Question;Problem 3- 25;Comprehensive cycle problem: Perpetual system;At the beginning of 2012, the Jeater Company had the following;balances in its accounts;Cash $ 4,300;Inventory 9,000;Common stock 10,000;Retained earnings 3,300;During 2012, the company experienced the following events.;1. Purchased inventory that cost $ 2,200 on account from Blue;Company under terms 1y10, ny30. The merchandise was delivered FOB shipping;point. Freight costs of $ 110 were paid in cash.;2. Returned $ 200 of the inventory that it had purchased because;the inventory was damaged in transit. The freight company agreed to pay the;return freight cost. 3. Paid the amount due on its account payable to Blue;Company within the cash discount period.;4. Sold inventory that had cost $ 3,000 for $ 5,500 on account;under terms 2y10, ny45.;5. Received merchandise returned from a customer. The;merchandise originally cost $ 400 and was sold to the customer for $ 710 cash;during the previous accounting period. The customer was paid $ 710 cash for the;returned merchandise.;6. Delivered goods FOB destination in Event 4. Freight costs of;$ 60 were paid in cash.;7. Collected the amount due on the account receivable within the;discount period.;8. Took a physical count indicating that $ 7,970 of inventory;was on hand at the end of the accounting period.;Required;a. Identify these events as asset source (AS), asset use (AU);asset exchange (AE), or claims exchange (CE).;b. Record each event in a statements model like the following;one. Balance Sheet Income Statement Event Assets 5 Liab. 5 Equity Rev. 2 Exp. 5;Net Inc. Statement of Cash Flows Cash 1 Accts. Rec. 1 Mdse. Inv. 5 Accts. Pay.;1 Ret. Earn.;c. Prepare an income statement, a statement of changes in;stockholders? equity, a balance sheet, and a statement of cash flows.;Problem 4- 20 Missing;information in a bank reconciliation The following data apply to Superior Auto;Supply Inc. for May 2012. 1. Balance per the bank on May 31, $ 8,000. 2.;Deposits in transit not recorded by the bank, $ 975. 3. Bank error, check;written by Allen Auto Supply was charged to Superior Auto Supply?s account, $;650. 4. The following checks written and recorded by Superior Auto Supply were;not included in the bank statement;Unadjusted Cash Balance, May 31, 2012: $ 5,565;3013 $ 385;3054 735;3056 1,900;5. Note collected by the bank, $ 500.;6. Service charge for collection of note, $ 10.;7. The bookkeeper recorded a check written for $ 188 to pay for;the May utilities expense as $ 888 in the cash disbursements journal.;8. Bank service charge in addition to the note collection fee, $;25.;9. Customer checks returned by the bank as NSF, $ 125.;Required Determine the amount of the unadjusted cash balance per;Superior Auto Supply?s books.
Paper#49273 | Written in 18-Jul-2015Price : $27