1) Daniels Company deposits all receipts and makes all payments by check. The fo
ID: 2369361 • Letter: 1
Question
1) Daniels Company deposits all receipts and makes all payments by check. The following information is available from the cash records:MARCH 31 BANK RECONCILIATION
Balance per bank $26,746
Add: Deposits in transit 2,100
Deduct: Outstanding checks (3,800)
Balance per books $25,046
Month of April Results
Per Bank Per Books
Balance April 30 $27,995 $24,355
April deposits 8,864 13,889
April checks 13,100 14,080
April note collected 3,000 -0-
(not included in April deposits)
April bank service charge 35 -0-
April NSF check of
a customer returned by the bank
(recorded by bank as a charge) 900 -0-
Instructions
Calculate the amount of the April 30:
1. Deposits in transit
2. Outstanding checks
Show all your work for potential partial credit.
2) Steve Company was formed on December 1, 2010. The following information is available from Steve's inventory record for Product X.
Units Unit Cost
January 1, 2011 (beginning inventory) 1,500 $19.00
Purchases:
January 5, 2011 2,600 $20.00
January 25, 2011 2,400 $21.00
February 16, 2011 1,000 $22.00
March 15, 2011 2,300 $24.00
A physical inventory on March 31, 2011, shows 2,800 units on hand.
Instructions
Prepare schedules to compute the ending inventory at March 31, 2011, under each of the following inventory methods:
(a) FIFO
(b) LIFO
(c) Weighted-average.
Show supporting computations in good form.
3) A machine which cost $200,000 is acquired on October 1, 2010. Its estimated salvage value is $20,000 and its expected life is eight years.
Instructions
Calculate depreciation expense for 2010 and 2011 by each of the following methods, showing the figures used.
(a) Double-declining balance
(b) Sum-of-the-years'-digits
4) Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $4,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors:
9 Periods 10 Periods 11 Periods
Future Value of 1 1.99900 2.15892 2.33164
Present Value of 1 .50025 .46319 .42888
Future Value of 12.48756 14.48656 16.64549
Ordinary Annuity of 1
Present Value of 6.24689 6.71008 7.13896
Ordinary Annuity of 1
Present Value of 6.74664 7.24689 7.71008
Annuity Due of 1
Instructions
(a) Assuming the computer has an eleven-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?
(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?
5) The following balance sheet was prepared by the bookkeeper for Brown Company as of December 31, 2011.
Brown Company
Balance Sheet
As of December 31, 2011
Cash $ 80,000 Accounts payable $ 75,000
Accounts receivable (net) 52,200 Long-term liabilities 100,000
Inventories 57,000 Stockholders' equity 218,500
Investments 76,300
Equipment (net) 96,000
Patents 32,000
$393,500 $393,500
The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted.
(2) The net accounts receivable balance includes:
(a) accounts receivable debit balances $60,000;
(b) accounts receivable credit balances $4,000;
(c) allowance for doubtful accounts $3,800.
(3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
(4) Investments include investments in common stock, trading $24,000 and available-for-sale $48,300, and franchises $4,000.
(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
Instructions
Prepare a balance sheet in good form (stockholders' equity details can be omitted.)
Do not worry about balancing the statement but rather use your time to compute the account balances properly for presentation purposes.
6) Presented below is information related to Bruce Van Company.
Retained earnings, December 31, 2010 $ 650,000
Sales 1,400,000
Selling and administrative expenses 240,000
Hurricane loss (pre-tax) on plant (extraordinary item) 290,000
Cash dividends declared on common stock 33,600
Cost of goods sold 780,000
Gain resulting from computation error 520,000
on depreciation charge in 2009(pre-tax)
Other revenue 120,000
Other expenses 100,000
Instructions
Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Show EPS computations as well.
Explanation / Answer
Per Bank Per Books Balance March 31: $ 26,746.00 Add: Deposits in transit $ 2,100.00 $ 28,846.00 Less: outstanding checks $ (3,800.00) $ - $ 25,046.00 $ - Data per bank for the mo. April as follows: $ - Balance April 30 $ 27,995.00 $ 24,355.00 april deposits $ 8,864.00 $ 13,889.00 april checks $ 13,100.00 $ 14,080.00 april note collected: not inclu. In April deposits. $ 3,000.00 - April Bank Service Charge $ 35.00 April NSF check returned y the bank (recorded as a charge) $ 900.00 $ - Calculate the amount in April 30: Deposits in transit: $ 5,025.00 Outstanding checks: $ 980.00 1- Deposit in Transit 2- Outstanding checks
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.