PLEASE ANSWER ALL THE PROBLEMS AND INCLUDE THE COMPLETE MATHEMATICAL PROCEDURE. THANKS!
Part One: Problem At December 31 the cash balance per books of Heinisch Company was $12,485.20, and the cash balance per the bank statement was $20,154,30. The bank did not make any errors, but two errors were made by Heinisch Company The December bank statement for Heinisch Company showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Date Amount 12-7 3472 1.426.80 12-4 1.211.60 12-4 3474 1.640.70 12-16 2,672.70 12-8 3475 1.300.00 12-21 2,954.00 12-31 3479 450.80 12-30 1,025.00 12-1 12-1 The cash records per books for December showed the following cash payments and receipts. Cash Payments Cash deposited Date Check Number Amount Date Amount 3471 720.10 12- $1.211.60 12- 3472 1,426.80 12-15 2,672.70 3473 1,050.00 12-20 2,945.00 12- 1 3474 1,640.70 12-30 1,025.00 12-2 3475 1,300.00 12-31 1.190.40 12-4 3476 621.30 12-17 3477 807.40 12-233478 798.00 12-24 3479 340.80 12-303480 1,889.50 In addition, the bank statement contains the following items: 1. The collection of a $3,500 note and $145 of interest less a collection fee of $20 from a customer of Heinisch Company. 2. ANSF check of $725.80 written by D. Chagnon, a customer. At December 31, the check had not been redeposited in the bank. 3. Bank service charge of $25. Required: 1. Prepare bank reconciliation at December 31. 2. Prepare the required journal entries based on the reconciliation. Omit explanations. Part Three: Problem On January 1, 2019, Jason Company assigned $1,000,000 of accounts receivable to Easy Finance Corporation as security for a loan of $840,000. Easy Finance Corporation charged a 2% finance charge on the amount of the loan; the interest rate on the loan was 10%. During the month of January, Jason collected $220,000 on assigned accounts receivable. Jason Company made the first partial payment of the loan on January 31, 2019. A. Required: Prepare the required journal entries for Jason Company when (a) the loan was made and (b) during the month for collection of accounts receivable and the partial payment of the loan. Omit explanations. Date Accounts Title and Explanation Ref. Debit Credit Noa Corporations uses the retail inventory method to estimate its ending inventory. The following information relates to Noa Corporation's inventory at both cost and retail for the current year. Description Cost Retail Beginning Inventory $55,000 $78,500 Purchases 250,000 325,000 Purchase discount 10,000 Freight-In 5,000 Additional markups 24.000 Markup cancellations 7.000 Markdowns 12.000 Markdown cancellations 3.500 Sales 400,000 Instructions: Answer each of the following questions. A. What is the ending inventory at retail? B. If the ending inventory is to be valued at conventional retail method, the calculation of the cost to retail ratio should be based on what cost and retail? c. Using the conventional retail method, calculate the approximate cost of ending inventory. HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. its Item Number of Replacement Selling Cost of Completion Normal Cost Cost Price and Disposal Profit Model A Copying Machine 2.000 155 210 520 535 $170 Replacement Toner 1,500 4055 1 01648 Model B Copying Machine 3.400 2 15235 2 5 2018 Replacement Toner 2.750 65 145 15 2 5 55 Instructions: A. Calculate the ceiling and floor for each model for the lower of cost or market rule. Item Ceiling Floor Model A Copying Machine Replacement Toner Model B Copying Machine Replacement Toner B.HCH Corporation is pricing its ending inventory using the lower of cost or market but want to know the difference with the standard of lower of cost or net realizable value. Fill the following table with the unit values that HCH Corporation should use for each model under each rule. Item Inventory at lower of cost or market Inventory at lower of cost or net realizable valus Model A Copying Machine Replacement Toner Model B Copying Machine Replacement Toner Belgium Corporation manufactures and distributes beds. The Corporation uses the dollar-value LIFO method. Information for the last three years is presented in the following table. Year Inventory 2018 5356,000 2019 379,700 2030 390,100 The price indices for 2018, 2019 and 2020 are 1.000, 1.023, and 1.0637, respectively. Instructions: 1. Compute the corporation's ending inventory using dollar-value LIFO for each year and fill the following table. Year Calculations Dollar-value LIFO ending