Escolar Documentos
Profissional Documentos
Cultura Documentos
Instructions:
Answer ALL questions directly on the examination paper in the space provided.
State any assumptions.
Non-programmable calculators are allowed.
QUESTION 1 (3 Marks)
Suppose Hunt Equipment has receivables of $65,000, furniture totalling $205,000 and cash
of $52,000. The business has a $109,000 bill payable and owes $81,000 on account. How
much is Hunt’s owner’s equity? Answer this question in 50 words or less.
QUESTION 2 (3 Marks)
Supplies
The following trial balance of Joy McDowell Tutoring Service at 31 May 2013 does not balance:
Requirements:
A) Review the trial balance above. What are the errors in the trial balance and how do you fix
these errors? Answer this question in 50 words or less. (6 marks)
b. The bank statement includes two dishonoured cheques from customers: $400 and $110.
st
c. The following Ward Cheques are outstanding at 31 August:
d. Ward collects from a few customers by EFT (electronic funds transfer). The August bank
statement lists a $1 300 EFT deposit for a collection on account.
e. The bank statement includes two special deposits that Ward hasn’t recorded yet: $970 for
dividend revenue and $80 for interest received that Ward earned on its bank balance during
August
h. The bank statement includes a $1 000 deduction for a cheque drawn by Interstate Freight
Company. Ward notified the bank of this error.
st
i. The 31 August bank balance is $4 870.
Requirements:
st
1. Prepare the bank reconciliation for Ward’s Supacentre at 31 August 2014
2. Record any required journal entries from the bank reconciliation. Include a narration for
each entry.
Telegraphic Link
Trial Balance
As at 30 November 2014
Account Debit ($) Credit ($)
Cash 4 000
Accounts Receivable 3 200
Prepaid Rent 1 900
Supplies 3 000
Equipment 34 800
Accumulated Depreciation 1 600
Accounts Payable 5 400
Salary Payable
Thomas, Capital 35 700
Thomas, Drawings 2 100
Service Revenue 8 600
Depreciation Expense
Salary Expense 1 700
Rent Expense
Electricity and Gas Expense 600
Supplies Expense
Total 51 300 51 300