1. Bank Reconciliation Statement:

Two conflicting balances of Fox Mulder's cash are presented below:

Royal Bank, bank statement balance, June 30 .$20,500
F. Mulder, cash account balance, June 30 ......... 20,660

The following information resulted from identifying and listing the discrepancy items for Mulder as of his June 31 bank statement. Use this information to produce a Bank Reconciliation Statement for F. Mulder.

Deposit in Transit, June 28 ......................	600
Outstanding Cheques:
No. 32 .............................................................	300
No. 40 .............................................................	200
Bank Service Charges .............................	70
Bank Credit Memo for interest earned	10

Complete the provided Statement of Cash Flows based on the following information for Anderson D.J. Service. The accounting period is the month of March:

i	Total cash received from clients .......................................	$1,650.00
ii	Cash received from interest on bonds ...............................	400.00
iii	Cash received from sale of old ampifier .............................200.00
iv	Cash paid to Cosmo Music for rental of lighting gear .....375.00
v	Cash paid for fuel for van .................................................	218.00
vi	Cash paid for telephone expense .....................................	86.00
vii	Balance of Cash account as of end of February ............4,050.00

3. Merchandising Income Statement:

Complete the merchandising income statement for the business presented below by:

i) placing the following account titles and balances within the proper format;

ii) calculating and recording any missing values for the titles indicated below.




Revenue From Sales:

Sales: $40,000.00
Sales Returns & Allowances: 200.00

Cost of Goods Sold:

Inventory, January 1: $2,500.00
Purchases: 8,000.00
Transportation-in: 300.00
Purchases Returns and Allowances: 40.00
Inventory, December 31: 2,500.00

Operating Expenses:

Rent Expense: $1,400.00
Hydro Expense: 200.00
Phone Expense: 150.00


HINT: Be sure to find the value for each of the following:

i) Net Sales
ii) Cost of Delivered Goods
iii) Cost of Goods Available for Sale
iv) Net Purchases
v) Cost of Goods Sold
vi) Gross Profit
vii) Total Expenses
viii) Net Income

Record the following merchandising transactions within a General Journal twice - once for a "periodic" inventory system and once for a "perpetual" inventory system:

Note: Assume this is the first year of operation for this business.

Date	Transaction
April 1	Purchase $6,000.00 of inventory (on account).
April 5	Sell $800.00 of inventory for $1,400.00 (received cash).
April 13	Sell $500.00 of inventory for $750.00 (on account).
April 19	Purchase $2,000.00 of inventory (paid cash).
April 23	Sell $1,200.00 of inventory for $2,000.00 (on account).
April 30	Record the closing entries for this accounting period.

5. Bad Debts Expense

i. Record the following transactions and adjustments within the General Journal provided.

May 1: Dr. Sigmund predicts that he will lose $400.00 in Bad debts for the month of May. Dr. Sigmind records this bad debts expense in advance on May 1st.

May 12: Dr. Sigmund treats Kimberly Shaw for manic-depression. Kimberly is billed $200.00 for these services.

June 15: During a fit of depression, Kimberly calls Dr. Sigmund and blames the doctor for all of her troubles. Kimberly says she would rather leave the country than pay her bill. Dr. Sigmund writes off the account.

June 21: During a fit of mania, Kimberly writes Dr. Sigmund and congratulates the doctor for curing her. Included in the letter is a cheque for $200.00

We have purchased a computer for $3600.00. We predict that we will use the computer for three years, after which we estimate we can sell the computer for $600.00.

i. Using the straight-line method, calculate the amount which this computer will depreciate each year. Show your calculations.

Annual Depreciation: __________________

ii. Using the General Journal provided:

• show the entries that would be made to the accounts for the purchase of the computer on January 1, 2001.

• show the how we would adjust for depreciation over the next three years.

• show the entries that would occur if we sold the computer at the end of three years for $500.00

  
  

i. Record the following transactions within the appropriate special journal.

Remember, you have four special journals to choose from, they are the Sales Journal, the Purchases Journal, the Cash Payments Journal, and the Cash Receipts Journal. Choose which journal you will enter each transaction into wisely.

*** Pay careful attention to the GST (7%), purchase discounts,and sales discounts.***

June: 2 Purchased chicken feed for $ 2000.00 from Smith's Feed Inc., invoice # 42. Terms 2/10, n/30.

6 Sold rabies vaccine to Biosyn Corp. for $400 on account. Invoice # 29. Terms 2/10, n/60.

11 Paid the Smith's Feed account in full, cheque #115.

13 Sold pig feed to Jerry Farmer for $500.00, invoice # 103. Terms 2/10, n/30

15 Received full payment on the Biosyn account.

16 Cash sales for the week totalled $800.00

20 Purchased cow feed from Joe's Supply for $750.00 Invoice # 17, terms 2/15, n/60.

20 Cash sales for the week totalled $400.00

24 Received full payment on the Jerry Farmer account.

26 Paid the Joe's Supply account in full, cheque # 116

29 John Doe withdrew $200.00 from the business.

Kelly pays her office assistant every Friday. Her office assistant earns $200.00 a day. Within the General Journal provided, demonstrate the adjusting entry Kelly should make at the end of May in order to assign the appropriate amount of salary expense to this month. Then, show the entry that would be made on June 1st when Kelly actually does pay her secretary. (The calendars for the months of May and June are presented below.)