PLEASE INCLUDE ALL THE 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 Dats 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 The cash records per books for December showed the following cash payments and receipts. Cash Payments Cash deposited Date Check Number Amount Date Amount 12-1 3471 720.10 12- $1,211.60 12-1 3472 1,426.80 12-15 2,672.70 12- 1 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 540.80 12-30 3480 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. A NSF 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 lanation Part Two: Problem On February 1, 2019, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors the receivable on a with recourse basis. The recourse obligation has a fair value of $2,500. What conditions must be met for a factoring of receivables with recourse be accounted for as a sale? What is the loss on sale to be reported in the income statement of Norton Company for February assuming that all the conditions above are met? c. Prepare the required journal entry on Norton Company on February 1, 2019 assuming Norton factors the receivable on a with recourse basis. Omit explanation. Date Accounts Title and Explanation Ref. Debit Credit 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. 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 2020 390,100 The price indices for 2018, 2019 and 2020 are 1.000, 1.023, and 1.0637, respectively. Instructions: A. 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 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 1.735 Cost of Goods Sold 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 Estimated Gross Profit Estimated Ending 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 Dats 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 The cash records per books for December showed the following cash payments and receipts. Cash Payments Cash deposited Date Check Number Amount Date Amount 12-1 3471 720.10 12- $1,211.60 12-1 3472 1,426.80 12-15 2,672.70 12- 1 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 540.80 12-30 3480 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. A NSF 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 lanation Part Two: Problem On February 1, 2019, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors the receivable on a with recourse basis. The recourse obligation has a fair value of $2,500. What conditions must be met for a factoring of receivables with recourse be accounted for as a sale? What is the loss on sale to be reported in the income statement of Norton Company for February assuming that all the conditions above are met? c. Prepare the required journal entry on Norton Company on February 1, 2019 assuming Norton factors the receivable on a with recourse basis. Omit explanation. Date Accounts Title and Explanation Ref. Debit Credit 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. 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 2020 390,100 The price indices for 2018, 2019 and 2020 are 1.000, 1.023, and 1.0637, respectively. Instructions: A. 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 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 1.735 Cost of Goods Sold 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 Estimated Gross Profit Estimated Ending Inventory destroyed by the find
