Reference no: EM131766635

Question -

1) Maple Industries Inc. deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on December 31, its Cash account shows a debit balance of $18,943. The company's bank statement as of December 31 shows an ending cash balance of $16,121. The following information was also available.

• Outstanding checks as of December 31 total $2,361.
• Included with the bank statement was a debit memo in the amount of $135 for service charges. Check No. 2519, listed with the canceled checks, was correctly drawn for $905 in payment of a utility bill on December 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $1,050.
• The December 31 cash receipts of $3,725 were placed in the bank's night depository after banking hours and were not recorded on the December 31 bank statement.
• The bank deducted $1,468 for an NSF check from a customer deposited on December 10.

Required: Prepare the bank reconciliation as of December 31.

2) A company lends its supplier $151,000 for 3 years at a 7% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for:

3) On the maturity date of a $5,400, 3-month, 11% note, the borrower sends a check that includes the principal and all of the interest due on the note. What is the amount of the borrower's check?

4) On September 1, a company purchased a vehicle for $73,000 with a residual value of $8,000. The estimated useful life is 5 years and the company uses the straight-line method. What is the depreciation expense for the year ended December 31?