Calculate a bank discount and proceed

Assignment Help Financial Accounting

Reference no: EM133574115 , Length: 2 pages

Instruction:

1. i. Prepare bank reconciliation.
ii. Record the necessary entries in general journal form.
iii. What is the amount of cash in bank that should appear on the balance sheet as of May 31,

2. Prepare journal entries for each of the following:
a. Issued a check to establish a petty cash fund of $500.
b. The amount of cash in the petty cash fund is $120. Issued a check to replenish the fund, based on the following summary of petty cash receipts: office supplies, $300 and miscellaneous administrative expense, $75. Record any missing funds in the cash short and over account.

3. On February 20, 2002, XY Co. discounted at Abyssinia Bank a note receivable at 16% arising from sale of merchandise. The note was for Br-100,000, 120 days dated on Dec. 20, 2001, 15%. Assume the fiscal period of X Co. ends on Dec. 31.
Instruction:
A. Calculate a bank discount and proceed.
B. Prepare a necessary journal entry.

4. On February 20, 2002, XY Co. discounted at Abyssinia Bank a note receivable at 16% arising from sale of merchandise. The note was for Br-100,000, 120 days dated on Dec. 20, 2001, 15%. Assume the fiscal period of X Co. ends on Dec. 31.
Instruction:
A. Calculate a bank discount and proceed.
B. Prepare a necessary journal entry.

5. Assume that Walia Company issued a promissory note to ldget Company at a term of 90days, 8% note for birr 20,000 dated on February 20.
Compute:
A. Maturity date
B. Interest
C. Maturity value

Reference no: EM133574115

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