Financial Accounting Canadian

Canadian 5th Edition Libby Test Bank

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Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) If a company uses the completed contract method rather than the percentage of 1)
completion method, the total profit the company recognizes from the beginning of the
project throughout its completion will be which of the following?
A) The same for both methods.
B) Greater if the completed contract method is used.
C) Greater for the completed-contract method only if the project takes longer than five
years to complete.
D) Greater if the percentage of-completion method is used.
Answer: A
Explanation: A)
B)
C)
D)

2) On Eli Corp's June bank reconciliation, cheques outstanding totaled $5,400. In July, the 2)
corporation issued cheques totalling $38,900. The July bank statement shows that
$26,300 in cheques cleared the bank in July. A cheque from one of Eli Corp's customers
in the amount of $300 was also returned marked "NSF." The amount of outstanding
cheques on Eli's July bank reconciliation should be
A) $18,000. B) $7,200. C) $12,600. D) $17,700.
Answer: A
Explanation: A) $5,400 + $38,900 - $26300 = $18,000
B) $5,400 + $38,900 - $26300 = $18,000
C) $5,400 + $38,900 - $26300 = $18,000
D) $5,400 + $38,900 - $26300 = $18,000

1
3) Vida Corporation gathered the following reconciling information in preparing its July bank 3)
reconciliation:

The adjusted cash balance per books at July 31 is

A) $2,310. B) $4,010. C) $4,160. D) $2,460.
Answer: C
Explanation: A) Calculation: $3,500 + $850 - $20 - $170 = $4,160
B) Calculation: $3,500 + $850 - $20 - $170 = $4,160
C) Calculation: $3,500 + $850 - $20 - $170 = $4,160
D) Calculation: $3,500 + $850 - $20 - $170 = $4,160

4) Which of the following is required for effective control of cash? 4)

A) A reconciliation of the bank balance with the cash balance be prepared twice a year.
B) One person handles the receipts and disbursements of cash.
C) Cash be deposited monthly in a bank.
D) Cheques be pre-numbered.
Answer: D
Explanation: A)
B)
C)
D)

2
5) A credit sale of $2,500, terms 1/20, n/30, should be recorded with which of the following 5)
journal entries?

A) Choice 1 B) Choice 2 C) Choice 3 D) Choice 4

Answer: C
Explanation: A)
B)
C)
D)

6) In 2013, G CO. reported product sales of $717.8 million and trade receivables of $79.4 6)
million. In 2012, product sales were $584.9 million and trade receivables were $71.4
million. What was its receivables turnover ratio for 2013?
A) 9.52 B) 8.64 C) 8.19 D) 9.04
Answer: A
Explanation: A) Calculation: $717.8 ÷ {($79.4 + $71.4) ÷ 2} = 9.52
B) Calculation: $717.8 ÷ {($79.4 + $71.4) ÷ 2} = 9.52
C) Calculation: $717.8 ÷ {($79.4 + $71.4) ÷ 2} = 9.52
D) Calculation: $717.8 ÷ {($79.4 + $71.4) ÷ 2} = 9.52

7) Profit for T Co. in 2013 was $59,156 (in thousands). There was a deduction from profit 7)
on the statement of cash flows for $2,781 (in thousands) for the change in trade
receivables. The trade receivables balance on December 31, 2013 was $79,024 (in
thousands). How much was the trade receivables balance on December 31, 2012?
A) $56,375 B) $76,243 C) $61,937 D) $81,805
Answer: B
Explanation: A) Calculation: $79,024 - $2,781 = $76,243
B) Calculation: $79,024 - $2,781 = $76,243
C) Calculation: $79,024 - $2,781 = $76,243
D) Calculation: $79,024 - $2,781 = $76,243

3
 8) Which of the following is true about bad debt expense? 8)
A) It should not appear in the financial statements.
B) It should appear on the statement of financial position as a contra asset.
C) It should appear on the income statement as a contra revenue.
D) It should appear on the income statement as part of selling expenses.
Answer: D
Explanation: A)
B)
C)
D)

9) Under the completed contract method, revenue is recognized 9)

A) when the customer pays.
B) periodically as work is completed.
C) when the product is delivered to the customer.
D) when the initial contract is signed.
Answer: C
Explanation: A)
B)
C)
D)

10) When is revenue recognized under the percentage of completion method? 10)
A) Throughout the project, based upon the amount of cash received from the customer.
B) When construction begins on the project.
C) When the project is complete.
D) Throughout the project, based upon the amount of work completed each year.
Answer: D
Explanation: A)
B)
C)
D)

11) Central Company sold goods for $5,000 to Western Company on March 12 on credit. 11)
Terms of the sale were 2/10, n/30. At the time of the sale, Central recorded the
transaction by debiting Trade Receivables for $5,000 and crediting Sales Revenue for
$5,000. Western paid the balance due on April 9. To record the April 9 transaction,
Central would debit which of the following?
A) Sales discounts for $100. B) Trade Receivables for $5,000.
C) Cash for $5,000. D) Cash for $4,900.
Answer: C
Explanation: A)
B)
C)
D)

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12) If a customer pays her bill after her account has already been written off, the company 12)
receiving the payment should record the account reinstatement with which of the
following?
A) A debit to bad debt expense.
B) A credit to cash.
C) A credit to bad debt expense.
D) A credit to allowance for doubtful accounts.
Answer: D
Explanation: A)
B)
C)
D)

13) The WD Co. reported revenue of $23,402 million for 2013. Their trade receivables 13)
balance was $3,999 million in 2013 and $3,633 million in 2012. How much cash was
collected from customers?
A) $23,306 B) $23,768 C) $23,036 D) $23,402
Answer: C
Explanation: A) Calculation: $23,402 - ($3,999 - $3,633) = $23,036
B) Calculation: $23,402 - ($3,999 - $3,633) = $23,036
C) Calculation: $23,402 - ($3,999 - $3,633) = $23,036
D) Calculation: $23,402 - ($3,999 - $3,633) = $23,036

14) Bank errors 14)

A) are infrequent in occurrence.
B) are corrected by making an adjusting entry on the depositor's books.
C) must be corrected by debits.
D) occur because of time lags.
Answer: A
Explanation: A)
B)
C)
D)

15) In 2013, T Co. reported a receivables turnover ratio of 11.1 and their competitor, WWW 15)
Co., reported a ratio of 4.6. Which of the following is true?
A) WWW Co. needs to focus on improving their credit and collection process
B) T Co. needs to decrease their ratio in order to improve collection time
C) WWW Co. has done a better job of collecting their receivables than T Co.
D) All of the statements are true
Answer: A
Explanation: A)
B)
C)
D)

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16) For accounting purposes, cash includes which of the following? 16)
A) IOU's received from employees.
B) A note received from a customer in settlement of an overdue trade account
receivable.
C) Balances on deposit in banks.
D) A post-dated cheque received from a customer.
Answer: C
Explanation: A)
B)
C)
D)

17) What do credit terms of 2/10, n/30 indicate? 17)

A) Two percent discount for early payment is available within ten days of the invoice
date.
B) Two percent discount for early payment is available if the invoice is paid after the
tenth day, but before the thirtieth day of the invoice date.
C) Two percent discount for early payment is available if the invoice is paid before the
tenth day of the month following the month the sale.
D) Ten percent discount for early payment is available if the invoice is paid within two
days of the date of the invoice.
Answer: A
Explanation: A)
B)
C)
D)

18) When do most companies usually recognize revenue as earned and record the revenue? 18)
A) When payment is received
B) When the order is delivered
C) When title and risks of ownership pass to the buyer
D) When the customer's order is received
Answer: C
Explanation: A)
B)
C)
D)

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19) Prior to the write off of a $30 customer account, Kraft Company had the following 19)
account balances:

What was the net realizable value of the receivables before and after the write-off?

