reconcile Clark Company’s book balance of cash

The following information applies to the questions displayed below.]
The following information is available to reconcile Clark Company’s book balance of cash with its bank statement cash balance as of July 31, 2011.  a.On July 31, the company’s Cash account has a $24,754 debit balance, but its July bank statement shows a $27,407 cash balance.b.Check No. 3031 for $1,650 and Check No. 3040 for $817 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $601 and Check No. 3069 for $2,418, both written in July, are not among the canceled checks on the July 31 statement.c.In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,220 but was erroneously entered in the accounting records as $1,210.d.A credit memorandum enclosed with the July bank statement indicates the bank collected $7,500 cash on a non-interest-bearing note for Clark, deducted a $38 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement.e.A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.f.Enclosed with the July statement is a $11 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.g.Clark’s July 31 daily cash receipts of $8,652 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.  1.
value:

5.00 points

Required:1.Prepare the bank reconciliation for this company as of July 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.) CLARK COMPANYBank ReconciliationJuly 31, 2011  Bank statement balance $      Book balance $     Add:     Add:                                         Deduct:     Deduct:       $          $                                                Adjusted bank balance $      Adjusted book balance $          referencesebook & resources

2.
value:10.00 points
2.Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2011. (Omit the “$” sign in your response.) DateGeneral JournalDebitCreditJuly 31                                                                                      [The following information applies to the questions displayed below.] At December 31, 2011, Ethan Company reports the following results for its calendar-year.       Cash sales$1,958,730    Credit sales 3,378,000     In addition, its unadjusted trial balance includes the following items.        Accounts receivable$1,023,534  debit  Allowance for doubtful accounts 15,990  debit   3.
value:5.00 points  Required:1.Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. (Round your intermediate calculations and and final answers to the nearest dollar amount. Omit the “$” sign in your response.) a.Bad debts are estimated to be 3% of credit sales.b.Bad debts are estimated to be 2% of total sales.c.An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31, 2011).  General JournalDebitCredita.                      b.                      c.                   referencesebook & resources  4.
value:5.00 points  2.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2011, balance sheet given the facts in part 1a. (Amounts to be deducted should be indicated with minus sign. Omit the “$” sign in your response.)      Current assets:    $        $       referencesebook & resources  5.
value:5.00 points  3.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2011, balance sheet given the facts in part 1c. (Round your intermediate calculations and final answers to the nearest dollar amount. Amounts to be deducted should be indicated with minus sign. Omit the “$” sign in your response.)      Current assets:    $        $       referencesebook & resources  Doubletree Company’s financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2010, is understated by $54,000, and inventory on December 31, 2011, is overstated by $24,000.   For Year Ended December 31201020112012  (a)  Cost of goods sold$729,000  $959,000  $794,000    (b)  Net income 272,000   279,000   254,000    (c)  Total current assets 1,251,000   1,364,000   1,234,000    (d)  Total equity 1,391,000   1,584,000   1,249,000    Required:1.For each key financial statement figure—(a), (b), (c), and (d) above—prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted should be indicated with a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.) (a)   Cost of goods sold: 201020112012  Reported amount $       $       $         Adjustments for:12/31/2010 error                   12/31/2011 error                         Corrected amount $       $       $              (b)   Net income 201020112012  Reported amount $       $       $         Adjustments for:12/31/2010 error                   12/31/2011 error                         Corrected amount $       $       $              (c)   Total current assets 201020112012  Reported amount $       $       $         Adjustments for:12/31/2010 error                   12/31/2011 error                         Corrected amount $       $       $              (d)   Equity: 201020112012  Reported amount $       $       $         Adjustments for:12/31/2010 error                   12/31/2011 error                         Corrected amount $       $      $              2.What is the error in total net income for the combined three-year period resulting from the inventory errors? (Leave no cells blank – be certain to enter “0” wherever required. Input your answer as a positive value. Omit the “$” sign in your response.)   Error in total net income of three years$

[The following information applies to the questions displayed below.]

