P6-6P6-6 Preparing a Bank Reconciliation and Related Journal Entries LO6-5The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, “I don’t have time.” You have been asked to prepare a reconciliation and review the procedures with the bookkeeper.     The April 30, 2014, bank statement and the April ledger accounts for cash showed the following (summarized):BANK STATEMENTChecksDepositsBalance  Balance, April 1, 2014$ 31,000  Deposits during April$ 37,10068,100  Interest collected1,18069,280  Checks cleared during April$ 43,00026,280  NSF check—A. B. Wright16026,120  Bank service charges5026,070  Balance, April 30, 201426,070Cash   Apr. 1   Balance23,500    41,100    Apr.    Checks written  Apr.      Deposits41,500    A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $5,600. No deposits in transit were carried over from March, but a deposit was in transit at the end of April.Required:1Prepare a detailed bank reconciliation for April.Possible input areas are shaded.JEFFERSON COMPANYBank Reconciliation April 30, 2014Company's BooksBank StatementEnding balance per cash accountEnding balance per bank statementAdditions:Additions:----Deductions:Deductions:--Correct cash balanceCorrect cash balanceRequired:2Prepare the journal entries that the company should make as a result of the bank reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)TransactionGeneral JournalDebitCredit123Required:3What was the balance in the cash account in the ledger on May 1, 2014?Cash balance4What total amount of cash should be reported on the balance sheet at the end of April?Total amount of cash P6-6 Check FiguresP6-6 Preparing a Bank Reconciliation and Related Journal Entries LO6-5The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, “I don’t have time.” You have been asked to prepare a reconciliation and review the procedures with the bookkeeper.     The April 30, 2014, bank statement and the April ledger accounts for cash showed the following (summarized):BANK STATEMENTChecksDepositsBalance  Balance, April 1, 2014$ 31,000  Deposits during April$ 37,10068,100  Interest collected1,18069,280  Checks cleared during April$ 43,00026,280  NSF check—A. B. Wright16026,120  Bank service charges5026,070  Balance, April 30, 201426,070Cash   Apr. 1   Balance23,500    41,100    Apr.    Checks written  Apr.      Deposits41,500    A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $5,600. No deposits in transit were carried over from March, but a deposit was in transit at the end of April.Required:1Prepare a detailed bank reconciliation for April.Possible input areas are shaded.JEFFERSON COMPANYBank Reconciliation A.

1. P6-6P6-6 Preparing a Bank Reconciliation and Related Journal
Entries LO6-5The bookkeeper at Jefferson Company has not
reconciled the bank statement with the Cash account, saying, “I
don’t have time.” You have been asked to prepare a
reconciliation and review the procedures with the
bookkeeper. The April 30, 2014, bank statement and the
April ledger accounts for cash showed the following
(summarized):BANK
STATEMENTChecksDepositsBalance Balance, April 1, 2014$
31,000 Deposits during April$ 37,10068,100 Interest
collected1,18069,280 Checks cleared during April$
43,00026,280 NSF check—A. B. Wright16026,120 Bank
service charges5026,070 Balance, April 30, 201426,070Cash
Apr. 1 Balance23,500 41,100 Apr. Checks written Apr.
Deposits41,500 A comparison of checks written before and
during April with the checks cleared through the bank showed
outstanding checks at the end of April of $5,600. No deposits in
transit were carried over from March, but a deposit was in
transit at the end of April.Required:1Prepare a detailed bank
reconciliation for April.Possible input areas are
shaded.JEFFERSON COMPANYBank Reconciliation April 30,
2014Company's BooksBank StatementEnding balance per cash
accountEnding balance per bank statementAdditions:Additions:-
---Deductions:Deductions:--Correct cash balanceCorrect cash
balanceRequired:2Prepare the journal entries that the company
should make as a result of the bank reconciliation. (If no entry
is required for a transaction/event, select "No journal entry
required" in the first account field.)TransactionGeneral
JournalDebitCredit123Required:3What was the balance in the
cash account in the ledger on May 1, 2014?Cash balance4What
total amount of cash should be reported on the balance sheet at
the end of April?Total amount of cash
P6-6 Check FiguresP6-6 Preparing a Bank Reconciliation and
Related Journal Entries LO6-5The bookkeeper at Jefferson

