ACG 340 Case 3: Fargo The adjusted trial balance of Fargo Company as of July 31, 2016 is presented below. (Read that again, think about what that...

1. Question: Compute the amount of interest paid in July. At June 30, 2016, $20 was payable.  (Hint: Think of converting from accrual basis to cash basis.)
2. 1 points 

Question 2

1. How much of Accounts Receivable were "written off" the month? (Hint: Run the ADA t-account)
2. 1 points 

Question 3

1. What is Fargo's Net Realizable Value of Accounts Receivable at the end of July?
2. 1 points 

Question 4

1. What was the amount of cash received on the sale of office equipment?
2. 1 points 

Question 5

1. Assuming that the office equipment has a five year estimated life, no estimated salvage value, and no depreciation is taken during the month of purchase or sale, how much office equipment was acquired during the month?
2. 1 points 

Question 6

1. How old (in months) is the office equipment that was neither sold nor acquired during the month?
2. 1 points 

Question 7

1. How much cash was paid on Accounts Payable during the month? Assume the beginning balance of Accounts Payable in July was zero
2. 1 points 

Question 8

1. If the beginning balance in Note Payable was $20,000, what amount of Notes Payable did Fargo issue in in July?
2. 1 points 

Question 9

1. How much of the Note Payable was paid off during July?
2. 1 points 

Question 10

1. If all vendors sell to Fargo on terms 2/10, n/30, what was the total amount of purchases discounts which were allowed to lapse. No purchases were made in the last 10 days of July.
2. 1 points 

Question 11

1. If there was no prepaid advertising at the beginning of the period, what was the total cash outlay for advertising in July? (Hint: Think of converting from accrual basis to cash basis.)
2. 1 points 

Question 12

1. How much cash was used to pay salaries during the month? Assume the balance in Salaries Payable on July 1 was zero. (Hint: Think of converting from accrual basis to cash basis.)
2. 1 points 

Question 13

1. What was the balance of Retained Earnings at the beginning of the fiscal year?
2. 1 points 

Question 14

1. If office supplies valued at $300 were on hand at the beginning of the month, what were the total purchases of office supplies during the month?
2. 1 points 

Question 15

1. What journal entry does Fargo make to record the purchase of office supplies?
2. Debit Office Supplies, Credit Cash.
3. Debit Cash, Credit Office Supplies.
4. Debit Office Supplies Expense, Credit Cash.
5. Debit Office Supplies Expense, Credit Office Supplies?
6. 1 points 

Question 16

1. How much cash dividends were paid during the month? Assume that the beginning balance in Dividends Payable at June 30 was $1,000.
2. 1 points 

Question 17

1. Of the cash dividends paid, how much related to the current period?
2. 1 points 

Question 18

1. What are net sales for July?
2. 1 points 

Question 19

1. If 90% of sales are made on credit and all returns were related to credit sales, what was the beginning balance in Accounts Receivable on July 1? (Hint: Run the AR t-account)
2. 1 points 

Question 20

1. How much cash received on accounts receivable in July?  (Hint: Run the AR t-account)
2. 1 points 

Question 21

1. Does the company use the gross or net method to record purchases? How do you know?
2. Gross becuase Purchase Return & Allowances are on the Trial Balance.
3. Gross because Sales Discounts are on the Trial Balance.
4. Gross because Purchase Discounts are on the Trial Balance.
5. Gross because Sales Discounts Forfeited are not on the Trial Balance.
6. Gross because Purchase Discounts Forfeited are not on the Trial Balance.
7. Net becuase Purchase Return & Allowances are on the Trial Balance.
8. Net because Sales Discounts are on the Trial Balance.
9. Net because Purchase Discounts are on the Trial Balance.
10. Net because Sales Discounts Forfeited are not on the Trial Balance.
11. Net because Purchase Discounts Forfeited are not on the Trial Balance.
12. 1 points 

Question 22

1. What is the beginning balance in inventory on July 1?
2. 1 points 

Question 23

1. What are net purchases for July?
2. 1 points 

Question 24

1. Assume that the company did a count of ending inventory and found that they had 70,000 of inventory remaining at the end of July. What is the cost of goods sold for the month of July?
2. 1 points 

Question 25

1. Fill in the blanks: The adjusting entry to adjust inventory will include a debit to Ending Inventory, COGS, _______________, and ______________. 
2. Purhcases, and Beginning Inventory.
3. Purchase Discounts, and Purchase Returns & Allowances.
4. Purchases, and Purchase Discounts.
5. Purchases, and Purchase Returns & Allowances.
6. 1 points 

Question 26

1. What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal credit balance at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100. 
2. 1 points 

Question 27

1. What is the amount of the change to Income Summary account for the closing entry to close nomianl accounts with a normal debit balance at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100. 
2. 1 points 

Question 28

1. What is the amount of the change to Income Summary account for the closing entry to close Income Summary to Retained Earnings at July 31. A positive number indicates a credit to the Income Summary account and a negative number indicates a debit to the Income Summary account. For instance, 100 is a credit to the Income Summary account for $100, and a -100 is a debit to the Income Summary account for $100. 
2. 1 points 

Question 29

1. When closing dividends declared, which account is debited?
2. Dividends Declared
3. Income Summary
4. Accumulated OCI
5. Retained Earnings
6. 1 points 

Question 30

1. After you have adusted inventory and done the four closing entries for the month, what is the ending balance in Retained Earnings on July 31? A positive number indicates a credit balance in the Retained Earnings account and a negative number indicates a debit balance in the Retained Earnings account. For instance, 100 is a credit balance in the Retained Earnings account for $100, and a -100 is a debit balance in the Retained Earnings account for $100. 
2. 1 points 

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