Ac11 Answer Sheet Ex3 F2006

Name:

Steven Sanderson

PROBLEM #1 Part A) Cash Balance per Bank

40,056.40

Cash Balance per Company

Add:

2,573.80

Add:

Deduct:

5,919.60

Deduct:

Adj. Cash Balance per Bank Part B)

36,710.60

Date Accounts & Explanations 30-Sep cash Misc expense Note receivable interest revenue 30-Sep cash a/p boxcar co. 30-Sep A/P Emerald Book Supply Co. Cash fix error in recording check to books 30-Sep Misc Bank Error in paying check Cash 30-Sep A/P Gorix Co. Cash To record NSF Check

23,807.40 4,000.00 200.00 6,100.00

20.00 106.80 90.00 80.00 100.00

Adj. Cash Balance per Company

Debit 4,180.00 20.00

Credit

4,000.00 200.00 6,100.00 6,100.00 90.00 90.00 80.00 80.00 100.00 100.00

36,710.60

PROBLEM #2 Date Accounts & Explanations 6/9/2006 A/R Eddie Co. Merch Inv. 6/28/2006 A/R Jason Co. Merch Inv 7/5/2006 Allowance For Doubtful Accounts A/R Bovine Bros. 7/9/2006 Note Rec. Eddie Co. A/R Eddie Co. Terms 3mos 9% N/R 7/28/2006 Note Rec. Jason Co. A/R Jason Co. Terms 3mos 8%

Debit 24,000

24,000 30,000 30,000 1,200 1,200 24,000 24,000

30,000 30,000

8/1/2006 A/R Poultry Corp. Allowance for doubtfull Accounts To reverse write off

1,600

8/1/2006 Cash

1,600

1,600

A/R Poultry Corp. 10/9/2006 Cash

Credit

1,600 24,540

N/R Eddie Co. Interest Rev To record payment of N/R Eddie Co 10/28/2006 A/R Jason Co. N/R Jason Co. To record dishonored note 12/30/2006 Cash (20% of 1000) Bad Debts Expense A/R Horn Co Horn Co. bankrupt 12/31/2006 Bad Debts Expense Allowance for Doubtfull Accounts

24,000 540

30,600 30,600

200 800 1,000

2,800 2,800

Problem 3 - Depreciation Methods A) Straight Line Cost 20000 Life 5 Salvage 2000

20000-2000 3years

3600/yr

B) Units of Production (Activity) Cost 20000 20000-2000/units of use Life 180000 20000-2000/180000=.10 dep exp per unit Salvage 2000 yr1 yr2 yr3 yr4 yr5

40000 35000 55000 30000 20000

C) 200% Declining Balance Cost 20000 200%(Straight Line Method) Life 5 Straight Line Method 20% Salvage 2000 Double Straight Line 40%

Year 1 2 3 4 5

Dep. Exp. 3600 3600 3600 3600 3600

A/D 3600 7200 10800 14000 17600

Book Value 16400 12800 9200 6000 2800

Year 1 2 3 4 5

Dep. Exp. 4000 3500 5500 3000 2000

A/D 4000 7500 13000 16000 18000

Book Value 16000 12500 7000 4000 2000

Year Dep. Exp. A/D Book Value 1 8000 8000 12000 2 4800 12800 7200 3 2880 15680 4320 4 1728 17408 2592 5 592* 18000 2000 *Note: A/D may not exceed an amount that will bring book value lower than salvage value. Therefore in year 5 Dep. Exp. Is only 592

PROBLEM #4 Date 6-31-06

6-31-06

6-31-06

Accounts & Explanations Accumulated Depreciation Loss on Disposal Retired Equipment

Debit 10,800 4,200

Cash Accumulated Depreciation Loss on Disposal Equipment

3,500 10,800 700

Cash Accumulated Depreciation Equipment Gain on Sale

5,000 10,800

Credit

15,000

15,000

15,000 800

Problem #5 Part A) 4.50% Taxable Earnings FICA SUI 0 0 100 0

Hours 40 43

Regular 360 320

Earnings Overtime 0 36

Lane Meeks

47 40

480 800

126 0

606 800

606 800

Totals

170

1960

162

2122

1506

Employee Jones Kyle

Gross 360 356

Part B) Date Accounts / Explanation 12/7/2006 Salaries and Wages Payable Cash

0.80%

6.20%

1.45% Deductions SWT Health Ins. 12 3 18 5

FUI 0 0

FICA 0 6.2

Medicare 5.22 5.16

FWT 40 60

606 800

606 800

37.57 49.6

8.79 11.6

43 65

16 22

1406

1406

93.37

30.77

208

68

Tot. Ded. 70.22 94.36

Net Pay 289.78 261.64

5 3

5 5

115.36 156.2

490.64 643.8

800

16

20

436.14

1685.86

1156

Part C) Debit 1,685.86

Credit 1,685.86

Date Accounts / Explanation 12/7/2006 Sales Salaries Office Salaries FICA/MED FWT SWT United Fund Health Ins Salaries and Wages Pay

Debit 1,156.00 966.00

Accts. Debited Sales Sal. Office Sal. 360 356

Other 10 0

Credit

124.14 208.00 68.00 20.00 16.00 1,685.86

606 966