Name

:

Steven Sanderson

PROBLEM #1
Part A)
Cash Balance per Bank

40,056.40

Cash Balance per Company

Add:

2,573.80

Add:

Deduct:

5,919.60

Deduct:

Adj. Cash Balance per Bank
Part B)

36,710.60

Date
Accounts & Explanations
30-Sep cash
Misc expense
Note receivable
interest revenue
30-Sep cash
a/p boxcar co.
30-Sep A/P Emerald Book Supply Co.
Cash
fix error in recording check to books
30-Sep Misc Bank Error in paying check
Cash
30-Sep A/P Gorix Co.
Cash
To record NSF Check

23,807.40
4,000.00
200.00
6,100.00

20.00
106.80
90.00
80.00
100.00

Adj. Cash Balance per Company

Debit
4,180.00
20.00

Credit

4,000.00
200.00
6,100.00
6,100.00
90.00
90.00
80.00
80.00
100.00
100.00

36,710.60

PROBLEM #2
Date
Accounts & Explanations
6/9/2006 A/R Eddie Co.
Merch Inv.
6/28/2006 A/R Jason Co.
Merch Inv
7/5/2006 Allowance For Doubtful Accounts
A/R Bovine Bros.
7/9/2006 Note Rec. Eddie Co.
A/R Eddie Co.
Terms 3mos 9% N/R
7/28/2006 Note Rec. Jason Co.
A/R Jason Co.
Terms 3mos 8%

Debit
24,000

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

30,000
30,000

8/1/2006 A/R Poultry Corp.
Allowance for doubtfull Accounts
To reverse write off

1,600

8/1/2006 Cash

1,600

1,600

A/R Poultry Corp.
10/9/2006 Cash

Credit

1,600
24,540

N/R Eddie Co.
Interest Rev
To record payment of N/R Eddie Co
10/28/2006 A/R Jason Co.
N/R Jason Co.
To record dishonored note
12/30/2006 Cash (20% of 1000)
Bad Debts Expense
A/R Horn Co
Horn Co. bankrupt
12/31/2006 Bad Debts Expense
Allowance for Doubtfull Accounts

24,000
540

30,600
30,600

200
800
1,000

2,800
2,800

Problem 3 - Depreciation Methods
A) Straight Line
Cost
20000
Life
5
Salvage
2000

20000-2000
3years

3600/yr

B) Units of Production (Activity)
Cost
20000
20000-2000/units of use
Life
180000
20000-2000/180000=.10 dep exp per unit
Salvage
2000
yr1
yr2
yr3
yr4
yr5

40000
35000
55000
30000
20000

C) 200% Declining Balance
Cost
20000
200%(Straight Line Method)
Life
5
Straight Line Method 20%
Salvage
2000
Double Straight Line 40%

Year
1
2
3
4
5

Dep. Exp.
3600
3600
3600
3600
3600

A/D
3600
7200
10800
14000
17600

Book Value
16400
12800
9200
6000
2800

Year
1
2
3
4
5

Dep. Exp.
4000
3500
5500
3000
2000

A/D
4000
7500
13000
16000
18000

Book Value
16000
12500
7000
4000
2000

Year
Dep. Exp.
A/D
Book Value
1
8000
8000
12000
2
4800
12800
7200
3
2880
15680
4320
4
1728
17408
2592
5
592*
18000
2000
*Note: A/D may not exceed an amount that will
bring book value lower than salvage value.
Therefore in year 5 Dep. Exp. Is only 592

PROBLEM #4
Date
6-31-06

6-31-06

6-31-06

Accounts & Explanations
Accumulated Depreciation
Loss on Disposal
Retired Equipment

Debit
10,800
4,200

Cash
Accumulated Depreciation
Loss on Disposal
Equipment

3,500
10,800
700

Cash
Accumulated Depreciation
Equipment
Gain on Sale

5,000
10,800

Credit

15,000

15,000

15,000
800

Problem #5
Part A)
4.50%
Taxable Earnings
FICA
SUI
0
0
100
0

Hours
40
43

Regular
360
320

Earnings
Overtime
0
36

Lane
Meeks

47
40

480
800

126
0

606
800

606
800

Totals

170

1960

162

2122

1506

Employee
Jones
Kyle

Gross
360
356

Part B)
Date
Accounts / Explanation
12/7/2006 Salaries and Wages Payable
Cash

0.80%

6.20%

1.45%
Deductions
SWT
Health Ins.
12
3
18
5

FUI
0
0

FICA
0
6.2

Medicare
5.22
5.16

FWT
40
60

606
800

606
800

37.57
49.6

8.79
11.6

43
65

16
22

1406

1406

93.37

30.77

208

68

Tot. Ded.
70.22
94.36

Net Pay
289.78
261.64

5
3

5
5

115.36
156.2

490.64
643.8

800

16

20

436.14

1685.86

1156

Part C)
Debit
1,685.86

Credit
1,685.86

Date
Accounts / Explanation
12/7/2006 Sales Salaries
Office Salaries
FICA/MED
FWT
SWT
United Fund
Health Ins
Salaries and Wages Pay

Debit
1,156.00
966.00

Accts. Debited
Sales Sal. Office Sal.
360
356

Other
10
0

Credit

124.14
208.00
68.00
20.00
16.00
1,685.86

606
966

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