# Depreciation and Checking Account Balance

1. On november 1, 2009 Broom company received a bank statement that showed a $2,950 balance. Broom showed a $4,010 checking account balance. The bank did not return the check No. 124 for $1,080 and check No 138 for $720. A $3,200 deposit made on October 30 was in transit. The bank charged Broom $12 for check printing and $18 for an NSF check. Broom forgot to record a $30 withdrawal at the ATM. The bank also collected a $400 note for Broom. Prepare a bank reconciliation.

2. Erasers costs $5 per carton and pencils cost $7 per carton. If an order comes in for a total of 15 cartons for $85, how many cartons of each were bought?

3. The price of a hamburger increased from $1.10 to $1.59. What percent did the price increase?

4. Morgan company received from Lee Company an invoice date September 27. Terms were 2/10 EOM. List PRice on the invoice was $5,000 (freight not included). Morgan receives a 9/7 chain discount. Freight charges are Morgan's responsibility but Lee agreed to repay the $150 freight charge. Morgan pays the invoice November 9. What does Morgan pay Lee?

5.Sullivan's Handbags marks up their bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that she would sell to her customers for $85. What is the most he could pay for the bag and still retain the 45% markup of the selling price?

6. Jeff Jones earns $1,200 per week. He is married and claims four withholding allowances. The FICA rate is as follows: Social Security rate is 6.2% on $97,500; Medicare rate is 1.45%. To date his cumulative wages are $6,000. Each paycheck, his employer also deducts $42.50 for health insurance. What is his net pay? (Calculate FIT by percentage method)

7. Lisa Kane borrowed $8,000 on an 8%, 60 - day note. After 15 days, Lisa paid $2,000 on the note. On the day 45, Lisa paid $1,000 on the note. What is the total interest and ending balance due the U.S. rule? Use ordinary interest.

8. On May 12, Bob Campbell accepted a $5,000 note in granting a time extension of a bill of goos bought by Rick Ween. Terms of the note were 8% for 120 days. On July 8, Bob needed to raise cash and discounted the note at Rick's bank at a discount rate of 9%. Calculate Bob's proceeds.

9. Jacob fonda deposited $25,000 in a savings account at 10% interest compounded semiannually. At the beginning of Year 4, Jacob deposits an additional $40,000 at 10% interest compounded semiannually. At the end of six years, what is the balance in Jacob's account?

10. Roger Fox made deposits of $900 semiannually to Reel Ban which pays 6% interest compounded semiaannually. After seven years, roger made no more deposits. What would be the balance in the account eight years later from the las deposit? 11. Dick Hercher borrowed $7,000 to travel to London. His loan is to be paid in 48 monthly installment of $190. At the end of 14 months, Dick decides to pay off his loan. What is the final payoff Dick will make?

12. A condo is adevertised in The Wall Street Journal for $350,000. It sstates in the ad that a 20% down payment is required. The rate of interest is 11% on a 25-year mortgage. What would be (A) the monthly payment along with (B) total cost of interest?

13. Use this information to calculate the following :

sales return $700

Rent expense 1,288

Sales discounts 950

Depreciation Expense 600

Cost of merchandise sold 7,600

Gross sales 20,900

Advertising expense 1,650

Salary expense 2,900

Heat expense 900

A. Net Sales

B. Gross Profit

C. Total operating expenses

D. Net income

The 14. A truck...

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