Problem 8. In connection with the audit of the financial statements of Janus Corporation for the yearended December 31, 2020, you conducted a surprise count of undeposited receipts on December 29,2020, the last working day for the year. You conducted the count in the presence of the cashier whoseaccountability per general ledger was P 160,000.The following were revealed during the count:Currencies and coins:97,680880Unused postage stamps (88 pieces at P 10each)Checks:DatePayeeMakerJan. 21CashCashierDec. 19 Janus CorporationDec. 27 Janus CorporationDec. 28 Tiktok CorporationCyborg CompanyTitan CorporationJanus Corporation8,00018,80015,6807,200Office supplies paid out of receiptsRepairs paid out of receiptsTotal per count8,0004,800161,04018. What is the cash shortage on December 31, 2020?

(a) cash shortages are expressions of financial disintermediation: the banking sector is unable to…

connection with the audit of the financial statements Janus Corporation ended December 31, 2020, you conducted a surprise count of undeposited receipts on December 2020, the last working day for the year. You conducted the count in the presence of the cashier wl accountability per general ledger was P 160,000. The following were revealed during the count: 97,680 880 Currencies and coins: Unused postage stamps (88 pieces at P 10 each) Checks: Date Jan. 21 Cash Dec. 19 Janus Corporation Dec. 27 Janus Corporation Dec. 28 Tiktok Corporation Payee Maker Cashier Cyborg Company Titan Corporation Janus Corporation 8,000 18,800 15,680 7,200 Office supplies paid out of receipts Repairs paid out of receipts Total per count 8,000 4,800 161,040

connection with the audit of the financial statements Janus Corporation ended December 31, 2020, you conducted a surprise count of undeposited receipts on December 2020, the last working day for the year. You conducted the count in the presence of the cashier wl accountability per general ledger was P 160,000. The following were revealed during the count: 97,680 880 Currencies and coins: Unused postage stamps (88 pieces at P 10 each) Checks: Date Jan. 21 Cash Dec. 19 Janus Corporation Dec. 27 Janus Corporation Dec. 28 Tiktok Corporation Payee Maker Cashier Cyborg Company Titan Corporation Janus Corporation 8,000 18,800 15,680 7,200 Office supplies paid out of receipts Repairs paid out of receipts Total per count 8,000 4,800 161,040

