P8-25A Preparing a bank reconciliation and journal entries The December cash records of Dunlap Insurance follow:
Cash Receipts Cash Payments Date Cash Debit Check No. Cash Credit Dec. 4 $ 4,170 1416 $ 860 9 510 1417 130 14 530 1418 650 17 2,180 1419 1,490 31 1,850 1420 1,440 1421 900 1422 630
Dunlap “s Lash account shows a balance of $1614U at December 31. Un December 31, Dunlap Insurance received the following bank statement:
Bank Statement for December
Beginning Balance S 13,600 Deposits and other Credits: Dec. 1 EFT 1 300 Dec. 5 4,170 Dec. 10 510 Dec. 15 530 Dec 18 2,180 Dec. 22 BC 1,400 9,090 Checks and other Debits: Dec. 8 NSF 1,000 Dec. 11 (check no. 1416) 860 Dec. 19 EFT 700 Dec. 22 (check no. 1417) 130 Dec. 29 (check no. 1418) 650 Dec. 31 (check no. 1419) 1,940 Dec. 31 SC 60 (5,340) Ending Balance S 17,350
Additional data for the bank reconciliation follows: a. The EFT credit was a receipt of rent. The EFT debit was an insurance payment. b. The NSF check was received from a customer. c. The $1,400 bank collection was for a note receivable. d. The correct amount of check 1419, for rent expense, is $1,940. Dunlap’s controller mistakenly recorded the check for $1,490. Requirements 1. Prepare the bank reconciliation of Dunlap Insurance at December 31, 2015. 2. Journalize any required entries from the bank reconciliation.
P9-28A Accounting for uncollectible accounts using the allowance method (aging-of-receivables), and reporting receivables on the balance sheet At September 30, 2014, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Accounts Receivable $ 145,000 Allowance for Bad Debts (credit balance) 3,500
During the last quarter of 2014, MTMC completed the following selected transactions:
Dec. 28 Wrote off accounts receivable as uncollectible: Regan, Co., $1,300; Owen Mac, $900; and Rain, Inc., $700 31 Recorded bad debts expense based on the aging of accounts receivable, as follows:
Age of Accounts Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $165,000 Estimated percent uncollectible $97,000 0.3% $37,000 3% 514,000 30% 517,000 35% Requirements
1. Journalize the transactions. 2. Open the Allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. 3. Show how Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet.
as 1, 3 P9-29A Accounting for uncollectible accounts using the allowance method (percent-of-sales), and reporting receivables on the balance sheet 19,800 •ual. Watches corn leted the followin•selected transactions durin 201 and 2014:
P9-3 IA Accounting for notes receivable and accruing interest Kelly Realty loaned money and received the following notes during 2014.
Note Date Principal Amount Interest Rate Term (1) Aug.1 $ 24,000 17% 1 year (2) Nov. 30 18,000 6% 6 months (3) Dec. 19 12,000 12% 30 days
Requirements 1. Determine the maturity date and maturity value of each note. 2. Journalize the entry to record the inception of each of the three notes and also journalize a single adjusting entry at December 31, 2014, the fiscal year-end, to record accrued interest revenue on all three notes. Explanations are not required. 3. Journalize the collection of principal and interest at maturity of all three notes. Explanations are not required.
Attachments:
M4-Assignment….docx