2. Company has not reconciled the bank statement with the Cash
account, saying, “I don’t have time.” You have been asked to
prepare a reconciliation and review the procedures with the
bookkeeper. The April 30, 2014, bank statement and the
April ledger accounts for cash showed the following
(summarized):BANK
STATEMENTChecksDepositsBalance Balance, April 1, 2014$
31,000 Deposits during April$ 37,10068,100 Interest
collected1,18069,280 Checks cleared during April$
43,00026,280 NSF check—A. B. Wright16026,120 Bank
service charges5026,070 Balance, April 30, 201426,070Cash
Apr. 1 Balance23,500 41,100 Apr. Checks written Apr.
Deposits41,500 A comparison of checks written before and
during April with the checks cleared through the bank showed
outstanding checks at the end of April of $5,600. No deposits in
transit were carried over from March, but a deposit was in
transit at the end of April.Required:1Prepare a detailed bank
reconciliation for April.Possible input areas are
shaded.JEFFERSON COMPANYBank Reconciliation April 30,
2014Company's BooksBank StatementEnding balance per cash
accountEnding balance per bank statementAdditions:Additions:-
0- 0- 0- 0Deductions:Deductions:- 0- 0Correct cash
balanceCorrect cash balance$24,870Required:2Prepare the
journal entries that the company should make as a result of the
bank reconciliation. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)TransactionGeneral
JournalDebitCredit123Required:3What was the balance in the
cash account in the ledger on May 1, 2014?Cash balance4What
total amount of cash should be reported on the balance sheet at
the end of April?Total amount of cash
Sheet2List1List 2Bank chargesNo journal entry
requiredDeposits in transitAccounts receivable (A. B.
Wright)Interest collectedAdministrative expenseNSF—A. B.
WrightAllowance for doubtful accountsOutstanding checksBad
debt expenseBank service charge expenseCashCost of goods

3. soldIncome tax expenseInterest revenueSales discountSales
returns and allowancesSales revenueSelling expense
Workplace Scenarios
John shows up to work approximately five minutes late this
morning, walks silently (but quickly) down the hallway and
begins to punch in at the time clock located by the front desk.
Kim, the front desk manager, says, "Good morning, John," but
John simply ignores her, punches in, and heads into the shop to
his workplace. Kim rolls her eyes, picks up the phone, and
dials the on-duty manager to alert her that John just arrived and
should be reaching his workplace at that moment.
Savannah is the lead on a project with a team of six other
people. The project involves using an outside vendor’s
software. Without consulting Savannah, Amber (a senior team
member) sends a professional email to the vendor asking for a
change to the existing software. The vendor responds to the
entire team expressing concern over making the requested
change.
Paul has worked for the company four years. During that time,
he had one manager and three difference supervisors without
any major conflicts. Due to a merger, the management structure
changed and Paul’s former manager Pat is now the general
manager. Sharon, Paul’s new manager, has a meeting with Paul
over concerns that proper protocol is not being followed.
Sharon tells Paul he must conform to the proper procedures or
he will be written up. Paul protests as the process he uses was
designed as a work around by Pat. Sharon writes Paul up for
insubordination.

4. P5-3P5-3 Preparing a Balance Sheet and Analyzing Some of Its
Parts LO5-3Exquisite Jewelers is developing its annual
financial statements for 2015. The following amounts were
correct at December 31, 2015: cash, $58,000; accounts
receivable, $71,000; merchandise inventory, $154,000; prepaid
insurance, $1,500; investment in stock of Z corporation (long-
term), $36,000; store equipment, $67,000; used store equipment
held for disposal, $9,000; accumulated depreciation, store
equipment, $19,000; accounts payable, $52,500; long-term note
payable, $42,000; income taxes payable, $9,000;retained
earnings, $164,000; and common stock, 100,000 shares
outstanding, par value $1.00 per share (originally sold and
issued at $1.10 per share).Required:1Based on these data,
prepare a December 31, 2015, balance sheet. (Amounts to be
deducted should be indicated by a minus sign.)Possible input
areas are shaded.EXQUISITE JEWELERSBalance
SheetDecember 31, 2015AssetsCurrent assets:Total current
assets$ -Long-term investments:Fixed assets:Total fixed
assets$ -Other assets:Total assets$ -LiabilitiesCurrent
liabilities:Total current liabilities$ -Long-term liabilities:Total
liabilities$ -Stockholders' EquityContributed capital:Total
contributed capital$ -Total stockholders' equity$ -Total
liabilities and stockholders' equity$ -Required:2What is the
net book value of the store equipment?Net book value
P5-3 Check FiguresP5-3 Preparing a Balance Sheet and
Analyzing Some of Its Parts LO5-3Exquisite Jewelers is
developing its annual financial statements for 2015. The
following amounts were correct at December 31, 2015: cash,

