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.
