Level II Answer Book - PKL SoftwareLevel II Answer Book - PKL Software ... June 16

Granite Bay Jet Ski, Inc., Level II Answer Book Copyright © 2010 - 2020 PKL Software, Incorporated. All rights reserved.

www.pklsoftware.com Last Revised: January 18, 2020

Granite Bay Jet Ski, Inc.

Level II

Answer Book

5th Edition

Student Documents

and

Evaluation Answers

http://www.pklsoftware.com/



Notes to Professors:

The year to dates of the financial documents in the Answer Book will not reflect the current year, but will show a year to date of 2008. The financial documents printed by your students will show a year to date of the current year plus one.




Student Documents

for

June 3 – 9

Module 1

The student is not required to print any documents for June 3 – 9. These documents would be printed for audit purposes only.

Answer Book




Granite Bay Jet Ski II

Trial Balance

June 9, 2008

Account Titles Debit Credit --------------------------------------------------------------- Cash 78,940.41

Petty Cash 100.00

Short-Term Investments 15,200.00

Accounts Receivable 56,319.02

Allowance for Doubtful Accounts 81.82

Accts. Receivable, Credit Card Co. 8,124.00

Merchandise Inventory 217,836.02

Prepaid Insurance 4,375.00

Prepaid Property Tax 650.00

Store and Shop Supplies 3,102.92

Store Equipment and Fixtures 69,018.00

Accum. Deprec., Store Equip. and Fix. 13,570.00

Shop Equipment 34,250.00

Accum. Depreciation, Shop Equipment 7,750.00

Trucks 42,300.00

Accumulated Depreciation, Trucks 7,250.00

Accounts Payable 74,045.92

Notes Payable 12,000.00

Sales Tax Payable 4,267.26

Unearned Storage Fees 13,740.00

Long-term Notes Payable 70,000.00

Common Stock 225,000.00

Retained Earnings 73,224.77

Dividends Declared 2,400.00

Watercraft and Accessory Sales 226,719.80

Sales Returns and Allowances 2,117.00

Service Fees Earned 8,368.50

Cost of Goods Sold 160,222.40

Transportation-In 604.00

Salaries and Wages Expense 14,730.50

Truck and Equipment Operating Exp. 899.95

Advertising Expense 2,183.50

Delivery Expense 541.50

Credit Card Expense 1,112.00

Tools Expense 40.00

Rent Expense 15,600.00

Electricity and Gas Expense 877.05

Telephone Expense 423.00

Bank Service Charges 75.00

License Expense 416.00

Professional Services Expense 403.00

Cash Short and Over 18.00

Discounts Lost 35.00

Miscellaneous Expense 27.80

Interest Earned 217.00

Dividends Earned 638.00




Miscellaneous Revenue 20.00

Income Taxes Expense 3,250.00

Interest Expense 702.00

---------- ----------

Total 736,893.07 736,893.07

========== ==========




Answer Book

Granite Bay Jet Ski II General Journal

Date Accounts and Explanation PR Debit Credit

----------------------------------------------------------------------------------

June 3 Cash 101 105.30

Service Fees Earned 411 97.50

Sales Tax Payable 205 7.80

Invoice: G4010

June 2 Cash 101 19.50

Miscellaneous Expense 635 19.50

Invoice: 23339

June 2 Advertising Expense 604 19.50

Cash 101 19.50

Check: ERROR

Invoice: 23339

June 3 Store Equipment and Fixtures 131 268.00

Store and Shop Supplies 127 115.42

Accounts Payable 201 383.42

Invoice: A4761

Vendor: 20110

Andregg Supply

June 4 Cash 101 10,125.00

Watercraft and Accessory Sales 401 9,375.00


Invoice: G4011

June 4 Cost of Goods Sold 501 7,500.00

Merchandise Inventory 115 7,500.00

Invoice: G4011

June 4 Petty Cash 102 50.00


Delivery Expense 606 18.75

Cash 101 92.25

Check: 31217

Invoice: PCASH

June 4 Allowance for Doubtful Accounts 106 1,005.50

Accounts Receivable 105 1,005.50

Invoice: WROFF

Customer: 11340

Buster Jenkins

June 4 Cash 101 1,090.00

Unearned Storage Fees 221 1,090.00

Invoice: G4012




June 5 Merchandise Inventory 115 3,564.00

Accounts Payable 201 3,564.00

Invoice: S2717

Vendor: 28600

Starlight Sports

June 6 Cash 101 525.00

Dividends Earned 713 525.00

Invoice: CASHD

June 6 Cash 101 623.59

Watercraft and Accessory Sales 401 421.40



Invoice: G4013

June 6 Cost of Goods Sold 501 210.70

Merchandise Inventory 115 210.70

Invoice: G4013


Transportation-In 505 100.00


Invoice: K4461

Vendor: 24500

Kawasaki USA

June 6 Accounts Receivable 105 349.27



Invoice: G4014

Customer: 11780

Royal Bar Jetters



Invoice: G4014

Customer: 11780

Royal Bar Jetters

June 7 Cash 101 15,120.00


Sales Tax Payable 205 1,120.00

Invoice: G4015



Invoice: G4015

June 7 Cash 101 25,000.00

Common Stock 301 25,000.00

Invoice: CMSTK

June 8 Accum. Deprec., Store Equip. and Fix. 132 950.00

Store Equipment and Fixtures 131 950.00

Invoice: DONAT




June 9 Advertising Expense 604 350.00

Cash 101 350.00

Check: 31218

Invoice: 90866

June 9 Dividends Payable 207 2,400.00

Cash 101 2,400.00

Check: 31219

Invoice: DIVPD




Answer Book

Granite Bay Jet Ski II Schedule of Accounts Receivable

Last Activity Date: June 6, 2008

Number Name Balance

10300 Arlene Burnet $ .00

10550 Browns Ravine Jet Skiers .00

10890 Sean Dee 75.25

10930 Folsom Lake Skimmers .00

11100 Charles Grubonski 17,650.00

11220 Isabelle Hart .00

11340 Buster Jenkins .00

11560 Chris Nelson 12,100.00

11640 Paul Owens 202.50

11685 Hazel Peske .00

11780 Royal Bar Jetters 851.27

11850 Sierra Jet Set .00

11960 Don Temple .00

11990 Waterrippers, Inc. 25,440.00

----------

Total Accounts Receivable $ 56,319.02

==========




Answer Book

Granite Bay Jet Ski II Schedule of Accounts Payable Last Activity Date: June 6, 2008

Number Name Balance

20110 Andregg Supply $ 498.92

20950 Bonnie's Marine Supply 2,725.00

22400 Clear Water, Inc. .00

24100 Jacoby, Incorporated .00

24500 Kawasaki USA 46,280.00

26950 Larson Sports Equipment 1,673.00

27400 Riordan Marine, Inc. .00

28600 Starlight Sports 3,564.00

29650 Water Dancer Jetcraft 19,305.00

----------

Total Accounts Payable $ 74,045.92

==========




Student Documents

for

June 10 – 16

Module 2

The student is required to print all documents shown for June 10 – 16 except the

General Journal entries.




Answer Book

Granite Bay Jet Ski II Trial Balance June 16, 2008


Petty Cash 100.00



Allowance for Doubtful Accounts 1,411.82









Trucks 42,300.00



Notes Payable 12,000.00

















Tools Expense 40.00

Dep. Expense, Store Equipment and Fix. 80.00















Gain on Short-Term Investments 2,260.00



Interest Expense 702.00

Loss on Sale/Disposal of Assets 195.00

---------- ----------

Total 684,958.44 684,958.44

========== ==========




Answer Book



----------------------------------------------------------------------------------

