A bank statement received by Allied Ltd for the month of February 2022 showed a credit balance of $8,500. The company's Cash at Bank balance as per company records had a debit balance of $9,145. The following were discovered as the reasons for the discrepancy between the two balances: 1. The bank statement included a debit entry of $90 for the annual bank service fee. 2 Outstanding EFTS at 28 February totalled $6,200. 3. On 28th February, receipts deposited amounting to $8,820 are still outstanding with the bank. 4. Cash sales of $694 on 20 February were deposited in the bank. The cash receipts journal entry and the deposit slip were wrongly made for $649. The bank credited Allied Ltd for the correct amount. 200

A bank statement received by Allied Ltd for the month of February 2022 showed a credit balance of $8,500. The company's Cash at Bank balance as per company records had a debit balance of $9,145. The following were discovered as the reasons for the discrepancy between the two balances: 1. The bank statement included a debit entry of $90 for the annual bank service fee. 2 Outstanding EFTS at 28 February totalled $6,200. 3. On 28th February, receipts deposited amounting to $8,820 are still outstanding with the bank. 4. Cash sales of $694 on 20 February were deposited in the bank. The cash receipts journal entry and the deposit slip were wrongly made for $649. The bank credited Allied Ltd for the correct amount. 200

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

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A bank statement received by Allied Ltd for the month of February 2022 showed a credit balance of $8,500. The company's Cash at Bank balance as per company records had a debit balance of $9,145. The following were discovered as the reasons for the discrepancy between the two balances: 1. The bank statement included a debit entry of $90 for the annual bank service fee. 2 Outstanding EFTs at 28 February totalled $6,200. 3. On 28th February, receipts deposited amounting to $8,820 are still outstanding with the bank. 4. Cash sales of $694 on 20 February were deposited in the bank. The cash receipts journal entry and the deposit slip were wrongly made for $649. The bank credited Allied Ltd for the correct amount. 5. Notes receivable of $1,800 was collected by the bank for Allied Pty Ltd on 28 February plus $220 interest. No interest has been accrued on the note. Prepare BRS
You obtained the following information on the current account of Par Company during your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P 306,000 . Among the bank credits in November was customer’s noted for P 100,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were costs of checkbooks amounting to P 1,200 and a P 40,000 check which was charged by the bank in error against Par Company account. Also in November, you ascertained that there were deposits in transit amounting to P 80,000 and outstanding checks totaling P 170,000. The bank statement for the month of December showed total credits of P 416,000 and total charges of P 204,000. The company’s books for December showed total debits of P 735,600 , total credits of P 407,200 and a balance of P485,600. Bank debit memos for December were: No. 121 for service…
The books of VKS Company disclosed a cash in bank balance of P38,295 on December 31, 2021. Meanwhile, the bank statement as of December 31, showed a balance of P71,364. Additional information that might be useful in reconciling the two balances follows:· A note collected by the bank was credited to the company’s account amounting to P180,000. No entry has been made yet in relation to the note.· Supplier checks dated and released December 2021 amounting to P601,278 has not yet cleared the bank.· Receipts of January 2022 totaling P199,000 was recorded by the company during December 2021.· Deposits in transit as of December 31, 2021 amounted to P549,209.What is the adjusted ‘cash in bank’ balance as of December 31, 2021?
Bridgeport Ltd. had the following information regarding its bank transactions for the month of April 2024: Unadjusted balance per books April 30 Balance per bank statement April 30 1. 2 3. 4. 5. $2,775 11,700 8. Cheques written in April but still outstanding. $6,600. Cheques written in March but still outstanding. $2,800. Deposits of April 30 not yet recorded by bank, $6,200. A customer's cheque for $770 was returned by the bank as NSF. Cheque # 210 for $594 was correctly issued and paid by bank but incorrectly entered in the general journal as a payment on account for $549. 6. Bank service charge for April was $50. 7. A payment on account (Cheque #318) was incorrectly entered in the general journal and posted to the general ledger as $824. However, it had been correctly prepared for $284. The cheque cleared the bank in April. Electronic collections on account totalled $6,050, and have not yet been recorded by the company. Prepare a bank reconciliation for Bridgeport Ltd. at April 30.…
Tom Brady Ltd received a bank statement from their bank, Westpac, showing a credit balance of $8,800, while Cash at Bank balance as per the company’s record showed a debit balance of $8,331 on 31 March 2023. The following were discovered in an attempt to reconcile the two records: 1. Outstanding EFTs at 31 March totalled $5,400. 2. The bank has collected $2,200 on the behalf of Tom Brady Ltd for the note of $2,000 plus interest of $200. Tom Brady Ltd has not accrued any interest. 3. On 31 March the bank statement showed a reversal entry of $750 that had been originally deposited by a customer, Ms Fulton, to Tom Brady Ltd. 4. A deposit of $6,300 appears in the cash at bank account but had not been recorded by the bank at 31 March 2023. 5. On 20 March Tom Brady Ltd authorised an EFT (Ref no. 202) for $690 to M. Johnson on account. The EFT, which was processed by the bank in March was incorrectly journalised and posted by Tom Brady Ltd for $609. Required a. Prepare a bank reconciliation…