inventory 2018 2019 20.30 Part Six: Problem (7 points) In 2019, Puppy Specialties experienced a major loss due to a fire in the warehouse. The fire destroyed its entire inventory. The company began the year with inventory of $598. It made purchases of $2,400 but returned $24 worth of merchandise. Sales prior to the fire were $3,945. Puppy Specialties must use the gross profit method to determine inventory on hand on the date of the fire. Below is an excerpt of its income statement for the last year. 2018 Net Sales $3.735 Cost of Goods Sold 1,494 Selling and Administrative Expenses 461 Income from Operations S1,729 Instructions: A Assume that Puppy Specialties uses the most recent year to determine the gross profit percentage, calculate the following amounts for the year 2019. Estimated Cost of Goods Sold 1 Estimated Gross Profit Estimated Fading Inventory destroyed by the find Part One: Problem At December 31 the cash balance per books of Heinisch Company was $12,485.20, and the cash balance per the bank statement was $20,154,30. The bank did not make any errors, but two errors were made by Heinisch Company The December bank statement for Heinisch Company showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Date Amount 12-7 3472 1.426.80 12-4 1.211.60 12-4 3474 1.640.70 12-16 2,672.70 12-8 3475 1.300.00 12-21 2,954.00 12-31 3479 450.80 12-30 1,025.00 12-1 12-1 The cash records per books for December showed the following cash payments and receipts. Cash Payments Cash deposited Date Check Number Amount Date Amount 3471 720.10 12- $1.211.60 12- 3472 1,426.80 12-15 2,672.70 3473 1,050.00 12-20 2,945.00 12- 1 3474 1,640.70 12-30 1,025.00 12-2 3475 1,300.00 12-31 1.190.40 12-4 3476 621.30 12-17 3477 807.40 12-233478 798.00 12-24 3479 340.80 12-303480 1,889.50 In addition, the bank statement contains the following items: 1. The collection of a $3,500 note and $145 of interest less a collection fee of $20 from a customer of Heinisch Company. 2. ANSF check of $725.80 written by D. Chagnon, a customer. At December 31, the check had not been redeposited in the bank. 3. Bank service charge of $25. Required: 1. Prepare bank reconciliation at December 31. 2. Prepare the required journal entries based on the reconciliation. Omit explanations. Part One: Problem At December 31 the cash balance per books of Heinisch Company was $12,485.20, and the cash balance per the bank statement was $20,154,30. The bank did not make any errors, but two errors were made by Heinisch Company The December bank statement for Heinisch Company showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Date Amount 12-7 3472 1.426.80 12-4 1.211.60 12-4 3474 1.640.70 12-16 2,672.70 12-8 3475 1.300.00 12-21 2,954.00 12-31 3479 450.80 12-30 1,025.00 12-1 12-1 The cash records per books for December showed the following cash payments and receipts. Cash Payments Cash deposited Date Check Number Amount Date Amount 3471 720.10 12- $1.211.60 12- 3472 1,426.80 12-15 2,672.70 3473 1,050.00 12-20 2,945.00 12- 1 3474 1,640.70 12-30 1,025.00 12-2 3475 1,300.00 12-31 1.190.40 12-4 3476 621.30 12-17 3477 807.40 12-233478 798.00 12-24 3479 340.80 12-303480 1,889.50 In addition, the bank statement contains the following items: 1. The collection of a $3,500 note and $145 of interest less a collection fee of $20 from a customer of Heinisch Company. 2. ANSF check of $725.80 written by D. Chagnon, a customer. At December 31, the check had not been redeposited in the bank. 3. Bank service charge of $25. Required: 1. Prepare bank reconciliation at December 31. 2. Prepare the required journal entries based on the reconciliation. Omit explanations. Part Three: Problem On January 1, 2019, Jason Company assigned $1,000,000 of accounts receivable to Easy Finance Corporation as security for a loan of $840,000. Easy Finance Corporation charged a 2% finance charge on the amount of the loan; the interest rate on the loan was 10%. During the month of January, Jason collected $220,000 on assigned accounts receivable. Jason Company made the first partial payment of the loan on January 31, 2019. A. Required: Prepare the required journal entries for Jason Company when (a) the loan was made and (b) during the month for collection of accounts receivable and the partial payment of the loan. Omit explanations. Date Accounts Title and Explanation Ref. Debit Credit Noa Corporations uses the retail inventory method to estimate its ending inventory. The