Reference no: EM131763279

Cash on the books as of April 30 was $499. Cash as shown on the bank statement for the same date was $1,330.

A deposit of $160, representing cash receipts as of April 30, did not appear on the bank statement.

Outstanding checks totaled $240.

Bank service charges for April amounted to $9

The bank collected for Rawlins Company $840 (which includes $40 interest) on a note left for collection.

An NSF check for $80 from a customer, Joe Beck, was returned with the statement.

1. What amount would appear on the Balance Sheet?  (Show your work)

        a. $1,250

        b. $1,330     

        c. $ 499

        d. None of the above

The following information pertains to questions 2, and 3.

Preston Corporation purchased a truck for $40,000. The company expected the truck to last four years or 100,000 miles, with an estimated residual value of $4,000 at the end of that time. During the second year, the truck was driven 27,500 miles. What would the company record as Depreciation for the second year under each of the following methods:

2. Production method:

          a. $9,000.00

          b. $9,900.00

          c. $10,000.00

          d. None of the above                               

3. Double-declining-balance method:

          a. $9,000.00

          b. $9,900.00

          c. $10,000.00

          d. None of the above

4. Given the adjusted trial balance below, prepare (in good form) an income statement, statement of retained earnings, and balance sheet. The name of the business is Palo Verde Landscaping Services and the accounting period coincides with the calendar year.