18

On January 9, a company pays $6,748 for salaries, of which $1,012 was reported as Salaries and Wages Payable on December 31. Give the entry to record the payment.(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 9

Exercise 6-12 (Part Level Submission) Eggers Company reports the following for the month of June.

Date	Explanation	Units	Unit Cost	Total Cost
June 1	Inventory	145	$6	$870
June 12	Purchases	448	7	3,136
June 23	Purchases	242	8	1,936
June 30	Inventory	278

A sale of496units occurred on June 15 for a selling price of $10and a sale of61units on June 27 for $11.

(a) Calculate the average cost per unit, using a perpetual inventory system.(Round answers to 3 decimal places, e.g. 5.125.)

June 1	$
June 12	$
June 15	$
June 23	$
June 27	$

Exercise 7-8 The following information pertains to Joyce Company.

1.	Cash balance per bank, July 31, $8,426.
2.	July bank service charge not recorded by the depositor $45.
3.	Cash balance per books, July 31, $8,462.
4.	Deposits in transit, July 31, $3,798.
5.	Note for $3,098 collected for Joyce Company in July by the bank, plus interest $43 less fee $27. The collection has not been recorded by Joyce Company, and no interest has been accrued.
6.	Outstanding checks, July 31, $693.

Prepare a bank reconciliation at July 31, 2014.

JOYCE COMPANY Bank Reconciliation July 31, 2014
Adjusted cash balance per bankAdjusted cash balance per booksBank service chargeCash balance per bank statementDeposits in transitOutstanding checksCollection of note receivable	$
Add:	Bank service chargeAdjusted cash balance per booksDeposits in transitOutstanding checksCash balance per bank statementCollection of note receivableAdjusted cash balance per bank
Less:	Cash balance per bank statementAdjusted cash balance per bankOutstanding checksCollection of note receivableBank service chargeDeposits in transitAdjusted cash balance per books
Deposits in transitOutstanding checksCash balance per bank statementAdjusted cash balance per bankCollection of note receivableBank service chargeAdjusted cash balance per books	$
Cash balance per booksAdjusted cash balance per booksOutstanding checksDeposits in transitAdjusted cash balance per bankCollection of note receivableBank service charge	$
Add:	Adjusted cash balance per bankOutstanding checksCash balance per booksAdjusted cash balance per booksDeposits in transitBank service chargeCollection of note receivable
Less:	Bank service chargeAdjusted cash balance per booksOutstanding checksDeposits in transitCash balance per booksCollection of note receivableAdjusted cash balance per bank
Deposits in transitOutstanding checksAdjusted cash balance per booksAdjusted cash balance per bankBank service chargeCash balance per booksCollection of note receivable	$

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Journalize the adjusting entries at July 31 on the books of Joyce Company.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

July 31

(To record collection of note receivable by bank)

July 31

(To record bank service charge)

Brief Exercise 8-5

Hirdt Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that3% of accounts receivable will become uncollectible. Accounts receivable are $495,400at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,150.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a)	Prepare the adjusting journal entry to record bad debt expense for the year.
(b)	If the allowance for doubtful accounts had a debit balance of $910 instead of a credit balance of $3,150, prepare the adjusting journal entry for bad debt expense.

No.	Account Titles and Explanation	Debit	Credit
(a)
(b)

Brief Exercise 8-3

At the end of 2013, Morley Co. has accounts receivable of $758,900and an allowance for doubtful accounts of $25,850. On January 24, 2014, it is learned that the companys receivable from Spears Inc. is not collectible and therefore management authorizes a write-off of $5,180.

(a) Prepare the journal entry to record the write-off.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

(b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off?

Before Write-Off	After Write-Off
Cash realizable value	$	$

Presented below are data on three promissory notes.

Determine the missing amounts.(Round answers for Total Interest to 0 decimal places, e.g. 825)

Date of Note	Terms	Maturity Date	Principal	Annual Interest Rate	Total Interest
(a)	April 1	60 days	June 1July 31August 2September 7August 31August 1May 30September 6May 1September 8September 1September 30May 31	$664,900	11	%	$
(b)	July 2	30 days	September 7August 2September 1May 30September 30July 31May 31August 31September 6June 1September 8May 1August 1	93,000		%	$465
(c)	March 7	6 months	September 8September 1September 6May 30June 1September 30May 31August 2August 31August 1September 7July 31May 1	109,000	10	%

Exercise 8-8

These transactions took place for Glavine Co.

2013
1.	May 1	Received a $6,400, 12-month,9% note in exchange for an outstanding account receivable from S. Rooney.
2.	Dec. 31	Accrued interest revenue on the S. Rooney note.
2014
3.	May 1	Received principal plus interest on the S. Rooney note. (No interest has been accrued since December 31, 2013.)

Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,250.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	May 1, 2013Dec. 31, 2013May 1, 2014
2.	May 1, 2013Dec. 31, 2013May 31, 2014
3.	May 1, 2013Dec. 31, 2013May 1, 2014

Brief Exercise 9-14 Speedy Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven149,090miles. Taxi 10 cost $22,660and is expected to have a salvage value of $600. Taxi 10 was driven31,230miles in 2013 and33,560miles in 2014.

Determine the depreciation cost.(Round answers to 2 decimal places, e.g. 1.25.)

Depreciable cost

$ per unit

LINK TO TEXT

Compute the depreciation for each year.(Round answers to 0 decimal places, e.g. 125.)

2013	2014
Depreciation expense	$	$