On December 31, 2020 Buttercup Company had a cash balance per books of $10,922.25. The bank statement from Tampa Savings Bank on that date showed a balance of $10,356.90. A comparison of statement with the cash account revealed the following facts: a. Deposits in transit were$11,663.10.10. b. Outstanding checks at December 31 totaled $1,750.875. c. On December 31, the bank statement showed on NSF charge of 1006.50 for a check issued by Charlie Holston, a customer, to Buttercup Company on account. d. A $5,383.50 note receivable was collected by the bank for buttercup Company. The bank charged a collection fee of $43.50. e. Cash sales of $1,474.50 on December 20 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $1,399.50. The bank credited Buttercup Company for the correct amount. f. A $3,750 note receivable was collected by the bank for Bollywood Company. The bank charged a collection fee of $26.625. However the bank incorrectly credited the collected amount and charged the collection fee from Buttercup Company. g. A $1,250 note receivable was collected by the bank for Buttercup Company. However the bank incorrectly credited the collected amount and charged a collection fee of $ 35.50 from Bollywood Company. Required: a. Prepare the bank reconciliation statement dated December 31 2020, proceeding to a correct cash balance. b. Prepare any entries necessary to make the books correct and complete.
On December 31, 2020 Buttercup Company had a cash balance per books of $10,922.25. The bank statement from Tampa Savings Bank on that date showed a balance of $10,356.90. A comparison of statement with the cash account revealed the following facts: a. Deposits in transit were$11,663.10.10. b. Outstanding checks at December 31 totaled $1,750.875. c. On December 31, the bank statement showed on NSF charge of 1006.50 for a check issued by Charlie Holston, a customer, to Buttercup Company on account. d. A $5,383.50 note receivable was collected by the bank for buttercup Company. The bank charged a collection fee of $43.50. e. Cash sales of $1,474.50 on December 20 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $1,399.50. The bank credited Buttercup Company for the correct amount. f. A $3,750 note receivable was collected by the bank for Bollywood Company. The bank charged a collection fee of $26.625. However the bank incorrectly credited the collected amount and charged the collection fee from Buttercup Company. g. A $1,250 note receivable was collected by the bank for Buttercup Company. However the bank incorrectly credited the collected amount and charged a collection fee of $ 35.50 from Bollywood Company. Required: a. Prepare the bank reconciliation statement dated December 31 2020, proceeding to a correct cash balance. b. Prepare any entries necessary to make the books correct and complete.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please make it book balance of cash and bank balance of cash clearly
Transcribed Image Text:On December 31, 2020 Buttercup Company had a cash balance per books of $10,922.25. The bank statement from
Tampa Savings Bank on that date showed a balance of $10,356.90. A comparison of statement with the cash account
revealed the following facts:
a. Deposits in transit were$11,663.10.10.
b. Outstanding checks at December 31 totaled $1,750.875.
c. On December 31, the bank statement showed on NSF charge of 1006.50 for a check issued by Charlie Holston, a
customer, to Buttercup Company on account.
d. A $5,383.50 note receivable was collected by the bank for buttercup Company. The bank charged a collection fee
of $43.50.
e. Cash sales of $1,474.50 on December 20 were deposited in the bank. The cash receipts journal entry and the
deposit slip were incorrectly made for $1,399.50. The bank credited Buttercup Company for the correct amount.
f. A $3,750 note receivable was collected by the bank for Bollywood Company. The bank charged a collection fee of
$26.625. However the bank incorrectly credited the collected amount and charged the collection fee from
Buttercup Company.
g. A $1,250 note receivable was collected by the bank for Buttercup Company. However the bank incorrectly
credited the collected amount and charged a collection fee of $ 35.50
from Bollywood Company.
Required:
a. Prepare the bank reconciliation statement dated December 31 2020, proceeding to a correct cash balance.
b. Prepare any entries necessary to make the books correct and complete.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education