A) Choice A B) Choice B C) Choice C D) Choice D

Answer: A
Explanation: A)
B)
C)
D)

20) If an account is collected after having been previously written off, 20)
A) there will be both a debit and a credit to trade accounts receivable.
B) only the control account needs to be credited.
C) the allowance account should be debited.
D) both statement of earnings and balance sheet accounts will be affected.
Answer: A
Explanation: A)
B)
C)
D)

21) A customer purchased a $200 item at Best Bike Shop, paying with a credit card (VISA). 21)
The merchant is charged a 2% fee by the credit card company. When recording this sale,
the merchant would do which of the following?
A) Credit sales revenue for $196.
B) Credit unearned sales revenue for $200.
C) Credit sales revenue for $200.
D) Debit trade receivables for $200.
Answer: C
Explanation: A)
B)
C)
D)

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22) In 2013, A Co. reported product sales revenue of $2,514.4 million and trade receivables 22)
of $319.9 million for 2013 and $269.0 million in 2012. What was the cash flow
generated by sales?
A) $2,463.5 million B) $2,565.3 million
C) $2,514.4 million D) $2,194.5 million
Answer: A
Explanation: A) Calculation: $2,514.4 - ($319.9 - $269) = $2,463.5
B) Calculation: $2,514.4 - ($319.9 - $269) = $2,463.5
C) Calculation: $2,514.4 - ($319.9 - $269) = $2,463.5
D) Calculation: $2,514.4 - ($319.9 - $269) = $2,463.5

23) If C Co.'s trade receivables balance was $1,666 million in 2012 and $1,798 million in 23)
2013, what would be the impact on the statement of cash flows?
A) A decrease in cash flow from investing activities
B) An increase in cash flow from operating activities
C) A decrease in cash flow from operating activities
D) An increase in cash flow from investing activities
Answer: C
Explanation: A)
B)
C)
D)

24) Under the allowance method for uncollectible accounts, when a specific account is 24)
written off
A) net earnings will decrease. B) total assets will be unchanged.
C) total assets will increase. D) total assets will decrease.
Answer: B
Explanation: A)
B)
C)
D)

25) An aging of a company's trade receivables indicates that $6,500 is estimated to be 25)
uncollectible. If Allowance for Doubtful Accounts has a $1,200 debit balance, the
adjustment to record bad debts for the period will require a
A) debit to Bad Debts Expense for $6,500.
B) debit to Bad Debts Expense for $7,700.
C) debit to Bad Debts Expense for $5,300.
D) debit to Allowance for Doubtful Accounts for $6,500.
Answer: B
Explanation: A)
B)
C)
D)

8
26) The following information was available to the accountant of Dove Company when 26)
preparing the monthly bank reconciliation:

What was the cash balance per books of Dove Company prior to beginning the bank
reconciliation?
A) $2,336. B) $2,270. C) $2,238. D) $2,354.
Answer: A
Explanation: A) Calculation: $3,450 - $972 + $351 + $58 + $33 - $575 - $9 = $2,336
B) Calculation: $3,450 - $972 + $351 + $58 + $33 - $575 - $9 = $2,336
C) Calculation: $3,450 - $972 + $351 + $58 + $33 - $575 - $9 = $2,336
D) Calculation: $3,450 - $972 + $351 + $58 + $33 - $575 - $9 = $2,336

27) When preparing a bank reconciliation, which of the following would be deducted from 27)
the company's cash balance?
A) Note receivable collected by the bank.
B) Outstanding cheques.
C) Deposits in transit.
D) Bank service charges.
Answer: D
Explanation: A)
B)
C)
D)

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 28) Dobson Corporation gathered the following reconciling information in preparing its 28)
September bank reconciliation:

The adjusted cash balance per bank at September 30 is

A) $15,500. B) $1,775. C) $6,500. D) $9,725.
Answer: C
Explanation: A) Calculation: $11,000 + $4,500 - $9,000 = $6,500
B) Calculation: $11,000 + $4,500 - $9,000 = $6,500
C) Calculation: $11,000 + $4,500 - $9,000 = $6,500
D) Calculation: $11,000 + $4,500 - $9,000 = $6,500

Liberty Company estimates that its annual bad debts approximate 4% of credit sales. Liberty had the following
balances at year-end prior to recording adjusting entries:

29) Following the completion of an aging analysis, the accountant for Liberty estimated that 29)
$1,100 of the receivables would be uncollectible. The year-end adjusting entry to record
bad debt expense would include which of the following?
A) Credit to allowance for doubtful accounts of $1,100.
B) Debit to bad debt expense of $1,000.
C) Debit to bad debt expense of $900.
D) Credit to allowance for doubtful accounts of $1,200.
Answer: D
Explanation: A) Calculation: $100 + $1,100 = $1,200
B) Calculation: $100 + $1,100 = $1,200
C) Calculation: $100 + $1,100 = $1,200
D) Calculation: $100 + $1,100 = $1,200

10
30) When using the allowance method for bad debts, how should bad debt expense be 30)
recorded?
A) When a particular account is written off.
B) Whenever the allowance for doubtful accounts has a debit balance.
C) As an adjusting entry at the end of the accounting period.
D) Whenever the allowance for doubtful accounts has a zero balance.
Answer: C
Explanation: A)
B)
C)
D)

31) The books of Tweed Company provided the following information: 31)

Beginning balances:

Transactions during the year:

Past collection experience has indicated that 1% of credit sales normally is not collected.
Therefore, an adjusting entry for bad debt expense should be made in the amount of which
of the following?
A) $6,500. B) $500. C) $2,500. D) $6,000.
Answer: D
Explanation: A) Calculation: ($1,800,000 × 1/3) × 1% = $6,000
B) Calculation: ($1,800,000 × 1/3) × 1% = $6,000
C) Calculation: ($1,800,000 × 1/3) × 1% = $6,000
D) Calculation: ($1,800,000 × 1/3) × 1% = $6,000

11
32) Under the percentage of completion method, the amount of work completed in a 32)
particular year is typically determined by comparing which of the following?
A) The total costs incurred to date divided by the contract price.
B) The cost incurred that year divided by the contract price.
C) The total costs incurred to date divided by the cash collected to date from the
customer.
D) The costs incurred that year divided by the estimated total costs of the project.
Answer: D
Explanation: A)
B)
C)
D)

33) A company purchased goods on credit with credit terms of 3/15, n/45. Although the 33)
company does not have cash available to pay within the discount period, the manager of
the company is considering borrowing money to take advantage of the discount. In order
to make the appropriate decision, the manager computed the annual interest rate
associated with the sales discount. What is the approximate annual rate?
A) 56%. B) 18%. C) 25%. D) 38%.
Answer: D
Explanation: A) Calculation: [($3 ÷ $97) ÷ 30 days] × 365 days = .38
B) Calculation: [($3 ÷ $97) ÷ 30 days] × 365 days = .38
C) Calculation: [($3 ÷ $97) ÷ 30 days] × 365 days = .38
D) Calculation: [($3 ÷ $97) ÷ 30 days] × 365 days = .38

34) To aid internal control, the individual authorized to sign cheques should be which of the 34)
following?
A) Purchasing agent. B) Accounts payable bookkeeper.
C) Supervisor of receiving. D) Treasurer.
Answer: D
Explanation: A)
B)
C)
D)

35) Albert Company agreed to build a bowling complex for Pins R Us for a price of 35)
$2,000,000. The project is expected to take three years to complete. Albert estimated that
the total cost of the project would be $1,600,000. During the first year, construction costs
amount to $600,000. If Albert uses the percentage of completion method, how much
revenue will be recognized for the first year?
A) $750,000. B) $600,000. C) $0. D) $150,000.
Answer: A
Explanation: A) Calculation: $2,000,000 × $600,000/$1,600,000 = $750,000
B) Calculation: $2,000,000 × $600,000/$1,600,000 = $750,000
C) Calculation: $2,000,000 × $600,000/$1,600,000 = $750,000
D) Calculation: $2,000,000 × $600,000/$1,600,000 = $750,000

12
36) A high receivables turnover ratio indicates 36)
A) customers are making payments slowly.
B) the company's sales are increasing.
C) a large proportion of the company's sales are on credit.
D) customers are making payments very quickly.
Answer: D
Explanation: A)
B)
C)
D)

37) The balance in Allowance for Doubtful Accounts would have a debit balance when 37)
A) an uncollectible account is later recovered.
B) write-offs during the year have been less than previous provisions.
C) write-offs during the year have exceeded previous provisions.
D) the percentage of receivables basis is used.
Answer: C
Explanation: A)
B)
C)
D)

