Supreme Company's bookkeeper prepared the bank reconciliation for May 31, 2010. The bookkeeper had the following responsibilities: All bookkeeping the handling of cash receipts, the preparation of the monthly bank reconciliation and the deposit at the bank. Assume that the bookkeeper prepared all of the checks, which were signed by the owner. The owner, on a daily basis verified and signed all checks that were written, counted all cash and verified the debit to cash in the cash receipts journal and the credit to cash in the cash payments journal. Assume that the office manager performed all other duties. May 31 Bank Statement Balance of previous bank statement on 4/30 Six deposits and other credits totaling Eleven checks and other debts totaling Current balance as of this statement $ 12,760 7,596 4,977 $ 15, 379 See Duplicate Deposit Slips Page 2 Date 5/1 5/2 5/5 5/14 5/21 5/28 5/28 5/31 5/31 Amount $ 915 $ 1,000 $ 737 $ 850 $ 729 $ 815 $ (581) $ (11) $ 2,550 Transition Type Deposit Deposit Deposit Deposit Deposit Deposit NSF Check Service Charge Bank Collection (Collection on note, principal $2,500) See Carbon Copy of Checks Issued Pages 3 - 5 Date 5/1 5/1 5/2 5/3 5/4 5/13 5/17 5/27 5/28 Check # 391 392 393 394 395 398 399 400 401 Amount S 125 $ 112 $ 500 $ 215 $ 100 $ 750 $ 1.000 $ 543 $450 Currency Coins 00 00 Deposit Slip Cash Date List of Checks 4/30/10 Gilly 915 00 915 00 Total Currency Coins 750 00 Deposit Slip Cash Date List of Checks 5/1/10 Jones 250 00 Total 1000 00 Currency Coins 156 00 Deposit Slip Cash Date List of Checks 5/4/10 Slade 581 00 737 00 Total Currency Coins 500 00 Deposit Slip Cash Date List of Checks 5/13/10 Luce 350 00 850 00 Total Currency Coins 600 00 Deposit Slip Cash Date List of Checks 5/20/10 Pyle Total 129 00 729 00 445 00 Deposit Slip Cash Currency Coins Date List of Checks 5/27/10 Dudley Total 370 00 815 00 Currency Coins 0 00 Deposit Slip Cash Date List of Checks 5/31/10 Gilly 915 00 915 00 Total Copies of Written Checks Supreme Company Date: 4/17/10 391 Pay to the Order of Jones & Company $ 125.00 NBT Bank One Hundred Twenty-Five and no cents Memo: Supplies Jill Supreme Supreme Company Date: 4/15/10 392 Pay to the Order of Jordon $ 112.00 NBT Bank One Hundred twelve and no cents Memo: Invoice 2324 Jill Supreme 393 Supreme Company Date: 4/21/10 Pay to the Order of Jones & Company $ 500.00 NBT Bank Five Hundred and no cents Memo: Invoice 5132 Jill Supreme Supreme Company Date: 4/24/10 394 Pay to the Order of King and Company $ 215.00 NBT Bank Two Hundred fifteen and no cents Memo: Invoice 700 Jill Supreme Supreme Company Date: 4/28/10 395 Pay to the Order of Jones & Company $ 100.00 NBT Bank One Hundred and no cents Memo: Invoice 2360 Jill Supreme Date: 4/30/10 396 Supreme Company $ 514.00 Pay to the Order of Al Kazam Leisure Man NBT Bank Five Hundred fourteen and no cents Memo: Invoice 010 Jill Supreme 397 Supreme Company Date: 4/30/10 $ 771.00 Pay to the Order of Jones International NBT Bank Seven Hundred seventy one and no cents Memo: Invoice 010 Jill Supreme Supreme Company Date: 5/01/10 398 Pay to the Order of Care Office Supplies $ 750.00 NBT Bank Seven Hundred fifty and no cents Memo: Invoice 870 Jill Supreme Supreme Company Date: 5/12/10 399 Pay to the Order of Jill Supreme $ 1,000.00 NBT Bank One Thousand and no cents Memo: Withdrawal Jill Supreme Supreme Company Date: 5/20/10 400 Pay to the Order of Hooyah $ 543.00 Supreme Company Date: 5/22/10 401 Pay to the Order of King & Company $ 450.00 NBT Bank Four Hundred fifty and no cents Memo: Invoice 556 Jill Supreme Supreme Company Date: 5/24/10 402 Pay to the Order of Utility Company $ 175.00 NBT Bank One Hundred seventy-five and no cents Memo: May Electric Bill Jill Supreme Supreme Company Date: 5/27/10 403 Pay to the Order of Ollyoop $ 415.00 NBT Bank Four Hundred fifteen and no cents Memo: Invoice 5002 Jill Supreme Supreme Company Date: 5/28/10 404 Pay to the Order of Gardiner Company $ 300.00 NBT Bank Three Hundred and no cents Momn. Insinin AAA till Sunama Date: 5/30/10 405 Supreme Company Pay to the Order of Father & Sons $ 160.00 NBT Bank One Hundred sixty and no cents Memo: Invoice 123 Jill Supreme Supreme Company Date: 5/31/10 406 Pay to the Order of Thomson Learning $ 514.00 NBT Bank Five Hundred fourteen and no cents Memo: Books Jill Supreme Supreme Company Date: 5/21/10 407 Pay to the Order of Ollyoop $ 800.00 NBT Bank Eight Hundred and no cents Memo: Invoice 5020 Jill Supreme UPREME COMPANY'S BOOKS Cash Receipts Recorded in Cash Receipts Journal Date Cash Debit 5/1 $ 1,000 *JS 5/4 $ 737 *JS 5/9 $ 1,285 *JS 5/13 $ 850 *JS 5/20 $ 729 *JS 5/27 $ 815 *JS 5/31 $ 915 *JS Total= $ 6,331 399 Cash Payments Recorded in Cash Payments Journal Check No. Cash Credit 398 $ 750 $ 1,000 400 $ 345 401 $ 450 402 $ 175 403 $ 415 404 $ 300 405 $ 160 406 $ 514 407 $ 800 Total= $ 4.909 . See duplicate deposit slips on page 2. See duplicate carbon copies of checks on pages 3 - 5 Assume that owner-Jill Supreme counted all cash receipts, and she verified the debit in the c receipts journal and the bookkeeper deposited in bank on the same day. Assume that all deposits cleared the bank the day after they were recorded in the cash recei journal and deposited. (.e.5/4 deposit cleared on 5/5 - see page 1). Assume that any cash receipt that did not clear the bank by the next day was never deposited in the bank. . 3 5 Cash General Ledger Explanation Debit Credit Balance Cash Receipts 6,331 Cash Payments 4,909 Date 4/30 5/31 5/31 Balance 11,338 12,760 Check No. 400 was issued for $543 to Hooyah in payment of an accounts payable. The NSF chec returned with the bank statement was received from customer, Pat Slade in payment of his Accour Receivable. The NSF check has not been recorded in the general ledger. BANK RECONCILIATION April 30, 2010 $12,760 balance according to bank statement Deposits in Transit 4/30 $ 915 $ 915 $ 13,675 Outstanding Checks: 391 392 393 394 395 396 397 $ 125 $ 112 $ 500 $ 215 $ 100 $ 514 $ 771 $ 2,337 $ 11,338 Adjusted Balance h balance according to the ledger $ 9,200 itions to bank account not recorded on books proceeds from collection of note Principal $ 2,500 Interest $ 50 Error in recording check 389 $ 180 $ 2,730 $ 11,930 Huctions by bank not recorded on books: Check Returned NSF Bank Service Charge $ 581 $ 11 Adjusted Balance $ 592 $ 11,338 BANK RECONCILIATION May 31, 2010 $ 15,379 Cash balance according to bank statement Add: Deposits in Transit 5/31 $ 915 $ 915 $ 16,294 Less Outstanding Checks: 404 405 406 407 $ 300 $ 160 $ 514 $ 800 Adjusted Balance $ 1,774 $ 14,520 $ 12.760 Cash balance according to the ledger Add: Additions to bank account not recorded on books proceeds from collection of note Principal $ 2,500 Interest $ 50 $ 2,550 $ 15,310 Deductions by bank not recorded on books: Check Returned NSF Bank Service Charge Error in recording check 400 $ 581 $ 11 $ 198 Adjusted Balance $ 790 $ 14,520 blem 2 (40 points) Read the following instructions and enter and submit all information on the Group Project Excel spreadsheet Problem 2 parts 2 - 6 tab and Problem 2 part 7-8 tab. 2. Open the following selected accounts recording the opening balances as of January 1 of the current year. In the (Group Project Excel Spreadsheet Problem 2 Parts 2-6 tab). 114.1 Allowance for doubtful accounts 12,200 Credit 313 Retained Earnings 718 Bad debts expense 3. Record the following transactions in general journal form in the Group Project Excel Spreadsheet Problem 2 Parts 2 - 6 tab. 4. Post these transactions to the three selected accounts above and to Accounts receivable in the Group Project Excel Spreadsheet Problem 2 parts 2 - 6 tab. 5. Enter the ending balances in the three accounts above and enter the ending balance in the Accounts Receivable account. Enter those balances in the Group Project Excel Spreadsheet Problem 2 parts 2 - 6 tab. Apr 1,09 Accepted a $20,000, one - year, 8% note dated April 1 from Bruce Hanson for the sale of inventory: Cost of Goods Sold was $16,500 June 27 Wrote off the $2,375 balance owed by Miller Corp., which has no assets. Oct. 5 Received 25% of the $12,000 balance owed by F.M. Knox Co., a bankrupt, and wrote off the remainder as uncollectible. Dec. 31 Based on an analysis of the $257.724 of accounts receivable, it was estimated that $14,500 will be uncollectible. Record the adjusting entry using the Aging method Dec. 31 Record the adjusting entry for interest accrued on the Bruce Hanson note A B E D Accounts Receivable A/C 114 172,099 1,800,000 (2) 1,700,000 Jan 1 (1) Bal. 12/31 1. Represents all of the sales on account for the year. 2. Represents collections from customers on account for the year. Allow. For doubtful accounts A/C 114.1 Jan 1 Retained Earnings A/C 313 300,000 Jan 1 Bad Debts Expense A/C 718 Prob. 1 Parts 1 and 4 Prob. 1 parts 2 and Problem 2 Parts 2-6 ady roblem 2: Reqiremnt 3 Journal Entry Accounts Date Debit Credit Apr. 109 Journal Entry Date Jun. 27 09 Accounts Debit Credit Journal Entry Date Oct. 5 09 Accounts Debit Credit Journal Entry Date Oct. 5 09 Accounts Debit Credit Prob. 1 Parts 1 and 4 Prob. 1 parts 2 and 3 Problem 2 Parts 2-6 Problem 2 Parts 7-8 Problem s Part