Romares, Adarose G.

3rd year- BSA

CCSA- Midterm Exam Solutions

PROBLEM 1

Number 31
August collections credited by bank 24,000
Deposit in Transit, August 31 9,400
Unrecorded deposit 1,000
Note collected by bank 8,000
Unadjusted book receipts in August 42,400

Number 32
Checks drawn in August 8,360
Bank service charge 100
Unadjusted book receipts in August 8,460

Number 33-35
San Juan Company
PROOF OF CASH
For the Month Ended August 202

Unadjusted Bank Balance:

Deposit in Transit:
Jul-31
Aug-31
Outstanding Checks
Jul-31
Aug-31
Erroneous bank debit, credited
NSF check redeposited
Adjusted balance per bank

Unadjusted Book Balance:

Customer's note collected by bank
July
Unrecorded Deposit
July
Bank service charge:
July
August
NSF check redeposited
 August
Adjusted book balance

PROBLEM 2
Number 36.
Sales
Less: Accounts Receivable
Collections from Sales

Number 37.
Cost of Sales (1,615,040/1.4)
Add: Merchandise Inventory
Purchases
Less: Accounts Payable
Payments for Purchases

Number 38.
Purchase of Real State
Payment for Furniture and Fixtures (145,000-30,000)
Expenses paid
Payment for purchases
Total cash disbursements

Number 39.
Proceeds from the issuance of share capital
Proceeds from mortgage note payable
Proceeds from notes payable-bank
Collections from sales
Total Cash receipts
Less: Cash disbursements
Unadjusted cash balance

Number 40.
Cash accountability
Less: cash accounted
Unadjusted cash balance 131,640
Deposit in transit 25,700
Outsatnding checks (9,260)
Cash shortage

PROBLEM 3

Number 41
Deposit in transit 11/30/19
Add: Collections in December
December book receipts
Less receipts not representing on Dec:
Customer's Notes collected by bank in Nov. recorded in Dec.
Uncollected customer's note treated as receipts
Total
Less deposited credited by the bank in Dec:
December bank receipts
Less receipts not representing deposits:
Erroneous bank debit, Nov.; corrected Dec.
Deposit in transit 12/31/19

Number 42
Outstanding check 11/30/19
Add: Checks issued in December
December book disbursements
Less disbursements not representing on Dec:
Bank service charge, Nov.; recorded Dec.
Error in recording a check (should be 3,960 recorded as 39,600)
Total
Less checks paid by the bank in Dec:
December bank disbursements
Less disbursements not representing checks:
Bank service charge, Dec.
NSF check, Dec
Deposit in transit 12/31/19

Number 43-45

For the month ended Dec 31, 20

Bal. per bank statement

DIT:
Nov 30
Dec 31
OC:
Nov 30
Dec 31
Erroneous bank debit- Nov
Adjusted bank balance
Bal. per book statement
Customer's note collected by bank-Nov
Bank service charge:
 Nov 30
Dec 31
NSF check-Dec
Book errors- Dec
Uncollected customer's notes treated as receipts
Error in recording a check (should be 3960 recorded as 39600)
Adjusted bank balance

PROBLEM 4
Number 46
Sales 15,000,000
Sales return and allowances (700,000)
Net sales 14,300,000
Multiply by bad debt rate 0
Bad debt expense 214,500

Number 47
Accounts receivable 17,500,000
Accounts receivable uncollectible (1,800,000)
Net realizable value 15,700,000

Number 48
Allowance for doubtful accounts 1/1/19 170,000
Establishment of accounts written of in prior years 80,000
Customer accounts written off in 2019 (300,000)
Bad debt expense for 2019 (21M*3%) 630,000
Allowance for doubtful accounts 12/31/19 580,000

Number 49
Bad debt expense 840,000
Accounts written offf (240,000)
Allowance for doubtful accounts 600,000
Accounts receivable 9,500,000
Allowance for doubtful accounts 600,000
Accounts receivable-net 10,100,000

Number 50
Accounts receivable 4,100,000
Percentage 0
Bad debt expense, before adjustment 123,000
Allowance for doubtful accounts (debit bal) 100,000
Bad debt expense for 2019 223,000

PROBLEM 5
Number 51
GL
Unadjusted Balances 788,000
Add(deduct)
Understatement of accounts written off (800)
Definitely uncollectible accounts (4,000)
Adavances from customers 8,000
Accounts with credit balances 2,000
unlocated difference 5,760
Adjusted balances 798,960

Number 52
ACCOUNT CLASSIFICATION ADJUSTED BALANCES
0 to 1 month 380,960
1 to 3 months 309,280
3 to 6 months 88,720
over 6 months 20,000

Number 53
Balance per books
Add (deduct) adjustments:
AJE No.1 1,296
AJE No.2 (800)
AJE No.3 (4,000)
AJE No.4 (25,439)

Adjusting entries affecting Allowance for doubtful Accounts and Doubtful Account Expense
1. Doubtful account expense
Allowance for doubtful accounts
To correct entry made in recording recovery of account written off

