Author Question: Part A: Use the following information to complete the May bank reconciliation for AceCo: From the ... (Read 146 times)

lb_gilbert · **on:** Jul 5, 2018

Part A: Use the following information to complete the May bank reconciliation for AceCo:

From the company's records: From the May bank statement:
May 31 cash balance 10,053.57 May 31 cash balance 9,550.48
Outstanding checks 1,876.67 NSF check from A. Lowe 359.37
Deposits in transit 2,020.39

AceCo
Bank Reconciliation
May 31, 2012

Balance per bank statement, Balance per books,
May 31 May 31
Add: Add:

Deduct: Deduct:

Adjusted balance, Adjusted balance,
May 31 May 31

Part B: What amount will AceCo show for cash on its May 31 balance sheet?

Part C: For which item(s) must AceCo prepare an adjusting entry?

Question 2

Using the following information, what is the amount of gross profit? Purchases 32,000 Selling expense 960 Merchandise inventory, September 1 5,700 Merchandise inventory, September 30 6,370 Administrative expense 910 Sales 63,000 Rent revenue 1,200 Interest expense 1,040
a. 25,300
b. 31,670
c. 30,600
d. 62,840

reelove4eva · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Part A:
AceCo
Bank Reconciliation
May 31, 2012

Balance per bank statement, Balance per books,
May 31 9,550.48 May 31 10,053.57
Add: Add:
Deposits in transit 2,020.39
Deduct: Deduct:
Outstanding checks (1,876.67) NSF check (359.37)
Adjusted balance 9,694.20 Adjusted balance 9,694.20

Part B: 9,694.20
Part C: NSF check

Answer to Question 2

b