June 10 Dep. Expense, Store Equipment and Fix. 610 80.00

Accum. Deprec., Store Equip. and Fix. 132 80.00

Invoice: DEPRE

June 10 Cash 101 630.00

Accum. Deprec., Store Equip. and Fix. 132 1,280.00

Loss on Sale/Disposal of Assets 821 195.00

Store Equipment and Fixtures 131 2,105.00

Invoice: ASALE

June 10 Delivery Expense 606 124.60

Cash 101 124.60

Check: 31220

Invoice: R3449

June 10 Cash 101 7,460.00

Short-Term Investments 103 5,200.00

Gain on Short-Term Investments 731 2,260.00

Invoice: STINV

June 10 Accounts Receivable 105 1,330.00

Allowance for Doubtful Accounts 106 1,330.00

Invoice: RECOV

Customer: 11685

Hazel Peske

June 10 Cash 101 1,330.00


Invoice: RECOV

Customer: 11685

Hazel Peske

June 11 Accounts Payable 201 19,305.00

Discounts Lost 633 195.00

Cash 101 19,500.00

Check: 31221

Invoice: W6428

Vendor: 29650

Water Dancer Jetcraft

June 11 Cash 101 7,880.28

Credit Card Expense 607 243.72

Accts. Receivable, Credit Card Co. 107 8,124.00

Invoice: CC202

June 13 Shop Equipment 135 3,260.00




Cash 101 3,260.00

Check: 31222

Invoice: EXTRA

June 14 Cash 101 5,000.00




Invoice: G4016

Customer: 10300

Arlene Burnet



Invoice: G4016

Customer: 10300

Arlene Burnet



Invoice: K4461

Debit Memo: DM601

Vendor: 24500

Kawasaki USA

June 14 Salaries and Wages Expense 601 446.35

Cash 101 446.35

Check: 31223

Invoice: WAGES


Cash 101 5,000.00

Miscellaneous Revenue 741 80.00

Check: BADCK

Invoice: G4016

Customer: 10300

Arlene Burnet


Cash 101 3,564.00

Check: 31224

Invoice: S2771

Vendor: 28600

Starlight Sports


Cash 101 39,400.00

Check: 31225

Invoice: K4461

Vendor: 24500

Kawasaki USA

June 16 Cash 101 5,650.00


Invoice: G3906

Customer: 11100 Charles Grubonski




June 16 Cash 101 1,898.64




Invoice: G4017



Invoice: G4017

June 16 Cash 101 25,440.00


Invoice: G3954

Customer: 11990

Waterrippers, Inc.

June 16 Sales Returns and Allowances 402 78.40


Accounts Receivable 105 84.67

Invoice: G4014

Credit Memo: CM601

Customer: 11780

Royal Bar Jetters

June 16 Merchandise Inventory 115 39.20

Cost of Goods Sold 501 39.20

Invoice: G4014

Debit Memo: CM601

Customer: 11780

Royal Bar Jetters




Answer Book


Ledger Card

Account: 105 Accounts Receivable

Date Explanation Debit Credit Balance

June 2 Beginning Balance 56,975.25

June 4 11340 WROFF 1,005.50 55,969.75

June 6 11780 G4014 349.27 56,319.02

June 10 11685 RECOV 1,330.00 57,649.02

June 10 11685 RECOV 1,330.00 56,319.02

June 14 10300 G4016 7,852.00 64,171.02

June 15 BADCK 10300 G4016 5,080.00 69,251.02

June 16 11100 G3906 5,650.00 63,601.02

June 16 11990 G3954 25,440.00 38,161.02

June 16 11780 G4014 CM601 84.67 38,076.35




Answer Book


Ledger Card

Account: 107 Accounts Receivable, Credit Card Companies



June 11 CC202 8,124.00 0.00




Answer Book


Ledger Card

Account: 115 Merchandise Inventory



June 4 G4011 7,500.00 179,664.42

June 5 28600 S2717 3,564.00 183,228.42

June 6 G4013 210.70 183,017.72

June 6 24500 K4461 46,180.00 229,197.72

June 6 11780 G4014 161.70 229,036.02

June 7 G4015 11,200.00 217,836.02

June 14 10300 G4016 9,520.00 208,316.02

June 14 24500 K4461 DM601 6,880.00 201,436.02

June 16 G4017 1,188.00 200,248.02

June 16 11780 G4014 CM601 39.20 200,287.22




Answer Book


Ledger Card

Account: 201 Accounts Payable



June 3 20110 A4761 383.42 24,201.92

June 5 28600 S2717 3,564.00 27,765.92

June 6 24500 K4461 46,280.00 74,045.92

June 11 31221 29650 W6428 19,305.00 54,740.92

June 14 24500 K4461 DM601 6,880.00 47,860.92

June 15 31224 28600 S2771 3,564.00 44,296.92

June 16 31225 24500 K4461 39,400.00 4,896.92




Answer Book


Ledger Card

Account: 401 Watercraft and Accessory Sales



June 4 G4011 9,375.00 211,975.00

June 6 G4013 421.40 212,396.40

June 6 11780 G4014 323.40 212,719.80

June 7 G4015 14,000.00 226,719.80

June 14 10300 G4016 11,900.00 238,619.80

June 16 G4017 1,485.00 240,104.80




Answer Book


Ledger Card

Account: 501 Cost of Goods Sold



June 4 G4011 7,500.00 148,650.00

June 6 G4013 210.70 148,860.70

June 6 11780 G4014 161.70 149,022.40

June 7 G4015 11,200.00 160,222.40

June 14 10300 G4016 9,520.00 169,742.40

June 16 G4017 1,188.00 170,930.40

June 16 11780 G4014 CM601 39.20 170,891.20




Answer Book


Ledger Card

Account: 505 Transportation-In


June 2 Beginning Balance 504.00

June 6 24500 K4461 100.00 604.00




Answer Book


Ledger Card

Account: 606 Delivery Expense



June 4 31217 PCASH 18.75 541.50

June 10 31220 R3449 124.60 666.10




Answer Book



Number Name Balance

10300 Arlene Burnet $ 12,932.00


10890 Sean Dee 75.25





11560 Chris Nelson 12,100.00

11640 Paul Owens 202.50



11850 Sierra Jet Set .00


11990 Waterrippers, Inc. .00

----------


==========




Answer Book

Granite Bay Jet Ski II All Accounts Receivable Customers Number: 10300

Name: Arlene Burnet Address: 455 Sierra Blvd. Rocklin, CA Date Explanation Debit Credit Balance

______________________________________________________________________ June 2 Balance 0.00

June 14 G4016 7,852.00 7,852.00

June 15 G4016 BADCK 5,080.00 12,932.00 ______________________________________________________________________

Number: 10550

Name: Browns Ravine Jet Skiers

Address: 4455 Gold Pan St. Colfax, CA

Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 10890

Name: Sean Dee

Address: 100 Sierra Views Blvd. Roseville, CA

Date Explanation Debit Credit Balance ______________________________________________________________________ May 30 G4000 75.25 75.25 ______________________________________________________________________

Number: 10930

Name: Folsom Lake Skimmers

Address: 620 Riverside Drive Folsom, CA


Number: 11100

Name: Charles Grubonski

Address: 10 Gold Rush Plaza Orangevale, CA

Date Explanation Debit Credit Balance ______________________________________________________________________ May 3 G3906 17,650.00 17,650.00

June 16 G3906 5,650.00 12,000.00 ______________________________________________________________________

Number: 11220

Name: Isabelle Hart

Address: 356 Hill Rd. Auburn, CA





Number: 11340

Name: Buster Jenkins

Address: PO Box 267 Apple Hill, CA

Date Explanation Debit Credit Balance ______________________________________________________________________ March 5 G3697 1,005.50 1,005.50

June 4 WROFF 1,005.50 0.00 ______________________________________________________________________

Number: 11560

Name: Chris Nelson

Address: 124 Cedar Dr. Granite Bay, CA

Date Explanation Debit Credit Balance ______________________________________________________________________ May 29 G3995 12,100.00 12,100.00 ______________________________________________________________________

Number: 11640

Name: Paul Owens

Address: 1800 Ridge Road Loomis, CA

Date Explanation Debit Credit Balance ______________________________________________________________________ May 12 G3924 202.50 202.50 ______________________________________________________________________

Number: 11685

Name: Hazel Peske

Address: 900 Ranch Road Auburn, CA

Date Explanation Debit Credit Balance ______________________________________________________________________ June 2 Balance 0.00

June 10 RECOV 1,330.00 1,330.00

June 10 RECOV 1,330.00 0.00 ______________________________________________________________________

Number: 11780

Name: Royal Bar Jetters

Address: 10 Royal Bar Blvd. Penryn, CA

Date Explanation Debit Credit Balance ______________________________________________________________________ May 21 G3971 502.00 502.00

June 6 G4014 349.27 851.27

June 16 G4014 CM601 84.67 766.60 ______________________________________________________________________

Number: 11850

Name: Sierra Jet Set

Address: PO Box 341A Truckee, CA


Number: 11960

Name: Don Temple

Address: 1369 Laird Road Lommis, CA





______________________________________________________________________ June 2 Balance 0.00 ______________________________________________________________________

Number: 11990

Name: Waterrippers, Inc.

Address: 245 Redwing Ct. Penryn, CA


June 16 G3954 25,440.00 0.00 ______________________________________________________________________




Answer Book


Number Name Balance



22400 Clear Water, Inc. .00


24500 Kawasaki USA .00



28600 Starlight Sports .00

29650 Water Dancer Jetcraft .00

----------


==========




Answer Book

Vendor Data

Number: 20110 Name: Andregg Supply

Address: 100 Watt Avenue Sacramento, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ May 28 A4435 115.50 115.50

June 3 A4761 383.42 498.92 _______________________________________________________________________

Number: 20950

Name: Bonnie's Marine Supply

Address: 240 Shasta Lake Lane Redding, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 1 B9524 2,725.00 2,725.00 _______________________________________________________________________

Number: 22400

Name: Clear Water, Inc.