In the process of your examination of the financial statements of the Malu-oy Company for the year ended December 31, 20X6, you obtained the following data on its current account. The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank credits in November was a customer’s note for P25,000 collected for the account of the company which the company recognized in December among its receipts. Included on the bank debits were cost of checkbooks amounting to P300 and a P10,000 check which was charged by the bank in error against Malu-oy Company account. Also in November, you ascertained that there were deposits in transit amounting to P20,000 and outstanding checks totaling P42,500. The bank statement for the month of December showed total credit of P104,000 and total charges of P51,000. The company’s books for December showed total receipts of P183,900, disbursements of P101,800 and a balance of P121,400. Bank debit memos for December were: No. 14334 for service…
On December 31, 2021, the cash account of Coco Corp, showed a balance of P391,480. The bank statement on that date showed a balance of P409,500. Upon examining the cash records and the bank statement, the following information were determined.a. There was a bank service charge of P 1,500 for the month of December 2021.b. There was a credit memo for a note collected by the bank for oOco Corp. The customer’s note is P90,000 with interest of P2,600. The bank charged a collection fee of P550c. December 31, 2021 receipts for P289,000 were deposited only on January 2, 2022d. Checks issued which have not yet cleared the bank as at December 31,2021 amounts to P186,610e. There is a debit memo for P45,320 for a customer’s check returned marked “DAIF”f. A receipt of P90,000 had been entered as P60,000 in the cash book. Check # 12345 issued amounting to P49,100 was erroneously recorded as P41,900 and check # 12346 issued in the correct amount of P5,820 had been taken up as P58,200.What is the…
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5) The following data have been gathered for Rocky Candi Corporation for the month ended September 30, 2020. Prepare a bank reconciliation based on the following information: · The bank statement reveals a balance of $8,936. · The September 30, 2020, book balance was $3,200. · There was an EFT deposit of $1,800 on the bank statement for the monthly rent from a tenant. The bookkeeper had erroneously recorded a $50 cheque as $500. The cheque was to settle an account payable. · The bank statement revealed $50 in service charges. · Cheques #322 and #330 for $260 and $285 were not returmed with the bank statement. · A deposit made on September 29, 2020, for $1,250 did not appear on the bank statement. A deposit of $500 made on September 10 was erroneously credited to Rocky Candi's account by the bank for $5,000. A bank debit memo indicated an NSF cheque for $259.
The following information is for Dylex Corporation: a Balance per the bank statement dated July 31, 2014 is $29,050. b. Balance of the Cash account on the company books as of July 31, 2014 is $15,555. c. Bank service charges for the month amount to $30. d. Included with the bank statement was a $25 credit memorandum for interest eamed on the bank account during the month. e. Bank deposit on July 31, 2014 for $1,400 does not appear on the bank statement 1. Cheque #391, for office supplies in the amount of $924, was recorded in the Cash Disbursements Journal incorrectly as $9.924 g. Included with the bank statement was an NSF cheque for $700 that had been received from a customer in payment of his account h. Cheques written that had not cleared the bank by July 31, 2014 were #412: $1,400 #401 $1,450 # 402 $1,200 #400 $1,350 #415 $1,200 Prepare a bank reconciliation statement as of July 31, 2014, as well as the necessary adjusting journal entries. Enter the transaction letter as the…
On May 31, O'Hearne Limited had a cash balance per books of $13,126. The bank statement from Community Bank on that date showed a balance of $15,230. A comparison of the bank statement with the company's Cash account revealed the following: 1. The bank statement included a bank service charge of $80. 2. The bank statement included electronic collections totalling $4,188. These were not previously recorded. 3. Outstanding cheques at April 30 totalled $2,900. Of these, $2,240 worth cleared the bank in May. There were $1,892 of cheques written in May that were still outstanding on May 31. 4. Included with the cancelled cheques was a cheque issued by O'Bearne Inc. for $1,200 that was incorrectly charged to O'Hearne by the bank. 5. On May 31, the bank statement showed a returned (NSF) cheque for $1,350 issued by a customer in payment of its account. In addition, the bank charged an $80 processing fee for this transaction. 6. The May 31 deposit of $1,926 was not included in the deposits on…
On March 2, 2022, Jenny received its bank statement of the month ending February 28. The statement showed a P209,500 balance while the cash account balance on February 28 was P35,000. In reconciling the balances, the following were noticed: a. The February 28 collections of P176,000 were recorded on the books but were not deposited until March. b. The bank service charges for the month of February totaled P3,000. c. A paid check for P24,300 was entered incorrectly in the cash payments journal as P34,200. What is the total outstanding checks at February 28, 2022?