Prepare bank reconciliation and related entries E8 14 (LO 4) AN The following information (in millions) was taken from the December 31 financial statements of Canadian National Railway Company Calculate ratios and comment 2017 2016 2015 Accounts receivable, gross $ 1,000 $ 903 $ 885 Allowance for doubtful accounts 16 28 7 Accounts receivable, net 984 875 878 Revenues 13,041 12,037 12,611 Total current assets 2,190 2,107 2,153 Total current liabilities 3,983 3,008 2,998 Instructions Calculate the 2017 and 2016 current ratios Calculate the receivables turnover and average collection period for 2017 and 2016 Comment on any improvement or weakening in CNs liquidity and its management of accounts receivable Additional information The bank statement contained three debit memoranda An NSF cheque of $595 that Yap had deposited was returned due to insufficient funds in the maker's bank account This cheque was originally given to Yap by Mr Jordan, a customer, in payment of his account Yap believes it will be able to collect this amount from Mr Jordan A bank loan payment (LN), which included $125 of interest and a $1,000 payment on the principal ( Hint Use Notes Payable ) A service charge (SC) of $49 for bank services provided throughout the month The bank statement contained one credit memorandum for $23 of interest (IN) earned on the account for the month The bank made an error processing cheque 3478 No other errors were made by the bank Yap's unadjusted cash balance per its general ledger on March 31 is $8,495 Yap's list of cash receipts and cash payments showed the following for March Cash Receipts Cash Payments Date Amount Date Cheque No Amount Mar 5 $ 1,221 Mar 3 3472 $ 1,427 10 1,745 4 3473 725 14 2,283 6 3474 2,330 20 1,832 7 3475 487 25 2,675 13 3476 1,828 31 1,025 14 3477 915 Total $10,781 19 3478 1,380 21 3479 159 28 3480 1,679 31 3481 862 31 3482 1,126 Total $12,918 The bank portion of the previous month's bank reconciliation for Yap Co at February 28, 2021, was as follows YAP CO Bank Reconciliation February 28, 2021 Cash balance per bank $12,742 Add Deposits in transit 2,530 15,272 Less Outstanding cheques 3451 $2,260 3470 1,535 3471 845 4,640 Adjusted cash balance per bank $10,632 Instructions a Prepare a bank reconciliation at March 31 b Prepare the necessary adjusting entries at March 31 ( Note The correction of any errors in the recording of cheques should be made to Accounts Payable The correction of any errors in the recording of cash receipts should be made to Accounts Receivable )

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Prepare bank reconciliation and related entries . E8.14 (LO 4) AN The following information (in millions) was taken from the December 31 financial statements of

Prepare bank reconciliation and related entries.

E8.14 (LO 4) AN The following information (in millions) was taken from the December 31 financial statements of Canadian National Railway Company:

Calculate ratios and comment.

	2017	2016	2015
Accounts receivable, gross	$ 1,000	$ 903	$ 885
Allowance for doubtful accounts	16	28	7
Accounts receivable, net	984	875	878
Revenues	13,041	12,037	12,611
Total current assets	2,190	2,107	2,153
Total current liabilities	3,983	3,008	2,998

Instructions

Calculate the 2017 and 2016 current ratios.
Calculate the receivables turnover and average collection period for 2017 and 2016.
Comment on any improvement or weakening in CNs liquidity and its management of accounts receivable.

Additional information:

The bank statement contained three debit memoranda:
- An NSF cheque of $595 that Yap had deposited was returned due to insufficient funds in the maker's bank account. This cheque was originally given to Yap by Mr. Jordan, a customer, in payment of his account. Yap believes it will be able to collect this amount from Mr. Jordan.
- A bank loan payment (LN), which included $125 of interest and a $1,000 payment on the principal. (Hint: Use Notes Payable.)
- A service charge (SC) of $49 for bank services provided throughout the month.
The bank statement contained one credit memorandum for $23 of interest (IN) earned on the account for the month.
The bank made an error processing cheque #3478. No other errors were made by the bank.

Yap's unadjusted cash balance per its general ledger on March 31 is $8,495. Yap's list of cash receipts and cash payments showed the following for March:

Cash Receipts		Cash Payments
Date	Amount	Date	Cheque No.	Amount
Mar. 5	$ 1,221	Mar. 3	3472	$ 1,427
10	1,745	4	3473	725
14	2,283	6	3474	2,330
20	1,832	7	3475	487
25	2,675	13	3476	1,828
31	1,025	14	3477	915
Total	$10,781	19	3478	1,380
		21	3479	159
		28	3480	1,679
		31	3481	862
		31	3482	1,126
		Total		$12,918

The bank portion of the previous month's bank reconciliation for Yap Co. at February 28, 2021, was as follows:

YAP CO. Bank Reconciliation February 28, 2021
Cash balance per bank		$12,742
Add: Deposits in transit		2,530
		15,272
Less: Outstanding cheques
#3451	$2,260
#3470	1,535
#3471	845	4,640
Adjusted cash balance per bank		$10,632

Instructions

a. Prepare a bank reconciliation at March 31.

b. Prepare the necessary adjusting entries at March 31. (Note: The correction of any errors in the recording of cheques should be made to Accounts Payable. The correction of any errors in the recording of cash receipts should be made to Accounts Receivable.)