Prepare the necessary adjusting entries for Ivanhoe Company at May 31, 2017. (Credit account titles are automatically in when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 31 Cash 2756 Notes Receivable (To record collection of note receivable by bank) 31 Accounts Receivable 435 Cash (To record NSF check) 31 Sales Revenue 50 Cash (To correct error in deposit)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Prepare the necessary adjusting entries for Ivanhoe Company at May 31, 2017. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
May 31
Cash
2756
Notes Receivable
2756
(To record collection of note receivable by bank)
31
Accounts Receivable
435
Cash
435
(To record NSF check)
31
Sales Revenue
50
50
Cash
(To correct error in deposit)
18
31
Accounts Payable
18
Cash
(To correct error in recording check)
51
31
Miscellaneous Expense
51
Cash
(To record charge for printing company checks)
Transcribed Image Text:Prepare the necessary adjusting entries for Ivanhoe Company at May 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 31 Cash 2756 Notes Receivable 2756 (To record collection of note receivable by bank) 31 Accounts Receivable 435 Cash 435 (To record NSF check) 31 Sales Revenue 50 50 Cash (To correct error in deposit) 18 31 Accounts Payable 18 Cash (To correct error in recording check) 51 31 Miscellaneous Expense 51 Cash (To record charge for printing company checks)
Ivanhoe Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the
company's Cash account per its general ledger showed a balance of $6,803.90.
The bank statement from Emporia State Bank on that date showed the following balance.
EMPORIA STATE BANK
Checks and Debits
Deposits and Credits
Daily Balance
XXX
XXX
5-31 7,033.00
A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.
1.
The statement included a debit memo of $53.00 for the printing of additional company checks.
Cash sales of $896.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were
incorrectly made for $946.15. The bank credited Ivanhoe Company for the correct amount.
2.
3.
Outstanding checks at May 31 totaled $267.25, and deposits in transit were $1,893.15.
On May 18, the company issued check No. 1181 for $686.00 to H. Moses, on account. The check, which cleared the bank in
May, was incorrectly journalized and posted by Ivanhoe Company for $668.00.
4.
5.
A $2,768.00 note receivable was collected by the bank for Ivanhoe Company on May 31 through electronic funds transfer.
Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $347.00 that was incorrectly
charged to Ivanhoe Company by the bank.
6.
7.
On May 31, the bank statement showed an NSF charge of $445.00 for a check issued by Sara Ballard, a customer, to Ivanhoe
Company on account.
Transcribed Image Text:Ivanhoe Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company's Cash account per its general ledger showed a balance of $6,803.90. The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 7,033.00 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $53.00 for the printing of additional company checks. Cash sales of $896.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $946.15. The bank credited Ivanhoe Company for the correct amount. 2. 3. Outstanding checks at May 31 totaled $267.25, and deposits in transit were $1,893.15. On May 18, the company issued check No. 1181 for $686.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Ivanhoe Company for $668.00. 4. 5. A $2,768.00 note receivable was collected by the bank for Ivanhoe Company on May 31 through electronic funds transfer. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $347.00 that was incorrectly charged to Ivanhoe Company by the bank. 6. 7. On May 31, the bank statement showed an NSF charge of $445.00 for a check issued by Sara Ballard, a customer, to Ivanhoe Company on account.
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