On June 30, Marigold Corporation showed a cash balance on their books of $9,426. The bank statement from the company's bank showed a month end balance of $12,254. On reviewing the bank statement, the following items were discovered: 1. A deposit made on June 29 for $1,400 did not appear on the bank statement. 2. Cheques written in the month of June but that did not appear on the bank statement were as follows: Cheque # 159 $1,130 Cheque # 160 23 Cheque # 168 178 Cheque # 170 260 Cheque # 171 970 3. 4. The bank credited Marigold's account for $280 on June 19. This deposit did not belong to Marigold, but belonged to another company and was posted in error. The bank statement showed receipt of a wire transfer of $1,840 in payment of a note receivable, as well as $100 interest. 5. According to the bank statement, $23 was deducted from Marigold's account for service charges. 6. 7. The bank cleared cheque # 152 for $810; however, the cheque was recorded in Marigold's records at $790. Research showed the bank was correct, and the cheque was recorded incorrectly in Marigold's books. The cheque was written in payment of advertising. A cheque for $510 from one of Marigold's customers was rejected by the bank due to insufficient funds (NSF).
On June 30, Marigold Corporation showed a cash balance on their books of $9,426. The bank statement from the company's bank showed a month end balance of $12,254. On reviewing the bank statement, the following items were discovered: 1. A deposit made on June 29 for $1,400 did not appear on the bank statement. 2. Cheques written in the month of June but that did not appear on the bank statement were as follows: Cheque # 159 $1,130 Cheque # 160 23 Cheque # 168 178 Cheque # 170 260 Cheque # 171 970 3. 4. The bank credited Marigold's account for $280 on June 19. This deposit did not belong to Marigold, but belonged to another company and was posted in error. The bank statement showed receipt of a wire transfer of $1,840 in payment of a note receivable, as well as $100 interest. 5. According to the bank statement, $23 was deducted from Marigold's account for service charges. 6. 7. The bank cleared cheque # 152 for $810; however, the cheque was recorded in Marigold's records at $790. Research showed the bank was correct, and the cheque was recorded incorrectly in Marigold's books. The cheque was written in payment of advertising. A cheque for $510 from one of Marigold's customers was rejected by the bank due to insufficient funds (NSF).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 30, Marigold Corporation showed a cash balance on their books of $9,426. The bank statement from the company's bank
showed a month end balance of $12,254. On reviewing the bank statement, the following items were discovered:
1.
A deposit made on June 29 for $1,400 did not appear on the bank statement.
2.
Cheques written in the month of June but that did not appear on the bank statement were as follows:
Cheque # 159
$1,130
Cheque # 160
23
Cheque # 168
178
Cheque # 170
260
Cheque # 171
970
3.
4.
The bank credited Marigold's account for $280 on June 19. This deposit did not belong to Marigold, but belonged to another
company and was posted in error.
The bank statement showed receipt of a wire transfer of $1,840 in payment of a note receivable, as well as $100 interest.
5.
According to the bank statement, $23 was deducted from Marigold's account for service charges.
6.
7.
The bank cleared cheque # 152 for $810; however, the cheque was recorded in Marigold's records at $790. Research showed
the bank was correct, and the cheque was recorded incorrectly in Marigold's books. The cheque was written in payment of
advertising.
A cheque for $510 from one of Marigold's customers was rejected by the bank due to insufficient funds (NSF).
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