The following information is available to reconcile Clark Company’s book balance of cash with its bank statement cash balance as of

July 31

,

2011

.

a. On July 31, the company’s Cash account has a

$

24,754

debit

balance, but its July bank statement shows a $27,407 cash balance.

b. Check No. 3031 for $1,650 and Check No. 3040 for $817 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $601 and Check No. 3069 for $2,418, both written in July, are not among the canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,220 but was erroneously entered in the accounting records as $1,210.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $7,500 cash on a non-interest-bearing note for Clark, deducted a $38 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f. Enclosed with the July statement is a $11 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g. Clark’s July 31 daily cash receipts of $8,652 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.

1.

value:
5.00 points

Required:
1. Prepare the bank reconciliation for this company as of July 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.)

$$$$$

CLARK COMPANY
Bank Reconciliation
July 31, 2011
 

Bank statement balance

$ Book balance
Add: Add:
Deduct: Deduct:
Adjusted bank balance Adjusted book balance

references

ebook & resources

2.

value:
10.00 points

2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2011. (Omit the “$” sign in your response.)
Date General Journal Debit Credit
July 31
[The following information applies to the questions displayed below.]
At December 31, 2011, Ethan Company reports the following results for its calendar-year.
Cash sales $ 1,958,730
Credit sales 3,378,000
In addition, its unadjusted trial balance includes the following items.

$debit

Accounts receivable 1,023,534 debit
Allowance for doubtful accounts 15,990

3.

value:
5.00 points

Required:1.

 

Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. (Round your intermediate calculations and and final answers to the nearest dollar amount. Omit the “$” sign in your response.)

 

a.

 

Bad debts are estimated to be 3% of credit sales.

b.

 

 

Bad debts are estimated to be 2% of total sales.

c.

 

 

An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.

 

Adjusting entries (all dated December 31, 2011).

General JournalDebitCredit
a.

b.

c.

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4.

value:
5.00 points

2.

 

Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2011, balance sheet given the facts in part 1a. (Amounts to be deducted should be indicated with minus sign. Omit the “$” sign in your response.)

 

$$

Current assets:

referencesebook & resources

5.

value:
5.00 points

3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2011, balance sheet given the facts in part 1c. (Round your intermediate calculations and final answers to the nearest dollar amount. Amounts to be deducted should be indicated with minus sign. Omit the “$” sign in your response.)

Current assets:

$

$

referencesebook & resources

Doubletree Company’s financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31,

2010

, is understated by $54,000, and inventory on December 31, 2011, is overstated by $24,000.

$$$

For Year Ended December 31 2010 2011 2012
(a) Cost of goods sold 729,000 959,000 794,000
(b) Net income 272,000 279,000 254,000
(c) Total current assets 1,251,000 1,364,000 1,234,000
(d) Total equity 1,391,000 1,584,000 1,249,000

Required:1.

 

For each key financial statement figure—(a), (b), (c), and (d) above—prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted should be indicated with a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

 

(a)

201020112012
$$
$$$

Cost of goods sold:
Reported amount $
Adjustments for: 12/31/2010 error
12/31/2011 error
Corrected amount
(b)

Net income

2010

2011

2012

Reported amount

$

$

$

Adjustments for:

12/31/2010 error

12/31/2011 error

Corrected amount

$

$

$

(c)

Total current assets

2010

2011

2012

Reported amount

$

$

$

Adjustments for:

12/31/2010 error

12/31/2011 error

Corrected amount

$

$

$

(d)

201020112012
Reported amount$$$Adjustments for:12/31/2010 error12/31/2011 errorCorrected amount

Equity:

$

$

$

2.

What is the error in total net income for the combined three-year period resulting from the inventory errors? (Leave no cells blank – be certain to enter “0” wherever required. Input your answer as a positive value. Omit the “$” sign in your response.)

$

Error in total net income of three years
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