Doubletree Companys financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2010, is understated by $53,000, and inventory on December 31, 2011, is overstated by $23,000.

For Year Ended December 31		2010		2011		2012
(a)	Cost of goods sold	$	728,000	$	958,000	$	793,000
(b)	Net profit		271,000		278,000		253,000
(c)	Total current assets		1,250,000		1,363,000		1,233,000
(d)	Total equity		1,390,000		1,583,000		1,248,000

Required:
1.	For each key financial statement figure(a), (b), (c), and (d) aboveprepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

(a)

Cost of goods sold:		2010	2011	2012
Reported amount		$	$	$
Adjustments for:	12/31/2010 error
	12/31/2011 error
Corrected amount		$	$	$

(b)

Net profit		2010	2011	2012
Reported amount		$	$	$
Adjustments for:	12/31/2010 error
	12/31/2011 error
Corrected amount		$	$	$

(c)

Total current assets		2010	2011	2012
Reported amount		$	$	$
Adjustments for:	12/31/2010 error
	12/31/2011 error
Corrected amount		$	$	$

(d)

Equity:

2010

2011

2012

Reported amount

$

$

$

Adjustments for:

12/31/2010 error

12/31/2011 error

Corrected amount

$

$

$

2.	What is the error in total net profit for the combined three-year period resulting from the inventory errors? Explain. (Leave no cells blank - be certain to enter "0" wherever required. Input your answer as a positive value. Omit the "$" sign in your response.)

Error in total net profit of three years

$

Shawnee Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's financial year).

May	1		Prepared a company check for $450.00 to establish the petty cash fund.
	15		Prepared a company check to replenish the fund for the following expenditures made since May1.
			a. Paid $140.40 for janitorial services.
			b. Paid $114.62 for miscellaneous expenses.
			c. Paid postage expenses of $78.30.
			d. Paid $102.87 to The County Gazette (the local newspaper) for an advertisement.
			e. Counted $34.51 remaining in the petty cash box.
	16		Prepared a company check for $200 to increase the fund to $650.
	31		The petty cashier reports that $432.13 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
			f. Paid postage expenses of $69.85.
			g. Reimbursed the office manager for business mileage, $55.61.
			h. Paid $57.41 to deliver merchandise to a customer, terms FOB destination.
	31		The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $600.

Required:
1.	Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

May 1

(Click to select)Janitorial expensesMiscellaneous expensesCashMileage expenseAdvertising expensePostage expensesPetty cashDelivery expense

(Click to select)Janitorial expensesMileage expenseAdvertising expensePetty cashPostage expensesCashMiscellaneous expensesDelivery expense

May 15

(Click to select)Petty cashMileage expensePostage expensesCash over and shortAdvertising expenseCashJanitorial expensesMiscellaneous expenses

(Click to select)Janitorial expensesPostage expensesCashMiscellaneous expensesMileage expenseCash over and shortPetty cashAdvertising expense

(Click to select)Cash over and shortJanitorial expensesPetty cashMiscellaneous expensesCashPostage expensesMileage expenseAdvertising expense

(Click to select)Postage expensesMiscellaneous expensesAdvertising expensePetty cashMileage expenseJanitorial expensesCashCash over and short

(Click to select)Petty cashAdvertising expensePostage expensesMileage expenseMiscellaneous expensesCashJanitorial expensesCash over and short

(Click to select)Advertising expenseCashMiscellaneous expensesMileage expenseCash over and shortPostage expensesPetty cashJanitorial expenses

May 16

(Click to select)Janitorial expensesMiscellaneous expensesDelivery expenseMileage expenseCashPetty cashPostage expensesAdvertising expense

(Click to select)Mileage expensePostage expensesCashPetty cashDelivery expenseMiscellaneous expensesAdvertising expenseJanitorial expenses

May 31

(Click to select)Petty cashPostage expensesCash over and shortAdvertising expenseJanitorial expensesCashMileage expenseDelivery expense

(Click to select)Delivery expensePostage expensesCash over and shortAdvertising expensePetty cashMileage expenseCashJanitorial expenses

