accounting final notes

Which of the following is not a result of the Sarbanes-Oxley Act?

Companies must file financial statements with the Internal Revenue Service.

Having different individuals receive cash, record cas recipts, and hold the cas is an example of segregation of duties

An internal auditor reconciling the bank statement monthly is an example of independent internal verification.

The use of pre-numbered checks in disbursing cash is an application of the principle of documentation procedures.

Printing check amounts by machine in indelible ink is an example of physical controls.

Making payments from a petty cash fund requires no accounting entry to record a payment when it is made from petty cash.

A company reports a debit balance in Cash Over and Short as a(n) miscellaneous expense.

If the month-end bank statement shows a balance of 54000 outstanding checks are 15999, a deposit of 6000 was in transit at month end, and a check for 900 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is $54,000 - $15,000 + $6,000 + $900 = $45,900

Counting of daily cash receipts by a supervisor is an application of which internal control principle? Independent Internal verification

In preparing its bank reconciliation for the month of April 2015, Delano, Inc. has available the following information.

Balance per bank statement, 4/30/15 $78,600
NSF check returned with 4/30/15 bank statement 940
Deposits in transit, 4/30/15 10,000
Outstanding checks, 4/30/15 10,400
Bank service charges for April 60
What should be the adjusted cash balance at April 30, 2015? $78,600 + $10,000 - $10,400 = $78,200.

A 60-day note receivable dated July 13 has a maturity date of september 11

A 90-day note dated May 14 has a maturity date of August 12

During 2015, sales on account were 145,000 and collections on account were $100,000. Also during 2015, the company wrote off 4,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at 40,000 - ($35,000 - $4,000) = $9,000

Bad debt expense for 2015 is $9000

A $1,000 face value bond with a quoted price of 98 is selling for 1,000 × .98 = $980.

Ed’s Bookstore has collected $750 in sales taxes during April. If sales taxes must be remitted to the state government monthly, what entry will Ed's Bookstore make to show the April remittance?

Sales Taxes Payable 750    Cash 750

Layton Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to 29,400. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes? 1,400

Valerie's Salon has total receipts for the month of 20,670 including sales taxes. If the sales tax rate is 6%, what are Valerie's sales for the month? 1950

A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on sales. If the sales tax rate is 5% and the balance in the Sales Revenue account amounted to $294,000, what is the amount of the sales taxes owed to the taxing agency? $294,000 - ($294,000/1.05) = $14,000.

Gentry Company’s land account decreased $120,000 because of a cash sale for $120,000, its equipment account increased $40,000 as a result of a cash purchase, and its bonds payable account increased $130,000 from issuance of bonds for cash at face value. The net cash provided by investing activities is 80,000

Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $240,000. Exclusive of the effect of other adjustments, the cash flows from operating activities under the indirect method to be reported on the statement of cash flows is 250000

In Angel Company, the Land account decreased $90,000 as a result of a cash sale for $100,000 and recognized a gain on the sale of $10,000. The Equipment account increased $20,000 as a result of a cash purchase. Angel Company also purchased a truck for $25,000 by issuing a five-year note. Bonds payable increased from an issuance of bonds for cash for $50,000. The net cash provided by investing activities is 80000

DV’s Pest Control Products has the following information available: net income, $15,000; cash provided by operating activities, $21,000; cash sales, $65,000; capital expenditures, $11,000; and dividends paid, $3,000. What is DV’s free cash flow? 700