Pathetic Company revealed the following facts on August 31: Balance of cash in bank account Balance of bank statement Outstanding checks, August 31: Number 555 1,300,000 1,200,000 10,000 55,000 40,000 25,000 65,000 70,000 275,000 761 762 763 764 765 Receipts of August 31, deposited September 1 1 The bank statement showed the following charges: a. Service charge for August b. NSF check received from a customer 5,000 85,000 The cashier-bookkeeper had misappropriated P30,000 and an additional P10,000 by charging sales discounts and crediting accounts receivable. The stub for check number 765 and the invoice relating thereto show that it was for P50,000. The check was recorded incorrectly in the cash disbursements journal as P70,000. The check was drawn in payment of an account payable. Payment has been stopped on check number 555 which was drawn in payment of an account payable. The payee cannot be located. Required: a. Prepare a bank reconciliation on August 31 using the adjusted balance method. b. Prepare adjusting entries to correct the cash in bank account on August 31.

Pathetic Company revealed the following facts on August 31: Balance of cash in bank account Balance of bank statement Outstanding checks, August 31: Number 555 1,300,000 1,200,000 10,000 55,000 40,000 25,000 65,000 70,000 275,000 761 762 763 764 765 Receipts of August 31, deposited September 1 1 The bank statement showed the following charges: a. Service charge for August b. NSF check received from a customer 5,000 85,000 The cashier-bookkeeper had misappropriated P30,000 and an additional P10,000 by charging sales discounts and crediting accounts receivable. The stub for check number 765 and the invoice relating thereto show that it was for P50,000. The check was recorded incorrectly in the cash disbursements journal as P70,000. The check was drawn in payment of an account payable. Payment has been stopped on check number 555 which was drawn in payment of an account payable. The payee cannot be located. Required: a. Prepare a bank reconciliation on August 31 using the adjusted balance method. b. Prepare adjusting entries to correct the cash in bank account on August 31.

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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The treasurer preparing the October bank reconciliation identified the following items: Cash balance per the company's records $32,700, Deposits in Transit $4,300, Outstanding Checks $2,200, Interest earned on the checking account $200, Customer NSF check $400. What is the company's adjusted cash balance at Oct. 31? A. $34,900 B. $32,700 C. $32,500 D. $34,800
The following data were accumulated for use in reconciling the bank account for Mathers Co. For July: 1. Cash balance according to the company's record at July 31, $25,470. 2. Cash balance according to the bank statement at July 31, $26,890. 3. Checks outstanding, $5,170. 4. Deposit in transit, not record it by bank, $4,150. 5.a check for a $270 and payment of an account was erroneously recorded in the check register at $720. 6. Bank debit memo for service charges, $50. Journalize the entries that should be made up by the company, part (a )error and part ( b) service charge A. July 31 _______ _______ B. July 31 ______ _____
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