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mba-560 test 2

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Question;Problem 1. The May 31, 2012, balance per bank statement for;Upton Company was $7,200. The cash balance per books was $9,500. Outstanding;checks amounted to $800, and deposits in transit were $2,400. The bank;statement contained an NSF check for $500, a service charge for $25, and a;debit memo for direct payment of the telephone bill of $175.;Required;1) Prepare a bank reconciliation to determine the true cash balance at May 31;2012.;Problem 2. Scott Company is a merchandising business that was;started in 2012. Scott uses the perpetual inventory system. It experienced the;following events during 2012.;1. Acquired $25,000 cash by issuing common stock;2. Purchased inventory on account that cost $14,000, terms 2/10, n/30;3. Sold inventory that had cost $8,400 for $15,000 cash;4. Paid for the merchandise referred to in event 2, within the discount period;Required;1) Record the events in the financial statements model below, include column;totals.;2) Prepare an income statement for 2012.;3) What is the amount of total assets at the end of 2012?;Assets;=;Liab.;+;Stockholders? Equity;Rev.;-;Exp.;=;Net. Inc.;Cash Flow;Cash;+;Accts. Rec.;+;Inven.;=;Accts. Pay.;+;Com. Stk.;+;Ret. Earn.;1;2;3;4

 

Paper#45480 | Written in 18-Jul-2015

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