Merchandising business 2 : FIN 2030

18 Pages·2001·5.3 MB·English

by  Alberta. Alberta Learning

It and teacher: Use this cover sheet for mailing or f axing.
ASSIGNMENT BOOKLET A
0 1620 3681906 6
FIN 2030
Financial Management 2030: Section 1 Assignment and Section 2 A ssignment
FOR STUDENT USE ONLY FOR OFFICE USE ONLY
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'L Zl Learning
211 Technologies
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FOR TEACHER’S USE ONLY
Summary
Teacher’s Comments
Total
Your
Possible
Mark
Marks
Section 1
68
Assignment
Section 2
76
Assignment
144
Financial Management 2030
Merchandising Business 2
Assignment Booklet A
Section 1 Assignment and Section 2 A ssignment
Learning Technologies Branch ■
ISBN 0-7741-1944-6
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1
ASSIGNMENT BOOKLET A
FINANCIAL MANAGEMENT 2030
SECTION 1 ASSIGNMENT AND SECTION 2 A SSIGNMENT
Your mark for this course will be determined by how well you do your assignments in the
Assignment Booklets.
This Assignment Booklet is worth 144 marks out of the total 225 marks for Financial
Management 2030. The value of each assignment is stated in the left margin.
Work slowly and carefully. If y ou have difficulty, go back and review the appropriate topic.
Be sure to proofread your answers carefully.
Section 1 A ssignment: Fiscal Period Adjustments
Read all parts of your assignment carefully and record your answers in the appropriate
places.
For questions 1 to 7, choose the response which best completes the statement or answers the
question.
1 . What amount does the merchandise inventory show in the trial balance debit
column of the worksheet?
A. the value of the ending inventory for the current fiscal period
B. the value of the beginning inventory for the next fiscal period
C. the value of the beginning inventory for the current fiscal period
D. the difference between the beginning and ending inventory
2. What normally happens each time a supply item is used up during a f iscal period?
A. A d ebit entry is made to supplies expense.
B. A c redit entry is made to the supplies account.
C. Supplies expense is debited and supplies is credited.
D. An entry is not made for each item during a f iscal period.
Financial Management 2030 2 Assignment Booklet A
current fiscal period. However, a p hysical count reveals that there are actually
supplies on hand worth $240. What adjustment is required?
3. The supApDlceicebsoi ut aencdtco unt for TraADvimesbo iuTtoneotlds shows a b CAarcleacndocieut n eotdf $800 at thCeA r meenoddu i tnofet d t he
Supplies Supplies Expense
$240
$240
Supplies Expense
Supplies
$240
Supplies Supplies Expense $240
$560
$560
Supplies Expense
Supplies
$560
$560
4. What amount for supplies is shown in the trial balance debit column of the
worksheet?
A. the value of the supplies on hand at the start of the next fiscal period
B. the value of the supplies on hand at the end of the current fiscal period
C. the difference between the beginning and the ending value of supplies
D. the beginning value of supplies plus the value of those supplies purchased
during the period
5. Valley Garden Centre purchased a 1 2-month insurance policy on August 1, 20xx,
for $2400. The current fiscal period ends on December 3 1 , 2 0xx. The amount of
the adjustment for expired insurance is
A. $200
B. $1000
C. $1200
D. $2400
6. Which accounts must begin each fiscal period with a zero balance?
A. revenue, expenses, capital
B. capital, drawings, expenses
C. assets, liabilities, drawings, capital
D. revenues, expenses, costs, drawings
Financial Management 2030 3 Assignment Booklet A
for $900. If the fiscal period ended on December 31, 20xx, what would the
adjustment be?
Account Amount Account Amount
7. Reliable D eTibriest e Ldt d. purchasedD e ba i1 t2e-dmo nth insuraCnrcee d ipotleidcy on SepteCmrbeerd i t1,e d2 0 xx,
Insurance Expense Prepaid Insurance
$300
Prepaid Insurance Insurance Expense $300
$300
$300
Insurance Expense Prepaid Insurance
$600
Prepaid Insurance Insurance Expense $600
$600
$600
8. Assume that a f irm sold 20 televisions for $732.90 each during a f iscal period. The company
had paid $452.90 each when it p urchased the televisions from its supplier, and the expenses
for the period were $621.30.
© a. What is the gross profit?
0
b. What is the net income?
©
9. Complete the chart by filling in the shaded areas.
- E nding
+ N et = C ost of
Beginning = M erchandise
Inventory Purchases Available for Inventory Merchandise
Sale Sold
59 454.00 143 797.00 84 343.00
3 4 29.00 8 4 33.00 1 434.55 10 427.45
54 949.00 15 765.00 44 394.00
33 494.00 12 848.00 45 488.00
194 300.00 242 300.00 147 000.00
65 400.00 76 500.00 65 099.00 76 801.00
columns of the worksheet have been completed for you.
1
0
The works.heet for VanDros Ladies Wear is p rovided on the next page . The trial balance
>D
Financial Management 2030 4 Assignment Booklet A
_ o o - - - - 00 o