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

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…
Preparation of Proof of Cash with Missing Outstanding Checks at end of year The following information were presented to you by Android Corporation in connection to your audit of its Cash in Bank account for the month of December 2020: Cash in bank account balances in company's books: November 30 -P 1,876,500; December 31 - P 1,576,500 Bank statement balances: November 30 – P 1,875,000; December 31-P 2,025,000 Bank statement debits during December were P 1,950,000. Company collections not yet deposited to the bank: November 30 –P 300,000; December 31- P А. В. C. D. 229,500. Checks issued already credited in company's accounting books but not yet paid by the bank on November 30 were P 225,000. Bank credit errors: November 30 -P 67,500; December 31 - P 25,500. F. G. Bank debit errors: November 30 -P 30,000; December 31 -P 45,000. Н. Bank credit memorandum indicating collection of notes receivable were P 187,500 in November and P 225,000 in December. Customer's NSF Check returned by bank…
Branson Co. received its bank statement for the month ending May 31, 2019, and reconciled the statement balance to the May 31, 2019, balance in the Cash account. The reconciled balance was determined to be $36,400. The reconciliation recognized the following items: A deposit made on May 31 for $22,700 was included in the Cash account balance but not in the bank statement balance. Checks issued but not returned with the bank statement were No. 673 for $4,550 and No. 687 for $9,700. Bank service charges shown as a deduction on the bank statement were $110. Interest credited to Branson Co.'s account but not recorded on the company's books amounted to $88. Returned with the bank statement was a "debit memo" stating that a customer's check for $3,240 that had been deposited on May 23 had been returned because the customer's account was overdrawn. During a review of the checks that were returned with the bank statement, it was noted that the amount of check No. 681 was $680 but that in the…
A new accountant at Skyline Company is trying to identify which of the following amounts should be reported as the current asset Cash and Cash Equivalents in the year-end balance sheet, as at June 30, 2024: Currency and coins totalling $76 in a locked box used for petty cash transactions. A 60-day, $12,900 guaranteed investment certificate, due July 31, 2024. June-dated cheques worth $375 that Skyline has received from customers but not yet deposited. A $104 cheque received from a customer in payment of her June account, but postdated to July 1. A balance of $2,360 in the Royal Bank chequing account. A balance of $4,160 in the Royal Bank savings account. Prepaid postage of $52 in the postage meter. A $110 IOU from the company receptionist. Cash register floats of $330. Over-the-counter cash receipts for June 30 consisting of $540 of currency and coins, $90 of cheques from customers, $550 of debit card slips, and $740 of bank credit card slips. These amounts were processed by the bank…
Bank Reconciliation and Adjusting Entries (Appendix 6.1) Odum Corporation’s cash account showed a balance of $17,198 on March 31, 2019. The bank statement balance for the same date indicated a balance of $17,924.55. The following additional information is available concerning Odum’s cash balance on March 31: • Undeposited cash on hand on March 31 amounted to $724.50. • A customer’s NSF check for $173.80 was returned with the bank statement. • A note for $2,000 plus interest of $25 was collected for Odum by the bank during March. The bank notified Odum of this collection on the bank statement. • The bank service charge for March was $15. • A deposit of $951.75 mailed to the bank on March 31 did not appear on the bank statement. The following checks mailed to creditors had not been processed by the bank on March 31: #429 $57.40 #432 $147.50 #433 $214.80 #434 $191.90 A customer check for $149.50 in payment of his account and listed correctly for that amount on the bank state-ment had…
Using the following information, prepare a bank reconciliation for Young Co. for August 31, 2019, and prepare the journal entries: (a) The bank statement balance is $4,095 (b) The cash account balance is $4,205. (c) Outstanding checks amounted to $517. (d) Deposits in transit are $655. (e) The bank service charge is $45. (f) A check for $84 for supplies was recorded as $48 in the ledger. (g) NSF check for $649.00 (h) EFT collected $715.00 (i) Bank error processed a check for $53 as $35
On february 28th, 2022, Mark, the accountant of the scented candle business Smells LTD, prepared the documents for his february bank reconciliation. He noted a Cash balance of $15,534 in the general ledger. The bank statement on that date showed a balance of $17,675. A comparison of the bank statement with the cash account revealed the following The bank statement included service charges and card processing fees of $50 The bank statement included electronic collections (EFT) from customers, totaling $5,520. Smells LTD had not recorded the EFT yet A deposit of $200 made by another company was incorrectly added to Breathe-ins account by their bank Recent deposits worth $5,400 are not currently showing on the bank statement Cheques outstanding on January 31 totaled $3,754. Of these, $1,883 cleared the bank in February and are no longer outstanding. All new cheques written in February cleared the bank during the month Enter amounts with the final number rounded to the nearest $.…
Bank reconciliation and entriesThe cash account for Coastal Bike Co. at October 1, 2019, indicated abalance of $5,140. During October, the total cash deposited was $39,175,and checks written totaled $40,520. The bank statement indicated abalance of $8,980 on October 31, 2019. Comparing the bank statement,the canceled checks, and the accompanying memos with the recordsrevealed the following reconciling items: A. Checks outstanding totaled $5,560.B. A deposit of $1,050 representing receipts of October 31 had beenmade too late to appear on the bank statement.C. The bank had collected for Coastal Bike Co. $2, 120 on a note leftfor collection. The face of the note was $2,000. D. A check for $370 returned with the statement had beenincorrectly charged by the bank as $730.E. A check for $310 returned with the statement had been recordedby Coastal Bike Co. as $130. The check was for the payment of anobligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $25.G. A…
Using the following information, prepare a bank reconciliation for Cole Co. for May 31 of the current year: (a) The bank statement balance is $3,012. (b) The cash account balance is $3,165. (c) Outstanding checks amounted to $590. (d) Deposits in transit are $704. (e) The bank service charge is $30. (f) A check for $76 for supplies was recorded as $67 in the ledger.
The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following: A deposit of $6,794.62 was received by the bank on August 31 after the bank statement was prepared. 2. Cheques #251 for $1,200 and#260 for $1,333.25 were not presented to the bank for encashment as at August 31, 2020. 3. The bank erroneously debited a cheque drawn Corey’s Construction as $16,000 instead of $1,600. 4. The company’s accountant recorded a $3,500.00 cheque for payment of accounts payables as $35,000 5. The bank credited a deposit of $200 as $2,000 to Corey’s Construction account. 6. A cheque for $13,500from a customer Ali Woods was returned for insufficient funds. The…
Spielberg Company’s general ledger shows a cash account balance of $23,220 on July 31, 2024. Cash sales of $1,885 for the last three days of the month have not yet been deposited. The bank statement dated July 31 shows bank service fees of $55 and an NSF check from a customer of $250. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,460. The bank statement shows a balance of $22,490 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on July 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.
Hunter Company bank statement indicated a cash balance of $9,610, while the cash 11. chut ledger account on that date shows a balance of $7,430 in July 31. Outstanding checks totaled $2,417. A $500 check mailed to the bank for deposit had not reached the bank at the statement date. The bank returned a customer's NSF check for $225 received as payment of an account receivable. 2016092 FAT 2019302296 The bank statement showed $30 interest earned on 201504 20130022 2019002295 the bank balance for the month of July. 7090022 2019002295 20120