Reference no: EM132535611
Question 1 - The following information was obtained regarding the April 30, 2020 bank statement and Cash account regarding Beavis Company:
1) Beavis's Cash T-account on April 30 showed a balance of $3,610 while the banks statement on that date showed the balance to be $4,740.
2) A check Beavis wrote to a creditor for $94 was incorrectly recorded in the cash payments journal as $49.
3) Outstanding checks totaled $460.
4) The April bank charges were $15.
5) A $170 deposit made by Beavis on April 30th was made too late to appear on the April bank statement.
6) The bank notified Beavis that a check for $100 received from a customer, Butthead Company, bounced.
7) The bank collected a note for Beavis from a customer, $1,000.
REQUIRED -
1) Prepare the April 30th bank reconciliation.
2) Prepare the necessary correcting journal entries for Beavis.
Question 2 - The following information pertains to Swift Company in 2019:
April 1: Wrote off the account of the account of K. Perry, $220.
June 1: Unexpectedly received a check from B. Ellish for $375. Ellish's account was written off in 2017.
Dec. 31: Swift's 2019 net credit sales were $800,000. It's estimated that 4% of those sales will be uncollectible.
Dec. 31: The balance in the Allowance for Bad Debt t-account showed a debit of $5,000 before adjustment. It is estimated that $39,000 will be uncollectible based on an aging analysis of the Accounts Receivable.
REQUIRED - Prepare the journal for each of the four date scenarios above.
Question 3 - For each of the following transactions please indicate which of the five special journals should be used. Please use the following abbreviations:
P=Purchases Journal
CP=Cash Payments Journal
S=Sales Journal
CR=Cash Receipts Journal
J=General Journal
1) Sold merchandise for cash, $250.
2) Issued a cash refund to a customer, $150
3) Bought merchandise, $550, and will pay for it next week.
4) Wrote off the account of Smith Company, $660.
5) Jones, the owner, made a withdrawal of $4,000.
6) Borrowed $10,000 from the bank via a Notes Payable
7) Recorded the accrual of salaries at the end of the year
8) Paid the monthly rent, $1,900.
9) Sent a bill out to a customer, $715.
10) Issued a credit memo to a customer for damaged returned merchandise.