Address: 900 Stadium Drive Auburn, CA 2/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00 _______________________________________________________________________

Number: 24100

Name: Jacoby, Incorporated

Address: 3700 Gold Rush Ave. Gold Hill, Ca Net 10


Number: 24500

Name: Kawasaki USA

Address: 4772 Oak Drive Hover City, CA 2/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 Balance 0.00

June 6 K4461 46,280.00 46,280.00




June 14 K4461 DM601 6,880.00 39,400.00

June 16 31225 K4461 39,400.00 0.00 _______________________________________________________________________

Number: 26950

Name: Larson Sports Equipment

Address: 3588 Vista View Drive Eureka, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 2 M1201 1,673.00 1,673.00 _______________________________________________________________________

Number: 27400

Name: Riordan Marine, Inc.

Address: 5234 Almond Street Corning, Ca Net 30


Number: 28600

Name: Starlight Sports

Address: 2233 Starlight Rd. Red Bluff, Ca 1/10, n/30


June 5 S2717 3,564.00 3,564.00

June 15 31224 S2771 3,564.00 0.00 _______________________________________________________________________

Number: 29650

Name: Water Dancer Jetcraft

Address: 1560 Olive Hurst Ave. Oroville, CA 1/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ May 13 W6438 19,305.00 19,305.00

June 11 31221 W6428 19,305.00 0.00 _______________________________________________________________________




Answer Book


Inventory Item: JET SKI STX-15F Stock Number: A1100

Reorder Point: 5

Units Dr/Cr

Date In Out Check Vendor Customer Invoice Memo

Balance 5

June 04 1 CASH G4011

June 06 3 24500 K4461 ____________________________________________________________

Beginning Units: 5 Unit Balance: 7

Units In: 3 Unit Cost: 7,500.00

Units Out: 1 FIFO Value: 52,500.00 ____________________________________________________________




Answer Book


Inventory Item: JET SKI 800 SX-R Stock Number: AS888

Reorder Point: 3

Units Dr/Cr


Balance 4

June 14 2 10300 G4016 ____________________________________________________________







Answer Book


Inventory Item: JET SKI ULTRA 150 Stock Number: AU150

Reorder Point: 2

Units Dr/Cr


Balance 3

June 06 1 24500 K4461

June 14 1 24500 K4461 DM601 ____________________________________________________________







Answer Book


Inventory Item: JS BATTERY Stock Number: KW001

Reorder Point: 3

Units Dr/Cr


Balance 3 ____________________________________________________________


Units In: 0 Unit Cost: 29.40

Units Out: 0 FIFO Value: 88.20 ____________________________________________________________




Answer Book


Inventory Item: NOZZEL EXTENSION Stock Number: KW003

Reorder Point: 2

Units Dr/Cr


Balance 2


June 06 1 11780 G4014 ____________________________________________________________







Answer Book


Inventory Item: ZXi FUEL TANK Stock Number: KW800

Reorder Point: 2

Units Dr/Cr


Balance 4 ____________________________________________________________







Answer Book


Inventory Item: GRANITE BAY CAPS Stock Number: R1500

Reorder Point: 9

Units Dr/Cr


Balance 35 ____________________________________________________________







Mid Project Evaluation

Questions and Answers




MID-PROJECT EVALUATION NAME_______________________________________

GRANITE BAY JET SKI II CLASS DAY AND TIME__________DATE________

1. Do the totals on your Trial Balance match the figures shown in the Y

"Check It Out" box? Answer Y for Yes or N for No.

2. What was the correct balance of the Cash account at the close of $40,421.82

business on June 4? On the web-based examinations show all dollar amounts and inventory counts in a numeric format.)

3. On the Cash ledger card, what item was paid with check number B

31223?

A. Petty Cash B. Wages C. Accounts Payable D. Accounts Receivable E. None of the above

4. On June 16 what invoice was paid in full with check number 31225? K4461

5. What has been the cost to Granite Bay Jet Ski, Inc., for customer use $1,355.72

of credit cards?

6. How much have freight costs for the purchase of merchandise added $604.00

to the Cost of Goods Sold?

7. How much has it cost Granite Bay Jet Ski, Inc., to send merchandise $666.10

to customers?

8. Identify by customer number, the customer that made a partial cash 11100

payment on invoice G3906?

9. What date was the payment made on invoice G3906? D

A. June 13 B. June 14 C. June 15 D. June 16 E. None of the above

10. Does the balance of the Schedule of Accounts Receivable match the Y balance of the Accounts Receivable account? Answer Y for Yes or N for No




MID-PROJECT EVALUATION GRANITE BAY JET SKI II

11. What is the balance of Sean Dee’s account? $75.25

12. How many customers currently have outstanding account balances? C

A. 2 B. 4 C. 6 D. 7 E. None of the above

13. If Granite Bay Jet Ski, Inc., extends 30-day credit to all charge B

customers, which customer currently has the largest past-due

account over 30 days)?

A. Burnet

B. Grobonski

C. Jenkins

D. Nelson

E. None of the above

14. What was the balance of the Kawaski USA account after the $39,400.00

recording of the debit memo?

15. If the control system in place for handling invoices had been B

followed, the Water Dancer Jet Craft invoice W6438) should have

been paid by what date?

A. May 22 B. May 23 C. May 24 D. June 2 E. None of the above

16. Granite Bay Jet Ski attempts to pay all invoices on time to take every E discount. On what date is the May 28 invoice from Andregg Supply invoice due and payable?

A. June 26 B. June 28 C. July 3 D. July 5 E. None of the above





17. If the Kawasaki, USA invoice K4461, was recorded net terms of E

2/10, n/30), and after the debit memorandum, was paid on June 16,

how much was saved by earning the discount?

A. $944.49

B. $925.60

C. $834.66

D. $744.49


18. What is the last date the balance owed to Larson Sports is due and C

payable?

A. June 30

B. July 1

C. July 2

D. July 5


19. Are any of the current Accounts Payable account balances past due? N Answer Y for Yes or N for No.

20. How many inventory items are at or below the reorder point? 10

21. How many inventory items are currently “out of stock”? 3

22. If all of the R1500 Granite Bay Caps currently in stock were sold, $200,147.22

what would be the new value of the June 16 total ending inventory?

23. Should a purchase order be sent to Kawasaki, USA for additional Y

inventory of batteries KW001)? Answer Y for Yes or N for No.

24. To what inventory item has stock number KW800 been assigned? A

A. ZXi Fuel Tank B. Pad Kit C. Granite Bay Bag D. Stage 2 Kit E. None of the above





25. On the inventory stock card how many units of stock number AU150 E

are listed as returned to the vendor?

A. 2

B. 3

C. 4

D. 5


26. How many AS888 Jet Ski units have been sold since you began 2

working on this project?

27. One order of Jet Ski STX-15F A1100) has been received since June A

2. The jet skies were purchased on account from which vendor?

A. 24500

B. 26950

C. 27400

D. 28600


28. How many KW003 units were sold on June 06? C

A. 5

B. 4

C. 2

D. 1


29. When a credit customer returns merchandise, what document is issued B

to the customer by Granite Bay Jet Ski?

A. debit memorandum

B. credit memorandum

C. an invoice

D. a check


30. When Granite Bay Jet Ski returns merchandise to a vendor, what A

document accompanies that merchandise on the return?

A. debit memorandum B. a check C. an invoice D. a credit memorandum E. None of the above




Answer Book

MID PROJECT EVALUATION ANSWER KEY Granite Bay Jet Ski II

Score:

Question Your Number Answer ----------------------------------------------------------------------

1. Do the totals on your Trial Balance match the Y

figures shown in the `Check It Out` box? Answer Y

for Yes and N for No.

2. What was the correct balance of the Cash account $40,421.82

at the close of business on June 4? On the

web-based examinations show all dollar amounts

and inventory counts in a numeric format.)

3. On the Cash ledger card, what item was paid with B

check number 31223? A) Petty Cash B) Wages C) Accounts Payable D) Accounts Receivable E) None of the above

4. On June 16 what invoice was paid in full with K4461

check number 31225?

5. What has been the cost to Granite Bay Jet Ski, $1,355.72

Inc., for customer use of credit cards?

6. How much have freight costs for the purchase of $604.00

merchandise added to the Cost of Goods Sold?

7. How much has it cost Granite Bay Jet Ski, Inc., $666.10

to send merchandise to customers?

8. Identify by customer number, the customer that 11100

made a partial cash payment on invoice G3906?

