Needs 2 answers and the rest reviewed to see it its right.

Problem #1 - (20 Points)

Sav Rocca, accountant for Shine King Cleaning is attempting to reconcile the monthly bank account. Sav Rocca has the following information:

1) The cash ledger balance at November 30 is $73,100

2) The balance according to the bank statement is $73,723

3) Deposits in transit totaled $900

4) Outstanding checks Check #104 - $500 & Check #107 - $600

5) Bank service charges were $18

6) The bank collected an EFT collection of $600 for Shine King Cleaning on account from Pierre’s Wig Stand

7) Earned interest at the bank $16

8) Shine King Cleaning made EFT payments Check Art Supplies $30 & Calpine Energy $145.

1. Prepare bank reconciliation at November 30 (15 Points)

Bank Balance:	$73,723	Book Balance:	$73,100
Add: Deposit in transit	900	Deduct: Bank Service Charge	-18
Deduct: Checks Paid	-500	Add: Funds Received	600
Deduct: Checks Paid	-600	Add: Interest Earned	16
		Deduct: Payment Art Supplies	-30
		Deduct: Payments to Calpine Energy	-145
Adjusted/Corrected Balance per Bank	$73,523	Adjusted/Corrected Balance per Book	$73,523

Problem #1 continued

2) Prepare the necessary journal entries (5 Points)

GENERAL JOURNAL
DATE	DESCRIPTION	REF	DEBIT	CREDIT

Problem #2- (15 Points)

Prepare journal entries for the following petty cash transactions of Bob’s Lawn Service:

1) Established a $200 petty cash fund (5 points)

Journal Entry
DATE	ACCOUNTS AND EXPLANATIONS	POST. REF.	DEBIT	CREDIT
Nov	14	Petty Cash		200.00
Nov	14	Petty Cash			200.00

2) Replenish the petty cash fund. The fund contained the following: $77 in cash, receipts for $45 in lawn supplies purchased, receipts for $11 in fuel costs purchased, and a $17 receipt for entertainment expenses (10 points)

Journal Entry
DATE	ACCOUNTS AND EXPLANATIONS	POST. REF.	DEBIT	CREDIT
		Cash			77.00
		Lawn Supplies		45.00
		Fuel		11.00
		Entertainment		17.00
		Cash			73.00

Problem #3 (10 Points)

Stover Co. loaned cash to Elam Co. on November 1 in exchange for a 90 day, 9% note – valued at $110,000. Use 360 day/year.

a) Determine the maturity date of the note. (2 points) Jan 29

Days in note 90 Issue Date 11/01/12

Days of Note from Issue Date – December 31st 61

Days of Note from January 1st – Expiration Date 29

b) Prepare all necessary journal entries for Stover. (8 points)

1. Initial journal entry to record the note receivable

DATE	DESCRIPTION	REF	DEBIT	CREDIT
Nov	01	Cash		110,000
		Notes Payable			110,000

2. Year-end entry to record interest earned

DATE	DESCRIPTION	REF	DEBIT	CREDIT
		Notes Payable			110,000
		Interest			2475

3. Final entry to show note paid

DATE	DESCRIPTION	REF	DEBIT	CREDIT

Problem #4 - (10 Points)

On December 31, 2008, Hassel’s Construction had the following account balances:

Accounts Receivable $2,700,000

Allowance for Uncollectible Accounts (before adjustment) $442,000

Sales Revenue (80% on account) $6,700,000

Prepare the entry to estimate bad debts assuming Hassel bases it on 2% of credit sales.

DATE	DESCRIPTION	REF	DEBIT	CREDIT

Problem #5 – (10 points)

On December 31, 2012, BMW Auto Parts prepares an aging schedule of accounts receivable, and listed below is a summary of the results.

The balance in the Allowance account prior to adjustment was $1750. BMW Auto Parts uses the aging approach of accounting for uncollectible accounts.

a) Calculate the Amount Uncollectible (4 points)

Percentage Amount

Days Outstanding Amount Uncollectible Uncollectible

Not yet due $350,000 .5%

31-60 days past due 75,000 3%

61-90 days past due 50,000 10%

91-120 days past due 25,000 20%

Over 120 days past due 3,500 30%

Balance ____________

Balance in Allowance account prior to adjustment ____________

Adjusted Balance in Allowance account ____________

b) Prepare the adjusting entry required at the end of the accounting period (6 points)

DATE	DESCRIPTION	REF	DEBIT	CREDIT