(6) - 16, 21, 42

# (6) - 16, 21, 42 - Robert MacRae(260357622 Professor...

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Unformatted text preview: Robert MacRae (260357622) Professor: Catherine Fortin Accounting Pre Class Problems – Chapter 6: 6-16) GRACE HO BANK RECONCILIATION For the month end Balance per the ledger \$1,287.00 Add: Deposit that wasn't recorded 100.00 Deduct: Service charge XX.XX Cheque recorded for wrong amount (18.00) Cheque returned for insufficient funds (50.00) NSF cheque fee (15.00) Cash Balance \$1,304.00 Balance per the bank \$1,543.00 Deduct: Uncleared cheques (251.00) Bank Balance \$1,292.00 Difference Between Cash Balance and Bank Balance = 1304 – 1292 = \$12 ∴ The bank service charge must be \$12 6-21) a) Investment Cost (\$) Market (\$) Green Company 10,000 9,500 White Company 10,000 11,000 20,000 20,500 ∴ These investments will be reported on the December 31 balance sheet at the fair market value of \$20,500 b) On the income statement an unrealized gain of \$500 will be recognized. This amount would be reported to show the increase in the value of the firm’s investments....
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## This note was uploaded on 09/12/2011 for the course MGCR 211 taught by Professor La rocca during the Fall '08 term at McGill.

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(6) - 16, 21, 42 - Robert MacRae(260357622 Professor...

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