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how does one find deposits in transit? how does one find the balance per book? Bank reconciliation data and adjustment data: 1. The company reconciles
how does one find deposits in transit?
how does one find the balance per book?
Bank reconciliation data and adjustment data:
1. | The company reconciles its bank statement every quarter. Information from the December 31, 2021, bank reconciliation is:
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2. | Record revenue earned from item 1 above. | |||||||||||||||||||||||||||||||||||||||||
3. | $23,800 of accounts receivable at March 31, 2022, are not past due yet. The bad debt percentage for these is 4%. The balance of accounts receivable are past due. The bad debt percentage for these is 26.00%. Record bad debt expense. (Hint: You will need to compute the balance in accounts receivable before calculating this.) | |||||||||||||||||||||||||||||||||||||||||
4. | Depreciation is recorded on the equipment still owned at March 31, 2022. The new equipment purchased in February is being depreciated on a straight-line basis over 5 years and salvage value was estimated at $1,500. The old equipment still owned is being depreciated over a 10-year life using straight-line with no salvage value. | |||||||||||||||||||||||||||||||||||||||||
5. | Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $16,000. | |||||||||||||||||||||||||||||||||||||||||
6. | Amortization is recorded on the patent. | |||||||||||||||||||||||||||||||||||||||||
7. | The income tax rate is 30%. This amount will be paid when the tax return is due in April. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) |
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