Condensed financial data of Bonita Company for 2020 and 2019 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Condensed financial data of Sandhill Company for 2020 and 2019 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Condensed financial data of Bonita Company for 2020 and 2019 are presented below.

Additional information:

During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year:

During the year ended June 30, 2020, the following transactions and events occurred in the Town of Weston Water Utility Fund:

1. Accrued expenses at July 1 were paid in cash.
2. Billings to nongovernmental customers for water usage for the year amounted to $1,381,000; billings to the General Fund amounted to $109,000.
3. Liabilities for the following were recorded during the year:

4. Materials and supplies were used in the amount of $276,000, all for costs of sales and services.
5. After collection efforts were unsuccessful, $14,100 of old accounts receivable were written off.
6. Accounts receivable collections totaled $1,472,400 from nongovernmental customers and $48,700 from the General Fund.
7. $1,041,400 of accounts payable were paid in cash.
8. One year’s interest in the amount of $176,100 was paid.
9. Construction was completed on plant assets costing $252,000; that amount was transferred to Utility Plant in Service.
10. Depreciation was recorded in the amount of $262,100.
11. The Allowance for Uncollectible Accounts was increased by $10,000.
12. As required by the loan agreement, cash in the amount of $102,000 was transferred to Restricted Assets for eventual redemption of the bonds.
13. Accrued expenses, all related to costs of sales and services, amounted to $90,000.
14. Nominal accounts for the year were closed.

Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2020.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2020. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.

Background Information Note the following:

• Acme Corporation is a publicly listed company

• ACME’s Fiscal year end is December 31

• In addition to the cash account being reconcile here; ACME has a separate Revolving Credit account.

  This is a revolving credit facility where interest is accrued on the average balance outstanding during the month. The interest amount is required to be paid on a monthly basis. The correct is amount calculated and taken from the account automatically by the bank.

• The facility has an annual interest rate of 4%

• Management has set-out in the Financial Statements that the average balance outstanding in this

  revolving credit facility is normally at around $ 150,000.

• The Audit Committee has also informed the Partner that the CRA audited ACME in the previous year

  and levied a penalty of $50,000 and has informed the Board that they plan continue their audit in the new year.

  Required

  Part 1

1. a) From the information provided in EXHIBIT A, perform and document a Bank Reconciliation. - 20 marks

2. b) From the Background info. provided above, identify potential errors and disclosure requirements - 5 marks

Part 2

1. a) Identify the financial assertions relating to the Cash account addressed by the Bank Reconciliation and explain how. – 5 marks

2. b) Identify what type of activity the Bank Reconciliation is. – 5 marks

3. c) Identify the 6 possible characteristics (of the activity above) and which apply to the Bank Rec. – 5 marks

BONUS
How would the Auditor test the identified characteristics. – 4 marks

EXHIBIT A

Two types of survey questions are open questions and closed questions. An open question allows for any kind of? response; a closed question allows for only a fixed response. An open question and a closed question with its possible choices are given below. List the advantages and disadvantages of each question.

Open? question: What can be done to get students to eat healthier? foods?

Closed? question: How would you get students to eat healthier? foods?

1. Mandatory nutrition course

2. Offer only healthy foods in the cafeteria and remove unhealthy foods

3. Offer more healthy foods in the cafeteria and raise the prices on unhealthy foods

1. Describe the 2 major body regions of a typical mollisk?
2. Annelids exhibit body segmentation. why is this a major evolutionary innovation?
3. Why are insects so successful??