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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash records
with the monthly bank statement reveals several additional cash transactions such as checks outstanding
of $7,000, deposits outstanding of $7,500, NSF check of $200, and service fee of $25 and a $1,200 note
receivable collected by the bank. Calculate the correct balance of cash: $
2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in
Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of
the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts
should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account?
2$
3 The company had $30,000 of inventory on December 31, Year 2. During the year they purchased
$650,000 and cost of goods was $640,000. What was the company's beginning inventory for Year 2?
$
4 Use the following to calculate pretax income (IBT): $_
5,000 Sales revenue
Interest revenue
300,000
Income tax expense
4,000 Cost of goods sold
175,000
Selling expenses
14,000 Salaries expense
85,000
Utilities expense
5,000 Rent expense
6,000
The company purchased new equipment at the beginning of year 1 for $300,000. Management
estimated they would use the equipment for 4 years and when they were done using it they estimated the
5
residual value would be $30,000. What is the equipment's book value at the end of year 3 assuming the
company uses straight-line deprecation? $
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