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DEBIT- 1r0s 4 '•O 00 303 O - E TRIAL Acct. 500.00 No. 6TITLE ACCOUNT 014 80 >00 .310010 0 1 2 601003 6 104 540.00 MeCrchandiaIsnev e ntorpy i2t0al T hi1o, C . 3 1 a 200.000 1P0ay 0ab.lPreepaid 0 AI109 nsucranc0ce o9u nt s0 00 0 0' 121 Store E4q u ipment 500.00 201 23 800.301 00 320.00 C. Thio, Income Summar\y D raw40i ng0s00S .al0e 0s 40401 1.1 230.00 Sales Returannsd 33A llow ances 000.00 Purchas5es 0501 1.2 830.00P ur11c09 hasesR e &t u rns AllowaPnucrecsh asesD i scoun8t 500.00 Supplies E xpense 607 Salaries E xpense 609 InsurancEex p ense MiscellaEnxepoeunss e 6688 669900..0000

1
CashS upplies
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Financial Management 2030 5 Assignment Booklet A
Complete the worksheet using the following additional information:
• ending Merchandise Inventory: $12 990
• ending Supplies inventory: $175
• value of unexpired insurance: $700
b. Journalize the adjusting entries on page 27 of a g eneral journal.
GENERAL JOURNAL Page 27
Date Account Title Post Debit Credit
Ref.
1 1
2 2
3 3
4 4
5 5
6 61 0
7 7
8 8
9 9
10
1 1. The worksheet for Jansen Sporting Goods is p rovided on the next page. Use the following
information to complete the worksheet.
• The fiscal year end is December 31, 20xx.
• A p hysical count of the inventory showed $12 500 on hand on December 31.
• A p hysical count of the supplies showed $500 on hand on December 31.
• Insurance policy #49565 was purchased on July 1, 20xx. It is a 1 2-month policy and
the purchase price was $1500.
Financial Management 2030 6 Assignment Booklet A
r.
_ 00 IT o - - - o s
D
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B
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DEBIT N
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DEBIT

T
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Goods Sporting Ja WORKSHE Ended Dece3m1b,e r2 0 xx ADJUSTMENTS CREDEBIT 605
nse ET r
n Yea O
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For the BALAN CREDIT 0000 9 VOO 01
CLQUO - 120 >o CE TRIAL GAcOct. LPaoNo.ya anTITLE ACCOUNT b O l e - 20 111 000.00 4 F ixtReceiuv5abl0e rAc0couen.ts 0 s0a n114 d F urni10t ur.5eo00 . 00116 Merch1and i Isnev e ntory 000.000 0 1117 500.00 o Prep6aid I nsurance 000.0013 0 - 1 Au tom1ob1i50 l0e 1 9 P aya5b0l0e .A0c00c 1ou0nt s0 .4 000 00 .0020 1 210 500Capi.tal J0ans5e0n0 , B. 000301 .00 303 Jansen, Income Summary |D raw60i ng40S0as0l1e0s. .01TOP 0 401.2 1 Sales Returannsd 0A0llow0ance.s 00 Sales Discount 30 500010..0101 501 Purchases 000.5000 1.2 urchasesR e turannsd 6 Allo0wa0n0cPe.ursch0 ase0s D i scounts 500\.60100 Rent _Expense \603 Supplies E xpense 14 500.00 109 Salaries E xpense 1 Insurance |E xpense MiscellaEnxepoeunss e 125 12550 0 .0500 0.00
^B. P
Cash Supplies 625
7.
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