The following information applies to the questions displayed below.] The following information is available to reconcile Clark Company ’ s book balance of cash with its bank statement cash balance as of July 31, 2011. a. On July 31, the company ’ s Cash account has a $24,754 debit balance, but its July bank statement shows a $27,407 cash balance. b. Check No. 3031 for $1,650 and Check No. 3040 for $817 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $601 and Check No. 3069 for $2,418, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,220 but was erroneously entered in the accounting records as $1,210. d. A credit memorandum enclosed with the July bank statement indicates the bank collected $7,500 cash on a non-interest-bearing note for Clark, deducted a $38 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement. e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF. f. Enclosed with the July statement is a $11 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. g. Clark ’ s July 31 daily cash receipts of $8,652 were placed in the bank ’ s night depository on that date, but do not appear on the July 31 bank statement.  1. value: 5.00 points Required: 1. Prepare the bank reconciliation for this company as of July 31, 2011.  (Input all amounts as positive values. Omit the "$" sign in your response.) CLARK COMPANY Bank Reconciliation July 31, 2011   Bank statement balance $       Book balance $      Add:    Add:   Deduct:    Deduct: $    $      Adjusted bank balance $       Adjusted book balance $    references ebook & resources  2. value: 10.00 points 2. Prepare the journal entries necessary to bring the company ’ s book balance of cash into conformity with the reconciled cash balance as of July 31, 2011.  (Omit the "$" sign in your response.) Date General Journal Debit Credit July 31 [The following information applies to the questions displayed below.] At December 31, 2011, Ethan Company reports the following results for its calendar-year.   Cash sales $ 1,958,730     Credit sales 3,378,000   In addition, its unadjusted trial balance includes the following items.   Accounts receivable $ 1,023,534   debit   Allowance for doubtful accounts 15,990   debit  3. value: 5.00 points Required: 1. Prepare the adjusting entry for this compa.

1. The following information applies to the questions displayed be
low.]
The following information is available to reconcile Clark Comp
any
’
s book balance of cash with its bank statement cash balance as o
f July 31, 2011.
a.
On July 31, the company
’
s Cash account has a $24,754 debit balance, but its July bank st
atement shows a $27,407 cash balance.
b.
Check No. 3031 for $1,650 and Check No. 3040 for $817 were o
utstanding on the June 30 bank reconciliation. Check No. 3040 i
s listed with the July canceled checks, but Check No. 3031 is no
t. Also, Check No. 3065 for $601 and Check No. 3069 for $2,41
8, both written in July, are not among the canceled checks on th
e July 31 statement.
c.
In comparing the canceled checks on the bank statement with th
e entries in the accounting records, it is found that Check No. 3
056 for July rent was correctly written and drawn for $1,220 but
was erroneously entered in the accounting records as $1,210.
d.
A credit memorandum enclosed with the July bank statement in
dicates the bank collected $7,500 cash on a non-interest-
bearing note for Clark, deducted a $38 collection fee, and credit
ed the remainder to its account. Clark had not recorded this eve
nt before receiving the statement.
e.
A debit memorandum for $805 lists a $795 NSF check plus a $1
0 NSF charge. The check had been received from a customer, Ji
m Shaw. Clark has not yet recorded this check as NSF.

2. f.
Enclosed with the July statement is a $11 debit memorandum fo
r bank services. It has not yet been recorded because no previou
s notification had been received.
g.
Clark
’
s July 31 daily cash receipts of $8,652 were placed in the bank
’
s night depository on that date, but do not appear on the July 31
bank statement.
1.
value:
5.00 points
Required:
1.
Prepare the bank reconciliation for this company as of July 31,
2011.
(Input all amounts as positive values. Omit the "$" sign in your
response.)
CLARK COMPANY
Bank Reconciliation
July 31, 2011
Bank statement balance
$
Book balance
$
Add:

3. Add:
Deduct:
Deduct:
$

4. $
Adjusted bank balance
$
Adjusted book balance
$
references
ebook & resources

5. 2.
value:
10.00 points
2.
Prepare the journal entries necessary to bring the company
’
s book balance of cash into conformity with the reconciled cash
balance as of July 31, 2011.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
July 31

6. [The following information applies to the questions displayed b
elow.]
At December 31, 2011, Ethan Company reports the following re
sults for its calendar-year.

