Assignment 7 is based on Module 7 and should be completed at the end of Module 7. To solidify your understanding of the content of the module covered,

accounting

Description

Assignment 7 (4%)

Assignment 7 is due at the end of Module 7. It is graded out of 100 marks and contributes 4% towards your final grade. Once you have completed this assignment, submit it to your Open Learning Faculty Member and begin working on the next module. Please contact your Open Learning Faculty Member if you have any questions regarding the assignment.

Components

Marks

Suggested Maximum Time in Minutes

Question 1

20

10–15

Question 2

20

10–15

Question 3

30

30–40

Question 4

30

30–40

Assignment 7 (4%)

(100 marks total)

Introduction

Assignment 7 is based on Module 7 and should be completed at the end of Module 7. To solidify your understanding of the content of the module covered, be sure to complete the self-test questions set out in the module’s activity checklist before you start the assignment.

Instructions

Read the following information, and then answer the questions that follow. If you have difficulty completing this assignment, go back and closely review the assigned material again.

Question 1

(20 marks)

The following items appeared on Sew Safe’s bank reconciliation statement:

 

1.      Bank error: The recording of a deposit for $ 377 should have been $ 773

2.      Bank debit memo for service charge

3.      Outstanding cheques

4.      Outstanding cheques from the previous month that are still outstanding

5.      Bank collection of a note receivable on Sew Safe’s behalf

6.      Deposits in transit for the current month

7.      Bank credit memo for interest earned on Sew Safe’s bank balance

8.      NSF cheques

9.      Book error: Sew Safe credited cash for $ 5,000. The correct credit was $ 500.

10.  Bank error: The bank decreased Sew Safe’s bank account for a cheque written by another bank customer.

 

Required:

A.     Use the following numerals to classify each item:

a.       An addition to the book balance

b.      A subtraction from the book balance

c.       An addition to the bank balance

d.      A subtraction from the bank balance

B.     Indicate the items that will result in an adjustment to the company’s records; indicate why the other items do not require an adjustment.


Instruction Files

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