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Answer for Lesson5

By Jessica Gonzales,2014-06-16 15:56
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Exercise 5-1: Sunny Company Bank Reconciliation May 31, 20xx Bank statement balance $ 7,800 Book balance of cash $ 5,140 Add: Add: Deposit in transit 590 Bank collection 1,100 Interest revenue 10 Total $ 8,390 Total $ 6,250 Deduct: Deduct: Outstanding checks 2,170 Bank service charge 21 Error correction 9 Reconci..

Exercise 5-1:

    Sunny Company

    Bank Reconciliation

    May 31, 20xx

    Bank statement balance $ 7,800 Book balance of cash $ 5,140 Add: Add: Deposit in transit 590 Bank collection 1,100

     Interest revenue 10 Total $ 8,390 Total $ 6,250 Deduct: Deduct: Outstanding checks 2,170 Bank service charge 21

     Error correction 9 Reconciled balance $6,220 Reconciled balance $6,220

Exercise 5-2:

     Debit Credit Apr. 7. Notes receivable Bob Rocker 5,400

     Accounts receivable Bob Rocker 5,400

     12. Cash 5,394.5

     Interest expense 5.5

     Note receivable Bob Rocker 5,400

    Jun. 6. Accounts receivable Bob Rocker 5,533

     Cash 5,533

     18. Cash 5,560.7

     Accounts receivable Bob Rocker 5,533

     Interest revenue 27.7

Problem 5-1:

    Mata Co.

    Bank Reconciliation

    Oct., 31, 20x5.

    Bank statement balance $ 18,642.28 Book balance of cash $ 16,469.14 Add: Add: Deposit in transit 2,612.45 Bank collection 3,000 Error correction 350 Interest revenue 100

     Error correction 9 Total $21,604.73 Total $19,678.14 Deduct: Deduct: Outstanding checks Bank service charge 11.40

    No. 513 320.18 NSF 319.00 No. 567 617.24 No. 569 455.00 No. 570 964.57 Reconciled balance $19,247.74 Reconciled balance $19,247.74

     Debit Credit Bank service charge 11.40

     Cash 11.40

    Accounts receivable -NSF 319.00

     Cash 319.00

    Repairs expenses, equipment 9

     Cash 9

    Cash 3,100

    Note receivable 3,000

    Interest earned 100 The amount of cash that should appear among the current assets on Mata Oct.31,20x5 Balance

    Sheet is $19,247.74.

Problem 5-3:

     Debit Credit a. Accounts receivable 54,500

     Sales revenue 54,500

    b. Allowance for Bad debts 850

     Accounts receivable 850

    c. Cash 45,100

     Accounts receivable 45,100

    d. Bad debt expenses 1021

     Allowance for doubtful accounts 1021

     (54,500-850-45,100)*2%+850

     20x3 e. Accounts receivable 67,800

     Sales revenue 67,800

    f. Allowance for Bad debts 1,280

     Accounts receivable 1,280

    g. Cash 65,900

     Accounts receivable 65,900

     Bad debt expenses 1292.4

     Allowance for doubtful accounts 1292.4

Problem 5-3:

     Debit Credit Mar. 21. Trading securities--- Kroger Corporation 60,000

     Cash 60,000

    Apr. 16. Trading securities --- United Motors common 51,000

    stock

     Cash 51,000

    May 2. Trading securities --- Eastman Corporation's 40,000

    9% notes payable

     Cash 40,000

    Jun. 20. Cash 61,500

     Trading securities --- Kroger Corporation 60,000

     Investment revenue 1500

    Sep. 21. Cash 2,000

     Investment revenue 2,000

    Oct. 6. Cash 27,550

     Trading securities --- United Motors 25,500

    common stock

     Gain on sale of temporary investment 2,050

     2. Cash 1,800

     Investment revenue 1,800

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