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following deta November 30 following:

following deta November 30 following:

FINANCIAL ACCOUNTING
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 December 7, Brown Company received a checking account from Bank X with the following details: the balance as of November 30, 2000, $115,000. The balance as of November 30 according to company records was $116,765. The difference is caused by the following: 1. Interest income (current account) for November of $8,000 and bank administration fees of $500. 2. On November 30, there was a transfer from out of town in the amount of $15,000 but it has not yet appeared in the current account. 3. A check from Axel inc for $6,000 was rejected by the Bank because there were not enough funds. 4. A total of three checks issued by the company that have not appeared in the checking account, namely check number 100 $2,100, check number 105 $2,700, and check number 107 $2,400. 5. The company's note with a nominal value of $9,500, 5% interest, with a term of 3 months has matured on November 25. The note has been invoiced by the bank and the company is charged a collection fee of $1,000. 6. A check received from mr william for $2,250 was recorded by $2,520 7. Electricity, water and telephone charges have been paid through a bank account (auyo debit) worth $4,350 but have not been recorded by the company. 8. A check issued by Stone Company for $6,500 was incorrectly charged by the bank to the account of Brown Company. 9. On November 27, there was a sale with a $5,500 debit card that had not been recorded by the company. REQUESTED: 1. Prepare a bank reconciliation for Brown Company 2. Prepare the adjusting entries required by Brown Company (Note: do it in a complete way).
Transcribed Image Text:On December 7, Brown Company received a checking account from Bank X with the following details: the balance as of November 30, 2000, $115,000. The balance as of November 30 according to company records was $116,765. The difference is caused by the following: 1. Interest income (current account) for November of $8,000 and bank administration fees of $500. 2. On November 30, there was a transfer from out of town in the amount of $15,000 but it has not yet appeared in the current account. 3. A check from Axel inc for $6,000 was rejected by the Bank because there were not enough funds. 4. A total of three checks issued by the company that have not appeared in the checking account, namely check number 100 $2,100, check number 105 $2,700, and check number 107 $2,400. 5. The company's note with a nominal value of $9,500, 5% interest, with a term of 3 months has matured on November 25. The note has been invoiced by the bank and the company is charged a collection fee of $1,000. 6. A check received from mr william for $2,250 was recorded by $2,520 7. Electricity, water and telephone charges have been paid through a bank account (auyo debit) worth $4,350 but have not been recorded by the company. 8. A check issued by Stone Company for $6,500 was incorrectly charged by the bank to the account of Brown Company. 9. On November 27, there was a sale with a $5,500 debit card that had not been recorded by the company. REQUESTED: 1. Prepare a bank reconciliation for Brown Company 2. Prepare the adjusting entries required by Brown Company (Note: do it in a complete way).
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