9. What date was the payment made on invoice G3906?D A) June 13 B) June 14 C) June 15 D) June 16 E) None of the above

10. Does the balance of the Schedule of Accounts Y

Receivable match the balance of the Accounts

Receivable account? Answer Y for Yes or N for No




11. What is the balance of Sean Dee’s account? $75.25

12. How many customers currently have outstanding C

account balances? A) 2 B) 4 C) 6 D) 7 E) None of the above

13. If Granite Bay Jet Ski, Inc., extends 30-day B

credit to all charge customers, which customer

currently has the largest past-due account over 30 days)?

A) Burnet B) Grobonski C) Jenkins D) Nelson E) None of the above

14. What was the balance of the Kawaski USA account $39,400.00

after the recording of the debit memo?

15. If the control system in place for handling B

invoices had been followed, the Water Dancer Jet Craft invoice W6438) should have been paid by what date?

A) May 22 B) May 23 C) May 24 D) June 2 E) None of the above

16. Granite Bay Jet Ski attempts to pay all invoices E

on time to take every discount. On what date is

the May 28 invoice from Andregg Supply invoice

due and payable? A) June 26 B) June 28 C) July 3 D) July 5 E) None of the above

17. If the Kawasaki, USA invoice K4461, was recorded E

net terms of 2/10, n/30), and after the debit

memorandum, was paid on June 16, how much was

saved by earning the discount?

A) $944.49

B) $925.60

C) $834.66

D) $744.49

E) None of the above

18. What is the last date the balance owed to Larson C

Sports is due and payable?

A) June 30




B) July 1 C) July 2 D) July 5 E) None of the above

19. Are any of the current Accounts Payable account N

balances past due? Answer Y for Yes or N for No.

20. How many inventory items are at or below the 10

reorder point?

21. How many inventory items are currently `out of 3

stock`?

22. If all of the R1500 Granite Bay Caps currently in $200,147.22

stock were sold, what would be the new value of

the June 16 total ending inventory?

23. Should a purchase order be sent to Kawasaki, USA Y

for additional inventory of batteries KW001)?

Answer Y for Yes or N for No.

24. To what inventory item has stock number KW800 A

been assigned? A) ZXi Fuel Tank B) Pad Kit C) Granite Bay Bag D) Stage 2 Kit E) None of the above

25. On the inventory stock card how many units of E

stock number AU150 are listed as returned to the

vendor?

A) 2

B) 3

C) 4

D) 5


26. How many AS888 Jet Ski units have been sold since 2

you began working on this project?

27. One order of Jet Ski STX-15F A1100) has been A

received since June 2. The Jet Skies were

purchased on account from which vendor? A) 24500 B) 26950 C) 27400 D) 28600 E) None of the above

28. How many KW003 units were sold on June 06? C A) 5 B) 4 C) 2 D) 1


Granite Bay Jet Ski, Inc., Level II Answer Book Copyright © 2010 - 2020 PKL Software, Incorporated. All rights

reserved. www.pklsoftware.com Last Revised: January 18,

2020


29. When a credit customer returns merchandise, what B document is issued to the customer by Granite Bay Jet Ski?

A) debit memorandum B) credit memorandum C) an invoice D) a check E) None of the above

30. When Granite Bay Jet Ski returns merchandise to a A vendor, what document accompanies that merchandise on the return?

A) debit memorandum B) a check C) an invoice D) a credit memorandum E) None of the above




Student Documents

for

June 17 – 23

Module 3





Answer Book



Petty Cash 100.00




Accts. Receivable, Credit Card Co. 692.55

Notes Receivable 10,000.00









Trucks 55,005.00



















Tools Expense 40.00


Depreciation Expense, Shop Equipment 260.00

Depreciation Expense, Trucks 240.00


















Gain on Sale of Assets 210.00




Interest Expense 1,032.00


---------- ----------

Total 716,984.04 716,984.04

========== ==========




Answer Book



----------------------------------------------------------------------------------

June 17 Notes Payable 203 12,000.00

Interest Expense 813 330.00

Cash 101 12,330.00

Check: 31226

Invoice: NTPAY




Invoice: G4018

Customer: 11850

Sierra Jet Set



Invoice: G4018

Customer: 11850

Sierra Jet Set

June 19 Cash 101 1,200.00

Unearned Storage Fees 221 1,200.00

Invoice: G4019

June 20 Cash 101 417.33


Invoice: G3971

Customer: 11780

Royal Bar Jetters

June 20 Accts. Receivable, Credit Card Co. 107 692.55




Invoice: G4020



Invoice: G4020

June 21 Depreciation Expense, Trucks 612 240.00

Accumulated Depreciation, Trucks 140 240.00

Invoice: DEPRE

June 21 Trucks 139 17,505.00

Accumulated Depreciation, Trucks 140 3,420.00

Cash 101 16,125.00




Trucks 139 4,800.00

Check: 31227

Invoice: W3571

June 21 License Expense 628 510.00

Cash 101 510.00

Check: 31228

Invoice: DMV06

June 21 Store Equipment and Fixtures 131 5,054.40

Cash 101 5,054.40

Check: 31229

Invoice: 79002



Invoice: M3093

Vendor: 26950

Larson Sports Equipment

June 22 Store and Shop Supplies 127 635.40


Invoice: A5049

Vendor: 20110

Andregg Supply

June 22 Cash 101 13,922.00

Notes Receivable 109 10,000.00



Invoice: G4021



Invoice: G4021



Invoice: C5217

Vendor: 22400

Clear Water, Inc.

June 23 Cash 101 5,080.00


Invoice: BADCK

Customer: 10300

Arlene Burnet

June 23 Accounts Payable 201 38.90


Invoice: A5049

Vendor: 20110

Andregg Supply

June 23 Depreciation Expense, Shop Equipment 611 260.00

Accum. Depreciation, Shop Equipment 136 260.00

Invoice: DEPRE




June 23 Cash 101 320.00

Accum. Depreciation, Shop Equipment 136 2,090.00

Shop Equipment 135 2,200.00

Gain on Sale of Assets 721 210.00

Invoice: ASALE




Answer Book



Number Name Balance

10300 Arlene Burnet $ 7,852.00


10890 Sean Dee 75.25





11560 Chris Nelson 12,100.00

11640 Paul Owens 202.50



11850 Sierra Jet Set 21,250.35



----------


==========




Answer Book


Number Name Balance

20110 Andregg Supply $ 1,095.42


22400 Clear Water, Inc. 529.20


24500 Kawasaki USA .00



28600 Starlight Sports .00


----------


==========




Student Documents

for

June 24 – 30

Module 4





Answer Book



Petty Cash 100.00














Trucks 55,005.00















Truck and Equipment Operating Exp. 1,263.65




Tools Expense 40.00












\













---------- ----------

Total 746,962.31 746,962.31

========== ==========




Answer Book



----------------------------------------------------------------------------------

