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PROBLEM #1
Part A)

Cash Balance per Bank 40,056.40 Cash Balance per Company 26,807.40

Deposit in Transit 2,573.80 Collection of N/R 4,000.00
Bank Error 80.00 Collection of Interest 200.00
Collection of A/R - Boxcar 6,100.00

Deduct: Deduct:
Outstanding Checks 5,919.60 Bank Service Charge 20.00
Bank Service Charge 106.80
Error - A/P-Emerald 90.00
NSF A/R-GoriX 100.00

Adj. Cash Balance per Bank 36,790.60 Adj. Cash Balance per Company 36,790.60

Part B)

## Date Accounts & Explanations Debit Credit

9/30 Cash 10,300.00
N/R 4,000.00
Interest Revenue 200.00
A/R-Boxcar 6,100.00

## Bank Service Charge Expense 126.80

A/P-Emerald 90.00
A/R-GoriX 100.00
Cash 316.80
PROBLEM #2

## Date Accounts & Explanations Debit Credit

6/9 A/R-Eddy 24,000
Sales 24,000

Sales 30,000

A/R-Bovine 1,200

A/R-Eddy 24,000

A/R-Jason 30,000

## 8/1 A/R-Poultry 1,600

Allowance for Doubtful Accounts 1,600

## 8/1 Cash 1,600

A/R-Poultry 1,600

## 10/9 Cash 24,540 24,000 X 9% X 3/12 = 540

N/R-Eddy 24,000
Interest Revenue 540

## 10/28 A/R-Jason 30,600 30,000 X 8% X 3/12 = 600

N/R-Jason 30,000
Interest Revenue 600

## 12/30 Cash 200

Allowance for Doubtful Accounts 800
A/R-Horn 1,000

## 12/31 Bad Debts Expense 3,600

Allowance for Doubtful Accounts 3,600

## Allowance for Doubtful Accounts

800
1,200 1,600
800
2,000 2,400
Problem 3 - Depreciation Methods

## A) Straight Line Year Dep. Exp. A/D Book Value

1 3,600 3,600 16,400
Cost - Salvage = Deprec. Exp. Per year 2 3,600 7,200 12,800
# yrs. Of life 3 3,600 10,800 9,200
4 3,600 14,400 5,600
\$18,000 = \$3,600 5 3,600 18,000 2,000
5 yrs

Actual
B) Units of Production (Activity) Copies X Rate = Year Dep. Exp. A/D Book Value
40,000 X .10 1 4,000 4,000 16,000
Cost - Salvage = Deprec. Exp. Per Unit 35,000 X .10 2 3,500 7,500 12,500
# units Of life 55,000 X .10 3 5,500 13,000 7,000
30,000 X .10 4 3,000 16,000 4,000
\$18,000 = .10/copy 20,000 X .10 5 2,000 18,000 2,000
180,000 copies

C) 200% Declining BalanceCost - a/d = Bk. Value X Rate = Year Dep. Exp. A/D Book Value
20,000 - 0 = 20,000 X 40% = 1 8,000 8,000 12,000
Rate = 200% = 40%/yr. 20,000 - 7200 = 12,000 X 40% = 2 4,800 12,800 7,200
5 yr. Life 20,000 -12320= 7,200 X 40% = 3 2,880 15,680 4,320
20,000 -15392= 4,320 X 40% = 4 1,728 17,408 2,592
20,000 -17235= 2,592 X 40% = 5 592 18,000 2,000
PROBLEM #4

## Date Accounts & Explanations Debit Credit

A) 6/30 Depreciation Expense 1,200
A/D-Equipment 1,200

## B) 6/30 Cash 3,500

A/D- Equipment 10,800
Loss on Sale 700
Equipment 15,000

## C) 6/30 Cash 5,000

A/D- Equipment 10,800
Equipment 15,000
Gain on Sale 800

Cost - Salvage = Deprec. Exp. Per year 12,000 = 2,400 per year
Yrs. Of Life 5

## Equipment Accum. Deprec. - Equipment

15,000 01) 2,400
02) 2,400
03) 2,400
04) 2,400
05) 1,200 ** entry A
10,800

## B) Sold for \$3,500

- Book Value 4,200 (15,000 - 10,800)
Loss (700)

## C) Sold for \$5,000

- Book Value 4,200 (15,000 - 10,800)
Gain 800
Problem #5 6.2% X
Part A) 1.45% X

## Earnings Taxable Earnings Deductions Accts. Debited

Employee Hours Regular Overtime Gross FICA SUI FUI FICA Medicare FWT SWT Health Ins. Other Tot. Ded. Net Pay Sales Sal. Office Sal.
Jones 40 360.00 - 360.00 - - - - 5.22 40.00 12.00 3.00 10.00 70.22 289.78 - 360.00
Kyle 43 320.00 36.00 356.00 100.00 - - 6.20 5.16 60.00 18.00 5.00 - 94.36 261.64 356.00 -
Lane 47 480.00 126.00 606.00 606.00 606.00 300.00 37.57 8.79 43.00 16.00 5.00 5.00 115.36 490.64 - 606.00
Meeks 40 800.00 - 800.00 800.00 800.00 800.00 49.60 11.60 65.00 22.00 3.00 5.00 156.20 643.80 800.00 -
1,960.00 162.00 2,122.00 1,506.00 1,406.00 1,100.00 93.37 30.77 208.00 68.00 16.00 20.00 436.14 1,685.86 1,156.00 966.00

Part B) Part C)

Date Accounts / Explanation Debit Credit Date Accounts / Explanation Debit Credit
12/7 Sales Salaries Expense 1,156.00 12/7 Payroll Tax Expense 196.21
Office Salaries Expense 966.00 FICA Payable 93.37
FICA Payable 93.37 Medicare Payable 30.77
Medicare Payable 30.77 SUI Payable 63.27 (4.5% X 1406)
FWT Payable 208.00 FUI Payable 8.80 (.8% X 1100)
SWT Payable 68.00
Healthe Ins. Payable 16.00
Contributions Payable 20.00
Salaries Payable 1,685.86