Domingo CompanyBank ReconciliationBank Statement Balance at (date)9,347Add:Deposits in Transit800Less:Outstanding Check #104Outstanding Check #1051,250600Outstanding Check #10730Adjusted Bank BalanceBook Balance at (date)Less:Bank Service Charges100Adjusted Book Balance%24%24%24 Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May.A. The owners invested $10,000 from their personal account to the business account.B. Paid rent $500 with check #101.C. Initiated a petty cash fund $500 with check #102.D. Received $1,100 cash for services rendered.E. Purchased office supplies for $158 with check #103.F. Purchased computer equipment $2,500, paid $1,250 with check #104, and will pay the remainder in 30 days.G. Received $800 cash for services rendered.H. Paid wages $600, check #105.I. Petty cash reimbursement: office supplies $256, maintenance expense $110, postage expense $79, miscellaneous expense $57. Cash on hand $5. Check #106.J. Increased petty cash by $30, check #107.Domingo Company received the following bank statement.Bank StatementBeginning balance$0DepositsChecksА.$10,000101$500D.1,100102500103158106495Bank service charges100Total11,1001,753Ending balance$9,347Prepare the bank reconciliation.

The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Answered: Domingo Company started its business on…

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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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
McGuire Corporation began operations in 2024. The company purchases computer equipment from manufacturers and then sells to retail stores. During 2024, the bookkeeper used a check register to record all cash receipts and cash disbursements. No other journals were used. The following is a recap of the cash receipts and disbursements made during the year. Cash receipts: Issue of common stock $ 37,500 Collections from customers 265,000 Borrowed from local bank on April 1, note signed requiring principal and interest at 12% to be paid on March 31, 2025 23,000 Total cash receipts $ 325,500 Cash disbursements: Purchase of inventory $ 167,500 Payment of salaries 59,500 Purchase of office equipment 22,500 Payment of rent on building 7,750 Miscellaneous expense 8,900 Total cash disbursements $ 266,150 You are called in to prepare financial statements on December 31, 2024. The following additional information was provided to you: Customers owed the company…
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 $.…
Indicate the impact each transaction had on net income.Prepare the journal entries for each of the petty cash transactions.This is a 2 part question. Clark Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May. May 1 Prepared a company check for $450 to establish the petty cash fund. May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. May 15 a. Paid $160 for janitorial services. May 15 b. Paid $120 for miscellaneous expenses. May 15 c. Paid postage expenses of $80. May 15 d. Paid $ 41 to Facebook for advertising expense. May 15 e. Counted $63 remaining in the petty cash box. May 16 Prepared a company check for $150 to increase the fund to $600. May 31 The petty cashier reports that $ 240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. May 31 f. Paid postage expenses of $205. May…
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Rick Hall owns a card shop, Hall’s Cards. The following cash information is available for the month of August, Year 3.As of August 31, the bank statement shows a balance of $11,365. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $7,875. A review of the bank statement revealed the following information: A deposit of $1,960 on August 31, Year 3, does not appear on the August bank statement. It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $2,830 but was recorded on the books as $3,730. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,600 were found to be outstanding. A debit memo for $50 was included in the bank statement for the purchase of a new supply of checks. Required Prepare a bank reconciliation at the end of August showing the true cash balance. (Negative amounts should be indicated with minus sign.) HALL'S CARDS…
Prepare journal entries for the following transactions, using the accounts in the order listed: PLEASE NOTE: For similar accounting treatment (DR or CR), you are to record accounts in the order in which they are mentioned in the transactions. On June 1, Kellie Company had decided to initiate a petty cash fund in the amount of $1,200. DR CR On June 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38. DR DR DR DR DR DR or CR? CR On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $80. DR DR DR DR DR DR or CR?…
The petty cash custodian reported the following transactions during the month. Prepare the journalentry to record the replenishment of the fund.A $10 cash payment is made to Starbucks to purchase coffee for a business client, a $40 cashpayment is made for supplies purchased from Office Depot, and a $30 cash payment is made toUPS to deliver goods to a customer
Jessie has a cash account per general ledger that shows a balance of $78,659 atOctober 31, 2021. Bank statement from Ocean Paradise Bank on that dateshows the following date shows the following balance. 31 October Amount $88,080 Comparison of checking account details with cash account details reveals factsas follows.1. A note receivable of $13,070 was invoiced by the bank for Jessie on the 14thOctober plus $713 interest and the bank has charged $137 on the billing. No interest has been recognized on these notes.2. Check No. 175 the amount of $5,741 was entered in the cash journal as $5,471and Check No. 189 of $2,040 was entered in the cash journal as$2,400. Both checks have been issued to pay for the purchase of supplies.3. The bank has charged Jessie account. for customer unbilled checks amounting to $789 on October 23. 4. Deposit in progress is $7,388 and outstanding check no. 123 on October 28totaling $5,309.5. There was a canceled check issued by Kenny to Leo for $2,079 that was…
[The following information applies to the questions displayed below.] Rick Hall owns a card shop: Hall’s Cards. The following cash information is available for the month of August Year 1. As of August 31, the bank statement shows a balance of $13,250. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $9,564. A review of the bank statement revealed the following information: A deposit of $1,250 on August 31, Year 1, does not appear on the August bank statement. It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $1,750 but was recorded on the books as $2,650. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,095 were found to be outstanding. A debit memo for $59 was included in the bank statement for the purchase of a new supply of checks. Section A: Record the entry to correct the error created while recording check for inventory. Section B: Record…

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