38) If a company has the opportunity to take a discount of 2/10, n/30 but must borrow money 38)
at an annual rate of 16%, what would be the net advantage of taking the discount?
A) 8.3% B) 8.8% C) 21.2% D) 20.5%
Answer: C
Explanation: A) Calculation: {[($2 ÷ $98) ÷ 20 days] × 365 days} - .16 = .212
B) Calculation: {[($2 ÷ $98) ÷ 20 days] × 365 days} - .16 = .212
C) Calculation: {[($2 ÷ $98) ÷ 20 days] × 365 days} - .16 = .212
D) Calculation: {[($2 ÷ $98) ÷ 20 days] × 365 days} - .16 = .212

39) Upon completing an aging analysis of trade receivables, the accountant for Rosco Works 39)
estimated that $5,000 of the current $98,000 of trade receivables would be uncollectible.
The allowance for doubtful accounts had a $400 credit balance at year-end prior to
adjustment. What amount of bad debt expense should appear in Rosco's income
statement for the year?
A) $5,000. B) $5,400. C) $4,600. D) $0
Answer: C
Explanation: A) Calculation: $5,000 - $400 = $4,600
B) Calculation: $5,000 - $400 = $4,600
C) Calculation: $5,000 - $400 = $4,600
D) Calculation: $5,000 - $400 = $4,600

13
 40) A company had the following partial list of account balances at year-end: 40)

What amount of Net Sales would be shown on the income statement?

A) $57,200. B) $64,200. C) $55,700. D) $56,000.
Answer: D
Explanation: A) Calculation: $57,200 - $500 - $700 = $56,000
B) Calculation: $57,200 - $500 - $700 = $56,000
C) Calculation: $57,200 - $500 - $700 = $56,000
D) Calculation: $57,200 - $500 - $700 = $56,000

41) The revenue recognition principle indicates that revenue should be recognized in the 41)
accounting records
A) when it is earned.
B) in the period that income taxes are paid.
C) when cash is received.
D) when expenses are incurred.
Answer: A
Explanation: A)
B)
C)
D)

Liberty Company estimates that its annual bad debts approximate 4% of credit sales. Liberty had the following
balances at year-end prior to recording adjusting entries:

42) On Liberty's income statement for the year, what would bad debt expense amount to? 42)
A) $6,500. B) $6,300. C) $6,400. D) $5,200.
Answer: C
Explanation: A) Calculation: $160,000 × 4% = $6,400
B) Calculation: $160,000 × 4% = $6,400
C) Calculation: $160,000 × 4% = $6,400
D) Calculation: $160,000 × 4% = $6,400

14
 43) The following information was available to the accountant of Midland Company when 43)
preparing the monthly bank reconciliation:

What is the corrected cash balance per books following completion of the reconciliation?
A) $430. B) $620. C) $645. D) $120.
Answer: B
Explanation: A) Calculation: $145 - $25 + $500 = $620
B) Calculation: $145 - $25 + $500 = $620
C) Calculation: $145 - $25 + $500 = $620
D) Calculation: $145 - $25 + $500 = $620

Liberty Company estimates that its annual bad debts approximate 4% of credit sales. Liberty had the following
balances at year-end prior to recording adjusting entries:

44) Liberty estimates that its annual bad debts approximate 4% of credit sales. What would 44)
the net realizable value of the receivables on Liberty's year-end balance sheet be?
A) $23,600. B) $23,700. C) $29,900. D) $23,500.
Answer: B
Explanation: A) Calculation: $30,000 - (-$100 + $6,400) = $23,700
B) Calculation: $30,000 - (-$100 + $6,400) = $23,700
C) Calculation: $30,000 - (-$100 + $6,400) = $23,700
D) Calculation: $30,000 - (-$100 + $6,400) = $23,700

15
 45) An NSF cheque should appear in which section of the bank reconciliation? 45)
A) Addition to the balance per bank.
B) Deduction from the balance per books.
C) Deduction from the balance per bank.
D) Addition to the balance per books.
Answer: B
Explanation: A)
B)
C)
D)

46) A customer purchased $2,000 of goods on credit from Holiday Party Supply on May 1. 46)
The customer received the bill on May 15 and mailed a $2,000 cheque on May 28.
Holiday received the cheque on May 30. In recording this transaction, Holiday should
credit Sales Revenue for $2,000 on which of the following dates?
A) May 1. B) May 28. C) May 30. D) May 15.
Answer: A
Explanation: A)
B)
C)
D)

Liberty Company estimates that its annual bad debts approximate 4% of credit sales. Liberty had the following
balances at year-end prior to recording adjusting entries:

47) Following the completion of an aging analysis, the accountant for Liberty estimated that 47)
$1,100 of the receivables would be uncollectible. What would the net realizable value of
the receivables on Liberty's year-end balance sheet be?
A) $30,100. B) $28,900. C) $29,900. D) $28,800.
Answer: B
Explanation: A) Calculation: $30,000 - $1,100 = $28,900
B) Calculation: $30,000 - $1,100 = $28,900
C) Calculation: $30,000 - $1,100 = $28,900
D) Calculation: $30,000 - $1,100 = $28,900

16
48) Under the allowance method for uncollectible accounts, when a year-end adjustment is 48)
made for estimated uncollectible accounts,
A) liabilities decrease. B) net earnings is unchanged.
C) total assets decrease. D) total assets are unchanged.
Answer: C
Explanation: A)
B)
C)
D)

49) In 2013, C Co. reported net sales revenues of $19.8 billion and cost of goods sold for 49)
$6.0 billion. What was their gross profit percentage for 2013?
A) 30.3% B) 76.74% C) 43.5% D) 69.7%
Answer: D
Explanation: A) Calculation: ($19.8 - $6.0) ÷ $19.8 = .697
B) Calculation: ($19.8 - $6.0) ÷ $19.8 = .697
C) Calculation: ($19.8 - $6.0) ÷ $19.8 = .697
D) Calculation: ($19.8 - $6.0) ÷ $19.8 = .697

50) What is the annual interest rate of a sales discount of 2/10, n/30? 50)
A) 37.2% B) 24.3% C) 24.8% D) 36.5%
Answer: A
Explanation: A) Calculation: [($2 ÷ $98) ÷ 20 days] × 365 days = .372
B) Calculation: [($2 ÷ $98) ÷ 20 days] × 365 days = .372
C) Calculation: [($2 ÷ $98) ÷ 20 days] × 365 days = .372
D) Calculation: [($2 ÷ $98) ÷ 20 days] × 365 days = .372

51) A Co. and G Co. are competitors in the biotechnology market. In 2013, A Co. reported a 51)
gross profit percentage of 86.3% while G Co's percentage was 80.7%. What is the most
likely cause of G Co.'s lower gross profit percentage?
A) Increased product selling prices B) Decreased product costs
C) Larger scale operations than A Co. D) Smaller scale operations than A Co.
Answer: D
Explanation: A)
B)
C)
D)

17
52) Central Company sold goods for $5,000 to Western Company on March 12 on credit. 52)
Terms of the sale were 2/10, n/30. At the time of the sale, Central recorded the
transaction by debiting trade receivables for $5,000 and crediting sales revenue for
$5,000. Western paid the balance due, less the discount, on March 21. To record the
March 21 transaction, Central would debit which of the following?
A) Cash for $5,000. B) Trade receivables for $4,900.
C) Cash for $4,900. D) Trade receivables for $5,000.
Answer: C
Explanation: A) Calculation: $5,000 × 2% = 100
Therefore, the amount to be debited by Central Company would be: $5,000
- $100 = $4,900.
B) Calculation: $5,000 × 2% = 100
Therefore, the amount to be debited by Central Company would be: $5,000
- $100 = $4,900.
C) Calculation: $5,000 × 2% = 100
Therefore, the amount to be debited by Central Company would be: $5,000
- $100 = $4,900.
D) Calculation: $5,000 × 2% = 100
Therefore, the amount to be debited by Central Company would be: $5,000
- $100 = $4,900.

