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LMN Company has a June 30 year-end and maintains three bank accounts: City Bank-Regular, City Bank-Payroll, and Metro Bank- Special. Your analysis of cash disbursements records for the period June 23 to July 6 reveals the following bank transfers: Check No. Date of Check 2476 June 23 2890 June 25 June 28 June 29 June 30 June 30 3140 A1006 A1245 3402 Bank Drawn On Payee Regular Regular Regular Special Special Regular Amount Payroll $100,000 Payroll 200,000 Special 100,000 Payroll 50,000 Regular 25,000 Special 125,000 You determine the following facts about each of the first five checks: (1) the date of the cash disbursements journal entry is the same as the date of the check (2) the payee receives the check two days later, (3) the payee records and deposits the check on the day it is received, and (4) it takes five days for a deposited check to clear banking channels and be paid by the bank on which it is drawn. Check 3402 was not recorded as a disbursement until July 1. This check was picked up by the payee on the date it was issued, and it was included in the payee's after-hours bank deposit on June 30. Prepare separate adjusting entries for any checks that require adjustment. (List all debit entries before credit entries. Credit account

LMN Company has a June 30 year-end and maintains three bank accounts: City Bank-Regular, City Bank-Payroll, and Metro Bank- Special. Your analysis of cash disbursements records for the period June 23 to July 6 reveals the following bank transfers: Check No. Date of Check 2476 June 23 2890 June 25 June 28 June 29 June 30 June 30 3140 A1006 A1245 3402 Bank Drawn On Payee Regular Regular Regular Special Special Regular Amount Payroll $100,000 Payroll 200,000 Special 100,000 Payroll 50,000 Regular 25,000 Special 125,000 You determine the following facts about each of the first five checks: (1) the date of the cash disbursements journal entry is the same as the date of the check (2) the payee receives the check two days later, (3) the payee records and deposits the check on the day it is received, and (4) it takes five days for a deposited check to clear banking channels and be paid by the bank on which it is drawn. Check 3402 was not recorded as a disbursement until July 1. This check was picked up by the payee on the date it was issued, and it was included in the payee's after-hours bank deposit on June 30. Prepare separate adjusting entries for any checks that require adjustment. (List all debit entries before credit entries. Credit account

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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LMN Company has a June 30 year-end and maintains three bank accounts: City Bank-Regular, City Bank-Payroll, and Metro Bank- Special. Your analysis of cash disbursements records for the period June 23 to July 6 reveals the following bank transfers: Check No. 2476 2890 3140 A1006 A1245 3402 Date of Check June 23 June 25 June 28 June 29 June 30 June 30 Bank Drawn On Regular Regular Regular Special Special Regular Payee Payroll Payroll Special Payroll Regular Special Account Titles and Explanation You determine the following facts about each of the first five checks: (1) the date of the cash disbursements journal entry is the same as the date of the check (2) the payee receives the check two days later, (3) the payee records and deposits the check on the day it is received, and (4) it takes five days for a deposited check to clear banking channels and be paid by the bank on which it is drawn. Check 3402 was not recorded as a disbursement until July 1. This check was picked up by the payee on the date it was issued, and it was included in the payee's after-hours bank deposit on June 30. Amount $100,000 200,000 100,000 50,000 25,000 Prepare separate adjusting entries for any checks that require adjustment. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Bank Clearing City Bank-Payroll Account City Bank - Regular Account City Bank -Special Account (To record adjusting entry for due to Metro Bank-Special Account) (To record adjusting entry for due to Metro Bank special Account.) 125,000 e from Metro Bank-Special Debit Credit 10 11
Transcribed Image Text:LMN Company has a June 30 year-end and maintains three bank accounts: City Bank-Regular, City Bank-Payroll, and Metro Bank- Special. Your analysis of cash disbursements records for the period June 23 to July 6 reveals the following bank transfers: Check No. 2476 2890 3140 A1006 A1245 3402 Date of Check June 23 June 25 June 28 June 29 June 30 June 30 Bank Drawn On Regular Regular Regular Special Special Regular Payee Payroll Payroll Special Payroll Regular Special Account Titles and Explanation You determine the following facts about each of the first five checks: (1) the date of the cash disbursements journal entry is the same as the date of the check (2) the payee receives the check two days later, (3) the payee records and deposits the check on the day it is received, and (4) it takes five days for a deposited check to clear banking channels and be paid by the bank on which it is drawn. Check 3402 was not recorded as a disbursement until July 1. This check was picked up by the payee on the date it was issued, and it was included in the payee's after-hours bank deposit on June 30. Amount $100,000 200,000 100,000 50,000 25,000 Prepare separate adjusting entries for any checks that require adjustment. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Bank Clearing City Bank-Payroll Account City Bank - Regular Account City Bank -Special Account (To record adjusting entry for due to Metro Bank-Special Account) (To record adjusting entry for due to Metro Bank special Account.) 125,000 e from Metro Bank-Special Debit Credit 10 11
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