June 24 Truck and Equipment Operating Exp. 603 363.70

Cash 101 363.70

Check: 31230

Invoice: 67676

June 24 Advertising Expense 604 1,375.00

Cash 101 1,375.00

Check: 31231

Invoice: W3200

June 24 Professional Services Expense 629 505.00

Cash 101 505.00

Check: 31232

Invoice: P1764

June 24 Prepaid Insurance 121 1,800.00

Cash 101 1,800.00

Check: 31233

Invoice: 66633



Invoice: K5050

Vendor: 24500

Kawasaki USA

June 25 Cash 101 9,099.00



Invoice: G4022



Invoice: G4022

June 25 Cash 101 12,000.00


Invoice: G3906

Customer: 11100

Charles Grubonski

June 26 Accounts Receivable 105 529.20



Invoice: G4023

Customer: 11560




Chris Nelson



Invoice: G4023

Customer: 11560

Chris Nelson

June 27 Sales Tax Payable 205 8,751.03

Cash 101 8,751.03

Check: 31234

Invoice: TAXES

June 27 Accounts Payable 201 115.50

Cash 101 115.50

Check: 31235

Invoice: A4435

Vendor: 20110

Andregg Supply

June 28 Cash 101 700.00

Unearned Storage Fees 221 700.00

Invoice: G4024



Invoice: S3488

Vendor: 28600

Starlight Sports

June 29 Accts. Receivable, Credit Card Co. 107 14,701.50



Invoice: G4025



Invoice: G4025

June 28 Delivery Expense 606 287.00


Invoice: J1400

Vendor: 24100

Jacoby, Incorporated

June 28 Cash 101 280.80



Invoice: G4026

June 28 Cash 101 12,100.00


Invoice: G3995

Customer: 11560

Chris Nelson





Cash 101 409.06

Check: 31236

Invoice: WAGES

June 30 Store and Shop Supplies 127 87.50


Cash Short and Over 631 3.05

Cash 101 98.05

Check: 31237

Invoice: PCASH

June 30 Cash 101 11,225.00

Short-Term Investments 103 8,000.00


Invoice: INVST

June 30 Sales Returns and Allowances 402 58.80



Invoice: G4023

Credit Memo: CM602

Customer: 11560

Chris Nelson


Cost of Goods Sold 501 29.40

Invoice: G4023

Debit Memo: CM602

Customer: 11560

Chris Nelson

June 30 Cash 101 63.80

Interest Earned 711 63.80

Invoice: BKS06

June 30 Credit Card Expense 607 338.35

Bank Service Charges 627 45.60

Cash 101 383.95

Check: BKS06

Invoice: BKS06




Answer Book



Number Name Balance



10890 Sean Dee 75.25


11100 Charles Grubonski .00



11560 Chris Nelson 465.70

11640 Paul Owens 202.50






----------


==========




Answer Book


Number Name Balance




24100 Jacoby, Incorporated 287.00

24500 Kawasaki USA 2,107.00





----------


==========




BANK RECONCILIATION NAME__________________________

GRANITE BAY JET SKI INCORPORATED SECTION_________DATE________

BANK RECONCILIATION

GRANITE BAY JET SKI INCORPORATED

JUNE 30

Book Balance: $81,841.77

Add: Interest Earned 63.80

Total $81,905.57

Deduct: Bank Service Charge $45.60

Credit Card Expense $338.35

$383.95

Reconciled Book Balance $81,521.62

==============

Bank Balance: $70,919.23

Add: Late Deposit $11,225.00

Total $82,144.23

Deduct: Outstanding Checks

Check No. 31235 $115.50

Check No. 31236 $409.06

Check No. 31237 $98.05 $622.61

Reconciled Bank Balance $81,521.62

==============




Answer Book

Granite Bay Jet Ski II Trial Balance After Bank Reconcilation June 30, 2008


Petty Cash 100.00














Trucks 55,005.00



















Tools Expense 40.00
























---------- ----------

Total 747,026.11 747,026.11

========== ==========




Student Documents

for

Adjusting and Closing Entries

Module 5 The student is required to print all documents shown for Adjusting and Closing entries

except the General Journal entries.




Answer Book

Granite Bay Jet Ski II Adjusted Trial Balance June 30, 2009


Petty Cash 100.00






Interest Receivable 18.89



Prepaid Advertising 985.00






Trucks 55,005.00




Salaries and Wages Payable 96.05

Income Taxes Payable 2,640.00









Storage Fees Earned 10,450.00




Store and Shop Supplies Expense 1,651.92





Tools Expense 40.00

Dep. Expense, Store Equipment and Fix. 2,330.00

Depreciation Expense, Shop Equipment 1,640.00



Insurance Expense 2,395.00

Bad Debt Expense 778.68




Property Tax Expense 650.00

















---------- ----------

Total 754,525.73 754,525.73

========== ==========




Answer Book


General Journal

Date Accounts and Explanation PR Debit Credit ----------------------------------------------------------------------------------

June 30 Insurance Expense 622 2,395.00

Prepaid Insurance 121 2,395.00

Adjusting Entry

June 30 Store and Shop Supplies Expense 602 1,651.92

Store and Shop Supplies 127 1,651.92

Adjusting Entry

June 30 Prepaid Advertising 125 985.00

Advertising Expense 604 985.00

Adjusting Entry

June 30 Property Tax Expense 624 650.00

Prepaid Property Tax 124 650.00

Adjusting Entry


Salaries and Wages Payable 209 96.05

Adjusting Entry

June 30 Unearned Storage Fees 221 10,450.00

Storage Fees Earned 421 10,450.00

Adjusting Entry

June 30 Dep. Expense, Store Equipment and Fix. 610 2,250.00

Accum. Deprec., Store Equip. and Fix. 132 2,250.00

Adjusting Entry

June 30 Depreciation Expense, Shop Equipment 611 1,380.00

Accum. Depreciation, Shop Equipment 136 1,380.00

Adjusting Entry

June 30 Depreciation Expense, Trucks 612 336.00

Accumulated Depreciation, Trucks 140 336.00

Adjusting Entry

June 30 Interest Receivable 113 18.89


Adjusting Entry

June 30 Income Taxes Expense 811 2,640.00

Income Taxes Payable 213 2,640.00

Adjusting Entry

June 30 Credit Card Expense 607 461.82

Accts. Receivable, Credit Card Co. 107 461.82




Adjusting Entry

June 30 Bad Debt Expense 623 778.68

Allowance for Doubtful Accounts 106 778.68

Adjusting Entry




Answer Book



----------------------------------------------------------------------------------

June 30 Watercraft and Accessory Sales 401 304,888.55

Service Fees Earned 411 9,112.75

Storage Fees Earned 421 10,450.00


Dividends Earned 713 638.00

Gain on Sale of Assets 721 210.00


Miscellaneous Revenue 741 100.00

Income Summary 901 331,183.99

Closing Entry

June 30 Income Summary 901 284,218.70

Sales Returns and Allowances 402 2,254.20

Cost of Goods Sold 501 222,412.80

Transportation-In 505 604.00

Salaries and Wages Expense 601 15,681.96

Store and Shop Supplies Expense 602 1,651.92

Truck and Equipment Operating Exp. 603 1,263.65

Advertising Expense 604 2,573.50

Delivery Expense 606 953.10

Credit Card Expense 607 2,155.89

Tools Expense 608 40.00

Dep. Expense, Store Equipment and Fix. 610 2,330.00

Depreciation Expense, Shop Equipment 611 1,640.00

Depreciation Expense, Trucks 612 576.00

Rent Expense 621 15,600.00

Insurance Expense 622 2,395.00

Bad Debt Expense 623 778.68

Property Tax Expense 624 650.00

Electricity and Gas Expense 625 877.05

Telephone Expense 626 423.00

Bank Service Charges 627 120.60

License Expense 628 926.00

Professional Services Expense 629 908.00

Cash Short and Over 631 21.05

Discounts Lost 633 230.00


Income Taxes Expense 811 5,890.00

Interest Expense 813 1,032.00

Loss on Sale/Disposal of Assets 821 195.00

Closing Entry

June 30 Income Summary 901 46,965.29

Retained Earnings 305 46,965.29

Closing Entry




June 30 Retained Earnings 305 2,400.00

Dividends Declared 311 2,400.00

Closing Entry




Answer Book


Income Statement

For the Quarter Ended June 30, 2009

Revenues: Watercraft and Accessory Sales $ 304,888.55

Less: Sales Returns and Allowances 2,254.20

----------

Net Sales $ 302,634.35

----------

Cost of Goods Sold:

Cost of Goods Sold $ 222,412.80


----------

Total Cost of Good Sold 223,016.80

----------

Gross Profit From Sales $ 79,617.55

Fees Earned: Service Fees Earned $ 9,112.75

Storage Fees Earned 10,450.00

----------

Total Fees Earned 19,562.75

----------

Total Gross Profit From Sales and Fees Earned $ 99,180.30

----------

Operating Expenses:

Selling Expenses:

Salaries and Wages Expense $ 15,681.96

Store and Shop Supplies Expense 1,651.92

Truck and Equipment Operating Expense 1,263.65




Tools Expense 40.00

Depreciation Expense, Store & Shop Equipment 2,330.00

Depreciation Expense, Shop Equipment 1,640.00


----------

Total Selling Expense $ 28,866.02

----------

General and Adminstrative Expenses:

Rent Expense $ 15,600.00

Insurance Expense 2,395.00

Bad Debt Expense 778.68

Property Tax Expense 650.00












----------

Total General and Adminstrative Expenses $ 22,964.68

----------

Total Operating Expenses $ 51,830.70

----------

Income From Operations $ 47,349.60

----------

Other Revenues and Expenses:

Interest Earned $ 299.69





----------

Total Other Revenues: $ 6,732.69

----------

Income Taxes Expense $ 5,890.00



Loss on Short-Term Investments 0.00

----------

Total Other Expenses: $ 7,117.00

---------- Net Other Expenses 384.31

---------- Net Income $ 46,965.29

==========




Answer Book

Granite Bay Jet Ski II Balance Sheet

June 30, 2009

ASSETS Current Assets:

Cash $ 81,521.62

Petty Cash 100.00


Accounts Receivable $ 30,195.07


----------

Net Realizable Value of Accounts Receivable 28,004.57

Accts. Rec., Credit Card Comp. 14,932.23








----------

Total Current Assets $ 303,434.13

Plant and Equipment Store Equipment and Fixtures $ 71,967.40

Accumulated Depreciation 14,620.00

----------

Book Value $ 57,347.40

---------- Shop Equipment 35,310.00


----------


----------

Trucks 55,005.00


----------


----------

Total Plant and Equipment 135,956.40

----------

Total Assets $ 439,390.53

==========

LIABILITIES

Current Liabilities Accounts Payable $ 16,856.12 Notes Payable 0.00


Dividends Payable 0.00


Estimated Property Tax Payable 0.00





Interest Payable 0.00


----------

Total Current Liabilities $ 26,600.47


----------

Total Liabilities $ 96,600.47

STOCKHOLDERS'EQUITY Common Stock $ 225,000.00


----------

Total Stockholder's Equity 342,790.06

----------

Total Liabilities and Owner's Equity $ 439,390.53

==========




Answer Book

Granite Bay Jet Ski II Retained Earnings Statement For the Quarter Ended June 30, 2009 --------------------------------------------------------------------------- Retained earnings, March 31, 2009 $ 73,224.77