53) Which of the following accounts is always treated as a contra revenue and not as a 53)
selling expense?
A) Net sales B) Purchase returns and allowances
C) Cash equivalents D) Sales returns and allowances
Answer: D
Explanation: A)
B)
C)
D)

54) On the April 30 bank reconciliation, a deposit made by a company to its bank account on 54)
April 18 will appear as a(n)
A) deduction from the balance per books.
B) deduction from the balance per bank.
C) addition to the balance per books.
D) this will not affect the current period's bank reconciliation.
Answer: D
Explanation: A)
B)
C)
D)

18
55) What is the impact of treating sales returns and allowances as a contra revenue but 55)
treating sales discounts and credit card discounts as selling expenses?
A) Gross margin is reduced by sales returns and allowances, sales discounts and credit
card discounts.
B) Gross margin is reduced by sales returns and allowances but all three accounts
cause a decrease in profit from operations.
C) Gross margin is reduced by sales discounts and credit card discounts but all three
accounts cause a decrease in profit from operations.
D) Gross margin is reduced by sales returns and allowance but operating profit is only
reduced by sales discounts and credit card discounts.
Answer: B
Explanation: A)
B)
C)
D)

56) To record estimated uncollectible accounts using the allowance method for uncollectible 56)
accounts, the adjusting entry would be a debit to?
A) Loss on Credit Sales and a credit to Trade Accounts Receivable.
B) Trade Accounts Receivable and a credit to Allowance for Doubtful Accounts.
C) Allowance for Doubtful Accounts and a credit to Trade Accounts Receivable.
D) Bad Debts Expense and a credit to Allowance for Doubtful Accounts.
Answer: D
Explanation: A)
B)
C)
D)

19
57) School Supplies Company made the following journal entries (1) to write off an account 57)
judged to be uncollectible and (2) to record bad debt expense for 20A:

As a result of the first entry only, the book value (net realizable value) of trade receivables
was (a); as a result of the second entry only, the book value (net realizable value) of trade
receivable was (b):

A) Choice A B) Choice B C) Choice C D) Choice D

Answer: D
Explanation: A)
B)
C)
D)

58) During 20A, Thomas Company recorded bad debt expense of $15,000 and wrote off an 58)
uncollectible trade receivable amounting to $5,000. Assuming a January 1, 20A, credit
balance in the allowance for doubtful accounts of $10,000, the December 31, 20A,
balance in the allowance account would be which of the following?
A) $25,000. B) $5,000. C) $15,000. D) $20,000.
Answer: D
Explanation: A) Calculation: $10,000 + $15,000 - $5,000 = $20,000
B) Calculation: $10,000 + $15,000 - $5,000 = $20,000
C) Calculation: $10,000 + $15,000 - $5,000 = $20,000
D) Calculation: $10,000 + $15,000 - $5,000 = $20,000

20
59) On a bank reconciliation, which of the following would be deducted from the balance 59)
per bank?
A) Outstanding cheques.
B) Electronic payment by a customer on account.
C) Deposits in transit.
D) Bank service charges.
Answer: A
Explanation: A)
B)
C)
D)

60) On a multiple-step income statement, what happens to the amount of sales returns and 60)
allowances?
A) It is subtracted from net sales to determine gross margin on sales.
B) It is subtracted from gross sales to determine net sales.
C) It is added in the calculation of cost of goods sold.
D) It is subtracted from gross margin on sales to determine net sales.
Answer: B
Explanation: A)
B)
C)
D)

61) Outstanding cheques from the prior period which clear the bank in the current period 61)
A) should be deducted from the balance per books.
B) do not affect the current period's bank reconciliation.
C) should be deducted from the balance per bank.
D) should be added to the balance per books.
Answer: B
Explanation: A)
B)
C)
D)

21
62) Merchandise was sold on credit for $3,000, terms 1/10, n/30. The entry to record the cash 62)
collection should include which of the following?
A) Debit Cash, $3,000, and credit Trade Receivables, $2,970, and Sales Discount, $30,
if collected within the discount period.
B) Debit Cash, $3,000, and credit Trade Receivables, $3,000, if collected after the
discount period.
C) Debit Cash, $3,000, and credit Trade Receivables, $2,970, and Sales Discount, $30,
if collected after the discount period.
D) Debit Cash, $3,000, and credit Trade Receivables, $3,000, if collected within the
discount period.
Answer: B
Explanation: A)
B)
C)
D)

63) Cash equivalents typically include investments with original maturities of which of the 63)
following?
A) Three months or less.
B) One year or the operating cycle, whichever is longer.
C) One year or less.
D) One month or less.
Answer: A
Explanation: A)
B)
C)
D)

64) If a cheque correctly written and paid by the bank for $521 is incorrectly recorded on the 64)
company's books for $251, the appropriate treatment on the bank reconciliation would be
to
A) add $270 to the balance per books.
B) add $270 to the balance per bank.
C) deduct $270 from the balance per books.
D) deduct $270 from the balance per bank.
Answer: C
Explanation: A)
B)
C)
D)

22
65) In recording the year-end adjusting entry for bad debt expense, a company would do 65)
which of the following?
A) Debit trade receivables.
B) Debit allowance for doubtful accounts.
C) Credit allowance for doubtful accounts.
D) Credit trade receivables.
Answer: C
Explanation: A)
B)
C)
D)

66) When credit terms for a sale are 2/15, n/40, the customer saves by paying the bill early. 66)
Approximately what percent would this savings amount to on an annual basis?
A) 30%. B) 20%. C) 37%. D) 18%.
Answer: A
Explanation: A) Calculation: [($2 ÷ $98) ÷ 25 days] × 365 days = .30
B) Calculation: [($2 ÷ $98) ÷ 25 days] × 365 days = .30
C) Calculation: [($2 ÷ $98) ÷ 25 days] × 365 days = .30
D) Calculation: [($2 ÷ $98) ÷ 25 days] × 365 days = .30

67) When an account is written off using the allowance method for uncollectible accounts, 67)
trade accounts receivable
A) decreases and the allowance account decreases.
B) decreases and the allowance account increases.
C) is unchanged and the allowance account increases.
D) increases and the allowance account increases.
Answer: A
Explanation: A)
B)
C)
D)

68) T Co's gross profit percentage has been increasing in the three years from 2011 through 68)
2013 from 36.5% to 39.8%. This change has most likely been caused by which of the
following?
A) Higher product costs B) Selling products for higher prices
C) Selling products with lower margins D) Discounted prices
Answer: B
Explanation: A)
B)
C)
D)

23
69) Cawthra Limited gathered the following reconciling information in preparing its June bank 69)
reconciliation:

The adjusted cash balance per books at June 30 is

A) $16,500. B) $8,775. C) $16,725. D) $12,000.
Answer: C
Explanation: A) Calculation: $12,000 + $6000 - $75 - $1200 = $16,725
B) Calculation: $12,000 + $6000 - $75 - $1200 = $16,725
C) Calculation: $12,000 + $6000 - $75 - $1200 = $16,725
D) Calculation: $12,000 + $6000 - $75 - $1200 = $16,725

70) Which of the following would not be considered an element of good internal control? 70)
A) Require monthly reconciliation of bank accounts with the cash account.
B) Require that approval for cash payments and the signing of cheques be assigned to
different individuals.
C) Require that all cash receipts be deposited on a daily basis.
D) Require that the individual who handles cash receipts be responsible for the
accounting function related to those funds.
Answer: D
Explanation: A)
B)
C)
D)

71) G Co., which is a biotechnology firm, reported the following revenues on their 2013 71)
income statement: Product sales $582.2 million, Royalties $214.7 million, Contract
revenue $107.0 million and Interest income $64.1 million. Their cost of sales was
reported as $104.5 million. What was their gross profit percentage?
A) 88.4% B) 89.2% C) 82.1% D) 86.9%
Answer: C
Explanation: A) Calculation: ($582.2 - $104.5) ÷ $582.2 = .821
B) Calculation: ($582.2 - $104.5) ÷ $582.2 = .821
C) Calculation: ($582.2 - $104.5) ÷ $582.2 = .821
D) Calculation: ($582.2 - $104.5) ÷ $582.2 = .821

24
72) SRM Company uses the allowance method to record its bad debt expense. When the 72)
account of a particular customer is deemed to be uncollectible and is written off, which
of the following will be included in the journal entry?
A) Credit to bad debt expense.
B) Debit to bad debt expense.
C) Debit to trade receivables.
D) Debit to allowance for doubtful accounts.
Answer: D
Explanation: A)
B)
C)
D)

73) In 2013, T Co.'s gross profit percentage was 39.8% while their competitor, WWW's 73)
percentage was 31.8%. Which was the most likely reason for WWW's lower percentage?
A) Lower selling prices
B) Higher selling prices
C) Lower product cost as a percentage of sales
D) Ability to differentiate their product in consumers' eyes
Answer: A
Explanation: A)
B)
C)
D)

74) Tabor Company had trade receivables of $450,000 and an allowance for doubtful 74)
accounts of $15,500 just prior to writing off as worthless a trade receivable from Fox
Company of $5,000. What was the net realizable value of trade receivables as shown by
the accounting record before and after the write-off?

A) Choice A B) Choice B C) Choice C D) Choice D

Answer: D
Explanation: A) Calculation: $450,000 - $15,500 = $434,500
B) Calculation: $450,000 - $15,500 = $434,500
C) Calculation: $450,000 - $15,500 = $434,500
D) Calculation: $450,000 - $15,500 = $434,500

25
75) One might infer from a debit balance in Allowance for Doubtful Accounts that 75)
A) the percentage of receivables basis is being used.
B) bad debts expense has been overestimated.
C) a posting error has been made.
D) more accounts have been written off than had been estimated.
Answer: D
Explanation: A)
B)
C)
D)

76) Under the allowance method for uncollectible accounts, 76)

A) the net realizable value of trade accounts receivable is greater before an account is
written off than after it is written off.
B) Allowance for Doubtful Accounts is closed each year to Income Summary.
C) the net realizable value of trade accounts receivable in the balance sheet is the same
before and after an account is written off.
D) Bad Debts Expense is debited when a specific account is written off as
uncollectible.
Answer: C
Explanation: A)
B)
C)
D)

77) When goods are sold to a customer with credit terms of 2/15, n/30, the customer will 77)
receive which of the following?
A) A 15% discount if they pay within 30 days.
B) A 15% discount if they pay within 2 days.
C) A 2% discount if they pay within 15 days.
D) A 2% discount if they pay 15% of the amount due within 30 days.
Answer: C
Explanation: A)
B)
C)
D)

78) When is revenue recognized under the completed contract method? 78)
A) Throughout the project as bills are sent to the customer.
B) Throughout the project as cash payments are received from the customer.
C) When construction begins on the project.
D) When the project is complete.
Answer: D
Explanation: A)
B)
C)
D)

26
79) Jackson Company uses the allowance method to account for bad debts. During 20D, a 79)
customer became bankrupt and a receivable of $5,000 was deemed uncollectible. What is
the entry to record the uncollectible amount?

A) Choice A B) Choice B C) Choice C D) Choice D

Answer: A
Explanation: A)
B)
C)
D)

80) On February 15, a local business receives an invoice for electricity used in the month of 80)
January and pays it on March 1. In which month should the business recognize the
expense?
A) March B) January
C) February D) No expense should be recorded.
Answer: B
Explanation: A)
B)
C)
D)

27
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

81) Oucher Corporation's bank statement included two types of electronic funds 81)
transfers (EFT). One type of EFT totalled $10,000 and was from customers paying
their accounts online. Another type of EFT totalled $16,500 and was from
Yamamoto paying its accounts payable online.

Required:

(a) How will each of these items affect Oucher's bank reconciliation?
(b) Prepare the required journal entries, if any, that Oucher will make to record the
above information on its books.
Answer: (a) Oucher Corporation must add the electronic collections from customers in
payment of their accounts receivable to its cash balance per books on the
bank reconciliation. It must deduct the electronic payments it made in
payment of its accounts payable from its cash balance per books on the bank
reconciliation.

(b)

Explanation:

82) Near the end of 20B, the ledger of Dice Company included the following accounts 82)
and balances:

Cash collections on trade receivables during 20B amounted to $148,500. Sales

revenue during 20B amounted to $200,000, of which 75% was on credit, and it
was estimated that 2% of the credit sales made in 20B would ultimately become
uncollectible. Before adjusting entries were made for 20B, (a) a $600 account was
determined to be uncollectible and written off by Dice and (b) bad debt expense
was recorded to 20B. These adjustments are not reflected in the account balances
above.
28
 After the above entries were posted to the ledger, the account balances were as
follows (give the amount under the appropriate debit or credit column):

Answer:

Explanation:

83) On June 1, 20B, Budget Appliance Company sold merchandise on credit at an 83)
invoice price of $1,000; terms 2/10, n/30. Give the journal entries to record the
following:

A. To record the sale.

B. Assumption A: To record collection on June 28, 20B.
C. Assumption B: To record collection on June 9, 20B.
Answer:

Explanation:

29
84) Why is the reconciliation of a company's cash account to the bank statement so 84)
important for effective internal control for cash?
Answer: The reconciliation of the cash account is very important in determining the
correct, up-to-date balance for cash to be presented on the company's
statement of financial position. It is also a good tool for detecting errors in
the cash account.
Explanation:

85) On July 10, 20B, Mighty Company sold merchandise at an invoice price of $5,000 85)
with terms of 3/10, n/30. Give the journal entries required below by indicating the
account code of the appropriate account for each debit and credit and the amounts
involved.

A Cash
B Trade Receivables
C Sales Revenue
D Sales Discounts

Answer:

Explanation:

30
86) On December 31, 20A, Carter Corporation had the following account balances 86)
related to credit sales and receivables prior to recording adjusting entries:

Required:

Present the necessary year-end adjusting entry related to uncollectible accounts for
each of the following independent assumptions:

A. An aging of accounts receivable is completed. It is estimated that $1,950 of the

receivables outstanding at year-end will be uncollectible.
B. It is estimated that .5% of credit sales for the year will prove to be uncollectible.
C. Assume the same information presented in (A) above except that prior to
adjustment, the Allowance for doubtful accounts had a debit balance of $200 rather
than a credit balance of $200.
Answer:

Explanation:

31
87) Red Company received the following October 31, 20C, bank statement: 87)

The cash account reflected the following for October:

The September 30 bank reconciliation showed:

Deposits in transit, $3,000, and outstanding cheques, $500.

Required:

A. What was the amount of the deposits in transit at October 31?

B. What was the amount of outstanding cheques at October 31?
C. Prepare a bank reconciliation for October. Use the following format:

32
D. Give the journal entries that should be made by Red Company based on the
bank reconciliation.
Answer: a. [$38,000 - (40,000 - 3,000)] = $1,000
b. [$36,600 - (38,300 - 500)] = $800
c.

d. Entries

Explanation:

33
Yahoo! Inc. reported the following figures from their financial statements for the years 2010 through 2012:

88) Calculate the gross profit ratio for all three years: 88)

a. 2012 ________
b. 2011 ________
c. 2010 ________
Answer: a. 86.8% (176,528/203,270), b. 84.5% (59,565/70,450), c. 78.0%
(16,768/21,490)
Explanation:

89) You have recently started a part time job in the accounting department of Burris 89)
Limited. The accountant, Ted Landry, had prepared the company's bank
reconciliation for June 2013. After completing the reconciliation he made the
following journal entry:

Ted was reviewing the bank reconciliation with you when unfortunately you
spilled your coffee on it. He asks you to rewrite the reconciliation, in good form.
He remembers that the only outstanding deposit was the last deposit for the month.
You check the general ledger and the bank balance at June 30 was $24,527
(credit). You also check the bank statement and the balance was $22,314 (credit,
i.e. overdrawn). You look up the last deposit for the month—it was for $21,789.

Required: Using the above information prepare, in good form, the bank
reconciliation for Burris Limited for June.

34
 Answer:

Note: To solve, you complete the bank reconciliation with the information
you know the outstanding cheques and the adjusted cash per bank will be
unknown. After you arrive at the adjusted balance per books, you enter this
as the adjusted cash per bank and solve for the outstanding cheques.
Explanation:

90) The cash records of Kupper Corp show the following: 90)

1. The June 30 bank reconciliation indicated that deposits in transit totalled $300.
During July, the general ledger account, Cash, shows deposits of $9,700, but the
bank statement indicates that only $9,540 in deposits were received during the
month.
2. The June 30 bank reconciliation also reported outstanding cheques of $1,800.
During July, Kupper Corp's books show that $11,170 of cheques were issued, yet
the bank statement showed that $11,500 of cheques cleared the bank in July.
There were no bank debit or credit memoranda and no errors were made by either
the bank or Kupper Corp.

