Answered You can hire a professional tutor to get the answer.
Assignment Six Chapter Seven Due Nov 12th Question one (6 marks) On January 1, 2013, Cameroon Corp. lent $50,000 to its CEO, interest-free.
Over 90 days outstanding
$67,000
20%
Instructions:
Prepare a schedule calculating the balance in Marilyn's Allowance for Doubtful Accounts at December 31, 2016. Prepare any necessary journal entry at year end to adjust the allowance for doubtful accounts to the required balance.
Question Three (10 marks)
Benin Company deposits all receipts daily and makes all payments by cheque. The following information is available from the cash records:
March 31 Bank Reconciliation
Balance per bank.................................................................... $35,160
Add: Deposits in transit.......................................................... 4,200
Deduct: Outstanding cheques............................................... (3,200)
Balance per books.................................................................. $36,160
Month of April Results
Per Bank Per Books
Balance April 30...................................................................... $38,000 $42,140
April deposits recorded.......................................................... 11,200 17,300
April cheques recorded.......................................................... 12,010 11,320
Items on bank statement but not in books:
Note collected by bank........................................................... 5,500 -0-
Bank service charge............................................................... 50 -0-
Customer's NSF cheque returned by the bank....................... 1,800 -0-
Instructions
a) Calculate the amount of the April 30:
1. Deposits in transit
2. Outstanding cheques
b) What is the April 30 adjusted cash balance? Show all work.
*
Question 4 (8 marks)
Notes Receivable.
On December 31, 2016 Marilyn Inc. provided service to Sports Unlimited, accepting a six percent, five-year promissory note having a maturity value of $800,000 (interest payable annually on December 31). Marilyn Inc. pays 7 percent for its borrowed funds. Sports Unlimited, however, because it is considered a higher risk, pays 9 percent for its borrowed funds.
Instructions
a) Prepare the journal entries to record the transaction on the books of Marilyn Inc. at December 31, 2016. (Assume that the effective interest method is used.)
b) Make all appropriate entries for 2017 on the books of Marilyn..
