Problem 7-8 new

saldo RK 2,049.25
Undeposited sales receipts 130.25
Deposit in transit 350.00
Outstanding check (2,040.55)

488.95

saldo kas (325.60)

NSF check (420.40)
Cash missing (640.25)
Notes receivable collection 2,525.00
error (649.80)

488.95
Train Company P7-2new
Bank Reconciliation
December 2007

Balance per bank statement 91,174.63

1.00 Outstanding checks (33,378.82)
2.00 Receipts 5,317.20
3.00 Deposit 2,892.41
4.00 Error deposit 1.00
5.00 Error checks 2,690.00
6.00 Error deposit (10.00)
7.00 Deposit Trait Manuf (1,819.20)
8.00 Error debit memo 5,000.00

(19,307.41)

71,867.22

Balance per books 59,088.46

1.00 Service charge (22.50)
2.00 Proceeds bank loan 11,640.00
3.00 Rome Products (873.74)
4.00 Proceeds of note 2,035.00

12,778.76

71,867.22

Bank Adminstrative expenses 22.50

Banks 22.50

Cash 11,640.00
Interest expense 360.00
Bank Loan 12,000.00

Account Receivable 873.74

Banks 873.74

Cash 2,035.00
Bank Adminstrative expenses 5.00
Notes Receivable 2,000.00
Interest revenue 40.00
Balance per book 2,610.42
service charge (6.00)
NSF (69.69)
credit memorandum 460.00

2,994.73

Balance per bank statement 6,344.38

Outstanding checks (589.02)
(2,742.63)
Error in recording deposits (18.00)

2,994.73

control 0.00
Problem 7-10

Cash 238,000.00
assignment service expense 2,000.00
Notes payable 240,000.00
Account receivable-assigned 300,000.00
Account receivable 300,000.00

Cash 220,000.00
Account-receivable-assigned 220,000.00
Sales return and allowances 5,000.00
Account-receivable-assigned 5,000.00

Notes Payable 207,900.00

Interest expense 2,100.00
Cash 210,000.00

Problem 7-11 7-1new

Account receivable 100,000.00
sales 100,000.00

Cash 54,600.00
factoring commission expense 8,400.00
Receivable from Factor 7,000.00
Account receivable 70,000.00

sales return and allowances 4,300.00

Account receivable 1,300.00
Receivable from factor 3,000.00

sales discount 131.60

cash 3,868.40 70,000.00
Receivable from factor 4,000.00 3,000.00
67,000.00
Sales discount 551.04
Cash 28,148.96 0.94
Account receivables 28,700.00 62,980.00
1,259.60

4,020.00
cash discount 1,259.60
Account receivable 4,020.00
Cash 1,279.60
rec fr factor 4,000.00

cash discount 551.04

cash 27,000.96
Account rec 27,552.00
30,000.00
1,300.00
28,700.00

0.96
27,552.00
551.04

1,148.00
Beginning balance
AR 331,750.00
Allowance 16,700.00

315,050.00

Account receivables 2,017,800.00

Sales 2,017,800.00
Cash 1,956,000.00
Account receivables 1,956,000.00
Allowance for doubtful accounts 16,200.00
Account receivables 16,200.00

AR balance 377,350.00

Analysis of aging
under 30 days 0.80% 169,250.00 1,354.00
30-90 days 1.60% 100,000.00 1,600.00
91-180 days 5.00% 55,900.00 2,795.00
181-360 days 15.00% 38,200.00 5,730.00
over 360 days 40.00% 14,000.00 5,600.00

377,350.00 17,079.00

Bad debt expense calculation

Beginning balance 16,700.00
write-off (16,200.00)
500.00
Intended ending balance 17,079.00

Bad debt expense 16,579.00

Turnover sales 2,017,800.00

AR net 360,271.00

Turnover 5.60078

days 64.28
P 7-20 new

Total 187,000.00

Factoring Assigning
0.30 0.70
56,100.00 130,900.00
komisi 5,610.00
44,880.00 104,720.00

Cash 39,270.00
Commission expense 5,610.00
Receivable from factor 11,220.00
Account receivable 56,100.00

AR - assigned 130,900.00
AR 130,900.00
Cash 104,720.00
Notes payable 104,720.00

Cash 84,000.00
AR-assigned 84,000.00
Notes payable 84,000.00
Interest exp 1,309.00 1,050.00
Cash 85,309.00
Notes payable 20,720.00
Interest exp 259.00 518.00
Cash 20,979.00
1,568.00 1,568.00
Uncomplete suggested solution
For illustrative purpose only

AR beginning 245,000.00
Allowance 15,000.00

Notes receivables

Total receivable

During 2010
AR 2,200,000.00
Sales 2,200,000.00
Cash 1,900,000.00
AR 1,900,000.00
Allowance doubtful acc 18,000.00
AR 18,000.00
AR 1,350.00
Allowance doubtful acc 1,350.00
Cash 1,350.00
AR 1,350.00

6-Mar Cash 12,460.00

Notes receivable 12,000.00
interest rev 460.00
31-Mar

1-May Notes receivable 4,800.00

AR 4,800.00
18-May Notes receivable 6,900.00
Sales 6,900.00

days notes 120.00 90.00

Discounting calculation days 32.00 15.00
Face value of note 4,800.00 6,900.00
Interest to maturity 208.00 207.00
Maturity value 5,008.00 7,107.00
Discount 171.38 207.29
Proceeds 4,836.62 6,899.71

Accrued int 55.47 34.50

BV of notes 4,800.00 6,900.00
4,855.47 6,934.50

Loss 18.85 34.79

2-Jun Cash 11,736.33

Loss on discounting notes 53.64
Notes receivable 11,700.00
 Interest rev 89.97

1-Jul AR assigned 140,000.00

AR 140,000.00
Cash 114,000.00
Service charge exp 5,000.00
Notes payable 119,000.00

6-Jul Sales allowances 2,500.00

AR assigned 2,500.00
13-Jul Sales return 800.00
AR assigned 800.00

31-Jul Cash 50,000.00

AR assigned 50,000.00
Note payable 50,000.00
Int exp 1,785.00
Cash 51,785.00

31-Aug Cash 60,000.00

AR assigned 60,000.00
Note payable 69,000.00
Int exp 1,035.00
Cash 70,035.00

31-Aug no entry notes only

1-Sep Notes receivable - dishonoured 6,900.00

bank charge 25.00
cash 6,925.00

31-Dec cash 5,000.00

int rev 5,000.00
230,000.00

50,000.00

280,000.00