Required:

(a)Calculate the dollar amount of the deposits in transit at July 31.

(b)Calculate the dollar amount of the outstanding cheques at July 31.

35
 Answer: (a) Deposits in transit:

(b) Outstanding cheques:

Explanation:

91) Indicate the effect on a monthly bank reconciliation of each of the items listed 91)
below by placing the appropriate letter to the left of each item.

A. Addition to the balance in the company's Cash account.

B. Deduction from the balance in the company's Cash account.
C. Addition to the balance on the bank statement.
D. Deduction from the balance on the bank statement.
E. Does not affect the reconciliation.

Answer: 1. B; 2. C; 3. B; 4. C; 5. A; 6. D; 7. B
Explanation:

36
92) An inexperienced accountant made the following entries. In each case, the 92)
explanation to the entry is correct.

Required: Prepare the correcting entries.

Answer:

Explanation:

37
93) Indicate whether each of the accounts listed below normally will have a debit or a 93)
credit balance. Record your answer to the left of each account by entering either
Dr or Cr.

____ 1. Allowance for doubtful accounts

____ 2. Bad debt expense
____ 3. Sales returns and allowances
____ 4. Deferred revenue
____ 5. Sales discounts
____ 6. Notes receivable
____ 7. Sales revenue
____ 8. Short-term investments
Answer: 1. Cr; 2. Dr; 3. Dr; 4. Cr; 5. Dr; 6. Dr; 7. Cr; 8. Dr
Explanation:

94) A recent annual report for C Co. contained the following data: 94)

1. Calculate the receivables turnover ratio and average collection period for the
year:

2. Explain the meaning of each number.

Answer: 1.
a. 11.51 (19,805/1,721)
b. 31.7 days (365 days/11.51),

2. The turnover ratio indicates the number of times on average that the
receivables are collected while the average collection period shows the
length of time in days it takes the company to collect its receivables from the
credit customers. The higher the turnover ratio, the less days it takes to
collect our receivables, thereby increasing liquidity of the receivables.
Explanation:

38
95) Western Company sold $4,000 of goods to Southern Company on credit on May 95)
1. At the time of the sale, Western recorded a debit to Trade Receivables and a
credit to Sales Revenue for $4,000. Terms were 2/10, n/30.

Required:

Present the entries Western would record for each of the following independent
situations:

A. Southern paid the balance due, less the discount, on May 10.
B. Southern returned half of the goods for credit on May 4. Paid the balance due,
less the discount, on May 10.
C. Southern paid their bill on May 30 (there were no returns).
Answer:

Explanation:

96) Robertson's Toy World sells a variety of toys at discount prices. The following 96)
transactions occurred on May 16. Consider credit card discount a selling expense.

Required:
39
 a. Present journal entries for each of the above transactions.
b. Compute the net sales for the day.
Answer:

If credit card discounts are considered as an operating expense account:

Net Sales = Sales revenue - sales returns and allowances
$509 = (95 + 359 + 100) - 45
Explanation:

97) The records of Topper. Ltd. show the following: 97)

1. In February, deposits per the bank statement totalled $18,850; deposits per
books $19,500; and deposits in transit at February 28 were $1,400.
2. In February, cheques issued per books were $17,750; cheques clearing the bank
were $18,400; and outstanding cheques at February 28 were $1,250.
There were no bank debit or credit memoranda and no errors were made by either
the bank or Topper Ltd.

Required:

(a)Calculate the dollar amount of the deposits in transit at January 31.

(b)Calculate the dollar amount of the outstanding cheques at January 31.

40
 Answer: (a) Deposits in transit:

(b) Outstanding cheques:

Explanation:

98) Finn Company has just received its June 30 bank statement from City Bank. The 98)
bank statement and the cash account, summarized below, are to be reconciled for
the month of June.

41
Balance, June 1 $6,800

Required:

a. Prepare a bank reconciliation using the following format:

b. Give the journal entries that should be made in the accounts of Finn Company
as a result of the above bank reconciliation.
Answer: A.

42
 Answer:

B.

Explanation:

99) The December 31, 2013 statement of financial position of Howson Limited had 99)
Trade Accounts Receivable of $450,000 and a credit balance in Allowance for
Doubtful Accounts of $45,000. During 2013, the following transactions occurred:
service revenue billed on account, $1,500,000; collections from customers,
$1,300,000; accounts written off $37,000; previously written off accounts of
$4,000 were collected.

Required:

(a)Record the 2013 transactions.

(b)If the company uses the percentage of receivables basis to estimate bad debts
expense and determines that uncollectible accounts are expected to be 5% of trade
accounts receivable, what is the adjusting entry at December 31, 2013?

43
Answer:

Explanation:

44
100) During 20A, Lau Inc. recorded credit sales of $1,500,000. Based on prior 100)
experience, it estimates a 1 percent bad debt rate on credit sales. At the beginning
of the year, the balance in trade receivables, net was $100,000. At the end of the
year, but before the bad debt expense adjustment was recorded and before any
bad debts had been written off, the balance in trade receivables, net was $125,000.

1. Assume that on December 31, 20A, the appropriate bad debt expense
adjustment was recorded for the year 20A and trade receivables totalling $10,000
were written off for the year, what was the receivables turnover ratio for the year?
2. Assume that on December 31, 20A, the appropriate bad debt expense
adjustment was recorded for the year 20A and trade receivables totalling $12,000
were written off for the year, what was the receivables turnover ratio for the year?
3. Explain why the answers to parts 1 and 2 differ or do not differ.
Answer: 1. 14.29 ($1,500,000/[100,000 + 110,000]/2),
2. 14.29 (same calculation),
3. The ratio stayed the same because only the adjusting entry affects the
balance of trade receivables, net while the actual write off of customer
accounts simply offset the asset against the contra asset account so that net
receivables do not change.
Explanation:

101) Eddie Corporation uses the allowance method for estimating uncollectible 101)
accounts.

Required:

Prepare entries to record the following transactions:

45
Another random document with
no related content on Scribd:
 BLACK CURRANT JAM AND MARMALADE.

No fruit jellies so easily as black currants when they are ripe; and
their juice is so rich and thick that it will bear the addition of a very
small quantity of water sometimes, without causing the preserve to
mould. When the currants have been very dusty, we have
occasionally had them washed and drained before they were used,
without any injurious effects. Jam boiled down in the usual manner
with this fruit is often very dry. It may be greatly improved by taking
out nearly half the currants when it is ready to be potted, pressing
them well against the side of the preserving-pan to extract the juice:
this leaves the remainder far more liquid and refreshing than when
the skins are all retained. Another mode of making fine black currant
jam—as well as that of any other fruit—is to add one pound at least
of juice, extracted as for jelly, to two pounds of the berries, and to
allow sugar for it in the same proportion as directed for each pound
of them.
For marmalade or paste, which is most useful in affections of the
throat and chest, the currants must be stewed tender in their own
juice, and then rubbed through a sieve. After ten minutes’ boiling,
sugar in fine powder must be stirred gradually to the pulp, off the fire,
until it is dissolved: a few minutes more of boiling will then suffice to
render the preserve thick, and it will become quite firm when cold.
More or less sugar can be added to the taste, but it is not generally
liked very sweet.
Best black currant jam.—Currants, 4 lbs.; juice of currants, 2 lbs.:
15 to 20 minutes’ gentle boiling. Sugar, 3 to 4 lbs.: 10 minutes.
Marmalade, or paste of black currants.—Fruit, 4 lbs.: stewed in its
own juice 15 minutes, or until quite soft. Pulp boiled 10 minutes.
Sugar, from 7 to 9 oz. to the lb.: 10 to 14 minutes.
Obs.—The following are the receipts originally inserted in this
work, and which we leave unaltered.
To six pounds of the fruit, stripped carefully from the stalks, add
four pounds and a half of sugar. Let them heat gently, but as soon as
the sugar is dissolved boil the preserve rapidly for fifteen minutes. A
more common kind of jam may be made by boiling the fruit by itself
from ten to fifteen minutes, and for ten minutes after half its weight of
sugar has been added to it.
Black currants, 6 lbs.; sugar, 4-1/2 lbs.: 15 minutes. Or: fruit, 6 lbs.:
10 to 15 minutes. Sugar, 3 lbs.: 10 minutes.
Obs.—There are few preparations of fruit so refreshing and so
useful in illness as those of black currants, and it is therefore
advisable always to have a store of them, and to have them well and
carefully made.
 NURSERY PRESERVE.

