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Name: Steven Sanderson

PROBLEM #1
Part A)

Cash Balance per Bank 40,056.40 Cash Balance per Company 23,807.40

Add: 2,573.80 Add: 4,000.00


200.00
6,100.00

Deduct: 5,919.60 Deduct: 20.00


106.80
90.00
80.00
100.00

Adj. Cash Balance per Bank 36,710.60 Adj. Cash Balance per Company 36,710.60
Part B)

Date Accounts & Explanations Debit Credit


30-Sep cash 4,180.00
Misc expense 20.00
Note receivable 4,000.00
interest revenue 200.00
30-Sep cash 6,100.00
a/p boxcar co. 6,100.00
30-Sep A/P Emerald Book Supply Co. 90.00
Cash 90.00
fix error in recording check to books
30-Sep Misc Bank Error in paying check 80.00
Cash 80.00
30-Sep A/P Gorix Co. 100.00
Cash 100.00
To record NSF Check
PROBLEM #2

Date Accounts & Explanations Debit Credit


6/9/2006 A/R Eddie Co. 24,000
Merch Inv. 24,000

6/28/2006 A/R Jason Co. 30,000


Merch Inv 30,000

7/5/2006 Allowance For Doubtful Accounts 1,200


A/R Bovine Bros. 1,200

7/9/2006 Note Rec. Eddie Co. 24,000


A/R Eddie Co. 24,000
Terms 3mos 9% N/R

7/28/2006 Note Rec. Jason Co. 30,000


A/R Jason Co. 30,000
Terms 3mos 8%

8/1/2006 A/R Poultry Corp. 1,600


Allowance for doubtfull Accounts 1,600
To reverse write off

8/1/2006 Cash 1,600


A/R Poultry Corp. 1,600

10/9/2006 Cash 24,540


N/R Eddie Co. 24,000
Interest Rev 540
To record payment of N/R Eddie Co

10/28/2006 A/R Jason Co. 30,600


N/R Jason Co. 30,600
To record dishonored note

12/30/2006 Cash (20% of 1000) 200


Bad Debts Expense 800
A/R Horn Co 1,000
Horn Co. bankrupt

12/31/2006 Bad Debts Expense 2,800


Allowance for Doubtfull Accounts 2,800
Problem 3 - Depreciation Methods

A) Straight Line Year Dep. Exp. A/D Book Value


Cost 20000 20000-2000 3600/yr 1 3600 3600 16400
Life 5 3years 2 3600 7200 12800
Salvage 2000 3 3600 10800 9200
4 3600 14000 6000
5 3600 17600 2800

B) Units of Production (Activity) Year Dep. Exp. A/D Book Value


Cost 20000 20000-2000/units of use 1 4000 4000 16000
Life 180000 20000-2000/180000=.10 dep exp per unit 2 3500 7500 12500
Salvage 2000 3 5500 13000 7000
4 3000 16000 4000
yr1 40000 5 2000 18000 2000
yr2 35000
yr3 55000
yr4 30000
yr5 20000

C) 200% Declining Balance Year Dep. Exp. A/D Book Value


Cost 20000 200%(Straight Line Method) 1 8000 8000 12000
Life 5 Straight Line Method 20% 2 4800 12800 7200
Salvage 2000 Double Straight Line 40% 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 Accounts & Explanations Debit Credit


6-31-06 Accumulated Depreciation 10,800
Loss on Disposal 4,200
Retired Equipment 15,000

6-31-06 Cash 3,500


Accumulated Depreciation 10,800
Loss on Disposal 700
Equipment 15,000

6-31-06 Cash 5,000


Accumulated Depreciation 10,800
Equipment 15,000
Gain on Sale 800
Problem #5
Part A)
4.50% 0.80% 6.20% 1.45%
Earnings Taxable Earnings Deductions Accts. Debited
Employee Hours Regular Overtime Gross FICA SUI FUI FICA Medicare FWT SWT Health Ins. Other Tot. Ded. Net Pay Sales Sal. Office Sal.
Jones 40 360 0 360 0 0 0 0 5.22 40 12 3 10 70.22 289.78 360
Kyle 43 320 36 356 100 0 0 6.2 5.16 60 18 5 0 94.36 261.64 356
Lane 47 480 126 606 606 606 606 37.57 8.79 43 16 5 5 115.36 490.64 606
Meeks 40 800 0 800 800 800 800 49.6 11.6 65 22 3 5 156.2 643.8 800
Totals 170 1960 162 2122 1506 1406 1406 93.37 30.77 208 68 16 20 436.14 1685.86 1156 966

Part B) Part C)

Date Accounts / Explanation Debit Credit Date Accounts / Explanation Debit Credit
12/7/2006 Salaries and Wages Payable 1,685.86 12/7/2006 Sales Salaries 1,156.00
Cash 1,685.86 Office Salaries 966.00
FICA/MED 124.14
FWT 208.00
SWT 68.00
United Fund 20.00
Health Ins 16.00
Salaries and Wages Pay 1,685.86