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On 1 November 2015, Jupiter Limited released an application offer document to the public
for the issue of $1,000,000 of 8% p.a. 3 year debentures with an issue date of 1 January
2016. Interest is payable yearly on 31 December each year.
Required:
Solution:
1 January 2016
Application-Debentures 1,000,000
Debentures (liability) 1,000,000
To record allotment of debentures
31 December 2016
31 December 2017
The 31 May bank statement of Marlow Furniture has just arrived from First Bank. To
prepare the bank reconciliation, you gather the following data:
2. The bank statement includes two charges for returned cheques from customers. One is
a $67.50 dishonoured cheque received from Sarah Batten and deposited on 19 May.
The other is a $195.03 cheque received from Lara Masters and deposited on 21 May. It
was returned due to “Unauthorised Signature.”
4. Marlow collects from a few customers by EFT. The May bank statement lists a $200
deposit for a collection on account from customer Jack Oates.
5. The bank statement includes two special deposits: $899.14, for dividend revenue, and
$16.86, the interest revenue Marlow earned on its bank balance during May.
6. The bank statement lists a $6.25 subtraction for the bank service charge.
7. On 31 May, the Marlow financial controller deposited $381.14, but this deposit does not
appear on the bank statement.
8. The bank statement includes a $410.00 deduction for a cheque drawn by Marimont
Freight. Marlow notified the bank of this bank error.
Required:
Journalise sales, collections, bad debt expense by the allowance method (percentage-of-
sales method), and write-offs of bad debts during October.
Journal
POST.
DATE ACCOUNTS REF. DEBIT CREDIT
Oct. Cash at bank 20,000
Accounts receivable 160,000
Sales revenue 180,000