Based on the following information, the cause of the discrepancies between the book credits and bank debits are ascertained: Book credits in May 85,800 Bank debits in May 97,650 Check issued on May 29 for P5,700 erroneously Recorded in the books of the depositor as 7,500 Customer's DAIF check, returned by the bank of the depositor in May 2,300 April bank service charges, taken up in the books in May 30 Payment of VISA credit card automatically debited by the bank on May 25, as per ADA, but taken up in the books of the depositor in June 3,000 Outstanding checks as May 31 4,500 How much is the outstanding checks at the beginning of the period? a. P4,500 b. P5,300 c. P12,880 d. P11,880

Based on the following information, the cause of the discrepancies between the book credits and bank debits are ascertained: Book credits in May 85,800 Bank debits in May 97,650 Check issued on May 29 for P5,700 erroneously Recorded in the books of the depositor as 7,500 Customer's DAIF check, returned by the bank of the depositor in May 2,300 April bank service charges, taken up in the books in May 30 Payment of VISA credit card automatically debited by the bank on May 25, as per ADA, but taken up in the books of the depositor in June 3,000 Outstanding checks as May 31 4,500 How much is the outstanding checks at the beginning of the period? a. P4,500 b. P5,300 c. P12,880 d. P11,880

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

Instructions The cash account for Norwegian Medical Co. at April 30 indicated a balance of $82,726. The bank statement indicated a balance of $128,040 on April 30. Comparing the bank statement and the accompa canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $34,090. A deposit of $18,430, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $31,779 on a $29,700 note, including interest of $2,079. A check for $1,900 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $190. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $370 had been erroneously charged by the bank as $730. Bank service charges for April amounted to $55. Required Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and Amount…
Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $22,240. Cash balance according to the bank statement at July 31, $23,450. Checks outstanding, $4,510. Deposit in transit, not recorded by bank, $3,630. A check for $590 in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $30. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge. a. July 31 b. July 31
Assuming none of the transactions reported by the bank debit or credit memos have been recorded by the company, which of the following reconciling items (a through g) require an entry on the company's books? a. checks outstanding totaled $7,250 b. a deposit of $12,000 representing cash receipts of May 31 had been made too late to appear on the May 31 bank statement. c. the bank collected a note on behalf of the company in the amount of $3,500. d. a check for $270 had been incorrectly charged by the bank as $720 as shown on the bank statement. e. a check for $420 returned with the bank statement had been recorded incorrectly on the company's books as $240. f. bank service charges for May amounted to $175 g. a deposited check from May 24 for $1,200 was rejected by the bank due to insufficient funds Please select the applicable letters of each item to be journalized by the company and enter them below. Separate each item by a comma.
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $49,910. Cash balance according to the bank statement at July 31, $48,250. Checks outstanding, $4,460. Deposit in transit, not recorded by bank, $6,450. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $30. Question Content Area a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co.Bank ReconciliationJuly 31 Cash balance according to bank statement $fill in the blank 8740c9ff3f91023_1 - Select - - Select - Adjusted balance $fill in the blank 8740c9ff3f91023_6 Cash balance according to company's records $fill in the blank 8740c9ff3f91023_7 - Select - - Select - Adjusted balance $fill in the blank 8740c9ff3f91023_12 Question Content Area b. If the…
The following items may appear on a bank statement: Bank correction of an error from recording a $3,200 deposit as $2,300 EFT payment Note collected for company Service charge Using the format shown below, indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company’s account.
Vikarm
The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journals for October had been posted, the cash account had a balance of $8,998. a. Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495. b. Deposits in transit not recorded by bank, $778. c. Bank debit memo for service charges, $40. d. Bank credit memo for note collected by bank, $23,985 plus $885 interest. e. Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer. f. Checks outstanding, $1,860. Record the appropriate journal entries that would be necessary for Jeffrey Co. Record the entry that increases cash first. If an amount box does not require an entry, leave it blank.
Using the following information, prepare a bank reconciliation. Bank balance: $6,788 Book balance: $6,525 Deposits in transit: $1,688 Outstanding checks: $569 and $1,523 Bank charges: $75 Bank incorrectly charged the account $75. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $245 but posted in the accounting records as $254. This check was expensed to Utilities Expense. Bank Reconciliation Bank Statement Balance at (date) $fill in the blank 1 Add: Deposits in Transit Outstanding Checks Less: - Select - Adjusted Bank Balance $fill in the blank 8 Book Balance at (date) $fill in the blank 9 Add: - Select - Less: - Select - Adjusted Book Balance $fill in the blank 14
In preparing its August 31 bank reconciliation, Apex Corp. has available the following balance per bank and reconciling items: Balance per bank Deposit in transit Erroneous charge (deduction) made by bank Outstanding checks Collection from customer by bank The 8/31 unadjusted cash balance per books is: Select one: a. $19,250 b. $18,550 c. $18,050 d. $19,050 e. $17,850 $ 18,050 3,250 100 2,750 600
Blanksheet entries for bank reconciliation
If deposits per the cash ledger are $2,200, deposits per the bank ledger are $1,800, and the bank erroneously recorded a $400 deposit as $40, an adjustment of $360 for deposits in transit will be recorded on the bank reconciliation. O True O False
The June 30 bank statement shows a balance of $7,100. The following information as discovered while the bank reconciliation was prepared: A bookkeeper error where a $400 check written to a supplier was incorrectly recorded as $500 Two outstanding checks totaling $840 A bank service charge of $29 A deposit in transit of $330 Bank interest revenue of $20 What is the adjusted bank balance?