Hi i really need some help with these questions. I tried doing them on my own, but i confuse myself and mess up alot.

ACCT 221 FE Problems Chapters 6-10 Problem 1. The cash account for Santiago Co. on May 31, 2009 indicated a balance of $15,515. The March bank statement indicated an ending balance of $20,245. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. b. c. d. e. f. Checks outstanding totaled $4,820. A deposit of $3,796 had been made too late to appear on the bank statement. A check for $1,233 returned with the statement had been incorrectly recorded as $233. The check was originally credited to accounts payable. The bank collected $5,541 on a note left for collection. Bank service charges for May amounted to $45. A check for $790 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31, 2009. Journalize the necessary entries. Santiago Co. Bank Reconciliation May 31, 2009 Date Description Journal Post Ref Debit Credit 2. The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible. The Allowance for Doubtful Accounts carries a credit balance of $1,135.00. Write the adjusting entry for the end of the current year. Age Interval: Not past due 1~30 days past due: 31~60 days past due: 61~90 days past due: 91~180 days past due: 181~365 days past due: Over 365 days past due: Total: Balance: 850,000 47,500 21,750 11,250 5,065 2,500 1,145 939,210 Est Uncollectible Accts Percentage: Amount: 3.50% 5.00% 10.00% 20.00% 30.00% 50.00% 95.00% Journal Date Description Post Ref Debit Credit 3. XYZ Co. incurred the following costs related to the office building used in operating its sports supply company: a. b. c. d. e. f. g. Replaced a broken window. Replaced the roof that had been on the building 23 years. Serviced all the air conditioners before summer started. Replaced the air conditioners with refrigerated air conditioners in the customer service areas. Added a warehouse to the back of the building. Repainted the interior walls. Installed window shutters on all windows. Classify each of the costs as a capital expenditure or revenue expenditure. For those costs identified as capital expenditures, classify each as an asset improvement or extraordinary repair. 4. A copy machine acquired with a cost of $1,410 has an estimated useful life of 4 years. It is also expected to have a useful operating life of 13,350 copies. Assuming that it will have a residual value of $75, determine the depreciation for the first year by the: a. straight-line method b. declining-balance method c. production method (4,500 copies were made the first year) 5. The summary of the payroll for the monthly pay period ending July 15 indicated the following: Sales salaries Federal income tax withheld Office salaries Medical insurance withheld Social security tax withheld Medicare tax withheld $125,000 32,300 35,000 7,370 10,200 2,550 Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $25,000 of salaries will be subject to unemployment taxes. Date Description Post Ref Debit Credit 6. The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: June 1 6 8 16 20 23 30 Balance Sale Purchase Sale Purchase Sale Purchase 25 units at $60 20 units 20 units at $61 10 units 20 units at $62 25 units 15 units at $63 Determine the cost of the inventory balance at June 30, using (1) the first-in, first-out method and (2) the lastin, first-out method. Identify the quantity, unit price, and total cost of each lot in the inventory. Solution-1 Cash balance per books Add: (4) Collect note eceivable Less: (3)Error ($1233-$233) (5)Service Charges (6)NSF check Adjusted cash balance per bank $ $ $ $ $ $ Santiago Co. Bank Reconciliation 31-May-09 15,515 Cash balance per bank 5,541 Add: (2)Deposit in transit 1,000 Less: (1)Outstandingchecks 45 790 19,221 Adjusted ash balance per books $ $ $ 20,245 3,796 4,820 $ 19,221 $ $ Debit 3,706 1,000 $ $ 45 790 Journal Date Description 31-May-09 Cash Accounts Payable Miscellaneous Expense (or Service Charge Accounts Receivable Note Receivable Post Ref Credit $ 5,541 Solution-2 a) The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible. Est Uncollectible Accts Age Interval: Balance: Percentage: Amount: Not past due 1~30 days past due: 31~60 days past due: 61~90 days past due: 91~180 days past due: 181~365 days past due: 850,000 47,500 21,750 11,250 5,065 2,500 3.50% 5.00% 10.00% 20.00% 30.00% 50.00% Over 365 days past due: 1,145 95.00% Total: 939,210 b) If the Allowance for Doubtul Accounts has a credit balance of $1,135.00, record the adjusting entry for the bad debt expense for the year. Est Uncollectible Accts Age Interval: Not past due 1~30 days past due: 31~60 days past due: 61~90 days past due: 91~180 days