50.1K

Verified Solution

Link Copied!

Please answer the following Questions clearly and neatly

Part D (16 marks, 20 minutes) 1) (8 marks) John Smith, a plumber, entered into a yearly agreement with a chain of restaurants to perform all plumbing repair services. The yearly agreement provides for the payment of a fixed fee of $12,000 on January I of each year plus amounts for parts and materials billed separately at the end of each month. Amounts billed at the end of one month are collected at some point in the future. During the first two months of 2018, John makes the additional billings, cash collections and cash payments: Cost of Parts/ Cash Collected Parts/Materials $12,000 Billings for Cash Paid for January February Required: Parts/Materials $100 $300 Materials Used $250 S75 $500 $150 1) Calculate the amount of cash-basis income for each of the first two months 2) Calculate the amount of accrual-basis income for each of the first two months (8 marks) Marmidan Limited had the following accounting information available for December 31,2017 The following information was contained in the company's December 31, 2017 bank statement Balance of bank account per bank statement at Nov. 30, 2017 S 6,540 108.959 115.490 Add: December deposits 97,300 150 Deduct: Cheques paid in December Bank service charge Debit memo for electric bill Balance of bank account per bank statement at Dec. 31, 2017 s 17.440 A comparison of company records with the bank statement provided the following data: Deposits in transit Outstanding cheques $ 3,460 6,117 Required: . Prepare the bank reconciliation for Marmidan Limited at December 31, 2017 and calculate the true bank balance 2. Prepare any required journal entries in proper format based on the bank recomciliation cosmiC) CO-E3100-100

Answer & Explanation Solved by verified expert

See Answer