Question One: Bank reconciliation (A.) You are required to complete the June 30 bank reconciliation for Silver Company using the following information and as per the given format: 1 $2,325 3 4 $527 390 650 Deposit in transit Note collected by bank As agent of Silver (no interest) NSF check of D. Chan Bank service charge....... $2,000 Outstanding checks No. 479 No. 486 No. 490 Check no. 485 (for Repairs Escpense was written for $323 but erroneously recorded in Silver's records as $233 Difference 5 $995 6 $45 90 SILVER CO. Bank Reconciliation June 30, 20 Balance per bank statement, June 30. ............... Add: Deduct: $9,079 Adjusted balance $8.967 Balance per depositor's records, June 30....... Add: Deduct Adjusted balance (as above). (B.) Give in general journal form the entry or entries necessary to correct Silver's accounting records as of June 30. Question Two: At December 31, 2015, Laconia Industries' portfolio of investments in available for sale marketable securities consisted of the following: Current Mult Vale Crown Inc. (10.000 shares, cost $10 per share Market value $16 per share) $100.000 160.000 Plastic Dots (5.000 shares, cost $0 per har Market value $47 per share) $250,000 235.000 (a.) Illustrate the presentation of marketable securities and unrealized holding gain (or loss) in Laconia's financial statements at December 31, 2015. Indicate the financial statement and section in which each item appears. (b.) Assume that on March 15, 2016, Laconia made the following sales of securities: (1) Sold 5,000 shares of its investment in Crown, Inc., at a price of $20 per share. (2) Sold 1,000 shares of its investment in Plastic Dots at a price of $45 per share. Compute the gain or loss recognized in Laconia's 2016 income statement for each sale: Gain/Loss (1). Sale of 5,000 shares of Crown: $ (2). Sale of 1,000 shares of Plastic Dots: S Gain/Loss (c.) At December 31, 2016, the market values of these stocks are: Crown, $21 per share; Plastic Dots, S42 per share. Complete the following schedule showing cost and current market value of securities owned by Laconia at the end of 2016. Cost Current Market Value Compute the gain or loss recognized in Laconia's 2016 income statement for each sale: Gain/Loss (1). Sale of 5,000 shares of Crown: $ (2). Sale of 1,000 shares of Plastic Dots: $ (c.) At December 31, 2016, the market values of these stocks are: Crown, S21 per share; Plastic Dots, $42 per share. Complete the following schedule showing cost and current market value of securities owned by Laconia at the end of 2016. Current Market Value Crown (d.) Illustrate the presentation of marketable securities and unrealized holding gain (or loss) in Laconia's financial statements at December 31, 2016. (Follow same format as in part a.) Question Three: Balance sheet method-journal entries The general ledger controlling account for Accounts Receivable has a balance of $120,500 at year-end before adjustment. The company uses the balance sheet approach to estimate uncollectible accounts. By aging the individual customers' accounts, it was determined that the doubtful accounts amounted to $5,020. Prepare the year-end adjusting entry for uncollectible accounts under each of the following independent assumptions. (a.) Allowance for Doubtful Accounts has a credit balance of $2,850. (b.) Allowance for Doubtful Accounts has a debit balance of $925. Question Four: Information for the Hooper Company is as follows: Question Three: Balance sheet method-journal entries The general ledger controlling account for Accounts Receivable has a balance of $120,500 at year-end before adjustment. The company uses the balance sheet approach to estimate uncollectible accounts. By aging the individual customers' accounts, it was determined that the doubtful accounts amounted to $5,020. Prepare the year-end adjusting entry for uncollectible accounts under each of the following independent assumptions. (a.) Allowance for Doubtful Accounts has a credit balance of $2,850. (b.) Allowance for Doubtful Accounts has a debit balance of $925. Question Four: Information for the Hooper Company is as follows: Accounts Receivable at March 31, 2015 Allowance for Doubtful Accounts (Credit balance) Net Sales (85% on credit) for year ending 123115 59.000 $2.000 $100.000 (1) What is the amount of uncollectible account expense for 2015 if the company uses the Percentage of Sales method and 2% of credit sales are deemed uncollectible? (2) What is the amount of uncollectible account expense if the company uses the balance sheet approach and estimates $2,200 as uncollectible in 2015? (3) What is the net realizable value of accounts receivable if the company uses the balance sheet approach? (4) If the company uses the balance sheet approach and writes- accounts receivable after the write off? Question Five: Note receivable--journal entries equipment priced at $350,000 in exchange for a six-month note receivable with an annual interest rate of 12%, all due at maturity. (a.) Prepare the December 31, 2015 (fiscal year-end), adjusting entry made by Dental with regard to this note receivable. (maturity date of note), to record collection of note and interest. (a) 2015 Dee. 31 General Journal (1) 2016 March 1 (c.) Assume that on March 1, 2016, the maker of the note defaults and Dental does not collect the note. Prepare the entry to be made to Dental on March 1, 2016, in this situation. (c) 2016 March 1