Take the stones from a couple of pounds of Kentish cherries, and

boil them twenty minutes; then add to them a pound and a half of
raspberries, and an equal quantity of red and of white currants, all
weighed after they have been cleared from their stems. Boil these
together quickly for twenty minutes; mix with them three pounds and
a quarter of common sugar, and give the preserve fifteen minutes
more of quick boiling. A pound and a half of gooseberries may be
substituted for the cherries; but they will not require any stewing
before they are added to the other fruits. The jam must be well
stirred from the beginning, or it will burn to the pan.
Kentish cherries, 2 lbs.: 20 minutes. Raspberries, red currants,
and white currants, of each 1-1/2 lb.: 20 minutes. Sugar, 3-1/4 lbs.:
15 minutes.
 ANOTHER GOOD COMMON PRESERVE.

Boil together, in equal or unequal portions (for this is immaterial),

any kinds of early fruit, until they can be pressed through a sieve;
weigh, and then boil the pulp over a brisk fire for half an hour; add
half a pound of sugar for each pound of fruit, and again boil the
preserve quickly, keeping it well stirred and skimmed, from fifteen to
twenty minutes. Cherries, unless they be morellas, must first be
stewed tender apart, as they will require a much longer time to make
them so than any other of the first summer fruits.
 A GOOD MÉLANGE, OR MIXED PRESERVE.

Boil for three-quarters of an hour in two pounds of clear red

gooseberry juice, one pound of very ripe greengages, weighed after
they have been pared and stoned; then stir to them one pound and a
half of good sugar, and boil them quickly again for twenty minutes. If
the quantity of preserve be much increased, the time of boiling it
must be so likewise: this is always better done before the sugar is
added.
Juice of ripe gooseberries, 2 lbs.; greengages, pared and stoned,
1 lb.: 3/4 hour. Sugar, 1-1/2 lb.: 20 minutes.
 GROSEILLÉE.

(Another good preserve.)

Cut the tops and stalks from a gallon or more of well-flavoured ripe
gooseberries, throw them into a large preserving-pan, boil them for
ten minutes, and stir them often with a wooden spoon; then pass
both the juice and pulp through a fine sieve, and to every three
pounds’ weight of these add half a pint of raspberry-juice, and boil
the whole briskly for three-quarters of an hour; draw the pan aside,
stir in for the above portion of fruit, two pounds of sugar, and when it
is dissolved renew the boiling for fifteen minutes longer. Ripe
gooseberries, boiled 10 minutes. Pulp and juice of gooseberries, 6
lbs.; raspberry-juice, 1 pint: 3/4 hour. Sugar, 4 lbs.: 15 minutes.
Obs.—When more convenient, a portion of raspberries can be
boiled with the gooseberries at first.
 SUPERIOR PINE-APPLE MARMALADE.

(A New Receipt.)
The market-price of our English pines is generally too high to
permit their being very commonly used for preserve; and though
some of those imported from the West Indies are sufficiently well-
flavoured to make excellent jam, they must be selected with
judgment for the purpose, or they will possibly not answer for it. They
should be fully ripe, but perfectly sound: should the stalk end appear
mouldy or discoloured, the fruit should be rejected. The degree of
flavour which it possesses may be ascertained with tolerable
accuracy by its odour; for if of good quality, and fit for use, it will be
very fragrant. After the rinds have been pared off, and every dark
speck taken from the flesh, the pines may be rasped on a fine and
delicately clean grater, or sliced thin, cut up quickly into dice, and
pounded in a stone or marble mortar; or a portion may be grated,
and the remainder reduced to pulp in the mortar. Weigh, and then
heat and boil it gently for ten minutes; draw it from the fire, and stir to
it by degrees fourteen ounces of sugar to the pound of fruit; boil it
until it thickens and becomes very transparent, which it will be in
about fifteen minutes, should the quantity be small: it will require a
rather longer time if it be large. The sugar ought to be of the best
quality and beaten quite to powder; and for this, as well as for every
other kind of preserve, it should be dry. A remarkably fine
marmalade may be compounded of English pines only, or even with
one English pine of superior growth, and two or three of the West
Indian mixed with it; but all when used should be fully ripe, without at
all verging on decay; for in no other state will their delicious flavour
be in its perfection.
In making the jam always avoid placing the preserving-pan flat
upon the fire, as this of itself will often convert what would otherwise
be excellent preserve, into a strange sort of compound, for which it is
difficult to find a name, and which results from the sugar being
subjected—when in combination with the acid of the fruit—to a
degree of heat which converts it into caramel or highly-boiled barley-
sugar. When there is no regular preserving-stove, a flat trivet should
be securely placed across the fire of the kitchen-range to raise the
pan from immediate contact with the burning coals, or charcoal. It is
better to grate down, than to pound the fruit for the present receipt
should any parts of it be ever so slightly tough; and it should then be
slowly stewed until quite tender before any sugar is added to it; or
with only a very small quantity stirred in should it become too dry. A
superior marmalade even to this, might probably be made by adding
to the rasped pines a little juice drawn by a gentle heat, or expressed
cold, from inferior portions of the fruit; but this is only supposition.
 A FINE PRESERVE OF THE GREEN ORANGE PLUM.

(Sometimes called the Stonewood plum.)

This fruit, which is very insipid when ripe, makes an excellent
preserve if used when at its full growth, but while it is still quite hard
and green. Take off the stalks, weigh the plums, then gash them well
(with a silver knife, if convenient) as they are thrown into the
preserving-pan, and keep them gently stirred without ceasing over a
moderate fire, until they have yielded sufficient juice to prevent their
burning; after this, boil them quickly until the stones are entirely
detached from the flesh of the fruit. Take them out as they appear on
the surface, and when the preserve looks quite smooth and is well
reduced, stir in three-quarters of a pound of sugar beaten to a
powder, for each pound of the plums, and boil the whole very quickly
for half an hour or more. Put it, when done, into small moulds or
pans, and it will be sufficiently firm when cold to turn out well: it will
also be transparent, of a fine green colour, and very agreeable in
flavour.
Orange plums, when green, 6 lbs.: 40 to 60 minutes. Sugar, 4-1/2
lbs.: 30 to 50 minutes.
Obs.—The blanched kernels of part of the fruit should be added to
this preserve a few minutes before it is poured out: if too long boiled
in it they will become tough. They should always be wiped very dry
after they are blanched.
 GREENGAGE JAM, OR MARMALADE.

When the plums are thoroughly ripe, take off the skins, stone,
weigh, and boil them quickly without sugar for fifty minutes, keeping
them well stirred; then to every four pounds add three of good sugar
reduced quite to powder, boil the preserve from five to eight minutes
longer, and clear off the scum perfectly before it is poured into the
jars. When the flesh of the fruit will not separate easily from the
stones, weigh and throw the plums whole into the preserving-pan,
boil them to a pulp, pass them through a sieve, and deduct the
weight of the stones from them when apportioning the sugar to the
jam. The Orleans plum may be substituted for greengages in this
receipt.
Greengages, stoned and skinned, 6 lbs.: 50 minutes. Sugar, 4-1/2
lbs.: 5 to 8 minutes.
 PRESERVE OF THE MAGNUM BONUM, OR MOGUL PLUM.

Prepare, weigh, and boil the plums for forty minutes; stir to them
half their weight of good sugar beaten fine, and when it is dissolved
continue the boiling for ten additional minutes, and skim the preserve
carefully during the time. This is an excellent marmalade, but it may
be rendered richer by increasing the proportion of sugar. The
blanched kernels of a portion of the fruit stones will much improve its
flavour, but they should be mixed with it only two or three minutes
before it is taken from the fire. When the plums are not entirely ripe,
it is difficult to free them from the stones and skins: they should then
be boiled down and pressed through a sieve, as directed for
greengages, in the receipt above.
Mogul plums, skinned and stoned, 6 lbs.: 40 minutes. Sugar, 3
lbs.: 5 to 8 minutes.
 TO DRY OR PRESERVE MOGUL PLUMS IN SYRUP.

