acct 3311 problems ch 7

acct 3311 problems ch 7 - ACCT 3311 FALL 2007 PAGE 7-1 1....

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Sheet1 Page 1 ACCT 3311 FALL 2007 PAGE 7-1 1. The controller of Tyson Company is preparing a bank reconciliation for May, 2001. The May 31 bank statement shows a bank balance of $45,600 while the books show a cash balance of $28,250. a. Deposits in transit at May 31 totaled $5,200 while outstanding checks on that date amounted to $7,900. b. The bank collected a note for the company in the amount of $15,000. This had not been recorded as of 05/ 3 c. The bank made an error in processing one of Tyson's checks. The company wrote a check for $1,400 for utilities. The bank debited Tyson's account for $140. d. Unrecorded May service charges amounted to $110. e. An NSF check from one of Tyson's customers, which Tyson had deposited in May, was returned with the bank statement. The bank debited Tyson's account for $600. Tyson had not recorded the NSF check as of May 31. f. The company made a mistake in recording a check. The treasurer signed a check for $3,200 for payment for merchandise. It was entered in the accounts as a $2,300 credit to cash. REQUIRED: Prepare a bank reconciliation for the month of May. Prepare any adjusting entries at month end. 2. On Dec. 31, 2000, Black Company sold land to Blue Company and accepted in exchange a $500,000, 4 year promissory note with 3% interest payments due December 31. A 15% interest rate would have been appropriate for this transaction. The land cost Black $300,000 in 1995. Black has a December 31 year end. REQUIRED: Prepare the journal entries on Black's books to A. Record the sale on Dec. 31, 2000. B. Record the receipt of the interest payment on Dec. 31, 2001, along with interest revenue to be recognized for 2 C. Repeat part B for 2004. 3. In 2001, Sudder Company began selling a product. The sales were all credit sales. 5% of the receivables are expected to be uncollectible. 2001 2002 2003 Sales $ 500,000 $800,000 $1,000,000 Collections on accounts 410,000 620,000 740,000 Accounts written off as uncollectible 19,000 31,000 52,000 Required: Prepare journal entries to record sales, bad debt expense, and write-offs for each of the three years. What would appear on the balance sheet at the end of each of the three years? w ACCT 3311 FALL 2007 PAGE 7-2 4. NBC Company began operations on Jan. 1, 2000. 2000 2001 2002
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This note was uploaded on 05/02/2008 for the course ACCT 3311 taught by Professor Lee during the Spring '08 term at UT Arlington.

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acct 3311 problems ch 7 - ACCT 3311 FALL 2007 PAGE 7-1 1....

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