ASSIGN 4 SOLUTION

ASSIGN 4 SOLUTION - ACCT2241 2007 Fall Assignment #4...

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ACCT2241 2007 Fall Assignment #4 Question #1 – Bank reconciliation (12 marks) 1 (6 marks) Bank Bal. $2,316 Book Bal. $2,800 Add DIT 400 Add: error in entering chq 72 $2,716 Less: Less O/S cheque Service charge -20 -129 NSF cheque - 265 Adj. Bal. $2,587 $2,587 2 (2 marks) Cash 72 Accounts receivable 72 (2 marks) Bank service charge exp 20 Cash 20 (2 marks) Accounts receivable 265 Cash 265 Question #2 – Accounting for bad debts (18 marks) 1 (3 marks) Bad debt expense of the year is $18,000 (3 marks) Net A/R is $252,000 (1200,000-930,000-18,000) (3 marks) Bad debt expense of the year is $30,000 (1200,000 * 2.5%) Accounts receivable (1200,000-930,000-30,000) 252,000 dr Allowance for doubtful account (15,000cr - 8,000dr) 12,000 cr (3 marks) Net Accounts receivable 240,000 dr 3. (3 marks) Allowance for doubtful accounts 18,000 A/R 18,000 (3 marks) Bad debt expense 30000 Allowance for doubtful accounts 30000
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ACCT2241 2007 Fall Question #3 – Acquisition, depreciation, and disposal of capital assets
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ASSIGN 4 SOLUTION - ACCT2241 2007 Fall Assignment #4...

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