Accounting
paren.
4.3-44 Prepare a bank reconciliation using Bobby Barnacles’ Restaurant Supply Inc’s information for August 31.
· A NSF check from Johnny Jones for $3,164.
· Two deposits made on August 31 were not on the bank statement, totaling $2,897.
· The bank collected an EFT payment for Rent for $2,600.
· August 31 balance in Cash was $1,905.
· The owner had written check # 1598 for $500 and recorded this check as $5,000.
· The balance on the bank statement as of August 31 was $5,216.
· Bank service charge of $28 was shown on the bank statement.
· Checks #1572, 1606, 1116, and 1242 for $419, $126, $650, and $1,105, respectively, were not shown on the bank statement, even though the company had sent the checks.
Account Balance
Money Market Account $5,200
Unearned Revenue $4,400
Sales $18,100
Building $26,800
Bonds payable $5,500
Preferred Stock $5,100
Prepaid insurance $4,100
Rent expense $2,100
Notes receivable $6,600
Depreciation expense $2,700
Retained earnings $22,600
Salary Payable $8,200
Long term investments $16,400
Prepare the company’s trial balance as of June 30, 2014, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Building. List the expense with the largest balance first, the expense with the next largest balance second, and so on.
A) Net income for 2011 will be $1,200 higher than 2010.
B) Net income for 2011 will be $1,200 lower than 2010.
C) Net income for 2011 will be $10,200.
D) Net income for 2011 cannot be calculated with the information given.
Please show the computations to support your answer.
|
|
| DDB |
Gross Profit | 400,000 |
Operating expenses | 180,000 |
Income before depreciation and taxes | 220,000 |
Depreciation | 84,000 |
Income before taxes | 136,000 |
Taxes (35%) | 47,600 |
Net Income | 88,400 |
Martin Motors realized at the beginning of 1012 that the machine would last an additional 8 years. Martin Motors uses the DDB method.
Prepare the appropriate journal entry to record the depreciation expense for 2012