View the step-by-step solution to:

Hello, I will be submitting 3 questions today. I will be submitting another set tomorrow. I need the tutor to show me the steps and calculations on...

Hello,

I will be submitting 3 questions today. I will be submitting another set tomorrow. I need the tutor to show me the steps and calculations on how they get the answer. I really appreciate your great service!!

Question #1
The following information is available to reconcile Litner Co.'s book balance of cash with its bank statement cash balance as of April 30. The April 30 cash balance according to the accounting records is $78,356, and the bank statement cash balance for that date is $83,525.

a. The bank erroneously cleared a $480 check against the account in April that was not issued by Litner. The check documentation included with the bank statement indicates the check was actually issued by Lightning Co.
b. On April 30, the bank issued a credit memorandum for $53 interest earned on Litner's account.
c. When the April checks are compared with entries in the accounting records, it is found that Check No. 1828 had been correctly drawn for $1,530 to pay for advertising but was erroneously entered in the accounting records as $1,350
d. A credit memorandum indicates that the bank collected $10,000 cash on a note receivable for Litner, deducted a $30 collection fee, and credited the balance to the company's Cash account. Litner did not record this transaction before receiving the statement.
e. A debit memorandum of $895 is enclosed with the bank statement for an NSF check for $870 received from a customer. The bank assessed a $25 fee for processing it.
f. Litner's April 30 daily cash receipts of $5,102 were placed in the bank's night depository on that date, but do not appear on the April 30 bank statement.
g. Litner's April 30 cash disbursements journal indicates that Check No. 1837 for $584 and Check No. 1840 for $1,219 were both written and entered in the accounting records, but are not among the canceled checks.

1. Prepare the bank reconciliation for this company as of April 30.

2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of April 30.

Question #2
A company purchased merchandise inventory costing $15,000 with credit terms of 2/10, n/30 on November 7. On November 15, the company paid 1/3 of the amount due. The remaining balance was paid on December 7.

Required:
a. Record the journal entries related to this transaction using the gross method of recording purchases.

b. Record the journal entries related to this transaction using the net method of recording purchases.

Question #3
A company made the following expenditures in connection with the construction of its new building:



Architect’s fee’s for new building $12,000
Cash paid for land and run-down building on the land 300,000
Removal of old building $18,000
Salvage from sale of old building materials (4,000)
Construction survey to site the new building $1,500
Legal fees for title search $3,000
Excavation for basement construction $25,000
Machinery purchased for operations $100,000
Storage charges on machinery because building
was not ready when machinery was delivered 900
Freight on machinery purchased $1,600
Hauling charges to delivery machinery from
storage to new building $300
Construction costs of new building $1,000,000
Landscaping $20,000
Installation of machinery $2,500



Prepare a schedule showing the amounts to be recorded as Land, Buildings, and Machinery.









Top Answer

Here is the answer... View the full answer

551868_ACC.docx

Question No. 1.
(1) Litner’s Company
Bank Reconciliation
As on April.30 Cash Balance as per Bank statement $83,525 Add: Cheque issued by lighting co.
Paid wrongly $480 Deposits in transit $ 5,102...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online