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Please provide explanation P6-3 Understanding the Statement of Earnings Based on the Gross Profit Percentage LO63 The following data were taken from the year-end records
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P6-3 Understanding the Statement of Earnings Based on the Gross Profit Percentage LO63 The following data were taken from the year-end records of Nomura Export Company: Required: Fill in all of the missing amounts. (Round "Earnings per share" to 2 decimal places.) Year 1 Year 2 Statement of Earnings Items Gross sales revenue Sales returns and allowances $ 176,000 $ 248,000 19,600 Net sales revenue 70% 35% 19,600 Cost of sales Gross profit Operating expenses Earnings before income taxes Income tax expense (20%) Net earnings Earnings per share (10,000 shares outstanding) 21,600 2.56 The bookkeeper at Hopkins Company has not reconciled the bank statement with the cash account, saying instead, I don't have time. You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, 2021, bank statement and the April ledger accounts for cash showed the following (summarized): Bank Statement Balance, April 1, 2021 Deposits during April Notes collected for company (including $90 interest) Cheques cleared during April NSF cheque-A. B. Wright Bank service charges Balance, April 30, 2021 Cheques Deposits Balance $ 35,000 $ 38,100 73,100 1,380 74,480 $ 46,500 27,980 180 27,800 90 27,710 27,710 Cash in Bank 25,500 Apr. Cheques written 44,500 Apr. 1 Balance Apr. Deposits 43,100 Cash on Hand Apr. 30 Balance 300 A comparison of cheques written before and during April with the cheques cleared through the bank showed that cheques of $6,100 are still outstanding at April 30. No deposits in transit were carried over from March, but a deposit was in transit at April 30. Required: 1. Prepare a detailed bank reconciliation at April 30, 2021. HOPKINS COMPANY Bank Reconciliation, April 30, 2021 Bank Statement Company's Books Additions: Additions: Deductions: Deductions: Ending correct cash balance Ending correct cash balance 2. Prepare any required journal entries as a result of the reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B > Record note receivable plus interest collected. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal 2. Prepare any required journal entries as a result of the reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheetStep by Step Solution
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