5. $58,000; accounts receivable, $71,000; merchandise inventory,
$154,000; prepaid insurance, $1,500; investment in stock of Z
corporation (long-term), $36,000; store equipment, $67,000;
used store equipment held for disposal, $9,000; accumulated
depreciation, store equipment, $19,000; accounts payable,
$52,500; long-term note payable, $42,000; income taxes
payable, $9,000;retained earnings, $164,000; and common
stock, 100,000 shares outstanding, par value $1.00 per share
(originally sold and issued at $1.10 per share).Required:1Based
on these data, prepare a December 31, 2015, balance sheet.
(Amounts to be deducted should be indicated by a minus
sign.)Possible input areas are shaded.EXQUISITE
JEWELERSBalance SheetDecember 31, 2015AssetsCurrent
assets:Total current assets$ - 0Long-term investments:Fixed
assets:Total fixed assets- 0Other assets:Total assets$
377,500LiabilitiesCurrent liabilities:Total current liabilities$ -
0Long-term liabilities:Total liabilities- 0Stockholders'
EquityContributed capital:Total contributed capital- 0Total
stockholders' equity- 0Total liabilities and stockholders' equity$
- 0Required:2What is the net book value of the store
equipment?Net book value
Sheet2List 1Accounts payableAccounts receivableAccumulated
depreciationAdditional paid-in capitalCashCommon
stockIncome taxes payableInvestment in Z
CorporationMerchandise inventoryNote payablePrepaid
insuranceRetained earningsStore equipmentUsed store
equipment held for disposal
CP6-2CP6-2Finding Financial InformationLO6-1, 6-3, 6-5Refer
to the financial statements of Urban Outfitters given in
Appendix C at the end of this book.Required:1. How much cash
and cash equivalents does the company report at the end of the
current year? (in thousands)Where can this information be
found?2. What was the change in accounts receivable and how
did it affect net cash provided by operating activities for the
current year?3. Which types of customers account for most of

6. the company's accounts receivable? Did bad debts expense
increase or decrease between 2011 and 2012? (Dollars in
thousands.)Bad debt expenseFrom:in 2011To:in 2012How did
you know?4. Where does the company disclose its revenue
recognition policy? When does the company record revenues for
the “sale” of gift cards?
CP6-2 Check FiguresCP6-2Finding Financial InformationLO6-
1, 6-3, 6-5Refer to the financial statements of Urban Outfitters
given in Appendix C at the end of this book.Required:1. How
much cash and cash equivalents does the company report at the
end of the current year? (in thousands)Where can this
information be found?2. What was the change in accounts
receivable and how did it affect net cash provided by operating
activities for the current year?3. Which types of customers
account for most of the company's accounts receivable? The
accounts receivable are primarily due from wholesale customers
and credit card customers. Did bad debts expense increase or
decrease between 2011 and 2012? (Dollars in thousands.)Bad
debt expenseincreasedFrom:$ 2,397in 2011To:$ 3,920in
2012How did you know?4. Where does the company disclose its
revenue recognition policy? When does the company record
revenues for the “sale” of gift cards?
Sheet2List 1increaseddecreased
CP5-2CP5-2Finding Financial InformationLO5-2, 5-3Refer to
the financial statements of Urban Outfitters given in Appendix
C at the end of this book. At the bottom of each statement, the
company warns readers that “The accompanying notes are an
integral part of these financial statements.” The following
questions illustrate the types of information that you can find in
the financial statements and accompanying notes. (Hint: Use the
notes.)Required:1. What subtotals does Urban Outfitters report
on its income statement?2. The company spent $190,010,000 on
capital expenditures (property, plant, and equipment) and
$169,467,000 purchasing investments during the most recent
year. Were operating activities or financing activities the major

7. source of cash for these expenditures?3. What was the
company's largest asset (net) at the end of the most recent
year?4. How does the company account for costs associated
with developing its websites?5. Over what useful lives are
buildings depreciated?6. What portion of gross “Property and
Equipment” is composed of “Buildings”?7. Compute the
company's gross profit percentage for the most recent two years.
(Dollars in thousands.)Year EndedGross Profit /Net Sales =
Gross Profit %20122011Has it risen or fallen? Explain the
meaning of the change.
CP5-2 Check FiguresCP5-2Finding Financial InformationLO5-
2, 5-3Refer to the financial statements of Urban Outfitters given
in Appendix C at the end of this book. At the bottom of each
statement, the company warns readers that “The accompanying
notes are an integral part of these financial statements.” The
following questions illustrate the types of information that you
can find in the financial statements and accompanying notes.
(Hint: Use the notes.)Required:1. What subtotals does Urban
Outfitters report on its income statement?2. The company spent
$190,010,000 on capital expenditures (property, plant, and
equipment) and $169,467,000 purchasing investments during the
most recent year. Were operating activities or financing
activities the major source of cash for these expenditures?3.
What was the company's largest asset (net) at the end of the
most recent year?4. How does the company account for costs
associated with developing its websites?5. Over what useful
lives are buildings depreciated?Buildings are depreciated over
useful lives of 39 years. This is disclosed in note 2.6. What
portion of gross “Property and Equipment” is composed of
“Buildings”?7. Compute the company's gross profit percentage
for the most recent two years. (Dollars in thousands.)Year
EndedGross Profit /Net Sales = Gross Profit %20122011Has it
risen or fallen? Explain the meaning of the change.
Sheet2ListOperatingFinancing