Problem 1: Please explain how would you record the following Invoices and payment in T accounts:
- Invoice #1: Office supplies from Office Depot $150
- Invoice #2: Interest accrual from loan acquired with Bank of America of $40,000
- Invoice #3: Electricity bill from Reliant Energy $700
- Payment of invoice #1 with a wire transfer
- Reversal of invoice #3
Problem 2: What kind of reports are usually run from the accounts payable module? Please select from the following answers:
(A) Profit and Loss report
(B) Cash Flow report
(C) Aging report
(D) Unpaid Bills
(E) Balance Sheet
(F) Other
Problem 3: Name the 3 accounts that are usually affected while recording accounts payables?
(A) Bank, accrued liabilities and an income account
(B) Accrued Liabilities, an expense account and Bank
(C) Expense account, accounts payable and an income account
(D) Bank, accounts payables, and an expense account
(E) Other
Accounts Receivable
1. Please record the following entry for a product sold:
Sales $12,450.00
Deposit $ 1,867.50
Financed amount $10,582.50
Monthly payment$ 600.00
2. Please record the cancellation of the sale in the previous question assuming that we kept the deposit:
3. Please record the reserve for bad debt expense of $1,494:
4. Please record the cash loan proceeds of $10,000,000 which includes a $75,000 non refundable good faith deposit.