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ACC - Cash in Second National Bank (A&A Products)

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Question;#1 Cash in Second National Bank (A&A Products): Consider the following information.The checking account balance includes an NSF check for $5,000 (payment on an accounts receivable) that Northco believes is collectible.Bank charges for December 2012 of $50 was not recorded by Northco.A check that is dated December 31, 2012 for $34,000 was held and mailed by Northco on January 15th (for an accounts payable balance).#2The following information was gathered from the books of A&A Products in order to prepare its banks reconciliation:Balance per bank statement, June 30 $11,800Balance per ledger, June 30 13,160Interest earned 40Outstanding checks 200Returned check 300Deposit in transit 1,200Additional informationA. A&A Products? bookkeeper correctly recorded one of its deposits for $800, although the bank recorded only $700.B. A&A Products has a petty cash fund of $500. Any withdrawals were replenished by June 30.C. A&A Products had two certificates of deposit on June 30. The first was $20,000 six month CD with a maturity date of October 15th and the other was a $30,000, 90-day CD with a maturity date of August 15th.D. A&A Products had $25 of stamps on hand.E. Included in the cash ledger balance was $1,100 of cash deposits received from customers. A&A Products had not yet delivered the goods to the customer as of June 30.F. A&A products had $e5, 000 set aside in a bond sinking fund. The amount was not included in the cash ledger balance.G. On June 14th, A&A Products paid in a refundable cash deposit of $800 tp the Rent-A-Truck Corporation. The rental period was for 45 days. The cash ledger properly reflected the payment on June 14th.H. A&A Products received a check from one of their customers dated July 6,2014 in the amount of $550. This amount was not included in the ledger balance.Prepare a bank of reconciliation as of June 30.#3The Alpha Company purchased $2.5 million dollars of merchandise on account. A&A Product gives terms of 1%, 10 days, net 20. A&A Products believes that Alpha will take the discount if the discount is equal to at least a 16% return. A&A Product uses the net method no record sales. The transaction was not recorded by A&A Product uses the net method to record sales. The transaction was not recorded by A&A Products. Assume the 360-day year. Alpha paid 5 days past the discount period.#4On Sept 1st of the current year, A&A Products decides to sale (with recourse) $3,000,000 of their receivables. The finance company charges a 5% finance fee and retains 5% of the receivables for possible uncollectible. A&A Products did not make the necessary entries.#5 A&A Products is in the process of preparing interim financial statements. Since they take physical on an annual basis they use the Retail Inventory Method to estimate inventory. Fortunately, A&A Products keeps very detailed inventory records at both cost and retail. The following information for corrugated boxes as of the end of the third quarter, 2012, 2012 is provided.Cost RetailBeginning inventory 92,000 167,000Purchases 220,000 435,000Purchases discount 3,000Purchase returns 8,000Mark-upsMarkup cancellations 10,000Markdowns 25,000Employee discounts 5,000Sales 9,000Requirement: 430,000Using the retail inventory method calculate ending inventory at cost (for the third quarter of 2012).I-7P&P Products implemented Dollar Value LIFO inventory valuation in 2009, when their ending inventory was $650,000. The following are the inventory amounts for an ingredient used in packaging for years 2010-2014.Year Inventory at End of Year Prices Price Index2010 697,200 1052011 795, 800 1152012 805,200 1202013 856, 500 1252014 901,800 135Calculate the ending inventory for years 2009-2014 using Dollar Value LIFO.#6 A&A Products (a subsidiary of P&P) completed a contract to build a storage facility for P&P Products, their parent company. The construction began on January 1st 2010. The President of A&A Products has consulted with the controller regarding estimated cost and resulting profit. During her discussions with the controller regarding estimated cost and the Products used the completed contract method to the account for construction project, The president asked the controller about the percentage of completion method she remembered from her college accounting class. She is concerned about the recognizing all of the profit in a single year. She asked that the controller preparer a schedule showing the effect on the income statement and balance sheet under the percentage of completion vs. the completed contract method. Unfortunately, the controller has delegated this task to you.Cost for 2010=3.2 million, cost for 2011=$5,760,000, cost for 2012= $3,840,000Estimated costs to complete as if the end of 2010, $10,800,000, estimated cost to complete as of the end of 2011, 4,000,000Billings to P&P Products in 2010 was $3,000,000, for 2011, $5,000,000 with the remaining billings during 2012.The contract price was 18,000,000Requirement:Make all necessary entries assuming completion of contract methodMake all necessary entries assuming completion of completion method.

 

Paper#40988 | Written in 18-Jul-2015

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