Problem 1:

The following information was obtained regarding the April 30, 2020 bank statement and Cash account regarding Beavis Company:

1) Beaviss Cash T-account on April 30 showed a balance of $3,510 while the bank statement on that date showed the balance to be $4,740.

2) A check Beavis wrote to a creditor for $94 was incorrectly recorded in the cash payments journal as $49.

3) Outstanding checks totaled $560.

4) The April bank charges were $15.

5) A $270 deposit made by Beavis on April 30th was made too late to appear on the April bank statement.

6) The bank notified Beavis that a check for $100 received from a customer, Butthead Company, bounced.

7) The bank collected a note for Beavis from a customer, $1,100. The face value of the note was $1,000.

REQUIRED:

1) Prepare the April 30th bank reconciliation.

2) Prepare the necessary correcting journal entries for Beavis.

Problem 2:

The following information pertains to Swift Company in 2019:

April 1: Wrote off the account of the account of K. Perry, $820.

June 1: Unexpectedly received a check from B. Eilish for $315. Eilishs account was written off in 2017.

Dec. 31: Swifts 2019 net credit sales were $800,000. It is estimated that 6% of those sales will be uncollectible.

Dec. 31: The balance in the Allowance for Bad Debt t-account showed a debit of $5,000 before adjustment. It is estimated that $49,000 will be uncollectible based on an aging analysis of the Accounts Receivable.

REQUIRED:

Prepare the journal for each of the four date scenarios above.

Problem 3:

For each of the following transactions please indicate which of the five special journals should be used. Please use the following abbreviations:

P=Purchases Journal

CP=Cash Payments Journal

S=Sales Journal

CR=Cash Receipts Journal

J=General Journal

1) Sold merchandise for cash, $250.

2) Issued a cash refund to a customer, $150

3) Bought merchandise, $550, and will pay for it next week.

4) Wrote off the account of Smith Company, $660.

5) Jones, the owner, made a withdrawal of $4,000.

6) Borrowed $10,000 from the bank via a Notes Payable

7) Recorded the accrual of salaries at the end of the year

8) Paid the monthly rent, $1,900.

9) Sent a bill out to a customer, $715.

10) Issued a credit memo to a customer for damaged returned merchandise, $215.

Problem 4:

1) Received an advanced payment of $2,000 from a client.

2) Received the phone bill for $220 and will pay it next month.

3) The owner paid personal expenses from the business checking account, $4,400.

4) Sent out bills to clients for work done this period, $2,750.

5) Received checks from clients for work done in a previous period, $770.

Required:

Make the necessary journal entries for each of the above transactions.