Problem 7.7A Short Comprehensive Problem L.O. 1, 3, 4, 5, 6, 7 The Scooter Warehouse provided the following information at December 31, 2013: Bank Reconciliation General ledger cash Bank statement balance, balance, 12/31/13 $ 17,566 12/31/13 $ 16,306 Bank service charge (25) Deposits in transit 2,450 Returned customer checks marked NSF (375) Outstanding checks (1,356) Error in recording of office supplies 234 Adjusted cash balance, 12/31/13 Adjusted cash balance, 12/31/13 $ 17,400 $ 17,400 Investment in securities The company invested $26,000 in a portfolio of investment in securities on December 22, 2013. The portfolio's market value on December 31, 2013, had increased in value to $28,500, Notes Receivable On November 1, 2013, The Scooter Warehouse sold 25 scooters to Bermuda Fantasy Resort for $65,000. The resort paid $5,000 at the point of sale and issued a one-year, $60,000, 5 percent note for the remaining balance. The note, plus accrued interest, is due in full on October 31, 2014. The Scooter Warehouse adjusts for accrued interest revenue monthly Accounts Receivable The Scooter Warehouse uses a statement of financial position approach to account for impairment loss of receivable. Outstanding accounts receivable on December 31, 2013, total $450,000. After aging these accounts, the company estimates that their estimated collectible amount is $435,000. Prior to making any adjustment to record impairment loss, The Scooter Warehouse's Allowance for Impairment has a credit balance of $4,000. a. Prepare the journal entry necessary to update the company's accounts immediately after performing its bank reconciliation on December 31, 2013. (Omit the "s" sign in your response.) Debit Credit Date Dec. 31 General Journal (Click to select) (Click to select) (Click to select) (Click to select) b. Prepare the journal entry necessary to adjust the company's investment in securities to market value at December 31, 2013. (Omit the "$" sign in your response.) Debit Credit Date Dec. 31 General Journal (Click to select) (Click to select) c. Prepare the journal entry necessary to accrue interest in December 2013. (Do not round intermediate calculations. Omit the "$" sign in your response.) Debit Credit Date Dec. 31 General Journal (Click to select) (Click to select) d. Prepare the journal entry necessary to report the company's accounts receivable at their estimated collectible amount at December 31, 2013. (Omit the "$" sign in your response.) Debit Credit Date Dec. 31 General Journal (Click to select) (Click to select) Problem 7.7A Short Comprehensive Problem L.O. 1, 3, 4, 5, 6, 7 The Scooter Warehouse provided the following information at December 31, 2013: Bank Reconciliation General ledger cash Bank statement balance, balance, 12/31/13 $ 17,566 12/31/13 $ 16,306 Bank service charge (25) Deposits in transit 2,450 Returned customer checks marked NSF (375) Outstanding checks (1,356) Error in recording of office supplies 234 Adjusted cash balance, 12/31/13 Adjusted cash balance, 12/31/13 $ 17,400 $ 17,400 Investment in securities The company invested $26,000 in a portfolio of investment in securities on December 22, 2013. The portfolio's market value on December 31, 2013, had increased in value to $28,500, Notes Receivable On November 1, 2013, The Scooter Warehouse sold 25 scooters to Bermuda Fantasy Resort for $65,000. The resort paid $5,000 at the point of sale and issued a one-year, $60,000, 5 percent note for the remaining balance. The note, plus accrued interest, is due in full on October 31, 2014. The Scooter Warehouse adjusts for accrued interest revenue monthly Accounts Receivable The Scooter Warehouse uses a statement of financial position approach to account for impairment loss of receivable. Outstanding accounts receivable on December 31, 2013, total $450,000. After aging these accounts, the company estimates that their estimated collectible amount is $435,000. Prior to making any adjustment to record impairment loss, The Scooter Warehouse's Allowance for Impairment has a credit balance of $4,000. a. Prepare the journal entry necessary to update the company's accounts immediately after performing its bank reconciliation on December 31, 2013. (Omit the "s" sign in your response.) Debit Credit Date Dec. 31 General Journal (Click to select) (Click to select) (Click to select) (Click to select) b. Prepare the journal entry necessary to adjust the company's investment in securities to market value at December 31, 2013. (Omit the "$" sign in your response.) Debit Credit Date Dec. 31 General Journal (Click to select) (Click to select) c. Prepare the journal entry necessary to accrue interest in December 2013. (Do not round intermediate calculations. Omit the "$" sign in your response.) Debit Credit Date Dec. 31 General Journal (Click to select) (Click to select) d. Prepare the journal entry necessary to report the company's accounts receivable at their estimated collectible amount at December 31, 2013. (Omit the "$" sign in your response.) Debit Credit Date Dec. 31 General Journal (Click to select) (Click to select)