Answer the two questions stated below. Thank you!
The amount of the DUAD check is squeezed. You can determine it as you complete the amounts in the bank reconciliation template.
Bettancort Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2014 and 2013 2014 $2,655,000 300,000 $2,955,000 2013 $2,400,000 280,000 $2,680,000 Retained earnings, January 1 Add net income for year Total ....... Deduct dividends: On preferred stock On common stock. Total. Retained earnings, December 31 $ 15,000 10,000 $ 25,000 $2,930,000 $ 15,000 10,000 $ 25,000 $2,655,000 Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 Sales (all on account) Sales returns and allowances Net sales... Cost of goods sold. Gross profit Selling expenses Administrative expenses. Total operating expenses Income from operations Other income 2014 $1,212,000 12,000 $1,200,000 500,000 $ 700,000 $ 240,000 180,000 $ 420,000 $ 280,000 166,000 $ 446,000 66,000 $ 380,000 80,000 $ 300,000 2013 $1,010,000 10,000 $1,000,000 475,000 $ 525,000 $ 200,000 150,000 $ 350,000 $ 175,000 225,000 $ 400,000 60,000 $ 340,000 60,000 $ 280,000 Other expense (interest) Income before income tax Income tax expense Net income Bettancort Inc. Comparative Balance Sheet December 31, 2014 and 2013 Dec. 31, 2014 Dec. 31, 2013 Assets $ 450,000 300,000 130,000 67,000 153,000 $1,100,000 2,350,000 1,320,000 $4,770,000 $ 400,000 260,000 110,000 58,000 139,000 $ 967,000 2,200,000 1,188,000 $4,355,000 Current assets: Cash ... Marketable securities. Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets Llabilities Current liabilities. Long-term liabilities: Mortgage note payable, 8%, due 2019. Bonds payable, 10%, due 2015 Total long-term liabilities. Total liabilities Stockholders' Equity Preferred $0.90 stock, $10 par Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity. $ 440,000 $ 400,000 $ 100,000 1,000,000 $1,100,000 $1,540,000 $ 0 1,000,000 $1,000,000 $1,400,000 $ 200,000 100,000 2,930,000 $3,230,000 $4,770,000 $ 200,000 100,000 2,655,000 $2,955,000 $4,355,000 On January 02, 2015, Bettancort Inc. received its bank statement for the month ending December 31, 2014. The statement showed a $ 624,500 balance while the cash account balance on December 31, 2014, was $ 450,000. In reconciling the balances, you discovered the following: The December 29 collections amounting to $ 176,000 were recorded on the books but were not deposited until January 2015. The bank charged the company for a DAUD (Drawn against Uncollected Deposit) check of a customer A paid check for $24,300 was entered incorrectly in the cash disbursements journal as $42,300. Outstanding checks as of December 31, totaled $354,000 1. Prepare the adjusting entries needed (as brought by the Bank Reconciliation process) in order to correct the amount presented in the financial statement. Use the template provided below. 2. What is the adjusted cash balance to be reflected in the December 31, 2014 Balance Sheet? Adjusting Journal Entries 31-Dec-14 DAUD Check bank Charge 31-Dec-14 Correct amount of cash disbursed Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 (Amounts in Philippine Peso) Book 450,000.00 Bank 624,500.00 Unadjusted Balance Bank Charge for a DUAD Check Oerstatement of Book Disbursement Outstanding Checks Undeposited Collections ADJUSTED BALANCE
