INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
9th Edition
ISBN: 9781260216141
Author: SPICELAND
Publisher: MCG CUSTOM
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Chapter 2, Problem 2.10P
To determine
Financial Statements:
Financial statements are the statements prepared for the specific period which comprises the financial information of the organization. It includes a statement of income which shows the profitability of the business,
Income statement:
This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time. It is prepared to find out the net income of an organization.
Classified Balance Sheet:
A balance sheet is a statement showing position of all assets, liabilities and equity of the company at a specific time. When assets, liabilities and shareholders’ equity are further sub-categorized to make it more readable and understandable then it is called classified balance sheet
To Prepare: An income statement for the year 2018, and also prepare the balance sheet of Corporation MG.
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Problem 3
Serato Company keeps all its cash in a checking account. An exarnination of the entity's
accounting records and bank statement for the month ended December 31, 2020 revealed a
bank statement balance of P8,469,000 and a book balance of P8,524,000. A deposit of
P950,000 placed in the bank's night depository on December 29 does not appear on the bank
statement. Checks outstanding on December 31 amount to P270, 000. The bank statement
shows that on December 25, the bank collected a note for Serato Company and credited the
proceeds of P935,000 to the entity's account. The proceeds included P35,000 interest, all of
which Serato Company earned during the current period. Serato Company has not yet recorded
the said collection. Serato Company discovered that check number 1000759 written in
December for P183,000 in payment of an account had been recorded in the entity's records as
P138,000. Included with the December 31 bank statement was an NSF check for P250,000 that
Serato Company…
Question#01:
06
The following information pertains to TNT Company for July 2017:
1. Cash balance per bank, July 31, Tk.7,586
2. July bank service charge not recorded by the depositor Tk.30
3. Bank Debited TK. 30 for printing cheque book.
4. Cash balance per books, July 31, Tk. 7,374
5. Deposits in transit, July 31, Tk.1,000
6. The note collected by the bank was Tk.700, 3-month, 12% note in July, less fee Tk. 14.
The collection has not been recorded by Crane, and no interest has been accrued.
7. Outstanding checks, July 31, Tk.591
8. A TNT Company check for TK.362, dated July 10, cleared by the bank on July 25. The
company recorded this check, which was a payment on account, for TK. 326.
Instructions:
a) Prepare bank reconciliation as at July 31.
b) Journalize the entries required by the reconciliation.
Question 2
The Cash account in the general ledger of Hendry Corporation shows a balance of $96,990 at 31
December 2018 (prior to performing a bank reconciliation). The company's bank statement show a
balance of $100,560 at the same date. An examination of the bank statement reveals the following:
1. Deposit in transit amount of $24,600.
2. Bank service charges total $200.
3. Outstanding checks total $31,700.
4. A $3,600 check marked "NSF" from Kent Company (one of the customers) was returned to
Hendry Corporation by the bank. This was the only NSF check that Hendry Corporation received
during 2018.
5. A cleared check (no.244) written by Hendry Corporation in the amount of $1,250 for the office
equipment was incorrectly recorded in the general ledger as a debit to Office Equipment of $1520
and a credit to Cash of $1,520.
On 1 December 2018, Hendry Corporation purchase a warehouse from Moran Industries for $100,000.
Hendry issued a six-month, $100,000, 6% (p.a.) note payable to Moran.…
Chapter 2 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Income determination LO24 If none of the...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Closing entries LO27 The year-end adjusted trial...Ch. 2 - Prob. 2.13BECh. 2 - Transaction analysis LO21 The following...Ch. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Journal entries LO22 The following transactions...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Transaction analysis; debits and credits LO22...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; solving for unknowns LO24,...Ch. 2 - Adjusting entries LO25 The Mazzanti Wholesale...Ch. 2 - Financial statements and closing entries LO26,...Ch. 2 - Closing entries LO27 American Chip Corporations...Ch. 2 - Prob. 2.14ECh. 2 - Cash versus accrual accounting; adjusting entries ...Ch. 2 - External transactions and adjusting entries LO22,...Ch. 2 - Accrual accounting income determination LO24,...Ch. 2 - Cash versus accrual accounting LO28 Stanley and...Ch. 2 - Prob. 2.19ECh. 2 - Worksheet Appendix 2A The December 31, 2018,...Ch. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.25ECh. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Adjusting entries LO25 Pastina Company sells...Ch. 2 - Accounting cycle; adjusting entries through...Ch. 2 - Adjusting entries LO25 Howarth Companys fiscal...Ch. 2 - Accounting cycle LO22 through LO27 The general...Ch. 2 - Adjusting entries and income effects LO22, LO25...Ch. 2 - Adjusting entries LO25 Excalibur Corporation...Ch. 2 - Accounting cycle; unadjusted trial balance through...Ch. 2 - Prob. 2.10PCh. 2 - Prob. 2.11PCh. 2 - Cash versus accrual accounting LO28 Zambrano...Ch. 2 - Worksheet Appendix 2A Using the information from...Ch. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Prob. 2.2BYPCh. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Continuing Cases Target Case LO24, LO28 Target...
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