Question;Problem 3-28 Comprehensive cycle problem: Periodic systemThe following trial balance pertains to Nate?s Grocery as of January 1, 2012:Account TitleCashAccounts receivableMerchandise inventoryAccounts payableCommon stockRetained earningsTotalsBeginning Balances$26,000$4,000$50,000$4,000$43,000$33,000$80,00The following events occurred in 2012. Assume that Nate?s uses the periodic inventorymethod.188.8.131.52.5.6.7.Purchased land for $9,000.Purchased merchandise on account for $96,000, terms 1/10 n/45.Paid freight of $1,000 cash on merchandise purchased FOB shipping point.Returned $3,600 of defective merchandise purchased in Event 2.Sold merchandise $86,000 cash.Sold merchandise on account for $90,000, terms 2/10 n/30.Paid cash within the discount period on accounts payable due on merchandisepurchased in Event 2.8. Paid $11,600 cash for selling expenses.9. Collected $50,000 of the accounts receivable from Event 6 within the discountperiod.10. Collected $40,000 of the account receivable but not within the discount period.11. Paid $6,400 of other operating expenses.12. A physical count indicated that $47,600 of inventory was on hand at the end ofthe accounting period.Requireda. Record the above transactions in a horizontal statements model like the followingone.EventBalance SheetAssets=EquityAccts. Mdse.Accts. Comm.Ret.Cash + Rec + Inv. + Land = Pay. + Stock + Earn.Income StatementRev. ? Exp. = Net Inc.b. Prepare a schedule of cost of goods sold and an income statement.Statement ofCash FlowsProblem 4-21 Adjustments to the cash account based on the bank reconciliationRequiredDetermine whether the following items included in Yang Company?s bank reconciliationwill require adjustments or corrections on Yang?s books.a. An $877 deposit was recorded by the bank as $778.b. Four checks totaling $450 written during the month of January were not includedwith the January bank statement.c. A $54 check written to Office Max for office supplies was recorded in the generaljournal as $45.d. The bank statement indicated that the bank had collected a $330 not for Yang.e. Yang recorded $500 of receipts on January 31, which were deposited in the nightdepository of the bank. These deposits were not included in the bank statement.f. Service charges of $22 for the month of January were listed on the bankstatement.g. The bank charges a $297 check drawn on Cave Restaurant to Yang?s account.The check was included in Yang?s bank statement.h. A check of $31 was returned by the bank because of insufficient funds and wasnoted on the bank statement. Yang received the check from customer and thoughtthat it was good when it was deposited into the account.
Paper#50791 | Written in 18-Jul-2015Price : $27