E ASIAN 103 Lecture Notes - Lecture 13: Hiragana
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The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $34,800. During October, the total cash deposited was $139,523, and checks written totaled $138,774. The bank statement indicated a balance of $43,875 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: A. Checks outstanding totaled $6,340. B. A deposit of $1,643 representing receipts of October 31, had been made too late to appear on the bank statement. C. The bank had collected for Coastal Bike Co. $5,565 on a note left for collection. The face of the note was $5,300. D. A check for $260 returned with the statement had been incorrectly charged by the bank as $620. E. A check for $210 returned with the statement had been recorded by Coastal Bike Co. as $120. The check was for the payment of an obligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $22. G. A check for $1,464 from Bay View Condos was returned by the bank due to insufficient funds. Instructions 1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
Adjusted balance | |
Bank error in charging check as $260 instead of $620 | |
Bank error in charging check as $620 instead of $260 | |
Bank service charges | |
Check returned because of insufficient funds | |
Company error in recording note collected by bank | |
Deposit of October 31, not recorded by bank | |
Error in recording check | |
Outstanding checks | |
Proceeds of note collected by bank, including $265 interest | |
Total adjustments |
1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Score: 48/112
Coastal Bike Co. |
Bank Reconciliation |
October 31, 20Y9 |
1 | Cash balance according to bank statement | â | |
2 | Adjustments: | ||
3 | â | â | |
4 | â | â | |
5 | â | ||
6 | |||
7 | Adjusted balance | ||
8 | |||
9 | Cash balance according to companyâs records | ||
10 | Adjustments: | ||
11 | |||
12 | â | ||
13 | â | ||
14 | |||
15 | |||
16 | â |
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3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
1. What is the amount of income to be reported by Mr. X in Year2 under the cash method of accounting for the following items?
Check for $1,200 received January 4, Year 2, for servicesrendered in December Year 1.
Check for $900 received December 26, Year 2, for servicesrendered in October, Year 2; did not cash until January 5, Year3.
Dividend check for $500. Check was dated December 31, Year 2,but it is the practice of the issuing corporation to mail checks sothey will not be received until January of the following year.
Check for $600 received on April 1, Year 2, for interest oncorporate bonds held for the period October 1, Year 1, throughMarch 31, Year 2. Interest is paid semi-annually on April 1 andOctober 1.
Rental income of $800 for December Year 2 received January 3,Year 3.
2. Basil Company, a cash-basis taxpayer, had the followingactivity during Year 1:
Sales in Year 2, uncollected | $ 40,000 |
Sales in Year 2, collected | 1,000,000 |
Total sales in Year 2 | 1,040,000 |
Collections on Year 1 bad debt | 50,000 |
What is the correct amount of income to be reported for Year2?
Hi, can someone help me answer this question for tax accounting?I don't understand it.
A. What is the amount of income to be reported by Mr. X in Year2 under the cash method of accounting for the following items?
--Check for $1,200 received January 4, Year 2, for servicesrendered in December Year 1.
--Check for $900 received December 26, Year 2, for servicesrendered in October, Year 2; did not cash until January 5, Year3.
--Dividend check for $500. Check was dated December 31, Year 2,but it is the practice of the issuing corporation to mail checks sothey will not be received until January of the following year.
--Check for $600 received on April 1, Year 2, for interest oncorporate bonds held for the period October 1, Year 1, throughMarch 31, Year 2. Interest is paid semi-annually on April 1 andOctober 1.
--Rental income of $800 for December Year 2 received January 3,Year 3.
B. Basil Company, a cash-basis taxpayer, had the followingactivity during Year 1:
Sales in Year 2, uncollected | $ 40,000 |
Sales in Year 2, collected | 1,000,000 |
Total sales in Year 2 | 1,040,000 |
Collections on Year 1 bad debt | 50,000 |
What is the correct amount of income to be reported for Year2?