Apex Company's bank statement for the month of September showed a balance per bank of S6,190. The company's Cash account in the general ledger had a balance of $4,830 at September 30. Other information is as follows: 26. Cash receipts for September 30 recorded on the company's books were $5,040 but this amount does not appear on the bank statement. This amount is a deposit in transit. 27. The bank statement shows a debit memorandum for $30 for check printing charges. 28. The total amount of checks still outstanding at September 30 amounted to $4,420. 29. Check No. 138 was correctly written and paid by the bank for $590. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for S660. 30. The bank returned an NSF check from a customer for $320. 6. The bank included a credit memorandum for $2,260 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,200 and interest was $60. Interest has not been accrued. Instructions (b) Prepare any adjusting entries necessary as a result of the bank reconciliation

Apex Company's bank statement for the month of September showed a balance per bank of S6,190. The company's Cash account in the general ledger had a balance of $4,830 at September 30. Other information is as follows: 26. Cash receipts for September 30 recorded on the company's books were $5,040 but this amount does not appear on the bank statement. This amount is a deposit in transit. 27. The bank statement shows a debit memorandum for $30 for check printing charges. 28. The total amount of checks still outstanding at September 30 amounted to $4,420. 29. Check No. 138 was correctly written and paid by the bank for $590. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for S660. 30. The bank returned an NSF check from a customer for $320. 6. The bank included a credit memorandum for $2,260 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,200 and interest was $60. Interest has not been accrued. Instructions (b) Prepare any adjusting entries necessary as a result of the bank reconciliation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Why it is necessary to prepare a bank reconciliation? 2. What are the causes that bs is differ from cb? 3. How does bank statement (bs) differ from cash book (cb)? Illustrate ur answer. 4. Differentiate outstanding checks from deposit in transit. 5. Enumerate the 7 steps .
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The following are a list of possible errors or fraud (1 through 5) involving cash receipts and controls (a. through g.) that may prevent or detect the errors or fraud:Possible Errors or Fraud1. Customer checks are properly credited to customer accounts and are properlydeposited, but errors are made in recording receipts in the cash receipts journal.2. Customer checks are misappropriated before being forwarded to the cashier fordeposit.3. Customer checks are received for less than the customers’ full account balances, butthe customers’ full account balances are credited.4. Customer checks are credited to incorrect customer accounts.5. Different customer accounts are each credited for the same cash receipt.Internal Controlsa. Customer orders are compared with an approved customer list.b. Prenumbered credit memos are used for granting credit for returned goods.c. Remittance advices are separated from the checks in the mailroom and forwarded tothe accounting department.d. The cashier…
A check returned by the bank marked "NSF" means Select one: a. not satisfactorily filled-out. b. not sufficient funds. C. no service fee. d. no signature found.
What if the drawee bank failed to determine right away that the CHECK is supposed to be dishonored and yet made payment to the holder of the CHECK, what is the remedy of the bank in this case? Can it go after the drawer or check issuer?
Please answer.
Your customer has paid their bill, yet the Accounts Receivable balance has not changed. Which of the following could have caused this error? A Bypassing the Pay Bills window and writing a check to the vendor B Deleting the deposit before reconciliation C Running the Open Invoices report before accepting payment D Bypassing the Receive Payments window and entering the payment directly in the Bank Deposits window
Does every audit have some type of bank confirmation?
How did you calculate the deposits and checks outstanding
For proper segregation of duties in cash disbursements, the person who signs checks also a. reviews the monthly bank reconciliation b. is denied access to the supporting documents c. returns the cheques to accounts payable d. is responsible for mailing the cheques
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I'm also struggling with the follow up part of this question