On August 31, 2024, the general ledger of Ballet Shoes shows a balance for cash of $7,864. Cash receipts yet to be deposited intochecking account total $3,380. The company's balance of cash does not reflect a debit card payment for the purchase of postageexpense ($78) or an electronic funds transfer for rent expense ($1,345). The bank statement also revealed the company recorded adebit card transaction for supplies of $403, but the actual amount was $503. These amounts are included in the balance of cash of$2,961 reported by the bank as of the end of August.Required:1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024.2. Record the necessary entry(ies) to adjust the balance for cash.

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

On August 31, 2024, the general ledger of Ballet Shoes shows a balance for cash of $7,864. Cash receipts yet to be deposited in checking account total $3,380. The company's balance of cash does not reflect a debit card payment for the purchase of postag expense ($78) or an electronic funds transfer for rent expense ($1,345). The bank statement also revealed the company recorded debit card transaction for supplies of $403, but the actual amount was $503. These amounts are included in the balance of cash $2,961 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.

On August 31, 2024, the general ledger of Ballet Shoes shows a balance for cash of $7,864. Cash receipts yet to be deposited in checking account total $3,380. The company's balance of cash does not reflect a debit card payment for the purchase of postag expense ($78) or an electronic funds transfer for rent expense ($1,345). The bank statement also revealed the company recorded debit card transaction for supplies of $403, but the actual amount was $503. These amounts are included in the balance of cash $2,961 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 18E

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Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.
mework On August 31, 2024, the general ledger of Ballet Shoes shows a balance for cash of $7,864. Cash receipts yet to be deposited into th checking account total $3,380. The company's balance of cash does not reflect a debit card payment for the purchase of postage expense ($78) or an electronic funds transfer for rent expense ($1,345). The bank statement also revealed the company recorded a debit card transaction for supplies of $403, but the actual amount was $503. These amounts are included in the balance of cash of $2,961 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.
The cash account for Kahn Inc. on November 30, 2018, indicated a balance of $5,699. The bank statement indicated a balance of $13,167 on November 30, 2018. The following reconciling items were discovered.Checks outstanding totaled $5,175. A deposit of $3,842, representing cash receipts of November 30, had been made too late to appear on the bank statement. The bank had collected for Kahn $4,800 on a note left for collection. The face of the note was $4,200. Kahn had recorded a check for $2,040 as a $2,400. The check was for the payment of a 3-year insurance policy. A check for $1,176 had been incorrectly charged by the bank as $176. Bank service charges for November amounted to $25. Required: Prepare the bank reconciliation and journalize the necessary entries.
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On August 31, 2024, Cullumber Company had a cash balance per its books of $26,480. The bank statement on that date showed a balance of $17,260. A comparison of the bank statement with the Cash account revealed the following. 1. 2. 3. 4. 5. 6. (a) The August 31 deposit of $17,150 was not included on the August bank statement. The bank statement shows that Cullumber received EFT deposits from customers on account totalling $2,230 in August. Cullumber has not recorded any of these amounts. Cheque # 673 for $1,470 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,340, and #712 for $2,650. The bank statement showed on August 29 an NSF charge of $688 for a cheque issued by R. King, a customer, in payment of their account. This amount included an $9 service charge by Cullumber's bank. The company's policy is to pass on all NSF service charges to the customer. Bank…
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The cash account for Samson Supplies Co. at April 30, 2014, indicated a balance of $18,885. The bank statement indicated a balance of $23,775 on April 30, 2014. Comparing the bank statement and the accompanying canceled cheques and memos with the records revealed the following reconciling items: Cheques outstanding totaled $7,840 A deposit of $3,580, representing receipts on April 30, had been made too late to appear on the bank statement. The bank collected $3,780 on a note left for collection. The face of the note was $3,600. A cheque for $770 returned with the statement had been incorrectly recorded by Samson Supplies Co. as $700. The cheque was for the payment of an obligation to Copelin Co. for a purchase on account. A cheque drawn for $330 had been erroneously charged by the bank as $3,300. Bank service charges for April amounted to $110. Required: Prepare a bank reconciliation statement for Samson Supplies Co., at April 30. Journalize the necessary entries. Assume that the…
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