The following information relates to the month of August for XYZ Inc. Prepare the bank reconciliation.Date1 Aug 31Aug 31Aug 28Aug 27Aug 31Aug 31234567Aug 1-318 Aug 319Aug 3110Aug 31InformationMultiple ChoiceBank statement balance $3,490Bank statement reflects bank fees for the month $35NSF cheque $100 with fee of $10.Bank statement reflects paper statement fee $80Bank statement reflects interest earned on balance $8$1,000 note receivable collected by bank and deposited into XYZ'saccount. Related bank fee is $40.XYZ wrote cheques with total value over $60,000. As of Aug 31 $3,021of the cheques written have not cleared the bank. Also, $200 chequeswritten back in June have still not cleared the bank.Deposits in transit $1,450The GL reflects cash sales of $145. The bank statement reflectsdeposits related to these sales of $154. XYZ incorrectly recorded$145.General ledger cash account reflects $967Which of the following journal entries is required after the bank reconciliation has been prepared? Gandolph Company is a small business with a bookkeeper that uses the direct write off method for handling bad debts during theyear. It only produces annual financial statements and hires an accounting firm at year end to come in and make the necessary accrualentries required to produce GAAP financials to satisfy its bank loan covenants.Before adjustments the ending balance of Accounts Receivables is $19,313. During the year it wrote off three accounts for $355, $546and $505 that were due for more than 600 days. At year end the professional accountants decided that additional receivables of$423 will become uncollectible.Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported in the annual Income Statement? $Required 2: Assuming no other transaction happened, what is the adjusted balance of Accounts Receivables at year end? $Required 3: Assuming no other transaction happened, by how much was last year Net Income overstated because the Allowancemethod was not used? $

There are two independent questions here. The first question was missing the answer choices. Hence,…

Gandolph Company is a small business with a bookkeeper that uses the direct write off method for handling bad debts during the year. It only produces annual financial statements and hires an accounting firm at year end to come in and make the necessary accrual entries required to produce GAAP financials to satisfy its bank loan covenants. Before adjustments the ending balance of Accounts Receivables is $19,313. During the year it wrote off three accounts for $355, $546 and $505 that were due for more than 600 days. At year end the professional accountants decided that additional receivables of $423 will become uncollectible.

Gandolph Company is a small business with a bookkeeper that uses the direct write off method for handling bad debts during the year. It only produces annual financial statements and hires an accounting firm at year end to come in and make the necessary accrual entries required to produce GAAP financials to satisfy its bank loan covenants. Before adjustments the ending balance of Accounts Receivables is $19,313. During the year it wrote off three accounts for $355, $546 and $505 that were due for more than 600 days. At year end the professional accountants decided that additional receivables of $423 will become uncollectible.

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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