Nov 13 Pb. 7-10 Date End Date Total Months Note Amount


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Nov 13 Pb. 7-10 Date End Date Total Months Note Amount 28-Feb Sep-11 7 10400 31-Mar 8600 3-Apr 7600 11-Apr 6600 17-Apr 30-Apr 30-Jun Pb 7-14 Balance per bank 6848 Balance per books 7419 Problem 7-10 Requirement 1 February 28, 2011 Note receivable 10400 Sales revenue 10400 March 31, 2011 Note receivable (face amount) 8600 Discount 800 Sales revenue (difference) 7800 April 3, 2011 Accounts receivable 7600 Sales revenue 7600 April 11, 2011 Cash 6460 Sales discounts 140 Accounts receivable 6600 April 17, 2011 Sales returns 5000 Accounts receivable 5000 Inventory Cost of goods sold Problem 7-10 (continued) April 30, 2011 Cash $49,500 Loss on sale of receivables $500 Accounts receivable $50,000 To accrue interest on note receivable for four months. June 30, 2011 Interest receivable 10,0010 Interest revenue 10,000 To record discounting of note receivable. $10 June 30, 2011 Cash Loss on sale of note receivable (to balance) Interest receivable (from adjusting entry) Note receivable (face amount) August 31, 2011 — NO ENTRY REQUIRED Problem 7-10 (concluded) Requirement 2 To accrue nine months’ interest on the Maddox Co. note receivable. Discount Interest revenue Requirement 3 Income Date increase (decrease) February 28 March 31 April 3 April 11 April 17 April 17 April 30 June 30 June 30 December 31 Total effect $ Requirement 1 Step 1: Bank Balance to Corrected Balance Balance per bank statement $ Add: Deposits outstanding (1) Deduct: Bank error – deposit incorrectly credited to company account Outstanding checks (2) Corrected cash balance $ Step 2: Book Balance to Corrected Balance Balance per books $ Deduct: Error in recording check #411 Service charges NSF checks Corrected book balance $ (1) Receipts $ Less: December receipts deposited: Bank deposits $ Less: Deposit error Less: Prior month’s deposits outstanding Deposits outstanding, Dec. 31 $ (2) Dec. disbursements $ Error in recording check #411 Less: December checks cleared: Total checks cleared $ Prior month’s checks: # $ # # # December checks outstanding Add: check # 365 Total checks outstanding, Dec. 31 $ Problem 7-14 (concluded) Requirement 2 To record credits to cash revealed by the bank reconciliation. Advertising expense Miscellaneous expense (bank service charges) Accounts receivable (NSF checks) Cash ATTACHMENT PREVIEW Download attachment Week_Three.doc Make the following changes to the exercises and problems: Nov 13 Pb. 710 Date Total Note End Date Months Amount 28-Feb Sep-11 7 10400 31-Mar 8600 3-Apr 7600 11-Apr 6600 17-Apr 30-Apr 30-Jun Pb 7-14 Balance per bank Balance per books 6848 7419 Problem 7-10 Requirement 1 February 28, 2011 Note receivable………………………………………………….. ……………………………………………………..Sales revenue ………………………………………………………………………… March 31, 2011 Note receivable (face amount)………………………………… A/ RCollections 7000 …………………………………………………………..Discount ………………………………………………………………………… ………………………………………Sales revenue (difference) ………………………………………………………………………… April 3, 2011 Accounts receivable…………………………………………… ……………………………………………………..Sales revenue ………………………………………………………………………… April 11, 2011 Cash ………………………………………………………………… Sales discounts …………………………………………………. ……………………………………………Accounts receivable ………………………………………………………………………… April 17, 2011 Sales returns……………………………………………………… …..

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