Activity 1.3: Jon & Joan Case are closing their books and must prepare a bank reconciliation for the following items.
- Bank statement contains an ending balance of $56,776 on June 30th 20XX, whereas the Farm ledger shows an ending balance of $58,000
- The bank statement shows a service charge of $15.
- The bank statement shows interest income of $48
- Case Farms issued check #233 for $8,933 that has not yet cleared the bank.
- Case Farms deposited $10,000 but this did not appear on the bank statement.
- An ACH payment for electricity was paid from the bank account for $190
What transaction entries, if any, need to be made to Jon and Joan Case’s records?
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Activity 1.4: Jon & Joan Case are closing their books and must prepare an inventory reconciliation.
Their books show…
- At the beginning of the year, Case farms had 65,000 bushels of corn, 25,000 bushels of soybeans 8,000 bushels of wheat and 450 tons of alfalfa hay and 100 calves.
- They produced 87,500 bushels of corn, 13,750 bushels of soybeans 6,500 bushels of wheat and 550 tons of alfalfa hay.
- They purchased 250 calves and 50 tons of alfalfa hay.
- They seed 250 bushels of wheat, fed 20,000 bushels of corn and 750 tons of alfalfa hay, and had 7 calves die during the year.
- They sold 81,230 bushels of corn 15,000 bushels of soybeans 9,765 bushels wheat and 217 calves.
At the end of the year, they counted 50,450 bushels of corn, 23,800 bushels of soybeans, 4,500 bushels of wheat, 300 tons of alfalfa, and 125 calves.
What is the discrepancy between their books and their actual ending inventory?
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