Assign_5_-_Solutions_to_Practice_Problem

Bank error in charging check as 600 instead of 60 540

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Bank error in charging check as $600 instead of $60 .................................................................. 540 4,540 $15,300 Deduct outstanding checks ................................................. 3,900 Adjusted balance ................................................................ $11,400 Cash balance according to company’s records .................. $ 9,375 Add proceeds of note collected by bank, including $100 interest .................................................................. 2,100 $11,475 Deduct: Error in recording check ..................................... $ 50 Bank service charges ......................................... 25 75 Adjusted balance ................................................................ $11,400 2. Cash .................................................................................... 2,100 Notes Receivable .......................................................... 2,000 Interest Revenue ........................................................... 100 Accounts Payable—Hirsch Co. .......................................... 50 Miscellaneous Administrative Expense .............................. 25 Cash .............................................................................. 75 3. $11,400; the adjusted balance from the bank reconciliation should be reported as cash on the June 30, 2012, balance sheet for Online Medical Co.
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Ex. 8–3 Feb. 13 Accounts Receivable—Dr. Ben Katz ...................... 120,000 Sales ................................................................. 120,000 13 Cost of Merchandise Sold ...................................... 72,000 Merchandise Inventory ...................................... 72,000 May 4 Cash ....................................................................... 90,000 Bad Debt Expense .................................................. 30,000 Accounts Receivable—Dr. Ben Katz ................. 120,000 Nov. 19 Accounts Receivable—Dr. Ben Katz ...................... 30,000 Bad Debt Expense ............................................ 30,000 19 Cash ....................................................................... 30,000 Accounts Receivable—Dr. Ben Katz ................. 30,000 Ex. 8–4 Feb. 11 Accounts Receivable—Dakota Co. ...................... 29,000 Sales ................................................................ 29,000 11 Cost of Merchandise Sold ..................................... 17,400 Merchandise Inventory .................................... 17,400 Apr. 15 Cash ...................................................................... 7,500 Allowance for Doubtful Accounts .......................... 21,500 Accounts Receivable—Dakota Co. ................ 29,000 Sept. 3 Accounts Receivable—Dakota Co. ...................... 21,500 Allowance for Doubtful Accounts ..................... 21,500 3 Cash ...................................................................... 21,500 Accounts Receivable—Dakota Co. ................ 21,500 Ex. 8–20 a. July 8 (21 + 31 + 30 + 8) b. $91,350 [($90,000 × 6% × 90/360) + $90,000] c. (1) Notes Receivable ........................................................ 90,000 AccountsRec.—OregonInteriorDecorators 90,000 (2) Cash ............................................................................ 91,350 Notes Receivable .................................................. 90,000
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