P7-1 Francis Equipment Co. closes its magnitudes constantly on December 31, still at the purpose of 2014 it held its specie magnitude public so that a further auspicious adjust equivocation could be handy restraint confidence purposes. Specie returns and disbursements restraint the original 10 days of January were commemorative as December transactions. The counsel is fond beneath.
1. January specie returns commemorative in the December specie magnitude totalled $45,640 of which $28,000 represents specie sales, and $17,640 represents collections on representation restraint which specie discounts of $360 were fond.
2. January specie disbursements commemorative in the December stay record liquidated representations paytalented of $22,450 on which discounts of $250 were captured.
3. The ledger has not attributtalented attributtalented attributtalented been reserved restraint 2014.
4. The equality likenessn as schedule was fast by material reckon on December 31, 2014.
The congregation uses the interrupted regularity of schedule.
(a) Prepare any entries you infer essential to punish Francis’s representations at December 31.
(b) To what quantity was Francis Equipment Co. talented to likeness a further auspicious adjust equivocation at December 31 by trade its specie magnitude public? (Compute afloat consummate and the running agreement.) ssume that the adjust equivocation that was handy by the congregation showed the subjoined equalitys: