Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Selected transactions for 2 0 - 1 are provided below. Jan. 5 Reinstated the account of Christine Roby, which had been written off in the
Selected transactions for are provided below.
Jan. Reinstated the account of Christine Roby, which had been written off in the preceding year, and received $ cash in full settlement.
Issued a $month, note to Zekir Computer Systems to purchase a new computer system Computer System The system, with an expected life of four years and no salvage value, will be depreciated using the doubledecliningbalance method.
Feb. Received a $month, note from Carol Reynolds for sale of merchandise.
Mar. Morgan Hartley invested an additional $ into the business.
Apr. Disposed of a cash register Store Equipment originally costing $ with a $ salvage value. Depreciation is computed on a monthly basis with adjusting entries made at the end of each year. Depreciation after eight years of use was $ as of December The cash register had an estimated life of years.
Borrowed $ from Dean Bank, signing a day, note.
Apr. Paid $ plus interest, to Zekir Computer Systems see January and gave a new $day, note to extend time for payment.
May Wrote off the $ balance owed by Brenda Husband as uncollectible.
Paid the principal and interest due on the $ note to Zekir Computer Systems. See April
Paid $ cash to Snowdens Service Station for an oil change and tire rotation on the company van.
June Received a $day, note from Heidi Kruczkiewicz to settle an account receivable.
Reinstated the account of Brenda Husband, which had been written off last month, and received $ cash in full settlement. See May
Paid $ cash to Klippi Construction for an addition Addition to the store so that more merchandise could be displayed. The addition has an estimated salvage value of $ and an estimated life of years. Depreciation is to be calculated using the straightline method.
Paid the principal and interest due on the $ note to Dean Bank. See April
Upon opening the store, it was apparent that someone had entered the store illegally. Jordan and Morgan need to determine whether anything had been stolen. A physical inventory was taken and it was determined that $ in inventory was on hand, but they need to know how much inventory should have been on hand. Estimate the cost using the retail method based on the following information. Figures at cost: beginning inventory, $; and net purchases, $ Figures at retail: beginning inventory, $; net purchases, $; and net sales, $ Compare your estimate with the balance of $ Does it appear that any inventory was stolen? Space is provided for your calculations following the journal pages for the problem in your working papers.
July Heidi Kruczkiewiczs note see June is discounted at Marshall Bank at a discount rate of
Sold $ in merchandise to Kim Sackett, terms n
Purchased merchandise on account for $ from Dionis Distributing. Credit terms are n
Received payment in full from Kim Sackett, less discount, for merchandise sold on July
Paid Dionis Distributing for merchandise purchased on account on July
Aug. Paid $ to Snowdens Service Station to replace the exhaust system on the company van.
Received notification from Dean Bank that the principal and interest were collected on the note from Carol Reynolds. See February The bank fee for collecting the note was $
Wrote off the $ balance owed by Shelley Kozub as uncollectible.
Sept. Traded the company car Automobile for a newer one at Plume Motors. The old car originally cost $ and is depreciated uptodate in the amount of $ A tradein allowance of $ was given. The new car had a market value of $ and the balance was paid in cash. The new car should last at least miles and will be depreciated at $ per mile.
Received a $day, note from Tammy Jones in payment of an account receivable.
Purchased $ worth of toys from Dennis Designs, terms n
Received notification from Marshall Bank that Heidi Kruczkiewiczs note was dishonored. See June and July A check is issued to cover the maturity value plus a $ bank fee that must be paid to the bank.
Oct. Issued a $day, note to Dennis Designs to extend time for payment on an account payable.
Borrowed $ for days from OhlerCupplo Savings Association on a noninterestbearing note. The discount rate is
Sold $ of merchandise for cash to Melinda Miller.
Nov. Received a $day, note from Laura Nottingham in payment of an account receivable.
Received notification from Marshall Bank that Tammy Jones dishonored her note. See September No fee was charged.
Heidi Kruczkiewiczs dishonored note is collected; Kruczkiewicz pays
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started