Reference no: EM132264020
Questions: 1. A. What is a bank reconciliation and why is it important for companies to do it periodically?
B. Prepare a Bank Reconciliation Statement for Rana company that has:
• Bank statement of $8,000.
• Cash account of $7,200.
Additional information for the reconciliation:
• Deposit in transit.
• NSF Check.
• Outstanding check.
• Collections made by the bank.
Required: provide an amount of each information to bring the adjusted balances to be equal.
2. Assume that you have a company. And the management estimates that 1% of sales will be uncollectible. Give any amount of sales and prepare the journal entry using the percent of sales method.
3. Abdulaziz company purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000. Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using:
a. Straight-line method.
b. Units of Production method if the machine produces 100,000 units.
Here is a table of units produced each year:
|
First
|
Second
|
Third
|
Fourth
|
Fifth
|
|
23,000
|
25,000
|
-
|
30,000
|
22,000
|
b. Double Declining balance method.