Reference no: EM132525954

Very briefly answer the following questions and show calculations where needed-

Question I. If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to_____?

Question II. Sally Company assembled the following information in completing its March bank reconciliation: balance per bank $3,820; outstanding checks $775; deposits in transit $1,250; NSF check $80; bank service charge $25; cash balance per books $4,400. As a result of this reconciliation, how will Sally change the cash account?

Question III. Zach's Market recorded the following events involving a recent purchase of merchandise:

Received goods for $50,000, terms 2/10, n/30.

Returned $1,000 of the shipment for credit.

Paid $250 freight on the shipment.

Paid the invoice within the discount period.

As a result of these events how will the company's merchandise inventory change?

Question IV. Company X sells $400 of merchandise on account to Company Y with credit terms of 2/10, n/30. If Company Y remits a check taking advantage of the discount offered, what is the amount of Company Y's check?

Question V. If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a debit to the owner's capital account.- is it true? give your justification.