Student Name:
Class:
13,145$ 8,100$
1,600 (200)
(2,100) (300)
Entry Account Debit Credit
(a) 6,270 <–Correct!
6,000
McGraw-Hill
Instructor
OSCAR’S RED CARPET STORE
OSCAR’S RED CARPET STORE
Requirement 1:
NSF check
Per general ledger
Company error
Problem 04-02
Checks outstanding
Company’s Cash Balance
Bank’s Cash Balance
February 28, 2018
Bank Reconciliation
Deposits outstanding
Per Bank Statement
Notes Receivable
Cash
Requirement 2:
Cash Adjustments
Service fees
EFT for rent
Interest on account
Note collected
Bank balance per
Interest on note
Company balance per
Date Amount No. Date Amount
2/4 2,700$ Checks: 321 2/2 4,700$
2/11 2,300 322 2/8 400
327 2/28 1,900
6,800$ 12,600$
8,100$
Disbursements
Balance on February 28
13,900
a. 13,145$
Interest earned on checking account
Interest earned on loan to supplier
Service fees charged by bank
327
NSF check in 2/11 deposit
Check 323 correctly recorded by bank
Automatic withdrawal for February rent
b. 1,600$
c.
Deposits
Additional information:
Ending cash balance from bank stmt.
Cash receipts outstanding from 2/26-2/28
Checks outstanding:
325
Given Data P04-02:
Receipts
Balance on February 1
February 28, 2018
Cash Ledger
OSCAR’S RED CARPET STORE
Cash receipts:
Bank error
Service Fees
Note collected
Checks outstanding
Interest earned
6,210$ 5,100$
3,180 (400)
Entry Account Debit Credit
(a) 1,190 <–Correct!
Bank Reconciliation
DIAZ ENTERTAINMENT
May 31, 2018
Bank’s Cash Balance
Company’s Cash Balance
Per general ledger
Problem 04-03
Requirement 1:
Per bank statement
DIAZ ENTERTAINMENT
Requirement 2:
Deposits outstanding
Cash
Cash Adjustments
Bank balance per
NSF check
Cash Balance Cash Balance
May 1, 2018 Deposits Checks May 31, 2018
5,280$ 12,040$ 12,220$ 5,100$
Date Desc. Amount Date No. Desc Amount
5/3 Sales 1,460$ 5/7 471 1,300$
5/10 Sales 1,890 5/12 472 1,670
5/17 Sales 2,520 5/15 473 3,600
No. Total No. Total
7 10,050$ 9 10,100$
Date Amount Desc. Date NO. Amount Desc Date Amount
5/4 1,460$ DEP 5/1 469 550$ CHK 5/1 5,710$
5/11 1,890 DEP 5/2 470 430 CHK 5/2 5,280
5/18 2,520 DEP 5/9 471 1,300 CHK 5/4 6,740
5/20 1,100 NOTE 5/11 400 NSF 5/9 5,440
5/25 2,990 DEP 5/18 473 3,600 CHK 5/12 5,260
Desc: DEP INT SF
NOTE CHK NSF
EFT
May 20 EFT made by bank in error
470
469
Outstanding checks at April 30, 2018:
DIAZ ENTERTAINMENT
Cash Account Records
May 1, 2018 to May 31, 2018
for
Legal fees
Property tax
Salaries
Deposits
Checks
Given Data P04-03:
Nonsufficient funds
Service fees
Customer check
Interest earned
MIDWEST BANK
Withdrawals and Debits
Withdrawals and Debits
Daily Balance
6,210$
Checking Account Statement
Ending Balance
May 31, 2018
May 31, 2018
Diaz Entertainment
Electronic funds transfer
Note collected
Customer deposit
Deposits and Credits
Beginning Balance
Deposits and Credits
May 1, 2018
6,260$
5/24 Sales 2,990 5/22 474 1,500
5/31 Sales 3,180 5/30 475 550
Advertising
Student Name:
Class:
Date Account Debit Credit
(Purchase boxing equipment for cash and on account)
Accounts Payable
Cash
Equipment
(Issue common stock)
Common Stock
Cash
October 2 8,500
8,500 <–Correct!
October 12 1,500
1,500 <–Correct!
October 19 4,400
4,400 <–Correct!
McGraw-Hill
Instructor
Problem 04-05
BALBOA‘S GYM
Transactions
Requirement 1:
Cash
Dividends
(Pay for current month advertising)
Cash
Advertising Expense
(Receive membership dues)
Service Revenue
Cash
(Pay current month salaries)
Cash
Salaries Expense
(Receive current month utilities bill)
Utilities Payable
Utilities Expense
(Receive membership dues in advance)
Deferred Revenue
Cash
(Pay prepaid insurance)
Cash
Prepaid Insurance
(Pay dividends)
Student Name:
Class:
McGraw-Hill
Instructor
Problem 04-05
October 1 16,600 4,800 October 9
October 2 8,500 1,500 October 12
Net cash flows from financing activities
Net increase in cash
For salaries
Purchase of boxing equipment
Issuance of common stock
Payment of dividends
Net cash flows from operating activities
Cash Flows from Financing Activities
Net cash flows from investing activities
Cash Flows from Investing Activities
14,100$
(1,500)
(6,900)
16,600
17,800$
Beginning cash balance
Change in cash balance for the month
Correct!
17,800
For the month ended October 31
Statement of Cash Flows
BALBOA‘S GYM
Cash
Requirement 3:
Requirement 4:
Cash inflows:
Cash Flows from Operating Activities
From customers
Cash Outflows:
For advertising
For insurance
Cash at the beginning of the month
Cash at the end of the month
Ending cash balance
Requirement 5:
October
28,500$
Issue common stock for cash
Purchase boxing equipment:
Price of equipment
Cash paid at time of purchase
12 1,500$
19 4,400$
22 6,900$
BALBOA‘S GYM
Given Data P04-05:
Receive membership dues for month
October Transactions
Pay dividends to stockholders
Pay six months’ liability insurance beginning Nov. 1
Pay for advertising
Beginning October cash balance
Receive cash in advance for memberships
Receive but do not pay utility bill
Pay employees’ salaries for month