FIN005 Financial Accounting Comprehensive Revision Exercises Question 1 Tiffany Company carries on business as a retail trader. The trial balance of business as at 31 December 2011 was as follows: Dr Cr $ $ Capital 204,800 Merchandise inventory 25,680 Salaries and wages 46,160 Motor expenses 3,720 Electricity 3,074 Fixtures and fittings at cost 28,000 - Accumulated depreciation 1 Jan 2011 16,800 Cost of merchandise sold 262,860 Office supplies 10,000 Building at cost …show more content…
e. A check drawn for $170 had been erroneously charged by the bank as $1,700. f. Bank service charges for April amounted to $30. Instructions 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. The accounts have not been closed. Question 4 At the end of each month, Sarah prepares a bank reconciliation statement for her business bank account. As 31 May 2012 her ledger balance was $2,759 (Credit) and her bank statement showed that she had funds of $131 at the bank. She has the following information: i) The bank debited Sarah’s account with charges of $129 during May. Sarah has not recorded these charges. ii) Sarah arranged for $2,500 to be transferred from her personal bank account into the business bank account. The bank made the transfer on 30 May, but Sarah has not made any entry for it in her records. iii) On 22 May, Sarah withdrew $100 cash which she did not record. iv) Cheque number 543987, which Sarah issued to a supplier, appears on the bank statement as $650. Sarah incorrectly recorded the cheque as $560. v) A deposit of $457, representative receipts of May 28 had been made too late to appear on the bank statement. vi) Sarah was advised by the bank that she earned $52 interest for the period in May that her account was in credit. Sarah recorded this in May, but the bank did not credit her account until June. vii) Three of the cheques issued to a supplier, with a total of
On December 11, MD received an order for a total price of $22,100. Barbor Furniture Ltd. (Barbor) provided a deposit of $9,000 which was recorded as revenue when it was received on December 13. Barbor was not billed until January 2. The order was not shipped until after the year end on January 2. The remaining balance owing was recorded in accounts receivable and
* Photocopies of fronts of two checks payable to Lisa (for $61.00 and 478.29) but the canceled checks were not able to be located or find evidence that it cleared IBC’s bank account. (508)
a. What is the total balance of Jessie Robinson 's real estate account? (0.5 points)
b. There are two differences between the bank statement and the check register. Describe each of them. (2-4 sentences. 1.0 points) TIP: These are transactions that Jessie
4. What is the amount that was credited to Group Insurance Premiums Collected (account number 27) during this period?
Question 3: Describe and show the journal entries illustrating how the company accounts for the transfer of its accounts receivable to financial institutions. Is this accounting treatment reasonable? What are the key assumptions made under this approach? Do you agree with these assumptions?
The following additional facts are collected for use in making adjusting entries on December 31 prior to preparing financial statements for the company’s first three months. Journalize the following adjusting journal entries in the General Journal on page 6 and then post them to
Name: ________________________________ Date: _________________ [1]BASIC BANK01 - BAT 003 Which of the following statements is true? A. An asset account is increased by a credit B. An expense account is increase by a credit C. A revenue account is decreased by a credit D. An equity account is decreased by a debit [2]BASIC BANK02 - BAT 010 The Income Summary account contains: A. Total revenues and total expenses for the year B. Total assets and total liabilities at year end C. Total revenues, expenses, assets, and liabilities
Cash was paid by Ari’s Alarm Service to creditors on account. Which of the following entries for Ari’s Alarm Service records this transaction?
The defendant stated that the day of the incident, she went into a Casino (she does not recall which one) to withdraw a certain
b. The bogus debit memos for accounts payable. – The most reliable form of evidence that the auditors could have obtained in this situation would be confirmations. The auditors should have sent confirmations to vendors, suppliers, and creditors confirming the amount that Crazy Eddie owed them. The amounts reportedly owed could then be matched with the amounts recorded in the company’s accounting records. Auditors should question any discrepancies.
b. Trace the line item “Balance per Bank Statement” – Accuracy and Existence (AU-C 315.A114 a-iii, b-i)
a. According to the bank statement, how many checks were written from this account during the statement period? (0.5 points)
(b) Recorded an adjusting entry to record use of $20 of the above supplies. Cash 0/ Net Income -20
The account balances assertion was also misstated on. This is specifically on the PCAOB assertion about right and obligations. The City of Dixon had a bank account in their name called the RSCDA. This was a fraudulent account created by Crundwell to pull off her scheme. However, as this bank account was under the City of Dixon’s name the account should have appeared on the financial statements, with an accurate balance. The city had right to this misused bank account.