Week three assignment intermediate i


Week Three Assignment Intermediate I


P7-10 Miscellaneous receivable transactions


Evergreen Company sells lawn and garden products to wholesalers.  The company’s fiscal year-end is December 31.  During 2011, the following transactions related to receivables occurred:


Feb. 28   Sold merchandise to Lennox, Inc. for 10,000 and accepted a 10%, 7-month note.  10% is an appropriate rate for this type of note.


Mar. 31   Sold merchandise to Maddox Co. and accepted a noninterest-bearing note with a discount rate of 10%.  The 8,000 payment is due on March 31,2012.


Apr. 3    Sold merchandise to Carr Co. for 7,000 with terms 2/10, n/30.  Evergreen uses the gross method to account for cash discounts.


       11     Collected the entire amount due from Carr Co.


       17     A customer returned merchandise costing 3,200.  Evergreen reduced the customer’s           receivable balance by 5,000, the sales price of the merchandise.  Sales returns are recorded by the company as they occur.


       30     Transferred receivables of 50,000 to a factor without recourse.  The factor charged Evergreen a 1% finance charge on the receivables transferred.  The sale criteria are met.


June 30   Discounted the Lennox, Inc. note at the bank.  The bank’s discount rate is 12%.  The note was discounted without recourse.


Aug. 31   Lennox, Inc. paid the note amount plus interest to the bank.




1.      1. Prepare the necessary journal entries for Evergreen for each of the above dates.  The transaction involving the sale of merchandise, ignore the entry for the cost of goods sold (round all calculations to the nearest dollars).


2.      2. Prepare any necessary adjusting entries at December 31, 2011.  Adjusting entries are only recorded at year-end (round all calculations to the nearest dollar).


3.      3. Prepare a schedule showing the effect of the journal entries in requirements 1 and 2 on 2011 income before taxes.




P 7-14 Bank Reconciliation and adjusting entries


El Gato Painting Company maintains a checking account at American Bank.  Bank statements are prepared at the end of each month.  The November 30, 2011, reconciliation of the bank balance is as follows:


Balance per bank, November 30


Add: Deposits outstanding                                                                          3,231


Less: Checks outstanding                                                                            1,200   


#363                                                                 123


#365                                                                 201


#380                                                                   56                                                           


#381                                                                   86


#382                                                                  340 


Adjusted balance per bank, November 30                                                     (806)




The company’s general ledger checking account showed the following for December:                                


                                  Balance, December 1                                                  3,625


                                  Receipts                                                                     42,650


                                  Disbursements                                                          (41,853)    


                                  Balance, December 31                                                 4,422


The December bank statement contained the following information:


                            Balance, December 1                                                      3,231   


                            Deposits                                                                         43,000


                            Checks processed                                                         (41,918) 


                            Service charges                                                                   (22)


                            NSF checks                                                                        (440)                                  


                            Balance, December 31                                                      3,851


The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365.  In addition, there are some December checks that had not been processed by the bank by the end of the month.  Also, you discover that check #411 for $320.00 was correctly recorded by the bank but was incorrectly recorded on the books as a $230 disbursement for advertising expense.  Included in the bank’s deposit is a $1,300 deposit incorrectly credited to the company’s account.  The deposit should have been posted to the credit of the Los Gatos Company.  The NSF checks have no ben redeposited and the company will seek payment from the customers involved.   




1.      1. Prepare a bank reconciliation for the El Gato checking account at December 31, 2011.


2.      2. Prepare any necessary adjusting journal entries indicated.






Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages