accounting problems

unit_2_templates_p_3-25_and_4-20.xlsx
Proble 3-25 3 – 25 Comprehensive cycle problem: perpetual systemAt the beginning of 2012, the jeater company had that following balances in its accounts:Cash $ 4,300Inventory 9,000Common stock 10,000Retained earnings 3,300    Purchased inventory that cost $2,200 on account from Blue Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $110 were paid in cash.Returned $200 of the inventory that it had purchase because the inventory was damaged in transit. The freight company agreed to pay the return freight cost.Paid the amount due on its account payable to Blue Company within the cash discount period.Sold inventory that had cost $3,000 for $5,500 on account, under terms 2/10, n/45.Received merchandise returned from a customer. The merchandise originally cost $400 and was sold to the customer for $710 cash during the previous accounting period. The customer was paid $710 cash for the returned merchandise.Delivered goods FOB destination in Event 4. Freight costs of $60 were paid in cash.Collected the amount due on the account receivable within the discount period.Took a physical count indicating that $7,970 of inventory was on hand at the end of the accounting period.RequiredIdentify these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE).Record each event in a statement modelProblem 4-20 The following data apply to superior auto supply inc. for may 20121. Balance per the bank on may 31, $80002. Deposits in transit not recorded by the bank, $9753. Bank error, check written by allen auto supply was charged to superior auto sales account, $6504. The following checks written and recorded by superior auto supply were not included in the bank statement: 3013-$385, 3054-$735, 3056-$19005. Not collected by the bank, $5006. Service charge for the collection of note $107. The book keeper recorded a check written for $188 to pay for the may utilities expense as $888 in the cash disbursements journal8. bank service charge in addition to the note collection fee $259. customer checks returned to the bank as NSF $125Required: determine the amount of unadjusted cash balance per superior auto supply’s books.

2

>P

0 3 –

25

Statement

Event

Accounts

Flows

Cash

+

+

+

–

Income

x: Enter NA for not affected,

for Operating

Peggy Hussey: Enter AS (asset source),

(asset use), AE (asset exchange) or CE (claims exchange) from the pull-down list for the Type of Event entries.

OA

2 AU
3 AU

0)

(1,980) OA

AS

AU

AU

10)

OA

AS

AU

OA

7 AS

(110) 5,390 OA

8 AU
Bal. 0

JEATER COMPANY

(60)

Balance Sheet
Assets
Stockholders’ Equity

Total Stockholders’ Equity

For the Year Ended December 31, 2012

x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.
x: Enter the appropriate amount or NA for not affected.

(60)

Student Name:

Class:

Problem 03-25

Requirement a. and b.

JEATER COMPANY

Horizontal Statements Model – 2012

Balance Sheet

Income

Statement of

Event

Accounts

Merchandise

Common

Retained

Net

Cash

No.

Type

+

Receivable

Inventory

=

Payable

Stock

Earnings

Revenue

Expenses

Bal.

4,300 x: Enter the appropriate amount or NA for not affected.

9,000 x: Enter the appropriate amount or NA for not affected.

10,000 x: Enter the appropriate amount or NA for not affected.

OA

Assets

1a

AS

AU

Jack Terry: Enter the appropriate amount.

Jack Terry: Use the drop-down list to select the appropriate item.

1b

(110)

(1,9

8

(20)

(2,000)

4a

4b

5a

(

7

5b

6

(60)

5,390

(5,500)

Correct!

Requirement c.

Financial Statements

For the Year Ended December 31, 2012

Income Statement

Net Sales

x: Enter the appropriate data in the yellow cells. Your entry for “Net Income” will be verified.

Cost of Goods Sold

Gross Margin

Operating Expenses

Transportation-out

Operating Income

Statement of Changes in

Stockholders’ Equity

Beginning Common Stock

Plus: Stock Issued

Ending Common Stock

Beginning Retained Earnings

Plus: Net Income

Ending Retained Earnings

Total Stockholders’ Equity

As of December 31, 2012

Cash

Merchandise Inventory

Total Assets

Liabilities

Common Stock

Retained Earnings

Total Liabilities and Stockholders’ Equity

Statement of Cash Flows

Cash Flow from Operating Activities:

Inflow from Customers

$ 4,680 x: Enter the appropriate data in the yellow cells. Your entry for Net Cash Flow for each section will be verified.

x: Enter the appropriate amount or NA for not affected.

Peggy Hussey: Enter AS (asset source), AU (asset use), AE (asset exchange) or CE (claims exchange) from the pull-down list for the Type of Event entries.

x: Enter the appropriate amount or NA for not affected.

x: Enter the appropriate data in the yellow cells. Your entry for “Total Stockholders’ Equity” will be verified.

x: Enter the appropriate data in the yellow cells. Your entry for “Total Liabilities and Stockholders’ Equity” will be verified.

Outflow for Inventory

(2,090)

Outflow for Expenses

Net Cash Flow from Operating Activities:

Cash Flow from Investing Activities

Cash Flow from Financing Activities

Net Change in Cash

Plus: Beginning Cash Balance

Ending Cash Balance

P04-20

Student Name:
Class:

Correct!

True Cash Balance, May 31, 2012

Problem 04-20
SUPERIOR AUTO SUPPLY, INC.
Bank Reconciliation
April 30, 2012
Unadjusted Bank Balance, May 31, 2012
x: Enter the appropriate data in the yellow cells. Your entry for “Unadjusted Book Balance, April 30, 2007” will be verified.	Add: Deposits in transit
Bank Error
Less: Outstanding Checks:
3013
3054
3056
	True Cash Balance, May 31, 2012	$ 6,605
Unadjusted Book Balance, May 31, 2012	$ 5,565
Add: Note collected by bank
Error in recording payment for utilities
Less: Collection Fee
Bank Service Charge
NSF Checks	(160)

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Sheet2

Sheet3