Intermediate Accounting 3
jlorie
week_three_assignment.docMake the following changes to the exercises and problems:
Nov 13
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Pb. 7-10 |
Date |
End Date |
Total Months |
Note Amount |
A/R Collections
|
|
|
28-Feb |
Sep-11 |
7 |
10400 |
|
|
|
31-Mar |
|
|
8600 |
|
|
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3-Apr |
|
|
7600 |
|
|
|
11-Apr |
|
|
6600 |
7000 |
|
|
17-Apr |
|
|
|
|
|
|
30-Apr |
|
|
|
|
|
|
30-Jun |
|
|
|
|
|
|
|
|
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Pb 7-14 |
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|
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Balance per bank |
6848
|
|
|
|
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Balance per books |
7419
|
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|
Problem 7-10
Requirement 1
February 28, 2011
Note receivable
Sales revenue
March 31, 2011
Note receivable (face amount)
Discount
Sales revenue (difference)
April 3, 2011
Accounts receivable
Sales revenue
April 11, 2011
Cash $
Sales discounts
Accounts receivable
April 17, 2011
Sales returns
Accounts receivable
Inventory
Cost of goods sold
Problem 7-10 (continued)
April 30, 2011
Cash
Loss on sale of receivables
Accounts receivable
To accrue interest on note receivable for four months.
June 30, 2011
Interest receivable
Interest revenue
To record discounting of note receivable.
June 30, 2011
Cash
Loss on sale of note receivable (to balance)
Interest receivable (from adjusting entry)
Note receivable (face amount)
August 31, 2011 — NO ENTRY REQUIRED
Problem 7-10 (concluded)
Requirement 2
To accrue nine months' interest on the Maddox Co. note receivable.
Discount
Interest revenue
Requirement 3
Income
Date increase (decrease)
February 28
March 31
April 3
April 11
April 17
April 17
April 30
June 30
June 30
December 31
Total effect $
Requirement 1
Step 1: Bank Balance to Corrected Balance Balance per bank statement $ Add: Deposits outstanding (1) Deduct:
Bank error - deposit incorrectly
credited to company account
Outstanding checks (2) Corrected cash balance $
Step 2: Book Balance to Corrected Balance
Balance per books $ Deduct: Error in recording check #411
Service charges
NSF checks Corrected book balance $
(1) Receipts $
Less: December receipts deposited:
Bank deposits $
Less: Deposit error
Less: Prior month's
deposits outstanding
Deposits outstanding, Dec. 31 $
(2) Dec. disbursements $
Error in recording check #411
Less: December checks cleared:
Total checks cleared $
Prior month's checks:
# $
#
#
#
December checks outstanding
Add: check # 365
Total checks outstanding, Dec. 31 $
Problem 7-14 (concluded)
Requirement 2
To record credits to cash revealed by the bank reconciliation.
Advertising expense
Miscellaneous expense (bank service charges)
Accounts receivable (NSF checks)
Cash
