Question
Question 1: Instructions (a) Calculate the unadjusted cash balance in River Adventures general ledger at May 31. (b) Prepare bank reconciliation and the necessary adjusting
Question 1:
Instructions
(a) Calculate the unadjusted cash balance in River Adventures general ledger at May 31.
(b) Prepare bank reconciliation and the necessary adjusting journal entries at May 31.
You are given the following information for River Adventures Company:
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The adjusted cash balance per bank agreed with the cash balance per books at April 30, 2008. The May bank statement showed the following:
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Date | Cheques and Other Debits | Deposits | ||
| Number | Amount | Amount | Balance |
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Additional information from the bank statement:
1. The deposit of $1,650 on May 13 is an electronic transfer from a customer in payment of itsaccount. The amount includes $35 of interest, which River Adventures Company had not previously accrued.
2. The NSF for $440 is for a $425 cheque from a customer, Ralph King, in payment of his account, plus a $15 processing fee.
3. SC represents bank service charges for the month.
4. The bank made an error when processing cheque #564. The company also made two errors in the month. All cheques were written to pay accounts payable, all cash receipts were collections of accounts receivable.
The companys cash payments and cash receipts for the month were as follows:
Cash Receipts | |
Dates | Amount |
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Cash Payments | ||
Date | Cheque No. | Amount |
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Question 2: List 3 internal controls and one example for each.
Question 3: Go to website for CRA and answer the following questions:
a. Sally gets an annual salary of 60,000. She is paid monthly and is a claim code 1. Sally works in Alberta. Prepare all the journal entries required for payroll.
b. What is the maximum CPP this year?
c. What is the maximum EI this year?
d. What income tax amount would be withheld from Sallys cheque if she worked in Prince Edward Island?
Question 4: Prepare the following journal entries. Special attention to GST
a. Paid commercial rent for 5000 plus GST
b. Earned 6000 in consulting fees, client will pay later
c. Bought some supplies for 2,000 on credit
d. Paid utility bill for 570
e. Did work and received 7000 cash
How much GST will you have to pay or receive the CRA? Would your answer change if you lived in BC?
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