Question;problem 3-24The following events were completed by Chan?s Imports in September 2012.Sept. 1 Acquired $60,000 cash from the issue of common stock.1 Purchased $36,000 of merchandise on account with terms 2/10, n/30.5 Paid $800 cash for freight to obtain merchandise purchased on September 1.8 Sold merchandise that cost $20,000 to customers for $38,000 on account, with terms 2/10, n/30.8 Returned $1,500 of defective merchandise from the September 1 purchase to the supplier.10 Paid cash for the balance due on the merchandise purchased on September 1.20 Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period.30 Paid $4,900 cash for selling expenses.Requireda. Record each event in a statements model like the following one. The first event is recorded as an example.b. Prepare an income statement for the month ending September 30.c. Prepare a statement of cash flows for the month ending September 30.d. Explain why there is a difference between net income and cash flow from operatingactivities.problem 4-22The following information is available for Cooters Garage for March 2012:The following is a list of checks and deposits recorded on the books of Cooters Garage for March 2012:Other Information1. Check no. 1462 was outstanding from February.2. A credit memo for collection of accounts receivable was included in the bank statement.3. All checks were paid at the correct amount.4. The bank statement included a debit memo for service charges.5. The February 28 bank reconciliation showed a deposit in transit of $1,000.6. Check no. 1468 was for the purchase of equipment.7. The unadjusted Cash account balance at March 31 was $16,868.Requireda. Prepare the bank reconciliation for Cooters Garage at the end of March.b. Explain how the adjustments described above affect the cashaccount.
Paper#42073 | Written in 18-Jul-2015Price : $27