PROBLEM 3.

1 Everest Company
3.1 Everest Company
Bank Reconciliation Statement
Aug. 31, ____

Unadjusted Bank Balance 38,810

Add: Deposit Transit 8,430
Total 47,240
Less: Outstanding Checks
# 750150 439
# 750152 681
# 750157 1,405
# 750159 6,508
# 750160 733
# 750162 495 -10,260
Adjusted Bank Balance 36,980

Unadjusted Book Balance 38,120

Book (2210-2120) 90
Total 38,210
SC 550
NSF Check 680 -1,230
Adjusted Book Balance 36,980

Alternative Solutions
Bank Book
Unadjusted balances 38,810 38,120
Deposit in transit 8,430
Outstanding checks -10,260
NSF check -680
BSC -550
Errors 90

Adjusted balances 36,980 36,980

 PROBLEM 4.2 GH Company

a. GH Company
Bank Reconciliation Statement
October 31, ______

Unadjusted Bank Balance 67,778

Add: Deposit Transit 4,000
Total 71,778
Less: Outstanding Checks #159179 310
Adjusted Bank Balance 71,468

Unadjusted Book Balance 73,331

Add: Error in Check # 159180 (760-670) 90
Total 73,421
Less:NSF 552
SC 141
Error: Check # 159159 (2110-1120) 990
# 158173 (850-580) 270 1,953
Adjusted Book Balance 71,468

Alternative analysis
Bank Book
Unadjusted balances 67,778 73,331
Deposit in transit 4,000
Outstanding checks -310
Error check no, 159180 90
NSF check -552
BSC -141
Error check no. 159159 -990
Error check no. 158173 -270

Adjusted balances 71,468 71,468

 PROBLEM 4.3 Francis Trading

a. Francis Trading Company b.

Bank Reconciliation Statement
June 30, ______
1
Unadjusted Bank Balance 6,970
Add: Deposit Transit 18,500
Total 25,470 2
Bank Error 2,500
Adjusted Bank Balance 22,970
3
Unadjusted Book Balance 22,880
Add:Error(6320-3620) 2,700
Total 23,580
Less: NSF 530
SC 80 610
Adjusted Book Balance 22,970

Alternative solutions
Bank Book
Unadjusted balances 6,970 20,880
Deposti in transit 18,500
Bank error -2,500
NSF -530
BSC -80
Book error (6,320 - 3,629) 2,700

Adjusted balances 22,970 22,970

 Adjusting Entries

DEBIT CREDIT
Cash 2,700
Accounts Payable 2,700

Accounts Receivable 530

Cash 530

Miscellaneous Expense 80
Cash 80
 PROBLEM 3.4 Joyce Marcela

a.) Ending Capital (3220,000-800,000) 2,420,000

Beg. Capital (3,000,000-1,060,000) 1,940,000
Increase in capital 480,000
Add: Withdrawals 200,000
Total 680,000
Less: Additional Investment 300,000
Net Income 380,000

b.) Notes Receivable End 300,000

Accounts Receivable End 1,000,000
Collection of Notes Receivable 480,000
Collection of Accounts Receivable 1,500,000
Sales Return 160,000
Sales Discount 50,000
Uncollectible accounts 60,000
Total 3,550,000
Notes Receivable Beg. 200,000
Accounts Receivable Beg. 800,000 1,000,000
Credit Sales 2,550,000
Cash Sales 400,000
Gross Sales 2,950,000

c.) Notes Payable End 240,000

Accounts Payable End 520,000
Payments of Notes Payable 640,000
Payments of Accounts Payable 760,000
Purchase Returns 40,000
Purchase Discount 50,000
Total 2,250,000
Notes Payable Beg. 360,000
Accounts Payable Beg. 600,000 960,000
Credit Purchases 1,290,000
Cash Purchases 300,000
Gross Purchases 1,590,000
d.) Interest Paid 80,000
Interest Payable End 20,000
Total 100,000
Interest Payable Beg. 40,000
Interest Expense 60,000

e.) Rent Collected 40,000

Unearned Rent Beg. 60,000
Total 100,000
Unearned Rent Beg. 20,000
Rent Income 80,000

f.) Equipment Beg. 600,000

Equipment purchases 200,000
Total 800,000
Equipment End 640,000
Book Value Of Equipment sold 70,000 710,000
Depreciation 90,000

g.) Proceeds From Sale 60,000

Book Value Of Equipment Sold (70x100,000) 70,000
Loss On Sale -10,000
h.) Joy Enterprises
Income Statement
Year Ended Dec. 31 20CY

Sales
Sales Return 160,000
Sales Discount 50,000
Net Sales
Rent income
Total income
Less Expenses:
Cost of sales 1,550,000
Cash operating expenses 730,000
Depreciation 90,000
Loss on sale of euipment 10,000
Interest expense 60,000

Profit

Joy Enterprises
Income Statement
Year Ended Dec. 31 20CY

Sales
Sales Return 160,000
Sales Discount 50,000
Net Sales
Less:C/S
Beg. Inventory 800,000
Purchases 1,320,000
Less: Purchases Returns 40,000
Purchases Discount 50,000 90,000 1,410,000
TGAS 2,030,000
- Ending Inventory 480,000
Gross Profit
Less: Operating expenses
Cash operating expenses (670,000 + 60,000) 730,000
Depreciation 90,000
Income from operations
Add: Rent Income
Total
Less: Loss on Sale 10,000
 Interest Expense 60,000
Net income
 i.)

2,950,000 ASSETS
Current Assets
210,000 Cash 800000
2,740,000 Notes Receivable 300000
80,000 Accounts Receivable 1000000
2,820,000 Inventory 480000
Total 2580000
Non Current Assets
Equipment 730000
Accumulated Depreciation 90000 640000
Total 3220000
2,440,000

380,000

2,950,000

210,000
2,740,000

1,550,000
1,190,000

820,000
370,000
80,000
450,000
 70,000
380,000
Joy Enterprises
Balance Sheet
Dec. 31,20CY

LIABILITIES
Current Liabilities
Notes Payable 240000
Accounta Payable 520000
Interest Payable 20000
Unearned Rent Income 20000
Total 800000
Owner's Equity
J. Marcelo Capital 2420000

Total 3220000