Add: Net Income $ 46,965.29

Less: Dividends declared 2,400.00 ----------

Net increase in retained earnings 44,565.29

----------

Retained earnings, June 30, 2009 $ 117,790.06

==========




Answer Book



Number Name Balance



10890 Sean Dee 75.25


11100 Charles Grubonski .00



11560 Chris Nelson 465.70

11640 Paul Owens 202.50






----------


==========




Answer Book

Granite Bay Jet Ski II All Accounts Receivable Customers Number: 10300

Name: Arlene Burnet Address: 455 Sierra Blvd. Rocklin, CA Date Explanation Debit Credit Balance

______________________________________________________________________ June 2 Balance 0.00

June 14 G4016 7,852.00 7,852.00

June 15 G4016 BADCK 5,080.00 12,932.00

June 23 BADCK 5,080.00 7,852.00 ______________________________________________________________________

Number: 10550

Name: Browns Ravine Jet Skiers

Address: 4455 Gold Pan St. Colfax, CA


Number: 10890

Name: Sean Dee

Address: 100 Sierra Views Blvd. Roseville, CA


______________________________________________________________________

Number: 10930

Name: Folsom Lake Skimmers

Address: 620 Riverside Drive Folsom, CA

Date Explanation Debit Credit Balance ______________________________________________________________________

June 2 Balance 0.00 ______________________________________________________________________

Number: 11100

Name: Charles Grubonski

Address: 10 Gold Rush Plaza Orangevale, CA Date Explanation Debit Credit Balance

______________________________________________________________________ May 3 G3906 17,650.00 17,650.00

June 16 G3906 5,650.00 12,000.00

June 25 G3906 12,000.00 0.00 ______________________________________________________________________

Number: 11220

Name: Isabelle Hart

Address: 356 Hill Rd. Auburn, CA





______________________________________________________________________

Number: 11340

Name: Buster Jenkins

Address: PO Box 267 Apple Hill, CA


______________________________________________________________________ March 5 G3697 1,005.50 1,005.50

June 4 WROFF 1,005.50 0.00 ______________________________________________________________________

Number: 11560

Name: Chris Nelson

Address: 124 Cedar Dr. Granite Bay, CA


______________________________________________________________________ May 29 G3995 12,100.00 12,100.00

June 26 G4023 529.20 12,629.20

June 28 G3995 12,100.00 529.20

June 30 G4023 CM602 63.50 465.70 ______________________________________________________________________

Number: 11640

Name: Paul Owens

Address: 1800 Ridge Road Loomis, CA Date Explanation Debit Credit Balance

______________________________________________________________________ May 12 G3924 202.50 202.50 ______________________________________________________________________

Number: 11685

Name: Hazel Peske Address: 900 Ranch Road Auburn, CA


June 10 RECOV 1,330.00 1,330.00

June 10 RECOV 1,330.00 0.00 ______________________________________________________________________

Number: 11780

Name: Royal Bar Jetters

Address: 10 Royal Bar Blvd. Penryn, CA


June 6 G4014 349.27 851.27

June 16 G4014 CM601 84.67 766.60

June 19 G3971 417.33 349.27 ______________________________________________________________________

Number: 11850

Name: Sierra Jet Set

Address: PO Box 341A Truckee, CA





June 18 G4018 21,250.35 21,250.35 ______________________________________________________________________

Number: 11960

Name: Don Temple

Address: 1369 Laird Road Lommis, CA


______________________________________________________________________

Number: 11990

Name: Waterrippers, Inc.

Address: 245 Redwing Ct. Penryn, CA


June 16 G3954 25,440.00 0.00

______________________________________________________________________




Answer Book


Number Name Balance




24100 Jacoby, Incorporated 287.00

24500 Kawasaki USA 2,107.00





----------


==========




Answer Book

Granite Bay Jet Ski II Vendor Data

Number: 20110 Name: Andregg Supply

Address: 100 Watt Avenue Sacramento, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ May 28 A4435 115.50 115.50

June 3 A4761 383.42 498.92

June 22 A5049 635.40 1,134.32

June 23 A5049 38.90 1,095.42

June 27 31235 A4435 115.50 979.92 _______________________________________________________________________

Number: 20950

Name: Bonnie's Marine Supply

Address: 240 Shasta Lake Lane Redding, CA Net 30

Date Explanation Debit Credit Balance _______________________________________________________________________ June 1 B9524 2,725.00 2,725.00 _______________________________________________________________________

Number: 22400

Name: Clear Water, Inc. Address: 900 Stadium Drive Auburn, CA 2/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________

June 2 Balance 0.00

June 23 C5217 529.20 529.20 _______________________________________________________________________

Number: 24100

Name: Jacoby, Incorporated Address: 3700 Gold Rush Ave. Gold Hill, Ca Net 10


June 28 J1400 287.00 287.00 _______________________________________________________________________

Number: 24500

Name: Kawasaki USA

Address: 4772 Oak Drive Hover City, CA 2/10, n/30





_______________________________________________________________________ June 2 Balance 0.00

June 6 K4461 46,280.00 46,280.00

June 14 K4461 DM601 6,880.00 39,400.00

June 16 31225 K4461 39,400.00 0.00

June 24 K5050 2,107.00 2,107.00 _______________________________________________________________________

Number: 26950

Name: Larson Sports Equipment

Address: 3588 Vista View Drive Eureka, CA Net 30


_______________________________________________________________________ June 2 M1201 1,673.00 1,673.00

June 21 M3093 635.00 2,308.00 _______________________________________________________________________

Number: 27400

Name: Riordan Marine, Inc.

Address: 5234 Almond Street Corning, Ca Net 30


Number: 28600

Name: Starlight Sports Address: 2233 Starlight Rd. Red Bluff, Ca 1/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________

June 2 Balance 0.00

June 5 S2717 3,564.00 3,564.00

June 15 31224 S2771 3,564.00 0.00

June 28 S3488 7,920.00 7,920.00

_______________________________________________________________________

Number: 29650

Name: Water Dancer Jetcraft

Address: 1560 Olive Hurst Ave. Oroville, CA 1/10, n/30

Date Explanation Debit Credit Balance _______________________________________________________________________ May 13 W6438 19,305.00 19,305.00

June 11 31221 W6428 19,305.00 0.00 _______________________________________________________________________




Answer Book


Inventory Item: JET SKI STX-15F Stock Number: A1100

Reorder Point: 5

Units Dr/Cr


Balance 5


June 06 3 24500 K4461 ____________________________________________________________







Answer Book


Inventory Item: JET SKI 900 STX Stock Number: A900T

Reorder Point: 3

Units Dr/Cr


Balance 4

June 06 3 24500 K4461

June 07 2 CASH G4015 ____________________________________________________________







Answer Book


Inventory Item: STARLIGHT TRAILER T Stock Number: AL800

Reorder Point: 2

Units Dr/Cr


Balance 0

June 05 3 28600 S2717

June 16 1 CASH G4017 ____________________________________________________________







Answer Book


Inventory Item: JET SKI ULTRA 150 Stock Number: AU150

Reorder Point: 2

Units Dr/Cr


Balance 3

June 06 1 24500 K4461

June 14 1 24500 K4461 DM601

June 22 2 CASH G4021 ____________________________________________________________







Answer Book


Inventory Item: JS BATTERY Stock Number: KW001

Reorder Point: 3

Units Dr/Cr


Balance 3

June 24 30 24500 K5050

June 26 3 11560 G4023

June 30 1 11560 G4023 CM602 ____________________________________________________________







Answer Book


Inventory Item: NOZZEL EXTENSION Stock Number: KW003

Reorder Point: 2

Units Dr/Cr


Balance 2


June 06 1 11780 G4014

June 24 10 24500 K5050 ____________________________________________________________