following information relates to Noa Corporation's inventory at both cost and retail for the current year. Description Cost Retail Beginning Inventory $55,000 $78,500 Purchases 250,000 325,000 Purchase discount 10,000 Freight-In 5,000 Additional markups 24.000 Markup cancellations 7.000 Markdowns 12.000 Markdown cancellations 3.500 Sales 400,000 Instructions: Answer each of the following questions. A. What is the ending inventory at retail? B. If the ending inventory is to be valued at conventional retail method, the calculation of the cost to retail ratio should be based on what cost and retail? c. Using the conventional retail method, calculate the approximate cost of ending inventory. HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. its Item Number of Replacement Selling Cost of Completion Normal Cost Cost Price and Disposal Profit Model A Copying Machine 2.000 155 210 520 535 $170 Replacement Toner 1,500 4055 1 01648 Model B Copying Machine 3.400 2 15235 2 5 2018 Replacement Toner 2.750 65 145 15 2 5 55 Instructions: A. Calculate the ceiling and floor for each model for the lower of cost or market rule. Item Ceiling Floor Model A Copying Machine Replacement Toner Model B Copying Machine Replacement Toner B.HCH Corporation is pricing its ending inventory using the lower of cost or market but want to know the difference with the standard of lower of cost or net realizable value. Fill the following table with the unit values that HCH Corporation should use for each model under each rule. Item Inventory at lower of cost or market Inventory at lower of cost or net realizable valus Model A Copying Machine Replacement Toner Model B Copying Machine Replacement Toner Belgium Corporation manufactures and distributes beds. The Corporation uses the dollar-value LIFO method. Information for the last three years is presented in the following table. Year Inventory 2018 5356,000 2019 379,700 2030 390,100 The price indices for 2018, 2019 and 2020 are 1.000, 1.023, and 1.0637, respectively. Instructions: 1. Compute the corporation's ending inventory using dollar-value LIFO for each year and fill the following table. Year Calculations Dollar-value LIFO ending inventory 2018 2019 20.30 Part Six: Problem (7 points) In 2019, Puppy Specialties experienced a major loss due to a fire in the warehouse. The fire destroyed its entire inventory. The company began the year with inventory of $598. It made purchases of $2,400 but returned $24 worth of merchandise. Sales prior to the fire were $3,945. Puppy Specialties must use the gross profit method to determine inventory on hand on the date of the fire. Below is an excerpt of its income statement for the last year. 2018 Net Sales $3.735 Cost of Goods Sold 1,494 Selling and Administrative Expenses 461 Income from Operations S1,729 Instructions: A Assume that Puppy Specialties uses the most recent year to determine the gross profit percentage, calculate the following amounts for the year 2019. Estimated Cost of Goods Sold 1 Estimated Gross Profit Estimated Fading Inventory destroyed by the find Part One: Problem At December 31 the cash balance per books of Heinisch Company was $12,485.20, and the cash balance per the bank statement was $20,154,30. The bank did not make any errors, but two errors were made by Heinisch Company The December bank statement for Heinisch Company showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Date Amount 12-7 3472 1.426.80 12-4 1.211.60 12-4 3474 1.640.70 12-16 2,672.70 12-8 3475 1.300.00 12-21 2,954.00 12-31 3479 450.80 12-30 1,025.00 12-1 12-1 The cash records per books for December showed the following cash payments and receipts. Cash Payments Cash deposited Date Check Number Amount Date Amount 3471 720.10 12- $1.211.60 12- 3472 1,426.80 12-15 2,672.70 3473 1,050.00 12-20 2,945.00 12- 1 3474 1,640.70 12-30 1,025.00 12-2 3475 1,300.00 12-31 1.190.40 12-4 3476 621.30 12-17 3477 807.40 12-233478 798.00 12-24 3479 340.80 12-303480 1,889.50 In addition, the bank statement contains the following items: 1. The collection of a $3,500 note and $145 of interest less a collection fee of $20 from a customer of Heinisch Company. 2. ANSF check of $725.80 written by D. Chagnon, a customer. At December 31, the check had not been redeposited in the bank. 3. Bank service charge of $25. Required: 1. Prepare bank reconciliation at December 31. 2. Prepare the required journal entries based on the reconciliation. Omit explanations