Pare the plums, but do not remove the stalks or stones; take their
weight of dry sifted sugar, lay them into a deep dish or bowl, and
strew it over them; let them remain thus for a night, then pour them
gently into a preserving-pan with all the sugar, heat them slowly, and
let them just simmer for five minutes; in two days repeat the process,
and do so again and again at an interval of two or three days, until
the fruit is tender and very clear; put it then into jars, and keep it in
the syrup, or drain and dry the plums very gradually, as directed for
other fruit. When they are not sufficiently ripe for the skin to part from
them readily, they must be covered with spring water, placed over a
slow fire, and just scalded until it can be stripped from them easily.
They may also be entirely prepared by the receipt for dried apricots
which follows, a page or two from this.
 MUSSEL PLUM CHEESE AND JELLY.

Fill large stone jars with the fruit, which should be ripe, dry, and
sound; set them into an oven from which the bread has been drawn
several hours, and let them remain all night; or, if this cannot
conveniently be done, place them in pans of water, and boil them
gently until the plums are tender, and have yielded their juice to the
utmost. Pour this from them, strain it through a jelly bag, weigh, and
then boil it rapidly for twenty-five minutes. Have ready, broken small,
three pounds of sugar for four of the juice, stir them together until it is
dissolved, and then continue the boiling quickly for ten minutes
longer, and be careful to remove all the scum. Pour the preserve into
small moulds or pans, and turn it out when it is wanted for table: it
will be very fine, both in colour and in flavour.
Juice of plums, 4 lbs.: 25 minutes. Sugar, 3 lbs.: 10 minutes.
The cheese.—Skin and stone the plums from which the juice has
been poured, and after having weighed, boil them an hour and a
quarter over a brisk fire, and stir them constantly; then to three
pounds of fruit add one of sugar, beaten to powder; boil the preserve
for another half hour, and press it into shallow pans or moulds.
Plums, 3 lbs.: 1-1/4 hour. Sugar, 1 lb.: 30 minutes.
 APRICOT MARMALADE.

This may be made either by the receipt for greengage, or Mogul

plum marmalade; or the fruit may first be boiled quite tender, then
rubbed through a sieve, and mixed with three-quarters of a pound of
sugar to the pound of apricots: from twenty to thirty minutes will boil
it in this case. A richer preserve still is produced by taking off the
skins, and dividing the plums in halves or quarters, and leaving them
for some hours with their weight of fine sugar strewed over them
before they are placed on the fire; they are then heated slowly and
gently simmered for about half an hour.
 TO DRY APRICOTS.

(A quick and easy method.)

Wipe gently, split, and stone some fine apricots which are not
over-ripe; weigh, and arrange them evenly in a deep dish or bowl,
and strew in fourteen ounces of sugar in fine powder, to each pound
of fruit; on the following day turn the whole carefully into a
preserving-pan, let the apricots heat slowly, and simmer them very
softly for six minutes, or for an instant longer, should they not in that
time be quite tender. Let them remain in the syrup for a day or two,
then drain and spread them singly on dishes to dry.
To each pound of apricots, 14 oz. of sugar; to stand 1 night, to be
simmered from 6 to 8 minutes, and left in syrup 2 or 3 days.
 DRIED APRICOTS.

(French Receipt.)
Take apricots which have attained their full growth and colour, but
before they begin to soften; weigh, and wipe them lightly; make a
small incision across the top of each plum, pass the point of a knife
through the stalk end, and gently push out the stones without
breaking the fruit; next, put the apricots into a preserving-pan, with
sufficient cold water to float them easily; place it over a moderate
fire, and when it begins to boil, should the apricots be quite tender,
lift them out and throw them into more cold water, but simmer them,
otherwise, until they are so. Take the same weight of sugar that there
was of the fruit before it was stoned, and boil it for ten minutes with a
quart of water to the four pounds; skim the syrup carefully, throw in
the apricots (which should previously be well drained on a soft cloth,
or on a sieve), simmer them for one minute, and set them by in it
until the following day, then drain it from them, boil it for ten minutes,
and pour it on them the instant it is taken from the fire; in forty-eight
hours repeat the process, and when the syrup has boiled ten
minutes, put in the apricots, and simmer them from two to four
minutes, or until they look quite clear. They may be stored in the
syrup until wanted for drying, or drained from it, laid separately on
slates or dishes, and dried very gradually: the blanched kernels may
be put inside the fruit, or added to the syrup.
Apricots, 4 lbs., scalded until tender; sugar 4 lbs.; water, 1 quart:
10 minutes. Apricots, in syrup, 1 minute; left 24 hours. Syrup, boiled
again, 10 minutes, and poured on fruit: stand 2 days. Syrup, boiled
again, 10 minutes, and apricots 2 to 4 minutes, or until clear.
Obs.—The syrup should be quite thick when the apricots are put in
for the last time; but both fruit and sugar vary so much in quality and
in the degree of boiling which they require, that no invariable rule can
be given for the latter. The apricot syrup strained very clear, and
mixed with twice its measure of pale French brandy, makes an
agreeable liqueur, which is much improved by infusing in it for a few
days half an ounce of the fruit-kernels, blanched and bruised, to the
quart of liquor.
We have found that cherries prepared by either of the receipts
which we have given for preserving them with sugar, if thrown into
the apricot syrup when partially dried, just scalded in it, and left for a
fortnight, then drained and dried as usual, become a delicious
sweetmeat. Mussel, imperatrice, or any other plums, when quite ripe,
if simmered in it very gently until they are tender, and left for a few
days to imbibe its flavour, then drained and finished as usual, are
likewise excellent.
 PEACH JAM, OR MARMALADE.

The fruit for this preserve, which is a very delicious one, should be
finely flavoured, and quite ripe, though perfectly sound. Pare, stone,
weigh, and boil it quickly for three-quarters of an hour, and do not fail
to stir it often during the time; draw it from the fire, and mix with it ten
ounces of well-refined sugar, rolled or beaten to powder, for each
pound of the peaches; clear it carefully from scum, and boil it briskly
for five minutes; throw in the strained juice of one or two good
lemons; continue the boiling for three minutes only, and pour out the
marmalade. Two minutes after the sugar is stirred to the fruit, add
the blanched kernels of part of the peaches.
Peaches, stoned and pared, 4 lbs.; 3/4 hour. Sugar, 2-1/2 lbs.: 2
minutes. Blanched peach-kernels: 3 minutes. Juice of 2 small
lemons: 3 minutes.
Obs.—This jam, like most others, is improved by pressing the fruit
through a sieve after it has been partially boiled. Nothing can be finer
than its flavour, which would be injured by adding the sugar at first;
and a larger proportion renders it cloyingly sweet. Nectarines and
peaches mixed, make an admirable preserve.
 TO PRESERVE, OR TO DRY PEACHES OR NECTARINES.

(An easy and excellent Receipt.)

The fruit should be fine, freshly gathered, and fully ripe, but still in
its perfection. Pare, halve, and weigh it after the stones are removed;
lay it into a deep dish, and strew over it an equal weight of highly
refined pounded sugar; let it remain until this is nearly dissolved,
then lift the fruit gently into a preserving-pan, pour the juice and
sugar to it, and heat the whole over a very slow fire; let it just simmer
for ten minutes, then turn it softly into a bowl, and let it remain for two
days; repeat the slow heating and simmering at intervals of two or
three days, until the fruit is quite clear, when it may be potted in the
syrup, or drained from it, and dried upon large clean slates or dishes,
or upon wire-sieves. The flavour will be excellent. The strained juice
of a lemon may be added to the syrup, with good effect, towards the
end of the process, and an additional ounce or two of sugar allowed
for it.
 DAMSON JAM. (VERY GOOD.)

The fruit for this jam should be freshly gathered and quite ripe.
Split, stone, weigh, and boil it quickly for forty minutes; then stir in
half its weight of good sugar roughly powdered, and when it is
dissolved, give the preserve fifteen minutes additional boiling,
keeping it stirred, and thoroughly skimmed.
Damsons, stoned, 6 lbs.: 40 minutes. Sugar, 3 lbs.: 15 minutes.
Obs.—A more refined preserve is made by pressing the fruit
through a sieve after it is boiled tender; but the jam is excellent
without.