Answer Book

Granite Bay Jet Ski II Post-Closing Trial Balance June 30, 2009


Petty Cash 100.00













Shop Equipment 35,310.00 Accum. Depreciation, Shop Equipment 7,300.00

Trucks 55,005.00










---------- ----------

Total 467,907.03 467,907.03

========== ==========




Answer Book


Ledger Card

Account: 101 Cash



June 3 G4010 105.30 29,299.07

June 2 23339 19.50 29,318.57

June 2 ERROR 23339 19.50 29,299.07

June 4 G4011 10,125.00 39,424.07

June 4 31217 PCASH 92.25 39,331.82

June 4 G4012 1,090.00 40,421.82

June 6 CASHD 525.00 40,946.82

June 6 G4013 623.59 41,570.41

June 7 G4015 15,120.00 56,690.41

June 7 CMSTK 25,000.00 81,690.41

June 9 31218 90866 350.00 81,340.41

June 9 31219 DIVPD 2,400.00 78,940.41

June 10 ASALE 630.00 79,570.41

June 10 31220 R3449 124.60 79,445.81

June 10 STINV 7,460.00 86,905.81

June 10 11685 RECOV 1,330.00 88,235.81

June 11 31221 29650 W6428 19,500.00 68,735.81

June 11 CC202 7,880.28 76,616.09

June 13 31222 EXTRA 3,260.00 73,356.09

June 14 10300 G4016 5,000.00 78,356.09

June 14 31223 WAGES 446.35 77,909.74

June 15 BADCK 10300 G4016 5,000.00 72,909.74

June 15 31224 28600 S2771 3,564.00 69,345.74

June 16 31225 24500 K4461 39,400.00 29,945.74

June 16 11100 G3906 5,650.00 35,595.74

June 16 G4017 1,898.64 37,494.38

June 16 11990 G3954 25,440.00 62,934.38

June 17 31226 NTPAY 12,330.00 50,604.38

June 19 G4019 1,200.00 51,804.38

June 19 11780 G3971 417.33 52,221.71

June 21 31227 W3571 16,125.00 36,096.71

June 21 31228 DMV06 510.00 35,586.71

June 21 31229 79002 5,054.40 30,532.31

June 22 G4021 13,922.00 44,454.31

June 23 10300 BADCK 5,080.00 49,534.31

June 23 ASALE 320.00 49,854.31

June 24 31230 67676 363.70 49,490.61

June 24 31231 W3200 1,375.00 48,115.61

June 24 31232 P1764 505.00 47,610.61

June 24 31233 66633 1,800.00 45,810.61

June 25 G4022 9,099.00 54,909.61

June 25 11100 G3906 12,000.00 66,909.61

June 27 31234 TAXES 8,751.03 58,158.58

June 27 31235 20110 A4435 115.50 58,043.08

June 28 G4024 700.00 58,743.08




June 28 G4026 280.80 59,023.88

June 28 11560 G3995 12,100.00 71,123.88

June 29 31236 WAGES 409.06 70,714.82

June 30 31237 PCASH 98.05 70,616.77

June 30 INVST 11,225.00 81,841.77

June 30 BKS06 63.80 81,905.57

June 30 BKS06 BKS06 383.95 81,521.62




Answer Book


Ledger Card

Account: 105 Accounts Receivable



June 4 11340 WROFF 1,005.50 55,969.75

June 6 11780 G4014 349.27 56,319.02

June 10 11685 RECOV 1,330.00 57,649.02

June 10 11685 RECOV 1,330.00 56,319.02

June 14 10300 G4016 7,852.00 64,171.02

June 15 BADCK 10300 G4016 5,080.00 69,251.02

June 16 11100 G3906 5,650.00 63,601.02

June 16 11990 G3954 25,440.00 38,161.02

June 16 11780 G4014 CM601 84.67 38,076.35

June 18 11850 G4018 21,250.35 59,326.70

June 19 11780 G3971 417.33 58,909.37

June 23 10300 BADCK 5,080.00 53,829.37

June 25 11100 G3906 12,000.00 41,829.37

June 26 11560 G4023 529.20 42,358.57

June 28 11560 G3995 12,100.00 30,258.57

June 30 11560 G4023 CM602 63.50 30,195.07




Answer Book


Ledger Card

Account: 115 Merchandise Inventory



June 4 G4011 7,500.00 179,664.42

June 5 28600 S2717 3,564.00 183,228.42

June 6 G4013 210.70 183,017.72

June 6 24500 K4461 46,180.00 229,197.72

June 6 11780 G4014 161.70 229,036.02

June 7 G4015 11,200.00 217,836.02

June 14 10300 G4016 9,520.00 208,316.02

June 14 24500 K4461 DM601 6,880.00 201,436.02

June 16 G4017 1,188.00 200,248.02

June 16 11780 G4014 CM601 39.20 200,287.22

June 18 11850 G4018 15,741.00 184,546.22

June 20 G4020 215.00 184,331.22

June 21 26950 M3093 635.00 184,966.22

June 22 G4021 17,720.00 167,246.22

June 23 22400 C5217 529.20 167,775.42

June 24 24500 K5050 2,107.00 169,882.42

June 25 G4022 6,740.00 163,142.42

June 26 11560 G4023 245.00 162,897.42

June 28 28600 S3488 7,920.00 170,817.42

June 29 G4025 10,890.00 159,927.42

June 30 11560 G4023 CM602 29.40 159,956.82




Answer Book


Ledger Card

Account: 201 Accounts Payable



June 3 20110 A4761 383.42 24,201.92

June 5 28600 S2717 3,564.00 27,765.92

June 6 24500 K4461 46,280.00 74,045.92

June 11 31221 29650 W6428 19,305.00 54,740.92

June 14 24500 K4461 DM601 6,880.00 47,860.92

June 15 31224 28600 S2771 3,564.00 44,296.92

June 16 31225 24500 K4461 39,400.00 4,896.92

June 21 26950 M3093 635.00 5,531.92

June 22 20110 A5049 635.40 6,167.32

June 23 22400 C5217 529.20 6,696.52

June 23 20110 A5049 38.90 6,657.62

June 24 24500 K5050 2,107.00 8,764.62

June 27 31235 20110 A4435 115.50 8,649.12

June 28 28600 S3488 7,920.00 16,569.12

June 28 24100 J1400 287.00 16,856.12




Answer Book


Ledger Card

Account: 305 Retained Earnings



June 30 Closing Entry 46,965.29 120,190.06

June 30 Closing Entry 2,400.00 117,790.06




Answer Book


Ledger Card

Account: 401 Watercraft and Accessory Sales



June 4 G4011 9,375.00 211,975.00

June 6 G4013 421.40 212,396.40

June 6 11780 G4014 323.40 212,719.80

June 7 G4015 14,000.00 226,719.80

June 14 10300 G4016 11,900.00 238,619.80

June 16 G4017 1,485.00 240,104.80

June 18 11850 G4018 19,676.25 259,781.05

June 20 G4020 430.00 260,211.05

June 22 G4021 22,150.00 282,361.05

June 25 G4022 8,425.00 290,786.05

June 26 11560 G4023 490.00 291,276.05

June 29 G4025 13,612.50 304,888.55

June 30 Closing Entry 304,888.55 0.00




Answer Book


Ledger Card

Account: 411 Service Fees Earned



June 3 G4010 97.50 8,212.50

June 6 G4013 156.00 8,368.50

June 16 G4017 273.00 8,641.50

June 20 G4020 211.25 8,852.75

June 28 G4026 260.00 9,112.75





Answer Book


Ledger Card

Account: 602 Store and Shop Supplies Expense



June 30 Adjusting Entry 1,651.92 1,651.92





Final Project Evaluation

Questions and Answers




FINAL EVALUATION NAME_______________________________________

GRANITE BAY JET SKI II CLASS DAY AND TIME__________DATE________

1. What is the net realizable value of the Accounts Receivable? $28,004.57

2. On the June 30, Balance Sheet, what is the "net worth" or "net $342,790.06

assets" of the business?

3. What is the book value of Shop Equipment? $28,010.00

4. What is the current ratio for Granite Bay Jet Ski, Incorporated? C

A. 10.56 B. 11.01 C. 11.41 D. 11.91 E. None of the above

5. What is the acid test quick) ratio of the business? D

A. 4.56

B. 5.01

C. 5.08

D. 5.13


6. Does Granite Bay Jet Ski have enough cash on hand to meet current Y

debt? Answer Y for Yes or N for No.

7. Identify by customer number, the customer who has the smallest 10890

outstanding balance on June 30?

8. Does any customer currently have a balance that is past due? Granite Y

Bay Jet Ski, Incorporated, extends net 30 terms to all customers. Answer Y for Yes or N for No.

9. Examine the Royal Bar Jetters account. On or before what date E

should the balance of invoice G3971 be received?

A. June 16

B. July 17 C. July 18 D. July 19 E. None of the above




FINAL PROJECT EVALUATION GRANITE BAY JET SKI II

10. What was the balance owed to Andregg Supply before the return of $1,134.32

$38.90 worth of supplies on June 23?

11. If paid on time, identify by invoice number the invoice that must be A4761

paid no later than July 3.

12. If the Kawasaki USA account is not paid in full within the discount $43.00

period for the single outstanding invoice, what will be the total

amount of the discount lost?

