Bank Reconciliation General Ledger Balance Discussion

Bank Reconciliation General Ledger Balance Discussion

1. Prepare a bank reconciliation as of 1/31/2022 from the below information (5 pts):
2. The 1/31 balance in the company’s general ledger is $10,000.
3. The 1/31 balance shown on the bank statement is $8,500.
4. Checks issued but not returned with the bank statement totaled $1,500.
5. A deposit made late on 1/31 for $3,000 was included in the general ledger balance but not in the bank statement balance.
6. Returned with the bank statement was a notice that customer’s check for $100 that was deposited on 1/31was returned because the customer’s account was overdrawn.
7. Interest credited to the account during January but not recorded on the company’s books was $150
8. A bank service fee of $50 was charged.
9. Kayce Inc. purchased new computers for $22,000 on 1/1/2022. The computers have a useful life of 3 years and an estimated salvage value of $1,000. (5 pts)
10. Calculate the annual depreciation expense.
11. What is the accumulated depreciation at the end of 12/31/24?
12. If the computers were sold at the end of the 3 years for $1,500, what would be the gain or loss on sale of the computers?
13. Rip Inc. had the following account balances as of12/31/22:
14. Accounts Payable……………….…. $45,000
15. Accounts Receivable………………. $9,000
16. Accumulated Amortization ……… ($20,000)
17. Accumulated Depletion…………… ($5,000)
18. Accumulated Depreciation ……. ($85,000)
19. Buildings …………………………. $150,000
20. Cash …………………………………$45,000
21. Common Stock ……………………..$120,000
22. Equipment ……………………….…. $60,000
23. Goodwill ……………………………$78,000
24. Inventory. ….………….……………$10,000
25. Land …………………………….…$75,000
26. Long-Term Note Payable……. …. $55,000 (cont’d)
27. Minerals………………………….…$20,000
28. Prepaid Rent……. ……………….…. $4,000
29. Retained Earnings ………….……$180,000
30. ST Investments ……………………. $2,000
31. Timber ……………………….……. $35,000
32. Trademarks …………………….…$22,000
33. Prepare a Balance Sheet as of 12/31/22in proper format. Use the 2-Yr Example Financial Statements in Canvas as a helpful guide. (10 pts).

Fill in the blanks below with the correct answer (1 pt. ea. Blank) See word bank below.

4. A manufacturing company’s balance sheet will include three types of inventories: ___________________, ____________________, and ______________________.
5. In a ____________________ inventory system, every inventory purchase and sale are recorded continuously throughout the year.
6. In a _______________________ inventory system, a count of the inventory on hand is made periodically, usually at the end of the year.
7. Inventory carrying values on the balance sheet are reported at the lower of cost or: ____________________.
8. Cost of goods available for sale less cost of goods sold equals_________________.
9. When preparing a bank reconciliation, _______________________________ are amounts recorded in the company’s cash account but have not yet been added to the company’s balance in the bank’s records.
10. When preparing a bank reconciliation, ________________________ are amounts that have been recorded (reductions)in the company’s cash account, but have not yet cleared their bank account.
11. ________________________________ are the policies and procedures a company puts in place to help safeguard the assets and prevent theft or embezzlement.
12. Accounts Receivable are reported on the balance sheet at ___________________, and represent amounts owed to the company from its customers.
13. Of the four types of depreciation allocation methods, the most commonly used is the _____________________________ method.
14. Beginning raw materials inventory plus purchases equals _____________________.
15. Costs that have been paid in advance during the current fiscal period but that will not be used up until a later period (ex: insurance and rent) are short term assets on the Balance Sheet called ___________________________________.
16. Fixed assets are depreciated with the exception of _____________________.
17. The difference between the cost of an asset and the accumulated depreciation of that asset is the _______________________________________.
18. In the event a customer has difficulty paying off an account receivable in the original timeframe it was due, it can be converted to a more formalized asset referred to as a _____________________________, which often includes interest and collateral.
19. If a fixed asset is sold for more than its net book value, the difference is called a ________________ and should be recorded on the income statement. If it is sold for less than its net book value, a _________________ should be recorded.
20. The intangible asset ______________________ results when one company purchases another company for more than the fair value of the net assets (equity) of the company acquired.
21. The intangible asset ________________________ is a protection granted to writers and artists for a period of time equal to their life plus 70 years.
22. To calculate the annual depreciation expense, the original cost of the asset should be reduced by the ________________ (if any) and then divided by the ____________________.
23. Examples of ______________________________________ are patents, copyrights, leasehold improvements, and trademarks. These are all subject to the cost allocation process called ____________________________________.
24. Examples of ______________________________________ are minerals, oil, timber, gold, coal deposits. These are all subject to the cost allocation process called __________________________________________.
25. Ending inventory is recorded as an asset on the balance sheet until it is sold, at which point it is transferred to an expense account in the income statement called______________________.
26. In which cost flow assumption method (LIFO or FIFO) results in a higher ending inventory value? _________________________.
27. In which cost flow assumption method (LIFO or FIFO) results in a higher Cost of Goods Sold amount? ______________________.

Word Bank for Questions #4-27. Each term will be used only once.

• Amortization
• Copyright
• Cost of Goods Available for Use
• Cost of Goods Sold
• Depletion
• Deposits in Transit
• Ending Inventory
• FIFO
• Finished Goods
• Gain
• Goodwill
• Intangible Assets
• Internal Controls
• Land
• LIFO
• Loss
• Market
• Natural Resources
• Net Book Value
• Net Realizable Value
• Note Receivable
• Outstanding Checks
• Periodic
• Perpetual
• Prepaid Assets
• Raw Materials
• Salvage Value
• Straight-Line
• Useful Life
• Work-in-Process

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