CASE ACCOUNTING Empire Ltd had a cash balance per book of $ 40,690.50 on Jun 30, 2022. The bank statement from North Pole Bank showed a balance of $40,947.60. After rechecking, some information was found: 1. Empire deposited $5,016.90 in the bank for cash sales on June 11. The cash receipts journal entry and the deposit slip were incorrectly made for $5,160.90. The bank credited Empire company for the correct amount. 2. 3. 4. 5. 6. Notes receivable were collected by the bank for Empire on Jun 30 in the amount of $18,000 plus $520 interest. North Pole Bank charged $120 for the collection fee. Non-sufficient fund check of $1,920 for a check issued from Dr.Bernett, a customer, showed on the Empire bank statement. Canceled check was a check issued by Silicon valley Ltd to Mr.Hawkeye for $5,700 that was canceled and charged to Empire by the bank. Issued check no 110 for $4,710 to Terracotta on the account. The check was incorrectly journalized and posted by Empire for $4,170. Outstanding checks on Jun 30, totaled $1,658 and deposits in transit were $11,496.90 Required: Prepare the bank reconciliation on Jun 30, 2022, and interpret the result!

CASE ACCOUNTING Empire Ltd had a cash balance per book of $ 40,690.50 on Jun 30, 2022. The bank statement from North Pole Bank showed a balance of $40,947.60. After rechecking, some information was found: 1. Empire deposited $5,016.90 in the bank for cash sales on June 11. The cash receipts journal entry and the deposit slip were incorrectly made for $5,160.90. The bank credited Empire company for the correct amount. 2. 3. 4. 5. 6. Notes receivable were collected by the bank for Empire on Jun 30 in the amount of $18,000 plus $520 interest. North Pole Bank charged $120 for the collection fee. Non-sufficient fund check of $1,920 for a check issued from Dr.Bernett, a customer, showed on the Empire bank statement. Canceled check was a check issued by Silicon valley Ltd to Mr.Hawkeye for $5,700 that was canceled and charged to Empire by the bank. Issued check no 110 for $4,710 to Terracotta on the account. The check was incorrectly journalized and posted by Empire for $4,170. Outstanding checks on Jun 30, totaled $1,658 and deposits in transit were $11,496.90 Required: Prepare the bank reconciliation on Jun 30, 2022, and interpret the result!

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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On August 1, 20X1, the accountant for Midwest Imports downloaded the company's July 31, 20X1, bank statement from the bank's website. The balance shown on the bank statement was $28,750. The July 31, 20X1, balance in the Cash account in the general ledger was $14,183. Ann Chen, the accountant for Midwest Imports, noted the following differences between the bank's records and the company's Cash account in the general ledger: a. An electronic funds transfer for $14,300 from Fabien Ricard, a customer located in France, was received by the bank on July 31. b. Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,240. c. The accounting records indicate that Check 1425 was issued for $69 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $99. d. A deposit of $790 made after banking hours on July 31 did not appear on the July 31 bank statement. e. The following checks were…
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Oscar Myer receives the March bank statement for Jam Enterprises on April 11, 2018. The March 31 bank statement shows an ending cash balance of $67,566. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. O. Myer notices that the bank erroneously cleared a $500 check against his account in March that he did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Jam Systems. On March 25, the bank lists a $50 charge for the safety deposit box expense that Jam Enterprises agreed to rent from the bank beginning March 25. On March 26, the bank lists a $102 charge for printed checks that Jam Enterprises ordered from the bank. On March 31, the bank lists $33 interest earned on Jam Enterprises' checking account for the month of March. O. Myer notices that the check he issued for $128 on March 31, 2018, has not yet cleared the bank. O. Myer verifies that all deposits…