ISU ACCT 284 - Chapter8 (5 pages)

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Chapter8



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Chapter8

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Pages:
5
School:
Iowa State University
Course:
Acct 284 - Financial Accountng
Financial Accountng Documents
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8 2 2017 Assignment Print View Score 1 10 10 Points 100 Award 1 out of 1 00 point Exercise 8 8 Bank reconciliation and adjusting entries LO P3 A table for a monthly bank reconciliation dated September 30 is given below For each item 1 through 12 indicate whether the item should be added to or deducted from the book or bank balance or whether it should not appear on the reconciliation Select the answers in the appropriate cells Leave no cells blank Be certain to select NA in fields which are not applicable Bank Balance Shown Not Shown on Reconciliation Book Balance 1 NSF check from customer is returned on September 25 but not yet recorded by this company NA Deduct Cr Shown 2 Interest earned on the September cash balance in the bank NA Add Dr Shown 3 Deposit made on September 5 and processed by the bank on September 6 NA NA Not Shown 4 Checks written by another depositor but charged against this company s account Add NA Shown 5 Bank service charge for September NA Deduct Cr Shown 6 Checks outstanding on August 31 that cleared the bank in September NA NA Not Shown NA Deduct Cr Shown 7 8 Check written against the company s account and cleared by the bank erroneously not recorded by the company s recordkeeper Principal and interest on a note receivable to this company is collected by the bank but not yet recorded by the company NA Add Dr Shown 9 Checks written and mailed to payees on October 2 NA NA Not Shown 10 Checks written by the company and mailed to payees on September 30 Deduct NA Shown 11 Night deposit made on September 30 after the bank closed Add NA Shown 12 Special bank charge for collection of note in part 8 on this company s behalf NA Deduct Cr Shown References Worksheet Exercise 8 8 Bank reconciliation and adjusting entries LO P3 http ezto mheducation com hm accounting tpx todo printviewSingle Learning Objective 08 P3 Prepare a bank reconciliation 1 1 8 2 2017 Assignment Print View 10 10 Score 2 Points 100 Award 1 out of 1 00 point Exercise 8 9 Bank reconciliation LO P3 Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check At the close of business on June 30 2015 its Cash account shows an 11 589 debit balance Del Gato Clinic s June 30 bank statement shows 10 555 on deposit in the bank a Outstanding checks as of June 30 total 1 829 b The June 30 bank statement included a 16 debit memorandum for bank services c Check No 919 listed with the canceled checks was correctly drawn for 467 in payment of a utility bill on June 15 Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of 476 d The June 30 cash receipts of 2 856 were placed in the bank s night depository after banking hours and were not recorded on the June 30 bank statement Prepare a bank reconciliation for Del Gato Clinic using the above information DEL GATO CLINIC Bank Reconciliation June 30 2015 Bank statement balance 10 555 Add Deposit of June 30 Book balance 11 589 Add 2 856 Error on Ck No 919 9 2 856 9 13 411 11 598 Deduct Outstanding checks Deduct 1 829 Bank service charge 16 1 829 Adjusted bank balance 11 582 16 Adjusted book balance 11 582 References Worksheet Exercise 8 9 Bank reconciliation LO P3 http ezto mheducation com hm accounting tpx todo printviewSingle Learning Objective 08 P3 Prepare a bank reconciliation 1 1 8 2 2017 Assignment Print View Score 3 10 10 Points 100 Award 1 out of 1 00 point Exercise 8 10 Adjusting entries from bank reconciliation LO P3 Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check At the close of business on June 30 2015 its Cash account shows an 11 589 debit balance Del Gato Clinic s June 30 bank statement shows 10 555 on deposit in the bank a Outstanding checks as of June 30 total 1 829 b The June 30 bank statement included a 16 debit memorandum for bank services c Check No 919 listed with the canceled checks was correctly drawn for 467 in payment of a utility bill on June 15 Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of 476 d The June 30 cash receipts of 2 856 were placed in the bank s night depository after banking hours and were not recorded on the June 30 bank statement Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation If no entry is required for a transaction event select No journal entry required in the first account field No Date General Journal 1 a No journal entry required 2 b Miscellaneous expenses Cash 3 c Cash Utilities expense 4 d No journal entry required Debit Credit 16 9 16 9 References Worksheet Exercise 8 10 Adjusting entries from bank reconciliation LO P3 http ezto mheducation com hm accounting tpx todo printviewSingle Learning Objective 08 P3 Prepare a bank reconciliation 1 1 8 2 2017 Assignment Print View Score 5 10 10 100 Points Award 1 out of 1 00 point Exercise 8 12 Liquid assets and accounts receivable LO A1 Bargains Co reported annual net sales for 2014 and 2015 of 730 000 and 1 095 000 respectively Its year end balances of accounts receivable follow December 31 2014 65 000 and December 31 2015 123 000 a Complete the below table to calculate the days sales uncollected at the end of each year Days Sales Uncollected Choose Numerator Choose Denominator x Days Days Sales Uncollected Days sales uncollected Accounts receivable Net sales x 365 2014 65 000 730 000 x 365 32 5 2015 123 000 1 095 000 x 365 41 0 days days References Expanded table Exercise 8 12 Liquid assets and accounts receivable LO A1 http ezto mheducation com hm accounting tpx todo printviewSingle Learning Objective 08 A1 Compute the days sales uncollected ratio and use it to assess liquidity 1 1 8 2 2017 Assignment Print View Score 9 10 10 Points 100 Award 1 out of 1 00 point QS 8 1 Internal control objectives LO C1 An internal control system consists of all policies and procedures used to protect assets ensure reliable accounting promote efficient operations and urge adherence to company policies Evaluate each of the following statements and indicate which are true and which are false regarding the objectives of an internal control system 1 2 3 4 Separation of recordkeeping for assets from the custody over assets is intended to reduce theft and fraud The primary objective of internal control procedures is to safeguard the business against theft from government agencies The


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