Posted: April 18th, 2016

he blue cells are for data entry. Enter text in the T cells, figures in the F cells, calculations in C cells??

b. Not included on the bank statement is a $1,250 deposit made by Calico Corners late on May 31.

c. A comparison between the canceled checks returned with the bank statement and the company records indicated that the following checks are outstanding at May 31:
No. 123 $23.40
No. 127 145.00
No. 128 210.80
No. 130 67.32

d. The Cash account on the company’s books shows a balance of $9,965.34.

e. The bank acts as a collection agency for interest earned on some municipal bonds held by Calico Corners. The May bank statement indicates interest of $465.00 earned during the month.

f. Interest earned on the checking account and added to Calico Corners’ account during May was $54.60. Miscellaneous bank service charges amounted to $50.00.

g. A customer’s NSF check in the amount of $166.00 was returned with the May bank statement.

h. A comparison between the deposits listed on the bank statement and the company’s books revealed that a customer’s check in the amount of $123.45 was recorded on the books during May but was never added to the company’s account.
The bank erroneously added the check to the account of Calico Closet, which has an account at the same bank.

i. The comparison of deposits per the bank statement with those per the books revealed that another customer’s check in the amount of $101.10 was correctly added to the company’s account.
In recording the check on the company’s books, however, the accountant erroneously increased the Cash account by $1011.00.

1. Prepare a bank reconciliation in good form.

PROBLEM 6-5: Internal Control

At Morris Mart Inc., all sales are on account. Mary Morris-Manning is responsible for mailing invoices to customers, recording the amount billed, opening mail, and recording the payment. Mary is very devoted to the family business and never takes off more than one or two days for a long weekend. The customers know Mary and sometimes send personal notes with their payments. Another clerk handles all aspects of accounts payable. Mary’s brother, who is president of Morris Mart, has hired an accountant to help with expansion.

1. List some problems with the current accounts receivable system.
2. What suggestions would you make to improve internal control?
3. How would you explain to Mary that she personally is not the problem

Extracted Content from Question Files:

Book1.xlsx

Problem 1-2: Users of Accounting Information and Their Needs

Havre Company would like to buy a building and equipment to produce a new product line.
Information about Havre is more useful to some people involved in the project than to others.

Complete the following chart by identifying the information listed with the user’s need to know the
information. Identify the information as one of the following: a. Need to know, b. Helpful to

1. Amount of current debt, repayment schedule, and interest rate
2. Fair market value of the building
3. Condition of the roof and heating and cooling, electrical, and plumbing systems
4. Total cost of the building, improvements, and equipment to set up production
5. Expected sales from the new product, variable production costs, and related selling costs

Users of Information
Management Stockholders Banker
1. T T T
2. T T T
3. T T T
4. T T T
5. T T T
Problem 1-5: Income Statement, Statement of Retained Earnings, and Balance Sheet
General Instructions
1. The following worksheet may be used to complete the exercise/problem.
You may need to refer to your textbook for additional information.
2. The blue cells are for data entry. Enter text in the T cells, figures in the F cells, calculations in C cells

P1-5

The following list, in alphabetical order, shows the various items that regularly appear on the financial
statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances
as of September 30, 2012 (with the exception of retained earnings, which is the balance on
September 1, 2012); and the amounts shown for income statement items are balances for the month

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