Solved by verified expert :PROCTOR’S STATEMENTThis is to certify that ____________ wrote an examination inunder my personal supervision and received no outside aid fromany source whatsoever. The student was verified through a picture ID prior totaking the examination. The completed examination is being mailed to theOnline and Distance Education Office by me.Signature of Examination ProctorPositionDateVersionR ACCOUNTING200Thh·d Hour Exam–Cha1tters 8, 9, & 10 Name ————I. For the year 2006 Kolar Company has the following information availabl~ Use thisinformation to answer questions A, B, C, & D.Gross Credit Sliles of $90,000Sales Discounts of $4,000Debit balance i11 Allowance for Doubtful Accounts (before ad.justing entries) of $6,000Balance in Accounts Receivable (before adjusting entries) of $22,000.Am;wer each of the following questions JNDEl:-‘l:!:NOJ£NT of the other questions. (10 points}A. If Kolllr Company estimates bacl debl expense lo be 4% vf Net Credit Sales, what amount of bad debtcxvcnse should be rc1mrtecl Oil the 2006 Income Statement?B. If Kolar Company performs an aging of Accounts Recdvable and delermines lhat $8,000 worth ofaccount11 arc uncollcctihle, make the adjustrng 1011rnal entry to record bac cn rceord ed ‘m t hc cash 1J11ymcr1ts 1. ournaH or.$, 520Page 3 of 9IV E:ssay 5 pointsThe following narrative describe::s Lhe business process at Company B. After reading the narrative,identify and explain WHY each SPECIFIC intemal control weakness al Company Bis a violathm ofgood internal control.Rodney is normally rei;pom;ible for wricing all checks. When che hank statement anh•cs Rodney doesthe i-econciliation of the bank staleme::nl imd reports any discrepancies to the owner. Jn addition towriting the checks, Rodney is responsible for approving all vendor invoices for pa.yrmml before he sib’lllland mails the checks. After writing the payroll checks Rodney leaves the pay checks in. an envelope inthe:: employee break room. fu order to save money, Rodney orders check~ that arc unnumbered.Because Rodney is somelirues busy with other tasks, two other employees al Ro have permission to signand mail chec.lcs.Weakness#!Weakness#2Weakncss#3Weakness #4Page4 of 9V On January 1 Company B eslablii;he~ a pelly cmih fund in the amount of $200. On fo’chmary 20 thenecessary balance in lhe fonet’s useful life.Use the above information to a11swer tbe following INDEPENDENT questions.A Calculate accumulated depreciation at the e11d of year 2 if fhe straight·l ine method is used (3poinl5).$. ____ year 2Il Calculate depreciation expense for years 1 & 2 if the douhlc-ticclining biilancc method is used (5points).$. ____ year l$. ____ year 2C CaJculute acL-umulatcd depreciation at the end of year 2 if the unit’> of activity method is used i:mdlhe a.ssel i~ expected to be used a total of 500,000 hours. The a~sct will he uo.cct 75,000 hours jnyear one and 90,000 hours in year two (3 points).$. _____ year 2Page7 of 9XI. Joyce Company hai; ii;suecl a 4-rnonlh, 9%, $6.000 nole receivable to a cu11tnrner. Calculale Lhefollowing (9 pti,;).Face Value ——Tutal inlere~L lo au:rne over Lhe 4-munlh Lime period of the note——–Maturity value of the note ________ _On the maturity date, the customer pays Joyce Company the maturity value of the 11ote. Make therequired journal entry on the maturity date assuming NO adjusting ent1ie.~ have been made for interestrevenue.XII. Rodney Company has a machine that originally cost $32,000 and has been depreciated a total of$20,000. Mte.r five years Roduey sells the machine for $L5,000 (7 points).Calculate the hook value ol’ the machine ______ _Calculate the gain (loss) on the disposal of the machi11e ——-Page:: 8 of 9XUJ. The followiug information is available for Jones Company for the month endedApril 30:A. The balance per the ba1tk statement as of April :m was $6440.55B. The cash account balance in the general ledger as of April :10 was $5,835.55,C. A customer’s check was rehlrned witl1 lhe April bank slatemenl markl:ld NSF for $12~. Thiswas the first time Jones Company had been notified lhe check. bounced.D. Jones Company incorrectly recorded a cash payment for $469, The correct amount of thepayment was $649.R. Deposits in transit as of Aptil 30 equaled $1,200.25.F. The hank statement included a debit memo for $24.75 as a check printing charge.G. A note collected by the bank Oll April 28 has not yet been recorded in Jones’ Company cashreceipts journal. The fm;c amount of the note was $2,000 and the interest was $150. Thebimk charged a collection fee of $17. NOTE: **Jones Co. has already recorded all of theinterest revenue.** NOTERequired (10 points):A Prepare a bank reconciliation for Jones Company for April 30.Balance per Rank StatementBalance per RooksPage9 of 9
