The Hanlon Company Essay Sample
1. The Hanlon Company maintains a chequing history at the Royal Bank. The bank provides a bank statement along with off checks on the last twenty-four hours of each month. The July 2011 bank statement included the undermentioned information: Balance. July 1. 2011 $ 55. 678 Deposits 179. 500 Checks processed ( 192. 610 ) Service charges ( 30 ) NSF checks ( 1. 200 ) Monthly loan payment deducted straight by bank from history ( includes $ 320 in involvement ) ( 3. 320 ) Balance. July 31. 2011 $ 38. 018 The company’s general leger history had a balance of $ 38. 918 at the terminal of July. Deposits outstanding totalled $ 6. 300. and all checks written by the company were processed by the bank. except for those numbering $ 8. 420. In add-on. a $ 2. 000 July sedimentation from a recognition client was recorded as a $ 200 debit to hard currency and recognition to histories receivable. and a check right recorded by the company as a $ 30 expense was falsely processed by the bank as a $ 300 expense.
Required: a ) Prepare a bank rapprochement for the month of July. B ) Fix the necessary diary entries at the terminal of July to set the general leger hard currency history. Mandalay Company’s January 1. 2011 balances relevant to histories receivable are as follows: Histories receivable $ 400. 000 ( doctor ) Allowance for dubious histories 20. 000 ( cr. ) During 2011. $ 45. 000 of histories receivable are judged to be bad. and no extra attempts to roll up these histories will be made. Entire gross revenues for 2011 are $ 1. 200. 000. of which $ 200. 000 are hard currency gross revenues ; $ 900. 000 was collected on history during 2011. a ) Assuming that Mandalay uses the % of gross revenues method to gauge bad debt disbursal and uses 4 % of recognition gross revenues as its estimation of bad debts. supply the diary entries to enter write-downs and bad debt disbursal for 2011. Besides. supply the December 31. 2011 balance sheet sum for net histories receivable. B ) Assuming that Mandalay uses the % of receivables method to gauge net histories receivable and uses 9 % of histories receivable as its estimation of uncollectibles. supply the diary entries to enter write-downs and bad debt disbursal for 2011.
Besides. supply the December 31. 2011 balance sheet sum for net histories receivable. Harwell Company manufactures automobile tyres. On July 15. 2011. the company sold 1. 000 tyres to the Nixon Car Company for $ 50 each. The footings of the sale were 2/10. n/30. Required: a ) Assuming Harwell uses the gross method of accounting for hard currency price reductions. I ) Fix the diary entries to enter the sale on July 15 ( ignore cost of goods ) and payment of August 15. 2011. two ) Fix the diary entries to enter the payment if it were alternatively made on July 23. 2011. B ) I & A ; two ) Assuming Harwell uses the net method of accounting for hard currency price reductions. repetition demands a ) I ) and a ) two ) . On January 1. 2009. White Mountain Company sold ware for $ 12. 000 and received a $ 12. 000. three twelvemonth. 6 % note ; 12 % was the current market rate of involvement at that clip. Interest is paid yearly at the terminal of each twelvemonth and the principal is due at the terminal of the 3rd twelvemonth. Provide journal entries from origin to concluding payment. Use the gross method ( i. e. demoing both face value of the note and the price reduction ) to enter the note receivable.
