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jan 2. issued a check to establish a petty cash of 3200;mar 14. replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, 1200, misc selling expense, 410, misc admin expense, 620;apr 21. purchases 22400 of merch on acct, terms 1/10, n/30. the perpetual inventory system is used to acct for inventory;may 20. paid the invoice of april 21 after the discount period has passed;may 23. received cash from daily cash sales for 15120. the amount indicaede by the cash register was 15152;june 15. received a 60 day, 10% note for 127500 on the cady account;aug 14. received amount owed on june 15 note, plus interest at the maturity date;aug 18. received 5440 on the yoder acct and wrote off the remainder owed on a 6400 accts receivable balance. (the allowance method is used in accting for uncollectible receivables.);sept 9. reinstated the yoder acct written off on aug 18 and received 960 cash in full payment;sept 15. purchased land by issuing a 480000, 90-day note to ace development co., which discounted it at 8%;oct 17. sold office equipment in exchange for 96000 cash plus receipts of a 64000. 90-day, 6% note. the equipment had a cost of 224000 and accumulated depreciation of 44800 as of october 17.;nov 30. journalized the monthly payroll for november, based on the following data;Salaries deductions;sales salaries 96640 income tax withheld 28090;office salaries 55200 social security tax withheld 9110;151840 medicare tax withheld 2278;unemployment tax rates;state unemployment 4.0%;federal unemployment 0.8%;amount subject to unemployment taxes;state unemployment 5000;federal unemployment 5000;nov 30. journalized the employer's payroll taxes on the payroll;dec 14. journalized the payment of the september 15 note at maturity;dec 31. the pension cost for the year was 136000, of which 99840 was paid to the pension plan trustee;instructions;1. journalize the selected transactions;2. based on the following data, prepare a bank reconciliation for december of the current year;a. balance according to the bank statement at dec 31, 202240;b. balance according to the ledger at dec 31, 175440;c. checks outstanding at dec 31, 48960;d. deposit in transit, not recorded by bank, 21120;e. bank debit memo for service charges, 540;f. a check for 11520 in payment of an invoice was incorrectly recorded in the accounts as 11020;3. based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by gampfer company.;4. based on the following selected data, journalize the adjusting entries as of dec 31 of the current year;a. estimated uncollectible accounts at dec 31, 11520, based on an aging of accounts receivable. the balance of allowance for doubtful accounts at december 31 was 1200 (debit).;b. the physical inventory on december 31 indicated an inventory shrinkage of 2360;c. prepaid insurance expired during the year, 16300;d. office supplies used during the year, 2800;e. depreciation is computed as follows;asset cost residual value acq. date useful life (yrs) deprec. method;buildings 650000 0 jan 2 50 dble-decl-balan;office equip 176000 16000 jan 3 5 straight line;store equip 80000 8000 jul 1 10 straight line;f. a patent costing 36000 when acquired on jan 2 has a remaining legal life of eight years and is expected to have value for six years;g. the cost of mineral rights was 390000. of the estimated deposit of 650000 tons of ore, 38400 tons were mined and sold during the year.;h. vacation pay expense for dec, 7500;i. a product warranty was granted beginning dec 1, and covering a one-year period. the estimated cost is 3% of sales, which totaled(NNN) NNN-NNNNin dec.;j. interest was accrued on the note receivable received on oct 17


Paper#17801 | Written in 18-Jul-2015

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