Reference no: EM131875917
Question -
1. The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation for J & J Flooring, Inc.
• The bank statement indicated a service charge of $56.
• J & J made a deposit on May 31, but this deposit did not appear on the bank statement, $1,451.
• A credit memo in the bank statement indicated a bank collection of a note for $1,300 with interest received of $16. This item was dated May 18.
• Also included in the bank statement was a debit memo for a NSF check for $314 from Barney Smythe.
• Checks #1406 for $1,342, #1610 for $1,609, and #1825 for $857 were written by J & J and sent to the respective companies, but these checks do not appear on the bank statement.
• The balance on the bank statement as of May 31 was $13,019.
• The Cash account on Janus' books showed an amount of $9,716.
2. Show all steps of your work (to receive credit)
The following information for Star Company
Retained earnings (July 1) $12,000
Common stock 30,000
Accounts payable 7,000
Equipment 30,000
Sales Revenue 25,000
Supplies expense 3,500
Cash 8,000
Utilities expense 700
Inventory 2,800
Salaries expense 7,000
Accounts receivable 14,000
Rent expense 2,000
Required: Prepare the Income statement for Star Company.