(Click to select)Janitorial expensesPetty cashAdvertising expenseCashDelivery expensePostage expensesMileage expenseCash over and short

(Click to select)Postage expensesCash over and shortMileage expenseAdvertising expenseJanitorial expensesDelivery expensePetty cashCash

(Click to select)CashJanitorial expensesPostage expensesCash over and shortPetty cashDelivery expenseAdvertising expenseMileage expense

May 31

(Click to select)Postage expensesMileage expenseJanitorial expensesAdvertising expenseDelivery expensePetty cashCashCash over and short

(Click to select)Janitorial expensesCashPetty cashCash over and shortPostage expensesDelivery expenseMileage expenseAdvertising expense

The following information is available to reconcile Clark Companys book balance of cash with its bank statement cash balance as at July 31, 2015.

a.	On July 31, the companys Cash account has a $25,860 debit balance, but its July bank statement shows a $27,850 cash balance.
b.	Check No. 3031 for $1,390 and Check No. 3040 for $687 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $471 and Check No. 3069 for $2,158, both written in July, are not among the canceled checks on the July 31 statement.
c.	In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,290 but was erroneously entered in the accounting records as $1,280.
d.	A credit memorandum enclosed with the July bank statement indicates the bank collected $9,500 cash on a non-interest-bearing note for Clark, deducted a $48 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement.
e.	A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f.	Enclosed with the July statement is a $14 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g.	Clarks July 31 daily cash receipts of $10,652 were placed in the banks night depository on that date, but do not appear on the July 31 bank statement.

2.

value: 10.00 points

Required information

Required:
1.	Prepare the bank reconciliation for this company as at July 31, 2015. (Input all amounts as positive values. Omit the "$" sign in your response.)

CLARK COMPANY Bank Reconciliation July 31, 2015

Bank statement balance

$

Book balance

$

Add:

Add:

(Click to select)Check No. 3065Deposit of July 31Check No. 3069Check No. 3031Service charge

(Click to select)NSF checkProceeds of note less collection chargeService chargeCheck No. 3065Check No. 3069

Deduct:

Deduct:

(Click to select)Checks No. 3069NSF checkService chargeChecks No. 3031Checks No. 3065

$

(Click to select)Service chargeChecks No. 3031Error (Check 3056)Checks No. 3065NSF check

$

(Click to select)Checks No. 3065NSF checkChecks No. 3069Checks No. 3031Service charge

(Click to select)Checks No. 3031Service chargeChecks No. 3065Error (Check 3056)NSF check

(Click to select)Checks No. 3065Checks No. 3031NSF checkService chargeChecks No. 3069

(Click to select)NSF checkChecks No. 3065Checks No. 3031Error (Check 3056)Service charge

Adjusted bank balance

$

Adjusted book balance

$

2.	Prepare the journal entries necessary to bring the companys book balance of cash into conformity with the reconciled cash balance as at July 31, 2015. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
July 31	(Click to select)Bills receivableBills payableCashMiscellaneous expensesNote receivableAccounts receivable-J. ShawCollection expenseRent expense
	(Click to select)Bills receivableAccounts receivable-J. ShawCashRent expenseMiscellaneous expensesCollection expenseBills payableNote receivable
	(Click to select)Collection expenseBills payableNote receivableBills receivableAccounts receivableJ. ShawMiscellaneous expensesCashRent expense
	(Click to select)Accounts receivable-J.ShawNote receivableBills receivableBills payableCashInterest receivableCollection expenseInterest payable
	(Click to select)Bills receivableBills payableCollection expenseInterest payableInterest receivableCashNote receivableAccounts receivable-J. Shaw
	(Click to select)Note receivableMiscellaneous expensesBills receivableCashBills payableInterest receivableInterest payableCollection expense
	(Click to select)Interest payableNote receivableCollection expenseBills receivableInterest receivableCashBills payableMiscellaneous expenses
	(Click to select)Note receivableCashBills payableRent expenseBills receivableCollection expenseInterest payableInterest receivable
	(Click to select)Rent expenseInterest receivableCollection expenseBills payableBills receivableNote receivableCashInterest payable