Comprehensive Accounting Cycle Review 7 a-f, g1-g2 (Part Level Submission) On December 1, 2020, Swifty Corporation had the following account balances. Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Debit $17,000 Accumulated Depreciation Equipment 2,100 Accounts Payable 7,400 Common Stock 16,100 Retained Earnings 1,600 29,000 $73,200 Credit $3,100 6,100 53,500 10,500 $73,200 During December, the company completed the following transactions. Dec. 7 Received $3,500 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30. 17 Sold merchandise on account $15,600, terms 2/10, n/30. The cost of the merchandise sold was $9,700. 19 Paid salaries $2,300. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,600 cash from customers in payment of account (no discount allowed). Adjustment data: 1. Depreciation $200 per month. 2. Insurance expired $410. Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented in the previous part.) Cash 12/1 Bal. 17,000 12/19 2300 12/7 3500 12/22 11880 12/26 15288 12/31 2600 Notes Receivable 12/1 Bal. 2100 Accounts Receivable 12/1 Bal. 7400 12/7 3500 12/17 15600) 12/26 15600 12/31 2600 Inventory 12/1 Bal. 16100) 12/17 9700 12/12 120001 Prepaid Insurance 12/1 Bal. V 1600 12/31 Bal. 410 Equipment 12/1 Bal. 290001 Accumulated Depreciation Equipment 12/1 Bal. 3100 12/31 200 Accounts Payable 12/22 11880 12/1 Bal. 6100 12/22 1201 12/12 12000 Common Stock 12/1 Bal. 53500 Retained Earnings 12/1 Bal. 10500 12/31 2798 Sales Revenue 12/31 15600 12/17 15600 Sales Discounts 12/26 312 12/31 312 Cost of Goods Sold 12/17 9700 12/31 9700 Salaries and Wages Expense 12/19 2300 12/31 2300 The statement from Jackson County Bank on December 31 showed a balance of $24,208. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank collected a note receivable of $2,100 for Swifty Corporation on December 15 through electronic funds transfer. 2. The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January. 3. Checks outstanding on December 31 totaled $1,100. 4. On December 31, the bank statement showed an NSF charge of $600 for a check received by the company from L. Bryan, a customer, on account. Prepare a bank reconciliation as of December 31 based on the available information. (Hint: The cash balance per books is $24,208. This can be proven by finding the balance in the Cash account from parts (a) and (b).) (List items that increase cash balance first. Reconcile cash balance per bank first.) Swifty Corporation Bank Reconciliation December 31, 2020 Cash balance per bank statement v 24208 Add Deposits in transit 900 : 25108 Less Outstanding checks 1100 Adjusted cash balance per bank 24408 $ Cash balance per books 24208 $ Add Collection of note receivable 2300 26508 Less NSF check 2100 : Journalize the adjusting entries resulting from the bank reconciliation and adjustment data. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Post the adjusting entries to the ledger T-accounts. (Post entries in the order of journal entries presented in the previous part.) Cash 12/1 Bal. 12/7 17,000 12/19 3,500 12/22 2,300 11,880 12/26 15,288 12/31 2,600 Notes Receivable 12/1 Bal. 2,100 12/1 Bal. 12/17 Accounts Receivable 7,400 12/7 15,600 12/26 3,500 15,600 12/31 2,600 Inventory 16,100 12/17 12,000 12/22 12/1 Bal. 12/12 9,700 120 Prepaid Insurance 12/1 Bal. 1,600 12/1 Bal. Equipment 29,000 Accumulated Depreciation Equipment V 12/1 Bal. 3,100 Accounts Payable 12,000 12/1 Bal. 12/22 6,100 12/12 12,000 Common Stock 53,500 12/1 Bal. Retained Earnings 12/1 Bal. Sales Revenue 10,500 12/17 15,600 Sales Discounts 12/26 312 Cost of Goods Sold 12/17 9,700