13. The single unit of inventory itemAL800, that was sold for cash on G4017

June 16, was listed on what sales invoice? Identify by number.)

14. What is the FIFO inventory value of the AL800 trailers in stock? $2,376.00

15. How many KW001 units were sold during June? 3

16. How many KW001 units were returned during June? 1

17. How many Granite Bay T-shirts are in stock? 19

18. How many A1100 Jet Ski STX-15F units were purchased during 3

June?

19. How many individual inventory items are now out of stock? C

A. 0 B. 2 C. 3 D. 5 E. None of the above

20. If the transportation-in costs had been reduced to zero through more $80,221.55

successful negotiation of merchandise contracts, what would be the

new Gross Profit on Sales?

21. Total Cost of Goods Sold is what percent of Net Sales? A

A. 73.69% B. 74.15% C. 75.86% D. 76.45% E. None of the above





22. Gross Profit from Sales is what percent of Net Sales? B

A. 25.09%

B. 26.31%

C. 27.54%

D. 28.55%


23. Income From Operations is what percent of Total Net Revenues Net C

Sales and Total Fees Earned)?

A. 8.89%

B. 11.67%

C. 14.70%

D. 17.65%


24. Sales Return and Allowances is what percent of Watercraft and C

Accessory Sales?

A. Less than .5%

B. .5%

C. .74%

D. 2.00%


25. Last quarter the Total Selling Expenses were 7.75% of Total Net N

Sales and Fees Earned. Has this quarter, ending June 30, 2008, been

an improvement over last quarter? Answer Y for Yes or N for No.

26. Compared to June 2 merchandise inventory of $187,164.42, the June E

30 merchandise inventory has decreased by what percent?

A. 5.17% B. 6.99% C. 7.28% D. 8.46% E. None of the above

27. If the total for Service Fees Earned and Storage Fees Earned could be $51,640.29

increased by 25% with only a $450 increase in Salaries and Wages

Expense, and a $150 increase in Advertising Expense, what would be

the new total for Income From Operations?





28. A 1% increase in Net Sales and Fees Earned combined with a 1% $51,089.88

decrease in Total Operating Expenses, would result in an increase to

Income From Operations to what amount?

29. If $800 of Delivery Expense charges were found to be recorded in the $46,965.29

Transportation In account, the Cost of Goods Sold and Gross Profit

would change by $800. If this error was corrected, what would be the

balance of the Net Income?

30. If an audit determined that due to "shrinkage" the ending inventory B

was overstated by $1,500, the reported Net Income of the business

would be:

A. Understated B. Overstated C. Unchanged D. None of the above

31. If "shrinkage" of $1,000 was reported after the inventory was B officially counted on June 30, 2008, the Merchandise Inventory account would be credited for the $1,000. The missing inventory item/s would be accounted for in the entry and the perpetual inventory system would be brought up-to-date. In the journal entry, what account would be debited for the shrinkage?

A. Cash B. Cost of Goods Sold C. Income Summary D. Merchandise Inventory E. None of the above

32. If the ending inventory is understated, the Income from Operations B will be:

A. Overstated B. Understated C. Unchanged D. None of the above





33. After closing the books, what is the balance of Dividends Declared? C

A. $2,400

B. $400

C. $0

D. None of the above

34. What must be the last account listed on the Granite Bay Jet Ski, Inc., E

Post-Closing Trial Balance?

A. Income Summary

B. Common Stock

C. Dividends Declared

D. Merchandise Inventory


35. After closing, what is the balance of the Income Summary account? E A. $225,000.00 B. $467,907.03 C. $439,390.14 D. $46,965.29 E. None of the above




Answer Book

FINAL PROJECT EVALUATION ANSWER KEY Granite Bay Jet Ski II

Score:

Question Your Number Answer ----------------------------------------------------------------------

1. What is the net realizable value of the Accounts $28,004.57

Receivable?

2. On the June 30, Balance Sheet, what is the $342,790.06

`net worth` or `net assets` of the business?

3. What is the book value of Shop Equipment? $28,010.00

4. What is the current ratio for Granite Bay Jet C Ski, Incorporated?

A) 10.56 B) 11.01 C) 11.41 D) 11.91


5. What is the acid test quick) ratio of the D

business?

A) 4.56

B) 5.01

C) 5.08

D) 5.13


6. Does Granite Bay Jet Ski have enough cash on hand Y

to meet current debt? Answer Y for Yes or N for

No.

7. Identify by customer number, the customer who has 10890

the smallest outstanding balance on June 30?

8. Does any customer currently have a balance that Y

is past due? Granite Bay Jet Ski, Incorporated,

extends net 30 terms to all customers. Answer Y

for Yes or N for No.

9. Examine the Royal Bar Jetters account. On or E before what date should the balance of invoice

G3971 be received? A) June 16 B) July 17 C) July 18 D) July 19





10. What was the balance owed to Andregg Supply $1,134.32

before the return of $38.90 worth of supplies on

June 23?

11. If paid on time, identify by invoice number the A4761

invoice that must be paid no later than July 3

12. If the Kawasaki USA account is not paid in full $43.00

within the discount period for the single

outstanding invoice, what will be the total

amount of the discount lost?

13. The single unit of inventory item AL800, that was G4017

sold for cash on June 16, was listed on what

sales invoice? Identify by number.)

14. What is the FIFO inventory value of the AL800 $2,376.00

trailers in stock?

15. How many KW001 units were sold during June? 3

16. How many KW001 units were returned during June? 1

17. How many Granite Bay T-shirts are in stock? 19

18. How many A1100 Jet Ski STX-15F units were 3

purchased during June?

19. How many individual inventory items are now out C

of stock? A) 0 B) 2 C) 3 D) 5 E) None of the above

20. If the transportation-in costs had been reduced $80,221.55

to zero through more successful negotiation of

merchandise contracts, what would be the new

Gross Profit on Sales?

21. Total Cost of Goods Sold is what percent of Net A

Sales? A) 73.69% B) 74.15% C) 75.86%

D) 76.45% E) None of the above

22. Gross Profit from Sales is what percent of Net B Sales?

A) 25.09% B) 26.31% C) 27.54% D) 28.55%





23. Income From Operations is what percent of Total C

Net Revenues Net Sales and Total Fees Earned)?

A) 8.89%

B) 11.67%

C) 14.70%

D) 17.65%


24. Sales Return and Allowances is what percent of C

Watercraft and Accessory Sales?

A) Less than .5%

B) .5%

C) .74%

D) 2.00%


25. Last quarter the Total Selling Expenses were N

7.75% of Total Net Sales and Fees Earned. Has

this quarter, ending June 30, 2008, been an improvement over last quarter? Answer Y for Yes

or N for No.

26. Compared to June 2 merchandise inventory of E

$187,164.42, the June 30 merchandise inventory

has decreased by what percent? A) 5.17%

B) 6.99% C) 7.28% D) 8.46% E) None of the above

27. If the total for Service Fees Earned and Storage $51,640.29

Fees Earned could be increased by 25% with only a

$450 increase in Salaries and Wages Expense, and

a $150 increase in Advertising Expense, what

would be the new total for Income From

Operations?

28. A 1% increase in Net Sales and Fees Earned $51,089.88

combined with a 1% decrease in Total Operating

Expenses, would result in an increase to Income

From Operations to what amount?

29. If $800 of Delivery Expense charges were found to $46,965.29

be recorded in the Transportation In account, the

Cost of Goods Sold and Gross Profit would change

by $800. If this error was corrected, what would

be the balance of the Net Income?

30. If an audit determined that due to `shrinkage` B

the ending inventory was overstated by $1,500,

the reported Net Income of the business would be: A) Understated B) Overstated

C) Unchanged




D) None of the above

31. If `shrinkage` of $1,000 was reported after the B

inventory was officially counted on June 30,

2008, the Merchandise Inventory account would be

credited for the $1,000. The missing inventory

item/s would be accounted for in the entry and

the perpetual inventory system would be brought

up-to-date. In the journal entry, what account

would be debited for the shrinkage?

A) Cash B) Cost of Goods Sold C) Income Summary D) Merchandise Inventory E) None of the above

32. If the ending inventory is understated, the B

Income from Operations will be: A) Overstated B) Understated C) Unchanged D) Done of the above

33. After closing the books, what is the balance of C

Dividends Declared?

A) $2,400

B) $400 C) $0

D) None of the above

34. What must be the last account listed on the E

Granite Bay Jet Ski, Inc., Post-Closing Trial

Balance?

A) Income Summary B) Common Stock

C) Dividends Declared D) Merchandise Inventory


35. After closing, what is the balance of the Income E

Summary account?

A) $225,000.00

B) $467,907.03

C) $439,390.14

D) $46,965.29

