1. In excel, complete the following two bank reconciliations and entries: A. Prepare Bank Reconciliation Stevens Company's August 31st bank statement shows a balance of $14,750. McKnight's books sho
1. In excel, complete the following two bank reconciliations and entries:
A. Prepare Bank Reconciliation
Stevens Company's August 31st bank statement shows a balance of $14,750. McKnight's books show a August 31st cash balance of $13,600. Stevens also has the following information: Deposits in transit as of August 31st, $1,000 Outstanding checks as of August 31st, $2,500 $100 service charge reported on the bank statement NSF check returned with bank statement, $1,500 Interest on note receivable collected by the bank, $1,250
Required: Hide Prepare Stevens Company's bank reconciliation as of August 31st.
Prepare any necessary journal entries resulting from the reconciliation.
B. Prepare Bank Reconciliation
Ella Company's September 30 bank statement shows a balance of $53,810. Ella's September 30 cash balance is $45,800. Hayley also has the following information: Deposits made but not appearing on the September bank statement, $5,500. Check written but not appearing on the September bank statement, $12,200. One check written for the purchase of Supplies was erroneously recorded for $890 but appears on the bank statement at $980. Monthly service charges listed on the bank statement are $230. Hayley had already recorded the effect of $130 of those charges. A customer payment for a $1,500 receivable was collected by the bank but not yet recorded by Ella.
Required: Hide Prepare Ella's bank reconciliation as of September 30.
Prepare any necessary journal entries resulting from the reconciliation.
2. Complete the following allowance for doubtful accounts assignment:
| Cookie Company, Inc. offers credit terms to its customers. At the end of 2021, accounts receivable totaled $625,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2021 and $21,000 in receivables were written off during the year as uncollectible. Also, $1,200 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year. |
| Required: |
| 1. | Prepare journal entries to record the write-off of receivables, the collection of $1,200 for previously written off receivables, and the year-end adjusting entry for bad debt expense. |
3. Inventory Costing Methods
Bay Path Hardware provides the following information relating to its June inventory activity. Hahn uses a perpetual inventory system.
| Date | Transaction | Units | Unit Cost | Total Cost |
| 1-Jun | Inventory | 13 | $8.00 | $104 |
| 7-Jun | Purchase | 22 | $9.50 | $209 |
| 12-Jun | Sale | 20 | ||
| 18-Jun | Purchase | 10 | $10.25 | $102.50 |
| 20-Jun | Sale | 14 | ||
| 26-Jun | Purchase | 16 | $11.00 | $176 |
| 30-Jun | Sale | 15 |
Compute the ending inventory and cost of goods sold using the FIFO, LIFO, AND, Weighted Average Cost costing method. Submit in excel with each method on a separate tab.
4. Depreciation Methods (show each method in a separate excel tab)
Appliance Steel purchases a machine on January 1 for $25,000. The machine has an estimated useful life of seven years, during which time it is expected to produce 114,800 units. Salvage value is estimated at $1,500. The machine produces 16,500 and 15,200 units in its first and second years of operation, respectively.
Required:
Calculate depreciation expense for the machine using the straight-line method of depreciation.
$ / yr.
