Perform a bank reconciliation. a) Reconcile Jack Steel’s month end cash balance as of 31 Jul 2019 b) Based on your analysis, propose adjusting entries (if any). Transactions and balances: • 31 Jul 2019 Bank Statement balance $ 58,791 • 31 Jul 2019 balance per Jack’s records $ 57,371 • Jack received a payment that he has not deposited $ 250 • Jack issued a cheque payable to Pandora’s Jewels to pay for a belated Mother’s Day gift to his grandmother that has not been presented to the bank $ 1,612 • Bank charges for the month of July were $40 • Interest on bank balance credited to Jack’s account $ 98
Perform a bank reconciliation.
a) Reconcile Jack Steel’s month end cash balance as of 31 Jul 2019
b) Based on your analysis, propose
Transactions and balances:
• 31 Jul 2019 Bank Statement balance $ 58,791
• 31 Jul 2019 balance per Jack’s records $ 57,371
• Jack received a payment that he has not deposited $ 250
• Jack issued a cheque payable to Pandora’s Jewels to pay for a belated Mother’s Day gift to his grandmother that has not been presented to the bank $ 1,612
• Bank charges for the month of July were $40
• Interest on bank balance credited to Jack’s account $ 98
|
Peakhurst Limited had the following |
Credit $ |
|
Cash |
200 000 |
|
|
600 000 |
|
Inventory |
700 000 |
|
Prepaid insurance |
60 000 |
|
Prepaid rent |
50 000 |
|
Equipment |
1 000 000 |
|
Allowance for doubtful debt |
20 000 |
|
|
200 000 |
|
Accounts payable |
500 000 |
|
Revenue received in advance |
100 000 |
|
Income tax payable |
500 000 |
|
Loan |
570 000 |
|
Share capital |
400 000 |
|
Retained profits |
320 000 |
|
2 610 000 |
2 610 000 |
You are given the following additional information for the year ended 31 December 2016:
- a)
Bad debts of $8000 were written off.
- b) It was decided that allowance for doubtful debts should be 4 per cent of accounts receivable.
Required:
1) Prepare
2) Show the T-ledger accounts for the following for the year ended 31 December 2016:
- a) accounts receivable
- b) allowance for doubtful debts
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