Question 2 (31 marks) Part I (25 marks) Kivi Service Corporation ("Kivi") received the bank statement from Northwest Bank showing a balance of $54,730 at 30 June 2022. The cash account in the general ledger of Kivi showed a balance $38,250 as at 30 June 2022. The company adjusts its account annually and its year end date is at 31 December. No outstanding checks were carried over from May and no deposits in transit were noted at the end of May. An examination of the bank statement revealed the following information: 1. The general ledger of Kivi showed a total deposit of $31,500 as at 30 June, but the bank showed a deposit of $22,000 in the bank statement. 2. A check $3,200 issued by one of Kivi's customers was deducted from Kivi's bank account because of insufficient fund. 3. The bank statement for June included a debit memorandum from the bank and indicated a service fee of $250 was charged by the bank. BHMH2101 2023/24 S1 Assignment 2 4. Three checks issued by Kivi in June have not been paid by the bank: no.711 for $520, no.722 for $870 and no.733 for $240. Page 3 5. Check no. 744 of $3,500 was correctly cleared in the bank for payment of insurance expense but was erroneously entered in Kivi's record as $5,300. 6. A credit memorandum attached with the June bank statement indicated that a total of $20,000 was directly deposited by a Kivi's customer to settle an interest bearing note receivable of principal $19,000. 7. A check $6,000 deposited to Kovi Ltd was erroneously credited to Kivi's account by the bank. Required: (a) Prepare a bank reconciliation statement for the month of June 2022. (18 marks) (b) Prepare the necessary journal entries to update the accounting record for Kivi at 30 June 2022. (7 marks) Part II (6 marks) An aging schedule of Philmar, Inc.'s accounts receivable as at 31 December 2022 was produced under the following four groupings: Days Account outstanding Not yet due 1-30 days past due 31-90 days past due >90 days past due Amount (S) 760,000 60,000 80,000 90,000 990,000 Estimated % of Uncollectible Further information of the company is as follows: Allowance for Impairment (Credit balance) 31/12/2021 Net Sales (80% on credit) for year ending 12/31/2022 Required: 1% 2% 10% 20% $32,000 $2,300,000 (a) Prepare adjusting entries to record the impairment loss of receivable for the year 2022 under Statement of Financial Position Approach. Show your workings. (4 marks) (b) Assume Philmar, Inc. uses Income Statement Approach if it is stimated that 1% of net credit sales for the year will become uncollectible. Prepare the adjusting entries to record the impairment loss of receivable for the year 2022 (2 marks)

Question 2(3) - marks) Bertic2 marlos: balance of $54,730 at 30 June 2022 . The cash ascoumt in the gonernil lodger of Kivi showod a date is at 31 Dosember. No oetutanding checles ware carried over form May and no doposits in trasit were nobed at the end of May. An examination of the bank staiement novaled the following information: 1. The general ladger of Kivi showed a total deposit of $31,$00 as an 10 June, but the bank showed a deposit of $22,000 in the bank statement. becaus of insufficient fast 1. The bank statement for June includod a dabit monorandum frve the benk and indicated a service foe of $250 was elarged by the tank. Page 3 4. Thee checis issued by Kini in June have not heen paid by the hank: no 711 fir 55290, no 722 for $870 and =0.733 for $240. was empeocedy eniered in Kivi's nocond as 55,300 . 6. A credin memerandum antached with the fune bank, stanernent indicined that a sonat ef $30,000 was directly deposited by a Kivi's customer to setule an inecrest bearing nobe roceivalile of priscipal $19,000 7. A check \$6,000 deposited to Kovi Ld was erroncously crodined io Kiv's account by the bank. Requircd: (a) Prepare a bank reconcilinon statement for the roonth of June 2022 (18 markis) (b) Propare the nocwsary journal entries io updaie the accounting roond for Kivi at 30 hene 2092 (? marki Bart li is marks) An agine schedule of Philmar, lne "s accounts receivabie as at 31 December 2022 was predaced under the following four groupings: Funter information of the company is as follows: Required: Statement of Financial Positioe Approach. Show your woekingt, (4 marks) (b) Assume Philmar, Inc; uses Income Stanement. Approach if it is estimatod that 1\%6 of net conden sales for the ycar will bocono uncollectible. Prepare the adjusting entries to socond the impairewnl loss of neceivable for the year 2022 (2 marks)