Chapter 2, Problem 2BE

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days.   11   A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.   22   Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.   25   Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days.   11   A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.   22   Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.   25   Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days.   11   A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent.   22   Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent.   25   Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 8…

S. Waweru starts business on 1st July 2020, when he deposits  Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3              He purchases shop fittings for sh. 2,500 and pays by cheque. July 4              He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6              He buys stock for Sh. 1,500 and pays through bank. July 8              He sells goods for cash Sh.1,000. July 10            Buys goods on credit from XY & Co. for Sh. 1,200 July 12            Sells goods to A. Smith for Sh. 900 on credit July 13            Pays wages Sh. 120 by cash July 14            A. Smith returns goods worth Sh. 200 July 15            Pays to AB & Co. Sh. 3,000 by cheque July 17            Goods returned to XY & Co. amounting to Sh. 350 July 21            Receives from A. Smith a cheque for Sh. 700 July 25            Sells goods for cash Sh. 300. July 30…

S. Waweru starts business on 1st July 2020, when he deposits  Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3              He purchases shop fittings for sh. 2,500 and pays by cheque. July 4              He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6              He buys stock for Sh. 1,500 and pays through bank. July 8              He sells goods for cash Sh.1,000. July 10            Buys goods on credit from XY & Co. for Sh. 1,200 July 12            Sells goods to A. Smith for Sh. 900 on credit July 13            Pays wages Sh. 120 by cash July 14            A. Smith returns goods worth Sh. 200 July 15            Pays to AB & Co. Sh. 3,000 by cheque July 17            Goods returned to XY & Co. amounting to Sh. 350 July 21            Receives from A. Smith a cheque for Sh. 700 July 25            Sells goods for cash Sh. 300. July 30…

Valley Hardware (Mr. M. Jordan is the sole proprietor) established a petty cash fund on January 1, 2018.  A cheque for $400 payable to cash was given to Kate, the petty cashier, who went to the bank and brought back $400 and put it in the petty cash box.  The following transactions were completed during January. Jan 1     Purchased business cards for $36 (this business records office supplies as expenses upon purchase) Jan 10   Paid $60 for repairs to the office photocopier Jan 15   Paid $66 COD charges on merchandise to be resold to customers (the business uses the periodic inventory system) Jan 15   Purchased paper for the printer, $37 Jan 20   Paid $45 for an advertisement in the local January newspaper Jan 25   M. Jordan took $90 from the cash box to pay for a personal gift for his mother Jan 26   Paid $40 delivery charges on merchandise inventory sold to a customer Jan 28   Paid $16 for stamps used for mailing cheques to its suppliers. The money in the petty cash box was counted…

Rick Rambis operates a ski lodge center at Bull Mountain in Alaska. He has just received the monthly bank statement at October 31 from Bull National Bank. The bank statement shows an ending balance at October 31 of $750. The following items are listed on the statement:1. The bank collected rent revenue for Rick in the amount of $330.2. Service charge of $10.3. Two NSF checks from customers totaling $110.4. Printing check charge of $11.In reviewing his cash records and the bank statement, Rick identifies the following:1. Outstanding checks totaling $603.2. Deposit in transit on October 31 of $1,770.3. An error made by Rick: Rick recorded a salary check for $31 but it cleared the bank at $310.Rick’s cash records show a balance on October 31 of $1,997.Requireda) Reconcile the bank account.b) Prepare journal entries that should be made as a result of the bank reconciliation.c) What should the balance in Rick’s Cash account be after the reconciliation?d) What total amount of cash should the…

19 Dec. Borrowed $28,000 from the bank for personal use. The loan carried an interest rate of 6% a year and the first payment was due on 19 January. Williamson signed a note payable to the bank in the name of the business. How would this be journaled, put on an income statment, balance sheet, and cash flow statment for december 31st?

On February 33​, the billing​ date, Carol Ann Bluesky had a balance due of ​$122.39122.39 on her credit card. Her bank charges an interest rate of​ 1.25% per month and uses the average daily balance method. She made the transactions described in the table during the month. Feb. 88 ​Charge: Art supplies ​$21.2721.27 Feb. 1212 Payment ​$90.0090.00 Feb. 2323 ​Charge: Flowers delivered ​$62.5462.54 Feb. 2525 ​Charge: Music CD ​$10.9210.92 ​a) Find Carol​ Ann's average daily balance for the billing period from February 33 to March 33. Assume it is not a leap year. ​b) Find the finance charge to be paid on March 33. ​c) Find the balance due on March 33. ​d) Compare the result obtained to those obtained using the previous balance method.       Question content area bottom Part 1 ​a) The average daily balance for the billing period was ​$enter your response here. ​(Round to the nearest cent as​ needed.)