Name

:

PROBLEM #1
Part A)
Cash Balance per Bank

40,056.40

Deposit in Transit
Bank Error

2,573.80
80.00

Deduct:
Outstanding Checks

5,919.60

Cash Balance per Company
Collection of N/R
Collection of Interest
Collection of A/R - Boxcar

4,000.00
200.00
6,100.00

Deduct:
Bank Service Charge
Bank Service Charge
Error - A/P-Emerald
NSF A/R-GoriX

20.00
106.80
90.00
100.00

36,790.60

Accounts & Explanations

Debit
10,300.00

Part B)
Date
9/30 Cash

N/R
Interest Revenue
A/R-Boxcar
Bank Service Charge Expense
A/P-Emerald
A/R-GoriX
Cash

26,807.40

Credit
4,000.00
200.00
6,100.00

126.80
90.00
100.00
316.80

36,790.60

PROBLEM #2
Date
6/9

6/28

7/5

7/9

7/28

8/1

8/1

Accounts & Explanations
A/R-Eddy
Sales
A/R-Jason
Sales
Allowance for Doubtful Accounts
A/R-Bovine

Debit
24,000

24,000
30,000
30,000
1,200
1,200

N/R-Eddy
A/R-Eddy

24,000

N/R-Jason
A/R-Jason

30,000

24,000

30,000

A/R-Poultry
Allowance for Doubtful Accounts

1,600

Cash

1,600

1,600

A/R-Poultry
10/9

Cash

1,600
24,540

N/R-Eddy
Interest Revenue
10/28

12/30

12/31

Credit

A/R-Jason
N/R-Jason
Interest Revenue
Cash
Allowance for Doubtful Accounts
A/R-Horn
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts
800
1,200
1,600
800
2,000
2,400

24,000 X 9% X 3/12 = 540

24,000
540
30,600

30,000 X 8% X 3/12 = 600

30,000
600
200
800
1,000
3,600
3,600

Problem 3 - Depreciation Methods
A) Straight Line
Cost - Salvage
# yrs. Of life

= Deprec. Exp. Per year

\$18,000 = \$3,600
5 yrs

B) Units of Production (Activity)
Cost - Salvage
# units Of life

= Deprec. Exp. Per Unit

\$18,000 = .10/copy
180,000 copies

C) 200% Declining Balance
Rate =

Cost 20,000
200% = 40%/yr.
20,000
5 yr. Life
20,000
20,000
20,000

Actual
Copies X Rate =
40,000 X .10
35,000 X .10
55,000 X .10
30,000 X .10
20,000 X .10

a/d
= Bk. Value X Rate =
- 0 = 20,000 X 40% =
- 7200 =
12,000 X 40% =
-12320=
7,200 X 40% =
-15392=
4,320 X 40% =
-17235=
2,592 X 40% =

Year
1
2
3
4
5

Dep. Exp.
3,600
3,600
3,600
3,600
3,600

A/D
3,600
7,200
10,800
14,400
18,000

Book Value
16,400
12,800
9,200
5,600
2,000

Year
1
2
3
4
5

Dep. Exp.
4,000
3,500
5,500
3,000
2,000

A/D
4,000
7,500
13,000
16,000
18,000

Book Value
16,000
12,500
7,000
4,000
2,000

Year
1
2
3
4
5

Dep. Exp.
8,000
4,800
2,880
1,728
592

A/D
8,000
12,800
15,680
17,408
18,000

Book Value
12,000
7,200
4,320
2,592
2,000

PROBLEM #4

A)

B)

C)

Date
Accounts & Explanations
6/30 Depreciation Expense
A/D-Equipment

Debit
1,200

1,200

6/30 Cash
A/D- Equipment
Loss on Sale
Equipment

3,500
10,800
700

6/30 Cash
A/D- Equipment
Equipment
Gain on Sale

5,000
10,800

Cost - Salvage = Deprec. Exp. Per year
Yrs. Of Life

Equipment
15,000

B)

Sold for
- Book Value
Loss

\$3,500
4,200 (15,000 - 10,800)
(700)

C)

Sold for
- Book Value
Gain

\$5,000
4,200 (15,000 - 10,800)
800

Credit

15,000

15,000
800

12,000
5

= 2,400 per year

Accum. Deprec. - Equipment
01) 2,400
02) 2,400
03) 2,400
04) 2,400
05) 1,200 ** entry A
10,800

Problem #5
Part A)

Employee
Jones
Kyle
Lane
Meeks

6.2% X
1.45% X

Hours
40
43
47
40

Regular
360.00
320.00

Earnings
Overtime
36.00

Gross
360.00
356.00

Taxable Earnings
SUI
100.00
-

480.00
800.00

126.00
-

606.00
800.00

606.00
800.00

606.00
800.00

1,960.00

162.00

2,122.00

1,506.00

1,406.00

FICA

Part B)
Date
12/7

FUI

FICA

Deductions
SWT
Health Ins.
12.00
3.00
18.00
5.00

6.20

Medicare
5.22
5.16

FWT
40.00
60.00

300.00
800.00

37.57
49.60

8.79
11.60

43.00
65.00

16.00
22.00

1,100.00

93.37

30.77

208.00

68.00

-

Tot. Ded.
70.22
94.36

Net Pay
289.78
261.64

5.00
3.00

5.00
5.00

115.36
156.20

490.64
643.80

800.00

606.00
-

16.00

20.00

436.14

1,685.86

1,156.00

966.00

Part C)
Accounts / Explanation
Sales Salaries Expense
Office Salaries Expense
FICA Payable
Medicare Payable
FWT Payable
SWT Payable
Healthe Ins. Payable
Contributions Payable
Salaries Payable

Debit
1,156.00
966.00

Credit

93.37
30.77
208.00
68.00
16.00
20.00
1,685.86

Date
12/7

Accounts / Explanation
Payroll Tax Expense
FICA Payable
Medicare Payable
SUI Payable
FUI Payable

Debit
196.21

Accts. Debited
Sales Sal. Office Sal.
360.00
356.00
-

Other
10.00
-

Credit
93.37
30.77
63.27 (4.5% X 1406)
8.80 (.8% X 1100)