The following information is available for Pyle Garage for March 2018
BANK STATEMENT
HAZARD STATE BANK 215 MAIN STREET HAZARD, GA 30321 - Account number 62-00062 - March 31, 2018
Beginning balance 3/1/2018 $9,083
Total deposits and other credits 30,155
Total checks and other debits 25,110
Ending balance 3/31/2018 14,125
Checks and Debits
Check No. Amount
1462 $3,805
1463 1,693
1464 8,050
1465 2,951
1466 1,455
1467 6,230
DM 69
1468 860
Deposits and Credits
Date Amount
March 1 $1,150
March 2 6,554
March 6 4,987
March 12 6,219
March 17 6,013
March 22 2,134
CM 3,098
The following is a list of checks and deposits recorded on the books of Pyle Garage for March 2018:
Date Check No. Amount of Check Date Amount of Deposit
March 1 1463 $1,693 March 1 $6,554
March 5 1464 8,050 March 5 4,987
March 6 1465 2,951
March 9 1466 1,455 March 10 6,219
March 10 1467 6,230
March 14 1468 150 March 16 6,013
March 19 1469 1,546 March 19 2,134
March 28 1470 793 March 29 3,593
Other information:
1. Check no. 1462 was outstanding from February
2. A credit memo for collection of accounts receivable was included in the bank statement.
3. All checks were paid at the correct amount.
4. The bank statement included a debit memo for service charges.
5. The February 29 bank reconciliation showed a deposit in transit of $1,150
6. Check no. 1468 was for the purchase of equipment.
7. The unadjusted Cash account balance at March 31, was $13,060.
Required
a. Prepare the bank reconciliation for Pyle Garage at the end of March.
b. How the adjustments described above affect the cash account.

Answer:

                                      Pyle Garage

                                 Bank Reconciliation

                                   March 31, 2018

Unadjusted Bank Balance,                                  $14,125

March 31, 2018

Add: Deposit in Transit                                          $3,593

Less: Outstanding Checks #1469        $1,546

Outstanding Checks 1470                     $793          ($2,339)

True Cash Balance, March 31, 2018                     $15,379

Unadjusted Book Balance, March 31, 2018              $13,060

Add: Credit Memo for Collection of                        $3,098

Accounts Receivable  

Less: Error in Recording Check #1468          $710

         Debit Memo for Service Charges         $69    ($779.00)

True Cash Balance, March 31, 2018                        $15,379

b.  Account Titles                            Debit        Credit

   Cash                                           $3,098

         Accounts Receivable                            $3,098

   Equipment                                   $710

          Cash                                                        $710

   Bank Service Charge Expense   $69

           Cash                                                        $69

Suppose there are two goods, food and clothing. My preference has the following properties:
1. I am rational.
2. I need at least one unit of food and one unit of clothing in order to survive.
3. I strictly prefer surviving over not surviving.
4. I am indifferent over all situations in which I do not survive.
5. When I have strictly more than one unit of each good, I satisfy monotonicity and strict convexity.
6. When I have strictly more than one unit of each good, I have a positive marginal rate

Identifying adjusting entries with explanations LO P1 For each of the following entries, select the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)
A. To record receipt of unearned revenue.
B. To record this period's earning of prior unearned revenue.
C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue.
G. To record this perlod's use of a prepaid expense.
H. To record payment of a prepaid expense.
I. To record this period's depreclation expense.
Journal Entries Explanation Debit Credit
Interest Expense C 1,000
Interest Payable 1,000
Depreciation Expense 4,000 4,000
Unearned Professional Fees Professional Fees Earned
3,000 3,000
Insurance Expense 4,200
Prepaid Insurance 4,200
Salaries Payable 1,400
Cash 1,400
Prepaid Rent 4,500
Cash 4,500
Salaries Expense 6,000
Salaries Payable 6,000
Interest Receivable 5,000
Interest Revenue 5,000
Cash 9,000
Accounts Receivable (from consulting)9,000
Cash Unearned Professional Fees 7,500 7,500
Cash 2,000 Interest Receivable 2,000
Rent Expense Prepaid Rent 2,000 2,000

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Which of the following is not an attribute of every leader?
O focused
O highly-paid
O a good listener
O able to teach others

Ivanhoe uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $380000 ($584000), purchases during the current year at cost (retail) were $1855000 ($3100000), freight-in on these purchases totaled $119000, sales during the current year totaled $2800000, and net markups (markdowns) were $62000 ($98000). What is the ending inventory value at cost

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• Purchased $293,100 of materials.
• Used $252,100 of direct materials in production.
• Incurred $216,000 of direct labor wages.
• Applied factory overhead at a rate of 70% of direct labor cost.
• Transferred $594,500 of work in process to finished goods.
• Sold goods with a cost of $577,400.
• Revenues earned by selling bikes, $1,033,500.
• Incurred $248,300 of selling expenses.
• Incurred $92,400 of administrative expenses.
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b. Determine the inventory balances on February 28, the end of the first month of operations. Materials inventory, February 28 $ Work in process inventory, February 28 $ Finished goods inventory, February 28 $

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Windsor Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $355,200 and a remaining useful life of 8 years. During 2020, Windsor incurred research and development costs of $93,000 and brought a patent infringement suit against a competitor. On December 1, 2020, Windsor received the good news that its patent was valid and that its competitor could not use the process Windsor had patented. The company incurred $102,000 to defend this patent. At what amount should patent(s) be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents?

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Preparing adjusting entries LO P1, P3, P4
a. Wages of $10,000 are earned by workers but not paid as of December 31.
b. Depreciation on the company’s equipment for the year is $10,600.
c. The Office Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,251 of office supplies are purchased. A physical count of supplies at December 31 shows $575 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,600 of unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $900 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.

Reasons for printing your document include all of the following except:

A. It gets to the recipient faster.
B. It can be more secure and private.
C. It is easier to proofread for errors.
D. You can get proof of delivery to the sender.

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E. O. Cue, Materials Management Specialist for Cue's Custom Billiard Balls, periodically needs to place orders for ivory, one of the raw materials used in producing billiard balls. Mr. Cue knows that manufacturing uses ivory at a rate of 50 kilograms each day, and that it costs $ .04 per day to carry a kilogram of ivory in inventory. He also knows that the clerical costs for placing an order for ivory are $100.00 per order, and that the lead time between placing and receiving each order is four days. Assume 250 days in one year. What is Mr. Cue's economic order quantity (EOQ) for ivory?