of the 2. Based on the following data, prepare a bank reconciliation for Decembe
ID: 2423912 • Letter: O
Question
of the 2. Based on the following data, prepare a bank reconciliation for December of current year a. Balance according to the bank statement at December 31, $283,000. b. Balance according to the ledger at December 31, $245,410. C-Checks outstanding at December 31, $68,540. d. Deposit in transit, not recorded by bank, $29,500. e. Bank debit memo for service charges, $750. f. A check for $12,700 in payment of an invoice was incorrectly recorded in accounts as $12,000. es to be 3. Based on the bank reconciliation prepared in (2), journalize the entry or entries to h made by Kornett Company 4. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year a. Estimated uncollectible accounts at December 31, $16,000, based on an a ging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit). b. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. c. Prepaid insurance expired during the year, $22,820. d. Office supplies used during the year, $3,920. e. Depreciation is computed as follows: Depreciation Method Residual Acquisition Useful Life Value in Years Asset Buildings Office Equip. 246,00026,000January 3 Store Equip. 112000 12,000 July1 Cost $900,000 $0 January 2 Straight-line Straight-line f. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for eight years of ore, 50,000 tons were mined and sold during the year g. The cost of mineral ri h. Vacation pay expense for December, $10,500. i. A product warranty was granted beginning December 1 and covering a one-year period·The estimated cost is 4% of sales, which totaled $1,900,000 in December j. Interest was accrued on the note receivable received on October 17 5. Based on the following information and the post-closing trial balance shown below prepare a balance sheet in report form at December 31 of the current year The merchandise inventory is stated at cost by the LIFO method. The product warranty payable is a current liability Vacation pay payable: Long-term liability The unfunded pension liability is a long-term liability Notes payable 3,360 $ 70,000 630,000Explanation / Answer
2. Bank reconcilliation statement
3
Balance as per ledger 245410 Add: Check outstanding 68540 Less: Deposit in transit 29500 Less: Bank service charges 750 Less: Overvaluation of check 700 Balance as per bank statement 283000Related Questions
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