CompProblem02 - a. Student Name: Ankita Shah Class:...

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Student Name: Ankita Shah Class: Financial Account Comprehensive P a. GUITAR UNIVERSE, INC. Bank reconciliation for December Balance per bank statement, December 31 $46,975.00 Add: Deposit in transit 16,500.00 Subtotal $63,475.00 Less: Outstanding checks: no. 507 $4,000.00 no. 511 9,000.00 no. 521 8,000.00 Total outstanding checks 21,000.00 Adjusted cash balance per bank statement $42,475.00 Balance per accounting records $45,000.00 Less: NSF check returned $2,500.00 Bank service charges 25.00 2,525.00 Adjusted cash balance per accounting records $42,475.00 GUITAR UNIVERSE, INC. Journal Entry as of December 31, 2007 Accounts Receivable (Iggy Bates) $2,500.00 Bank Service Charge $25.00 Cash $2,525.00 b. Marketable Securities……………………………. $2,500.00 Unrealized Holding Gain on Investment………… $2,500.00 To adjust balance sheet valuation of marketable securities from $25,000 to $27,500 c. Uncollectable expense account…………… $3,500.00 Allowance for doubtful accounts……………. $3,500.00 To record increase in allowance for doubtful account based on recent management conclusion To record bank service charge of $25 and the NSF from customer Iggy Bates as an accounts receivable
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d. Cost of goods sold………………………… $1,350.00 Merchandise inventory……………………… $1,350.00 To adjust the perpetual inventory records to reflect the results of the year-end physical count. e.
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CompProblem02 - a. Student Name: Ankita Shah Class:...

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