2. Your examination of the accounts revealed the following information:1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4.2. Merchandise that was billed to the branch at P7,500 was in transit at December 31.3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections.4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,0005. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively.What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020? *

2. Your examination of the accounts revealed the following information:1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4.2. Merchandise that was billed to the branch at P7,500 was in transit at December 31.3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections.4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,0005. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively.What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The cash account for American Medical Co. at April 30 indicated a balance of $84,457. The bank statement indicated a balance of $127,190 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: A. Checks outstanding totaled $33,310. B. A deposit of $17,610, representing receipts of April 30, had been made too late to appear on the bank statement. C. The bank collected $28,248 on a $26,400 note, including interest of $1,848. D. A check for $1,100 returned with the statement had been incorrectly recorded by American Medical Co. as $110. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. E. A check drawn for $680 had been erroneously charged by the bank as $860. F. Bank service charges for April amounted to $45. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording…
On January 31, Jema hardware received a check from a customer for payment of an invoice. The 6,000 invoice was dated May 22, and included credit terms of 1/10, n/45. On January 25, the customer returned P600 of the merchandise because it was defective. How would this transaction be recorded in Jema's cash receipts journal?
BRS
The following misstatements are included in the accounting records of the Dillon Manufacturing Company: Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake. Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper, who records cash receipts and accounts receivable. He failed to record the transactions. A material sale was recorded on the last day of the year even though the goods were not shipped until three days later. Merchandise was shipped to a customer, but no bill of lading was prepared. Because billings are prepared from bills of lading, the customer was not billed. The controller approved a payment to a consulting firm owned by his sister. The consulting firm did not actually perform any services for the company. The shipping clerk included several additional valuable items in a shipment that were not…
yoming Restoration Company completed the following selected transactions during July 20Y1: July 1. Established a petty cash fund of $1,200. 12. The cash sales for the day, according to the cash register records, totaled $8,356. The actual cash received from cash sales was $8,389. 31. Petty cash on hand was $217. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt: July 3. Store supplies, $510. 7. Express charges on merchandise sold, $90 (Delivery Expense). 9. Office supplies, $30. 13. Office supplies, $35. 19. Postage stamps, $50 (Office Supplies). 21. Repair to office file cabinet lock, $60 (Miscellaneous Administrative Expense). 22. Postage due on special delivery letter, $28 (Miscellaneous Administrative Expense). 24. Express charges on merchandise sold, $135 (Delivery Expense). 30. Office supplies, $25. July 31. The cash sales for the day, according to the cash register records, totaled $10,289.…
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $3,260. b. A deposit of $2,450 representing receipts of October 31 had been made too late to appear on the bank statement. c. The bank had collected for Coastal Bike Co. $5,300 on a note left for collection. The face of the note was $5,000. d. A check for $460 returned with the statement had been incorrectly charged by the bank as $640. e. A check for $430 returned with the statement had been recorded by Coastal Bike Co. as $340. The check was for the payment of an obligation to Rack Pro Co. on account. f. Bank service charges for October amounted to $50. g. A check for $605…
Your examination of the accounts revealed the following information: 1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4. 2. Merchandise that was billed to the branch at P7,500 was in transit at December 31. 3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections. 4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,000 5. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively. What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?
Wright Company's cash account shows a $30,100 deblt balance and its bank statement shows $28,400 on deposit at the close of business on May 31. a. The May 31 bank statement lists $230 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $6,900. c. May 31 cash receipts of $7,500 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement. d. In reviewing the bank statement, a $530 check written by Smith Company was mistakenly drawn against Wright's account. e. The bank statement shows a $340 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information. WRIGHT COMPANY Bank Reconciliation May 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance < Prev 5 of 5 Next ...
Iron Company receives a bank statement dated April 30 that shows a balance of $3,276.82. Iron’s checkbook balance, as of April 30, is $3,205.37. The bank has not processed check 892 for $45 or check 895 for $640. A $550 deposit made on April 30 does not appear on the bank statement. The bank statement shows a few items that Iron is unaware of: check printing charges of $65 and interest earned of $11.45. Iron recorded check 890 as $122, but the bank processed the check correctly as $132. Find the reconciled balance by completing the bank reconciliation:
The cash account for Deaver consulting at October 31,20Y6 indicated a balance of $ 15, 750. The bank statement indicated a balance of $ 31 , 095 in October 31,20Y6.comparing the bank statement and accopaying canceled checks and memos with the records revealed the following reconciling items. A. Check outstanding totaled $10,125 B. A deposite of 4,120 representing receipts from October 31, had been made too late to appear on the bank statement. C. The bank had collected $10,400 on a note for collection . The face of the note was 10,000. D. A check for 1,200 returned with the statement had been incorrectly recorded by Deaver consulting as $120. The check was for the payment of an obligation to Oxford office supplies CO. For the. Purchase of office supplies on account E. A check drawn for $320 had been incorrectly charged by the bank as $230. F.Bank service charges for October amounted to $70. 1. Prepare a bank reconciliation 2. Illustrate the effect on the account and financial…
Please see image
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company’s records at August 31, $42,920. Cash balance according to the bank statement at August 31, $56,300. Checks outstanding, $25,390. Deposit in transit not recorded by bank, $13,325. A check for $150 in payment of an account was erroneously recorded in the check register as $1,500. Bank debit memo for service charges, $35. Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash. If an amount box does not require an entry, leave it blank.