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1. The company's bank statement shows a cash balance of $80,000. Comparing the company's cash records with the monthly bank statement reveals several additional cash
1. The company's bank statement shows a cash balance of $80,000. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $60,000, deposits outstanding of $42,000, NSF check of $1,000, and service fee of $100 and a $4,500 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 7% of accounts receivable. After the adjusting entry, what is the balance in the AUA account? $ 3. The company had $39,000 of inventory on December 31, Year 2. During the year they purchased $500,000 and cost of goods was $475,000. What was the company's beginning inventory for Year 2? $ 4. Use the following to calculate operating income: $ Interest revenue $1,000 Sales revenue Income tax expense 16,000 Cost of goods sold 65,000 Salaries expense Selling expenses Utilities expense 6,000 Rent expense $600,000 320,000 250,000 8,000 5. The company purchased new equipment at the beginning of year 1 for $220,000. Management estimated they would use the equipment for 6 years and when they were done using it they estimated the residual value would be $40,000. What is the equipment's book value at the end of year 3 assuming the company uses straight-line deprecation
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