oblem 3-8 (IAA) Jargon Company provided the following data concerning the cash records for the months of September and October: September 30 October 31 Book balance 1,900,000 ? 1,400,000 2,400,000 Total cash receipts per book Total cash disbursements per book Bank balance 2,100,000 ? Total charges in bank statement Total credits in bank statement 2,500,000 1,200,000 40,000 NSF check 60,000 Collections of accounts receivable not recorded by entity and corrected in subsequent month Overstatement of check in 30,000 50,000 payment of salaries corrected in subsequent month 90,000 120,000 260,000 30,000 Deposit in transit Outstanding checks 130,000 270,000 Required: a. Prepare a four-column reconciliation showing adjusted balances. b. Prepare adjusting entries on October 31.
Problem 3-8 (IAA)
Jargon Company provided the following data concerning the cash records for the months of September and October:
September 30
October 31
Book balance
1,900,000
? 1,400,000 2,400,000
Total cash receipts per book Total cash disbursements per book
Bank balance
2,100,000
?
Total charges in bank statement Total credits in bank statement
2,500,000 1,200,000
40,000
NSF check
60,000
Collections of
30,000
50,000
payment of salaries corrected in subsequent month
90,000
120,000 260,000 30,000
Deposit in transit Outstanding checks
130,000 270,000
Required:
a. Prepare a four-column reconciliation showing adjusted balances.
b. Prepare
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
