mba-560 test 2

Problem 1. The May 31, 2012, balance per bank statement for Upton Company was $7,200. The cash balance per books was $9,500. Outstanding checks amounted to $800, and deposits in transit were $2,400. The bank statement contained an NSF check for $500, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. Required: 1) Prepare a bank reconciliation to determine the true cash balance at May 31, 2012. 

Problem 2. Scott Company is a merchandising business that was started in 2012. Scott uses the perpetual inventory system. It experienced the following events during 2012. 1. Acquired $25,000 cash by issuing common stock 2. Purchased inventory on account that cost $14,000, terms 2/10, n/30 3. Sold inventory that had cost $8,400 for $15,000 cash 4. Paid for the merchandise referred to in event 2, within the discount period Required: 1) Record the events in the financial statements model below; include column totals. 2) Prepare an income statement for 2012. 3) What is the amount of total assets at the end of 2012?    

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Assets	Liab. Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Stockholders’ Equity	Rev.	Exp.	Net. Inc.		Cash
Accts. Rec.	Inven.	Accts. Pay.	Com. Stk.	Ret. Earn.