2. Allowance for doubtful accounts

Accounts Receivable
To correct understatement of accounts written off

3. Allowance for doubtful accounts

Accounts Receivable
To write off definitely uncollectable accounts

4. Allowance for doubtful accounts

Doubtful account expense
To asdjust allowance
Number 54-55
Allowance per bank
Add (deduct) adjustments:
AJE No. 1 1,296
AJE No. 4 (25,439)

PROBLEM 6
Number 56 Number 57
INVENTORY ACCOUNTS PAYABLE
1,100,000 690,000
a. (100,000)
b. (50,000) (50,000)
c. 250,000
d. 70,000
e. (120,000)
f. 100,000
g. 170,000
h. 200,000
1,550,000 710,000

PROBLEM 7
Number 61
Unadjusted Trade Notes Receivable
Less: Non-Trade Notes Receivable
B Company (Cash Loan) 500,000
Mr. Pogi (Loan to officer) 1,000,000
Adjusted Trade Notes Receiveble

Number 62
Adjusted Trade Notes Receivable
Less: Allowance for Doubtful Accounts (357,416x25%)
Net Realizable value

Number 63-64
MAKER DATE AMOUNT
A. Co Oct.1 57,416
Oct.1 100,000
Oct.1 100,000
Oct.1 100,000
B Co. Jul.1 500,000
C Co. Oct.1 251,636
Mr. Pogi Feb.1 1,000,000
 D Co. Nov.1 546,387
E, Inc. Dec.10 381,476

PROBLEM 8

Number 65
Unadjusted Balance 8,295,000
LESS: SI#969 69,000
SI#970 102,000
SI#971 24,000
SI#966 225,000
Adjusted Balance 7,875,000

Number 66

Unadjusted Balance 4,500,000

Purchases No. 2060 27,000
Purchases 12/31/19 4,527,000

Number 67
Unadjusted Balance 750,000
LESS: SI#969 69,000
SI#970 102,000
SI#971 24,000
SI#966 225,000
Adjusted Balance 330,000

Number 68
Unadjusted Balance 900,000
Add: RR. 1063 96,000
SI#968(150,000/1.25) 120,000
SI#966(225,000/1.25) 180,000
Adjusted Balance 1,296,000

Number 69
Unadjusted Balance 600,000
Purchases No. 2060 27,000
Adjusted Balance 627,000
 San Juan Company
PROOF OF CASH
For the Month Ended August 2020

Jul-31 Receipts Dibursements Aug-31

52,000 25,140 9,740 67,400

900 (900)
9,400 9,400

(4,000) (4,000)
3,600 (3,600)
(100) (100)
(140) (140)
48,900 33,400 9,100 73,200

Jul-31 Receipts Disbursements Aug-31

40,000 42,400 8,460 73,940

8,000 (8,000)

1,000 (1,000)

(100) (100)
440 (440)
 300 (300)
48,900 33,400 9,100 73,200
Number 33 Number 34 Number 35

1,615,040
426,900
1,188,140

1,153,600
469,600
1,623,200
231,420
1,391,780

1,000,000
115,000
303,780
1,391,780
2,810,560

1,600,000
400,000
160,000
1,188,140
3,348,140
2,810,560
537,580

537,580

148,080
389,500

80,000
 735,600

100,000
120,000 220,000 515,600
595,600

416,000

40,000 376,000
219,600

170,000

407,200

1,200
35,640 36,840 370,360
540,360

204,000

1,600
24,000 25,600 178,400
361,960

Melville Corporation
Proof of Cash
For the month ended Dec 31, 2019
Beginning Receipts Disb. Ending
Nov. 30 December 11,658
306,000 416,000 204,000 518,000

80,000 (80,000)
219,600 219,600

(170,000) (170,000)
361,960 (361,960)
40,000 (40,000)
256,000 515,600 395,960 375,640
157,200 735,600 407,200 485,600
100,000 (100,000)
(1,200) (1,200)
1,600 (1,600)
24,000 (24,000)

(120,000) (120,000)
(35,640) 35,640
256,000 515,600 395,960 375,640
 SL 0 to 1 1 to 3 3 to 6 over 6
792,960 372,960 307,280 88,720 24,000

(4,000) (4,000)
8,000 8,000
2,000 2,000

798,960 380,960 309,280 88,720 20,000

RATE REQUIRED ALLOWANCE

0 3,810
0 6,186
0 2,662
8,000-50% 4,000
12,000-20% 2,400
19,057

48,000

(28,943)
19,057

1,296
1,296

800
800

4,000
4,000

25,439
25,439
 38,104

(24,143)
13,961

Number 58 Number 59 Number 60

NET SALES NET PURCHASES NET INCOME
5,050,000 2,300,000 510,000
(100,000) 100,000
(50,000)
(320,000) (70,000)
(80,000) (10,000)
(120,000)
100,000
170,000 (170,000)
200,000
4,650,000 2,320,000 540,000

3,036,915

1,500,000
1,536,915

1,536,915
89,354
1,447,561

RATE INTEREST INCOME A/R

0 2,584 2,584
0 4,500 4,500
0 4,500 4,500
0 4,500 4,500
0 45,000 45,000
0 9,436 -
0 165,000 165,000
0 13,660 13,660
0 4,005 4,005
253,185 243,749