form 8109
b. withholding tax memorandum receipt
c. federal deposit receipt
d. tax memorandum receipt
17. A journal entry for the federal deposit includes which accounts?
a. FUTA Payable, Medicare Tax Payable, Cash
b. FICA Payable, Medicare Tax Payable
c. Federal Tax With. Payable, Cash
d. Both b and c
52 e0201202AS03B-64
Bookkeeping
18. In the cash payments journal, the payables are entered into which column?
a. Other Accounts Debit
b. Cash Credit
c. Acct. Payable Dr.
d. Other Accounts Credit
19. The third quarter of the calendar year consists of _____.
a. February, March, April
b. April, May, June
c. May, June, July
d. July, August, September
20. On February 28, Bob’s Barber Shop owes $2,672 in taxes for the current quarter.
When must those taxes be paid?
a. At the end of the year
b. By March 15
c. Within three banking days
d. At the end of the quarter
e0201202AS03B-64 53
Assignment Pack 3
Part 2
For Part 2 of this Quiz, you will figure the payroll for XYZ Co. Each correct entry is worth 1 point (40
points total).
There are four forms included for this purpose: time cards, IERs, payroll register and general journal.
Using these forms, complete each step as explained below:
1. Complete the time cards for employees Joan Williams and Allen Richards. Add
up the total hours worked and figure the gross wages. Remember that any hours
worked over 40 are considered overtime. Use 7/7/XX as the date paid and write your
own initials in the “By” box.
2. Complete Joan’s and Allen’s IERs. Use the tables below to obtain the amount of
federal and state withholding you must deduct. Figure FICA at 6.2% (Hint: multiply
by .062) and figure Medicare Tax at 1.45% (Hint: multiply by .0145).
WITHHOLDING TABLES
Federal Withholding—Weekly Payroll Period—Employee Married
The Wages Are And the number of withholding allowances is
At least But less than 0 1 2 3 4 5 6 7 8 9
180 200 20 18 16 14 12 10 8 6 4 2
200 220 25 23 21 18 16 14 11 9 7 5
220 240 30 27 25 23 20 18 16 13 11 9
240 260 35 32 30 27 24 22 20 17 15 12
State Withholding—Weekly Payroll Period—Employee Married
The Wages Are And the number of withholding allowances is
At least But less than 0 1 2 3 4 5 6 7 8 9
180 200 1 1 0 0 0 0 0 0 0 0
200 220 2 2 1 1 0 0 0 0 0 0
220 240 3 3 2 2 1 1 0 0 0 0
240 260 4 4 3 3 2 2 1 1 0 0
3. a. Enter the information for Joan and Allen into the payroll register.
b. Total the columns in the payroll register.
c. Make the appropriate entries in the general journal. XYZ Company has a
separate payroll checking account.
d. Figure the employer’s tax for FICA and Medicare (Hint: It matches the FICA and
Medicare the employees pay). Make these entries in the general journal.
4. Figure XYZ’s total tax liability as of this pay period.
54 e0201202AS03B-64
Bookkeeping
e0201202AS03B-64 55
Fold on dotted line
This Space for Instructor Use
1. Fill in your student ID and your course code below.
STUDENT ID NUMBER COURSE CODE
2. Be sure your name and address are filled in below.
3. Transfer your answers to this cover sheet.
NAME
ADDRESS
CITY STATE ZIP
U.S. Career Institute
2001 Lowe Street
Fort Collins, CO 80525
BK2
Grade: ___________
Bookkeeping
Quiz 15
Part 1—Transfer your answers for questions 1-20.
1. _____
2. _____
3. _____
4. _____
5. _____
6. _____
7. _____
8. _____
9. _____
10. _____
11. _____
12. _____
13. _____
14. _____
15. _____
16. _____
17. _____
18. _____
19. _____
20. _____
56 e0201202AS03B-64
Bookkeeping
Part 2
TIME CARD
Name Joan Williams
SS # 111-11-1111
Date Morning Afternoon Hours
In Out In Out
7-1-XX 8:00 12:00 1:00 5:00 8
7-2-XX 8:30 12:30 1:00 5:30 8.5
7-3-XX 8:00 12:00 1:00 5:30 8.5
7-4-XX 8:00 12:00 1:00 5:00 8
7-5-XX 7:30 12:00 1:00 6:00 9.5
Total Hours Worked
Wage Calculation Hours Rate Total
Regular Hours 5.00/hr
Overtime Hours 7.50/hr
Gross Wages
Paid Check #424 By
TIME CARD
Name Allen Richards
SS # 222-22-2222
Date Morning Afternoon Hours
In Out In Out
7-1-XX 9:00 12:00 1:00 7:00 9
7-2-XX 9:00 12:00 1:00 6:00 8
7-3-XX 9:00 12:00 1:00 6:00 8
7-4-XX 9:00 12:00 1:00 7:00 9
7-5-XX 9:00 12:00 1:00 7:30 9.5
Total Hours Worked
Wage Calculation Hours Rate Total
Regular Hours 5.00/hr
Overtime Hours 7.50/hr
Gross Wages
Paid Check #423 By
e0201202AS03B-64 57
Assignment Pack 3
Individual Earnings Record for 20XX
Last Name Williams First Name Joan Exemptions 3
Soc. Sec. #111-111-1111 Marital Status M
Rate of Pay $5.00/hr
Date Hours Earnings Deductions Net Pay Ck #
No. Wk
Ended
Reg O/T Regular Overtime Total Fed Tax FICA Medicare State
Tax
Total
Deductions
1 7/5 424
Individual Earnings Record for 20XX
Last Name Richards First Name Allen Exemptions 2
Soc. Sec. #222-22-2222 Marital Status M
Rate of Pay $5.00/hr
Date Hours Earnings Deductions Net Pay Ck #
No. Wk
Ended
Reg O/T Regular Overtime Total Fed Tax FICA Medicare State
Tax
Total
Deductions
1 7/5 423
PAYROLL REGISTER WEEK BEGINNING 7/1/XX ENDING 7/5/XX
ABC Company
Name #
Exm
Martial
Status
YTD
Earnings
Hrs
Wkd
Rate Earnings YTD
Earnings
Deductions Net
Amount
CK
#
Reg O/T Gross Fed
Tax
FICA Medicare State
Tax
Other
Edward Adams 2 M 6760.00 48 5.00 200.00 60.00 260.00 7020.00 30.00 16.12 3.77 3.00 207.11 421
Alice Johnson 4 M 6650.00 45 5.00 200.00 37.50 237.50 6887.50 20.00 14.73 3.44 1.00 198.33 422
Allen Richards 6335.00 181.94 423
Joan Williams 5915.00 183.02 424
TOTALS 770.40
58 e0201202AS03B-64
Bookkeeping
PAYROLL REGISTER WEEK BEGINNING 7/1/XX ENDING 7/5/XX
ABC Company
Name #
Exm
Martial
Status
YTD
Earnings
Hrs
Wkd
Rate Earnings YTD
Earnings
Deductions Net
Amount
CK
#
Reg O/T Gross Fed
Tax
FICA Medicare State
Tax
Other
Edward Adams 2 M 6760.00 48 5.00 200.00 60.00 260.00 7020.00 30.00 16.12 3.77 3.00 207.11 421
Alice Johnson 4 M 6650.00 45 5.00 200.00 37.50 237.50 6887.50 20.00 14.73 3.44 1.00 198.33 422
Allen Richards 6335.00 181.94 423
Joan Williams 5915.00 183.02 424
TOTALS 770.40
General Journal Page 10
XYZ Company
20XX Description P/R Dr Cr
7-7 Salary expense
Federal Tax Payable
FICA Payable
Medicare Payable
State Tax Payable
Salaries Payable
Payroll ending 7-7-XX
Salaries Payable
Cash
Check issued to Payroll
Payroll Taxes Expense
FICA Payable
Medicare Tax Payable
Employer Payroll Contribution
XYZ’s total tax liability is: _________________
e0201202AS03B-64 59
Assignment Pack 3
Quiz 16: Computerized Bookkeeping
This is a Scanner Quiz that should be submitted according to the instructions at the beginning of
this pack.
Select the best single answer for the following items. Each correct answer is worth 4 points
(100 points total).
1. QuickBooks is an example of _____.
a. personal finance software
b. medical billing software
c. personal tax preparation software
d. accounting software
2. Most large corporations _____ have a single accounting program they use.
a. will
b. will not
c. work hard to
d. never
3. Spreadsheets can be used to _____.
a. calculate inventory
b. compare expenses
c. complete a payroll register
d. all of the above
4. IT stands for _____.
a. information terminology
b. internal technology
c. information technology
d. internet technology
5. Medical billing software might be used by _____.
a. physician’s offices
b. patients
c. insurance companies
d. nurses
60 e0201202AS03B-64
Bookkeeping
6. Spreadsheets have no use in bookkeeping because they are formatted like accounting
software.
a. True
b. False
7. Specialty accounting programs have been developed to _____.
a. provide services for businesses where standard accounting software
will not work
b. provide software programmers with accounting software
c. help physician’s offices bill for their services
d. both a and c
8. When accounting software sets up accounts payable files, there will be an account for
each _____.
a. customer
b. item purchased
c. creditor
d. address
9. When writing a check with personal accounting software, the new balance is figured _____.
a. automatically
b. by hand
c. incorrectly
d. by calculations
10. Personal account software can manage _____ accounts.
a. savings
b. investment
c. retirement
d. all of the above
11. After the initial setup, when entering a new company in QuickBooks Pro, you
manually enter accounts receivable and accounts payable accounts after entering
contact information.
a. True
b. False
12. QuickBooks Pro does NOT track any banking information.
a. True
b. False
e0201202AS03B-64 61
Assignment Pack 3
13. Accounting software programs start by having you enter _____.
a. accounts receivable and payable information
b. your personal business information
c. the accounts you wish to use
d. inventory
14. Tax preparation software can suggest deductions that you might not think of.
However, the software will NOT be able to check for errors.
a. True
b. False
15. TurboTax works very much like a(n) _____.
a. flow chart
b. checklist
c. interview
d. spreadsheet
16. For security purposes, the IRS discourages electronic return filing.
a. True
b. False
17. Information is entered into a tax preparation program through a series of _____.
a. data ports
b. databases
c. prompts
d. spreadsheets
18. What types of information are entered into tax preparation software?
a. Name
b. Address
c. Withholdings
d. All of the above
19. Which of the following is not a selection on QuickBooks Pro?
a. A/R Aging Summary
b. Receive Payment
c. Make Deposits
d. Reports
62 e0201202AS03B-64
Bookkeeping
20. Aging of receivables for the business can be viewed from which page in
QuickBooks Pro?
a. A/R Balances
b. A/R Aging Summary
c. Assets: Aging
d. Online Banking
21. Large corporations could use different software programs to handle _____.
a. accounts payable
b. accounts receivable
c. inventory
d. all of the above
22. Understanding manual bookkeeping is NOT necessary if you have access to a
software program.
a. True
b. False
23. The first step in entering your company’s important information involves listing the
people you do business with. This could include customers, vendors and employees.
a. True
b. False
24. Using a personal financial software program will help you create a _____ you can
adhere to.
a. business plan
b. savings account
c. debt
d. budget
25. Quicken® is an example of a(n) _____.
a. personal finance program
b. small business accounting software
c. accounts payable program
d. prognostication program