Identify which of the following reconciling items would require an adjusting entry to be
made by Danielle Doyle Company.
1> Deposits in transit totaled $2,000.
2> A check written to the company for $415 by Cartography Company was returned
NSF.
3> The bank charged the company $25 for printing checks.
4> Outstanding checks totaled $3,300
5> A debit memorandum reported an EFT of $178 to Salome Utilities
Answer:
On December 1, Gilman Corporation borrowed $20,000 on a 90-day, 6% note. Prepare
the entries to record the issuance of the note, the accrual of interest at year end, and the
payment of the note.
Answer:
Bonds that the issuing company can redeem at a stated dollar amount prior to maturity
are convertible bonds.
Answer:
The ________________ method of computing depreciation expense results in an equal
amount of periodic depreciation throughout the service life of the plant asset.
Answer:
The _____________ basis of estimating uncollectibles provides a better
_____________ of bad debt expense with sales revenue and therefore emphasizes
income statement relationships.
Answer:
When a customer returns merchandise previously purchased on credit, the entry for the
seller to record the return requires a debit to the ________________ account and a
credit to the ________________ account.
Answer:
The following information is available for Elwes Company for the year ended
December 31, 2015:
Instructions
Use the above information to prepare a classified balance sheet for the year ended
December 31, 2015.
Answer:
On January 1, 2015, Catlin Corporation had Retained Earnings of $400,000. During the
year, Catlin had the following selected transactions:
1> Declared stock dividends of $50,000.
2> Declared cash dividends of $80,000.
3> A 2 for 1 stock split involving the issuance of 200,000 shares of $5 par value
common stock for 100,000 shares of $10 par value common stock.
4> Suffered a net loss of $60,000.
5> Corrected understatement of 2014 net income because of an inventory error of
$48,000.
Instructions
Prepare a retained earnings statement for the year.
Answer: