Assignment: ACCT 101
I.
A. What is a bank reconciliation and why is it important for companies to do it periodically?
B. Prepare a Bank Reconciliation Statement for Rana company that has:
• Bank statement of $8,000.
• Cash account of $7,200.
Additional information for the reconciliation:
- Deposit in transit.
- NSF Check.
- Outstanding check.
- Collections made by the bank.
Required: provide an amount of each information to bring the adjusted balances to be equal.
II. Assume that you have a company. And the management estimates that 1% of sales will be uncollectible.
Give any amount of sales and prepare the journal entry using the percent of sales method.
III. Abdulaziz company purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000
Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using:
1- Straight-line method.
2- Units of Production method if the machine produces 100,000 units.
Here is a table of units produced each year:
|
First
|
Second
|
Third
|
Fourth
|
Fifth
|
|
23,000
|
25,000
|
-
|
30,000
|
22,000
|
3- Double Declining balance method.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.