past due: 181~365 days past due: Balance: 850,000 47,500 21,750 11,250 5,065 2,500 Over 365 days past due: 1,145 Total: Percentage: Amount: 3.50% 29,750.00 5.00% 2,375.00 10.00% 2,175.00 20.00% 2,250.00 30.00% 1,519.50 50.00% 1,250.00 95.00% 939,210 1,087.75 40,407.25 Dec 31 Uncollectible Accounts Expense 39,272.25 Allowance for Doubtul Accounts 39,272.25 Calculation of expense: Amount of calculated uncollectible accounts $40,407.25 Less credit balance of account Bad debt expense 1,135.00 $39,272.25 Solution-3 a) Capital; Replacement b) Capital Replacement c) Revenue d) Capital; Replacement e) Capital; Addition f) Revenue g) Capital; Addition Solution-4 a. Straight-line depreciation = (cost-estimated residual value)/ estimated life Straight-line depreciation = ($1,410 - $75)/4 Straight-line depreciation = $333.75 per year b. Double-declining Balance Method = $705 Book Value at Depreciatio n Year Cost Beginning of Year Rate for Year 1 $1,410 $1,410 50%* $705 *Rate = (100%/Life) 2 Rate = (1/4) 2 Rate = 0.50 c. Units-of-production = (cost-residual value) / estimated copies Units-of-production = ($1,410 - $75)/13,350 Units-of-production = $0.10 per copy First year depreciation = $450.00 ($.10*4,500) Solution-5 Date Account Ttiles & Explanation 1 Sales Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Federal Income Tax Payable Medical Insurance Payable Salaries Payable Debit $ $ 2 Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Credit 125,000 35,000 $ $ $ $ 10,200 2,550 32,300 7,370 $107,580 $ 10,200 $2,550 $775 $200 $13,725 Solution-6 1 10 units at $62 $ 620 30 15 units at $63 945 Total 2 20-Jun $1,565 1-Jun 5 units at $60 $ 300 8 5 units at $61 305 30 15 units at $63 945 Total $1,550 Solution-1 Cash balance per books Add: (4) Collect note eceivable Less: (3)Error ($1233-$233) (5)Service Charges (6)NSF check Adjusted cash balance per bank $ $ $ $ $ $ Santiago Co. Bank Reconciliation 31-May-09 15,515 Cash balance per bank 5,541 Add: (2)Deposit in transit 1,000 Less: (1)Outstandingchecks 45 790 19,221 Adjusted ash balance per books $ $ $ 20,245 3,796 4,820 $ 19,221 $ $ Debit 3,706 1,000 $ $ 45 790 Journal Date Description 31-May-09 Cash Accounts Payable Miscellaneous Expense (or Service Charge Accounts Receivable Note Receivable Post Ref Credit $ 5,541 Solution-2 a) The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible. Est Uncollectible Accts Age Interval: Balance: Percentage: Amount: Not past due 1~30 days past due: 31~60 days past due: 61~90 days past due: 91~180 days past due: 181~365 days past due: 850,000 47,500 21,750 11,250 5,065 2,500 3.50% 5.00% 10.00% 20.00% 30.00% 50.00% Over 365 days past due: 1,145 95.00% Total: 939,210 b) If the Allowance for Doubtul Accounts has a credit balance of $1,135.00, record the adjusting entry for the bad debt expense for the year. Est Uncollectible Accts Age Interval: Not past due 1~30 days past due: 31~60 days past due: 61~90 days past due: 91~180 days past due: 181~365 days past due: Balance: 850,000 47,500 21,750 11,250 5,065 2,500 Over 365 days past due: 1,145 Total: Percentage: Amount: 3.50% 29,750.00 5.00% 2,375.00 10.00% 2,175.00 20.00% 2,250.00 30.00% 1,519.50 50.00% 1,250.00 95.00% 939,210 1,087.75 40,407.25 Dec 31 Uncollectible Accounts Expense 39,272.25 Allowance for Doubtul Accounts 39,272.25 Calculation of expense: Amount of calculated uncollectible accounts $40,407.25 Less credit balance of account Bad debt expense 1,135.00 $39,272.25 Solution-3 a) Capital; Replacement b) Capital Replacement c) Revenue d) Capital; Replacement e) Capital; Addition f) Revenue g) Capital; Addition Solution-4 a. Straight-line depreciation = (cost-estimated residual value)/ estimated life Straight-line depreciation = ($1,410 - $75)/4 Straight-line depreciation = $333.75 per year b. Double-declining Balance Method = $705 Book Value at Depreciatio n Year Cost Beginning of Year Rate for Year 1 $1,410 $1,410 50%* $705 *Rate = (100%/Life) 2 Rate = (1/4) 2 Rate = 0.50 c. Units-of-production = (cost-residual value) / estimated copies Units-of-production = ($1,410 - $75)/13,350 Units-of-production = $0.10 per copy First year depreciation = $450.00 ($.10*4,500) Solution-5 Date Account Ttiles & Explanation 1 Sales Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Federal Income Tax Payable Medical Insurance Payable Salaries Payable Debit $ $ 2 Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Credit 125,000 35,000 $ $ $ $ 10,200 2,550 32,300 7,370 $107,580 $ 10,200 $2,550 $775 $200 $13,725 Solution-6 1 10 units at $62 $ 620 30 15 units at $63 945 Total 2 20-Jun $1,565 1-Jun 5 units at $60 $ 300 8 5 units at $61 305 30 15 units at $63 945 Total $1,550