ACC – Problem 3-28 and Problem 4-21
Downside Three-28 Complete cycle drawback: Periodic systemThe following trial stability pertains to Nates Grocery as of January 1, 2012:Account TitleCashAccounts receivableMerchandise inventoryAccounts payableCommon stockRetained earningsTotalsBeginning Balances$26,000$Four,000$50,000$Four,000$43,000$33,000$80,00The next occasions occurred in 2012. Assume that Nates makes use of the periodic stock methodology.1.2.Three.Four.5.6.7.Bought land for $9,000.Bought merchandise on account for $96,000, phrases 1/10 n/45.Paid freight of $1,000 money on merchandise bought FOB delivery level.Returned $Three,600 of faulty merchandise bought in Occasion 2.Offered merchandise $86,000 money.Offered merchandise on account for $90,000, phrases 2/10 n/30.Paid money throughout the low cost interval on accounts payable due on merchandise bought in Occasion 2.eight. Paid $11,600 money for promoting bills.9. Collected $50,000 of the accounts receivable from Occasion 6 throughout the low cost interval.10. Collected $40,000 of the account receivable however not throughout the low cost interval.11. Paid $6,400 of different working bills.12. A bodily rely indicated that $47,600 of stock was available on the finish of the accounting interval.Requireda. File the above transactions in a horizontal statements mannequin like the next one.EventBalance SheetAssets=EquityAccts. Mdse.Accts. Comm.Ret.Money + Rec + Inv. + Land = Pay. + Inventory + Earn.Revenue StatementRev. Exp. = Web Inc.b. Put together a schedule of value of products bought and an earnings assertion.Assertion ofCash FlowsProblem Four-21 Changes to the money account primarily based on the financial institution reconciliation RequiredDetermine whether or not the next objects included in Yang Companys financial institution reconciliation would require changes or corrections on Yangs books.a. An $877 deposit was recorded by the financial institution as $778.b. 4 checks totaling $450 written throughout the month of January weren't included with the January financial institution assertion.c. A $54 verify written to Workplace Max for workplace provides was recorded within the normal journal as $45.d. The financial institution assertion indicated that the financial institution had collected a $330 not for Yang.e. Yang recorded $500 of receipts on January 31, which had been deposited within the night time depository of the financial institution. These deposits weren't included within the financial institution assertion.f. Service fees of $22 for the month of January had been listed on the financial institution assertion.g. The financial institution fees a $297 verify drawn on Cave Restaurant to Yangs account. The verify was included in Yangs financial institution assertion.h. A verify of $31 was returned by the financial institution due to inadequate funds and was famous on the financial institution assertion. Yang obtained the verify from buyer and thought that it was good when it was deposited into the account.