7. Cash sales
$
1,958,730
Credit sales
3,378,000
In addition, its unadjusted trial balance includes the following it
ems.
Accounts receivable
$
1,023,534
debit
Allowance for doubtful accounts
15,990
debit
3.
value:
5.00 points
Required:
1.
Prepare the adjusting entry for this company to recognize bad d

8. ebts under each of the following independent assumptions.
(Round your intermediate calculations and and final answers to
the nearest dollar amount. Omit the "$" sign in your response.)
a.
Bad debts are estimated to be 3% of credit sales.
b.
Bad debts are estimated to be 2% of total sales.
c.
An aging analysis estimates that 6% of year-
end accounts receivable are uncollectible.
Adjusting entries (all dated December 31, 2011).
General Journal
Debit
Credit
a.
b.

9. c.
references
ebook & resources
4.
value:
5.00 points
2.
Show how Accounts Receivable and the Allowance for Doubtful
Accounts appear on its December 31, 2011, balance sheet given
the facts in part 1
a
.
(Amounts to be deducted should be indicated with minus sign.
Omit the "$" sign in your response.)
Current assets:

10. $
$
references
ebook & resources
5.
value:
5.00 points
3.
Show how Accounts Receivable and the Allowance for Doubtful
Accounts appear on its December 31, 2011, balance sheet given
the facts in part 1
c
.
(Round your intermediate calculations and final answers to the
nearest dollar amount. Amounts to be deducted should be indica
ted with minus sign. Omit the "$" sign in your response.)
Current assets:

11. $
$
references
ebook & resources
Doubletree Company
’
s financial statements show the following. The company recentl
y discovered that in making physical counts of inventory, it had
made the following errors: Inventory on December 31, 2010, is
understated by $54,000, and inventory on December 31, 2011, is
overstated by $24,000.
For Year Ended December 31
2010
2011
2012
(
a
)
Cost of goods sold
$
729,000
$
959,000
$
794,000

12. (
b
)
Net income
272,000
279,000
254,000
(
c
)
Total current assets
1,251,000
1,364,000
1,234,000
(
d
)
Total equity
1,391,000
1,584,000
1,249,000
Required:
1.
For each key financial statement figure
—

13. (
a
), (
b
), (
c
), and (d) above
—
prepare a table to show the adjustments necessary to correct the
reported amounts.
(Amounts to be deducted should be indicated with a minus sign.
Leave no cells blank -
be certain to enter "0" wherever required. Omit the "$" sign in
your response.)
(
a
)
Cost of goods sold:
2010
2011
2012
Reported amount
$
$
$
Adjustments for:
12/31/2010 error
12/31/2011 error

14. Corrected amount
$
$
$
(
b
)
Net income
2010
2011
2012
Reported amount
$
$
$
Adjustments for:
12/31/2010 error

15. 12/31/2011 error
Corrected amount
$
$
$
(
c
)
Total current assets
2010
2011
2012
Reported amount

16. $
$
$
Adjustments for:
12/31/2010 error
12/31/2011 error
Corrected amount
$
$
$
(
d
)
Equity:

17. 2010
2011
2012
Reported amount
$
$
$
Adjustments for:
12/31/2010 error
12/31/2011 error
Corrected amount
$
$
$
2.

18. What is the error in total net income for the combined three-
year period resulting from the inventory errors?
(Leave no cells blank -
be certain to enter "0" wherever required. Input your answer as
a positive value. Omit the "$" sign in your response.)
Error in total net income of three years
$