Question
1:
On June 10, Meredith Company purchased $8,600 of merchandise from
Leinert Company FOB shipping point, terms 2/10, n/30. Meredith pays the freight
costs of $409 on June 11. Damaged goods totaling $200 are returned to Leinert
for credit on June 12. The scrap value of these goods is $102. On June 19,
Meredith pays Leinert Company in full, less the purchase discount. Both
companies use a perpetual inventory system.
(a) Prepare separate entries
for each transaction on the books of Meredith Company. (For multiple
debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.
Round answers to 0 decimal places, e.g. 125.)
(b) Prepare separate
entries for each transaction for Leinert Company. The merchandise purchased by
Meredith on June 10 had cost Leinert $5,046. (For multiple debit/credit entries,
list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 0 decimal
places, e.g. 125.)
Question 2:
On May 31, 2011, James Logan
Company had a cash balance per books of $6,602.94. The bank statement from
Farmers State Bank on that date showed a balance of $6,375.10. A comparison of
the statement with the cash account revealed the following facts.
The
statement included a debit memo of $37.20 for the printing of additional company
checks.
Cash sales of $833.21 on May 12 were deposited in the bank. The cash
receipts journal entry and the deposit slip were incorrectly made for $883.21.
The bank credited Logan Company for the correct amount.
Outstanding checks at
May 31 totaled $673.34. Deposits in transit were $1,920.46.
On May 18, the
company issued check No. 1181 for $685.00 to Barry Trest, on account. The check,
which cleared the bank in May, was incorrectly journalized and posted by Logan
Company for $658.00.
A $2,460.00 note receivable was collected by the bank
for Logan Company on May 31 plus $79.61 interest. The bank charged a collection
fee of $15.23. No interest has been accrued on the note.
Included with the
cancelled checks was a check issued by Bridgetown Company to Tom Lujak for
$777.41 that was incorrectly charged to Logan Company by the bank.
On May 31,
the bank statement showed an NSF charge of $613.49 for a check issued by Sandy
Grifton, a customer, to Logan Company on account.
a:Prepare the bank
reconciliation at May 31, 2011. (List amounts from largest to smallest eg 10, 5,
3, 2. Round answers to 2 decimal places, e.g. 10.50.)
b:Prepare the
necessary adjusting entries for Logan Company at May 31, 2011. (For multiple
debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
password: shiv
1:
On June 10, Meredith Company purchased $8,600 of merchandise from
Leinert Company FOB shipping point, terms 2/10, n/30. Meredith pays the freight
costs of $409 on June 11. Damaged goods totaling $200 are returned to Leinert
for credit on June 12. The scrap value of these goods is $102. On June 19,
Meredith pays Leinert Company in full, less the purchase discount. Both
companies use a perpetual inventory system.
(a) Prepare separate entries
for each transaction on the books of Meredith Company. (For multiple
debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.
Round answers to 0 decimal places, e.g. 125.)
(b) Prepare separate
entries for each transaction for Leinert Company. The merchandise purchased by
Meredith on June 10 had cost Leinert $5,046. (For multiple debit/credit entries,
list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 0 decimal
places, e.g. 125.)
Question 2:
On May 31, 2011, James Logan
Company had a cash balance per books of $6,602.94. The bank statement from
Farmers State Bank on that date showed a balance of $6,375.10. A comparison of
the statement with the cash account revealed the following facts.
The
statement included a debit memo of $37.20 for the printing of additional company
checks.
Cash sales of $833.21 on May 12 were deposited in the bank. The cash
receipts journal entry and the deposit slip were incorrectly made for $883.21.
The bank credited Logan Company for the correct amount.
Outstanding checks at
May 31 totaled $673.34. Deposits in transit were $1,920.46.
On May 18, the
company issued check No. 1181 for $685.00 to Barry Trest, on account. The check,
which cleared the bank in May, was incorrectly journalized and posted by Logan
Company for $658.00.
A $2,460.00 note receivable was collected by the bank
for Logan Company on May 31 plus $79.61 interest. The bank charged a collection
fee of $15.23. No interest has been accrued on the note.
Included with the
cancelled checks was a check issued by Bridgetown Company to Tom Lujak for
$777.41 that was incorrectly charged to Logan Company by the bank.
On May 31,
the bank statement showed an NSF charge of $613.49 for a check issued by Sandy
Grifton, a customer, to Logan Company on account.
a:Prepare the bank
reconciliation at May 31, 2011. (List amounts from largest to smallest eg 10, 5,
3, 2. Round answers to 2 decimal places, e.g. 10.50.)
b:Prepare the
necessary adjusting entries for Logan Company at May 31, 2011. (For multiple
debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
password: shiv
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