At March 31, Band-Aid Co. had a book balance in its cash account of$5,600.At the end of March, the company determined that it had outstanding checksof $900, deposits in transit of $900, a bank service charge of $20, and anNSF check from a customer for $280.The true cash balance at March 31 is:A. $5,300B. $5,320C. $5,600D. $4,700

To determine the true cash balance, we need to adjust the book balance for the items that affect the…

Answered: At March 31, Band-Aid Co. had a book…

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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Happy Tails Inc. has a September 1, 20Y4, accounts payable balance of 620, which consists of 320 due Labradore Inc. and 300 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of September 20Y4 are as follows: a. Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those used in the text. Place a check mark () in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Happy Tails Inc. uses the following accounts: b. Prepare a listing of accounts payable creditor balances on September 30, 20Y4. Verify that the total of the accounts payable creditor balances equals the balance of the accounts payable controlling account on September 30, 20Y4. c. Why does Happy Tails Inc. use a subsidiary ledger for accounts payable?
What is the journal entry to record an NSF check, from J. Smith for 250, that is returned with the bank statement? a. Cash 250 DR; NSF Check 250 CR b. Accounts Receivable 250 DR; Cash 250 CR c. NSF Check 250 DR; Accounts Receivable 250 CR d. Cash 250 DR; Accounts Receivable 250 CR e. Cash 250 DR; Miscellaneous Expense 250 DR
Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?
On November 30, Hernandez Company's bank statement showed an ending balance of $37,361. The following information is available about Hernandez's account: Debit memo in bank statement for bank service charge, $47 Deposit in transit, $3,008 Outstanding checks, $3,196 Customer's NSF check for $743 was returned with the bank statement Required: b) Determine the unadjusted balance of the company's Cash account as of November 30.
As of June 30, Year 1, the bank statement showed an ending balance of $18,181. The unadjusted Cash account balance was $17,028. The following information is available: 1. Deposit in transit, $2,795. 2. Credit memo in bank statement for interest earned in June: $14. 3. Outstanding check: $3,946. 4. Debit memo for service charge: $12. Required: Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information. Note: Negative amounts should be indicated with minus sign. Bank Reconciliation Unadjusted bank balance 6/30/Year 1 True cash balance 6/30/Year 1 Unadjusted book balance 6/30/Year 1 True cash balance 6/30/Year 1 $ $ $ 18,181 18,181 4 0
please explain properly
Burlywood Corp.'s ledger balance of cash as on December 31 is $4,425. It provides the following details for the month of December: Note collected (principal, $800.00; interest, $8.00, signed by Johnson) $808 Error in recording check No. 2234 payable to Beta, Inc.* 50 Bank service and collection charges 15 *The amount of $445, check No. 2234 payable to Beta, Inc., was recorded as $495 ($495 − $445)Determine the adjusted ledger balance of cash as on December 31. a.$3,682 b.$5,268 c.$3,582 d.$5,168
Rexrode Company's bank statement at January 31 showed an ending balance of $24,712.80. The unadjusted cash account balance for Rexrode is $21,245.75. The following data were gathered by Rexrode's accountant: Outstanding checks as of January 31: $4,895.44 ● NSF check from customer: $183.62 • Debit memo related to the returned deposit: $20.00 Credit memo for interest earned: $12.00 • Deposits in transit: $1,236.77 Required: a. Prepare a bank reconciliation for Rexrode Company at January 31. b. Indicate how each of the required adjusting entries impact the financial statements. . • Complete this question by entering your answers in the tabs below. Required A Required B Indicate how each of the required adjusting entries impact the financial statements. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Round your answers to 2 decimal places. Item Outstanding checks NSF check from a customer Debit memo related to the…
3. Calculate the adjusted company book cash balance from the following information: On July 31st , after all transactions have been recorded, the balance in the company's Cash account has a balance of $27,202. A credit memo included with the bank statement indicates that the bank collected $770 on a note receivable. A debit memo included with the bank statement shows a $67 NSF check from a customer ,Noora. Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540. Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books.
Brown Company's bank statement for September 30 showed: Bank statement balance. $4,210 Book balance of cash. $6,560 The following information was also available as of September 30 a. A customer's check for $950 marked NSF was returned to Brown Company by the bank, In addition, the bank charged the company's account a $30 processing fee. b. The September 30 cash receipts, $6,000 were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement. c. Outstanding checks amounted to $3,910. d. A check for rent expense was written for $2,198 but by mistake was recorded in the accounting records as $2,918.
Acme Company has received its bank statement for the month ending May 31, which showed the following: Ending balance $10,650.05 NSF check 63.40 Service charge 10.70 After checking the bank statement and accounting records, the accountant has determined the following: The May cash balance per books is $10,781.76. The bank’s service charge and NSF check were not entered by the bookkeeper. A $354.60 deposit made on May 31 is not on the bank statement. Outstanding checks total $296.99. Prepare a proper bank reconciliation in proper format.
As of June 30, Year 2, the bank statement showed an ending balance of $17,806. The unadjusted Cash account balance was $16,167. The following information is available: 1. Deposit in transit, $2,195. 2. Credit memo in bank statement for interest earned in June, $14. 3. Outstanding check, $3,834. 4. Debit memo for service charge, $14. Required Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 2, using the preceding information. (Negative amounts should be indicated with minus sign.) Bank Reconciliation Unadjusted bank balance 6/30/Year 2 True cash balance 6/30/Year 2 Unadjusted book balance 6/30/Year 2 True cash balance 6/30/Year 21

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