AFM101 Midterm_Review

AFM101 Midterm_Review - Kansas Company has hired you to...

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Kansas Company has hired you to reconcile its bank statement and cash account. For June, the Cash account showed the following: Cash Date Explanation Debits Credits Balance June 1 Balance $9,500 June 1-30 Deposits $26,000 35,500 June 1-30 Cheques $23,500 12,000 June 30 Balance 12,000 The June bank statement, just received, showed the following: June 1, balance $9,500 June deposits 22,000 June 6, Note collected for depositor, (principal $500) 540 Cheques cleared in June (18,700) Bank service charge (25) NSF Cheque (cheque returned for non- sufficient funds) (200) June 30, balance $13,115 There were no outstanding cheques or deposits in transit at May 31.
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Kansas Company Bank Reconciliation June 30, 20A Company’s Books Bank Statement Ending cash balance per books $12,000 Ending cash balance per bank statement $13,115 Additions Collection of Note Principle $500 Interest 40 Additions Deposits in Transit $4,000 ($26,000 – 22,000) Deductions Bank Service Charges ($25) NSF Cheque (200) Deductions Outstanding cheques ($4,800) ($23,500 – 18,700) Ending correct cash balance $12,315 Ending correct cash balance $12,315
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The following transactions were completed during 20A by Eagle Company. The annual accounting period ends December 31. Required: Provide the adjusting entries required at December 31, 20A. A) On December 31, 20A, Eagle Company owed employees $1,750 for wages that were earned by them during December and were not recorded. B) During 20A, Eagle Company purchased office supplies that cost $500 which were placed in the supplies room for use as needed. The purchase was recorded as follows:
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Office supplies inventory $500
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Cash $500
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At the beginning of 20A, the inventory of unused office supplies was $75. At the end of 20A, a count showed unused office supplies in the supply room amounting to $100. C) On December 1, 20A, Eagle Company rented some office space to another party. Eagle collected $900 rent for the period December 1, 20A, to February 28, 20B. The rent collected was recorded as follows:
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December 1, 20A: Cash $900 Unearned rent $900 D) On June 1, 20A, Eagle Company borrowed $2,000 cash on a one-year, 10% interest-bearing, note payable. The interest is payable on the due date, May 31, 20B. The note was recorded as follows: June 1, 20A: Cash $2,00 0 Notes payable $2,00 0
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A) Wages Expense 1,750 Wages Payable 1,750 B) Supplies Expense 475 Supplies 475 (75 + 500 – 100) C) Unearned Rent 300 Rent Revenue 300 (900 / 3) D) Interest Expense 117 Interest Payable 117 (2,000 x 0.1 x 7/12)
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The following information relates to activities for Garth Inc. for 20B. (a)
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This note was uploaded on 07/12/2010 for the course AFM 101 taught by Professor Kennedy during the Winter '08 term at Waterloo.

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AFM101 Midterm_Review - Kansas Company has hired you to...

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