Problem 2 Deposit in Transit In your audit of the cash account of Karen Mae Company, you have ascertained the following data relative to the debits per books and Credits per bank: Book debit in February 400,000 Bank credits in February 360,000 CM for interest earned in January but taken up in the books in February CM for interest in February but taken up in the books in March 5,000 6,000 Check from customer in January amounting to P40,000 but was taken up in the books as 4,000 Check from customer in February amounting P20,000 but was taken up In the books as 4,000 Check by the company issued to supplier in January amounting to P3,000

Problem 2 Deposit in Transit In your audit of the cash account of Karen Mae Company, you have ascertained the following data relative to the debits per books and Credits per bank: Book debit in February 400,000 Bank credits in February 360,000 CM for interest earned in January but taken up in the books in February CM for interest in February but taken up in the books in March 5,000 6,000 Check from customer in January amounting to P40,000 but was taken up in the books as 4,000 Check from customer in February amounting P20,000 but was taken up In the books as 4,000 Check by the company issued to supplier in January amounting to P3,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $7,000, deposits outstanding of $7,500, NSF check of $200, and service fee of $25 and a $1,200 note receivable collected by the bank. Calculate the correct balance of cash: $ 2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account? 2$ 3 The company had $30,000 of inventory on December 31, Year 2. During the year they purchased $650,000 and cost of goods was $640,000. What was the company's beginning inventory for Year 2? $ 4 Use the following to…
Instructions Labels and Amount Descriptions The cash account for Norwegian Medical Co. at April 30 indicated a balance of $82,726. The bank statement indicated a balance of $128,040 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Labels April 30 For the Month Ended April 30 Amount Descriptions a. Checks outstanding totaled $34,090. b. A deposit of $18,430, representing receipts of April 30, had been made too late to appear on the bank statement. Bank error in charging check as $370 instead of $730 Bank error in charging check as $730 instead of $370 Bank service charges c. The bank collected $31,779 on a $29,700 note, including interest of $2,079. d. A check for $1,900 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $190. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. Check for $730 returned because…
1
QUESTIONS:Based on the above and result of your audit, determine the following: Cash receipts per bank in May
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
Using the following information: The bank statement balance is $4,256. The cash account balance is $4,421. Outstanding checks amounted to $878. Deposits in transit are $1,008. The bank service charge is $26. A check for $35 for supplies was recorded as $26 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co.Bank ReconciliationMay 31 Cash balance according to bank statement $fill in the blank 1 Adjustments: $fill in the blank 3 fill in the blank 5 Total adjustments fill in the blank 6 Adjusted balance $fill in the blank 7 Cash balance according to company's records $fill in the blank 8 Adjustments: $fill in the blank 10 fill in the blank 12 Total adjustments fill in the blank 13 Adjusted balance $fill in the blank 14
Bank Reconciliation The cash account of Dixon Products reveals the following information: Cash Balance, 4/30 11,180 Deposits during May 37,600 41,620 Checks written during May The bank statement for May contains the following information: Bank balance, 4/30 $11,130 Add: Deposits during May 37,250 $48,380 Less: Checks paid during May $40,230 NSF check from Frolin, Inc. 190 Bank service charges 40 40,460 Bank balance, 5/31 $7,920 A comparison of detailed company records with the bank statement indicates the following information: At 4/30 At 5/31 Deposit in transit $800 $1,150 Outstanding checks 750 2,140 The bank amounts are determined to be correct. Required: Question Content Area 1. Prepare a bank reconciliation for May. Dixon ProductsBank Reconciliation ScheduleMay 31 Cash balance from bank statement $fill in the blank d0c52ff9c02b042_1 - Select - - Select - Adjusted…
BANK RECONCILIATION Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in night depository, after banking hours. The data required to reconcile the bank statement as of June 30 have been taken from various documenta and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account. CASH ACCOUNT: Balance as of June 1 CASH RECEIPTS FOR THE MONTH OF JUNE DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June Date June Amount 1,080.50 Date Amount Date Amount June 10 996.61 June 2. 897.34 3. 854.17 15 882.95 24 947.21 8. 840.50 17 1606.74 30 1117.74 CHECKS WRITTEN: Number and amount of each check issued in June: Check No. Amount Check No. Amount 747 Check Nc Amount 449.75 740 237,50 Void 754 495.15 755 272.75 113.95 407.95 741 748 450.90 742 501.90 749 640.13 756 750 743 744 761.30 506.88 276.77 757 758 759 259.60 751 752 299.37 901.50 486.39 537.01 745 746 117.25 298.66…
Prepare a bank reconcilation going from balance per bank and balance per book to correct cash balance. Outstanding checks from the June reconcilation cleared the bank in July.
Karen Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records. June 30 Bank Reconciliation Balance per bank $25,200 Add: Deposits in transit 5,544 Deduct: Outstanding checks (7,200 ) Balance per books $23,544 Month of July Results Per Bank Per Books Balance July 31 $31,140 $33,300 July deposits 16,200 20,916 July checks 14,400 11,160 July note collected (not included in July deposits) 5,400 July bank service charge 54 July NSF check from a customer, returned by the bank (recorded by bank as a charge) 1,206 (a) Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.
Question Content Area Using the following information: The bank statement balance is $5,065. The cash account balance is $5,459. Outstanding checks amounted to $866. Deposits in transit are $1,191. The bank service charge is $60. A check for $34 for supplies was recorded as $25 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co. Bank Reconciliation May 31 Cash balance according to bank statement $fill in the blank 1 Adjustments: $- Select - - Select - Total adjustments fill in the blank 6 Adjusted balance $fill in the blank 7 Cash balance according to company's records $fill in the blank 8 Adjustments: $- Select - - Select - Total adjustments fill in the blank 13 Adjusted balance $fill in the blank 14
Bank Reconciliation and Related Journal Entries The book balance in the checking account of Lyle's Salon as of November 30 is $3,282.95. The bank statement shows an ending balance of $2,127. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, and noting the service charges and other debit and credit memos shown on the bank statement, the following were found: An ATM withdrawal of $150 on November 18 by Lyle for personal use was not recorded on the books. A bank debit memo issued for an NSF check from a customer of $19.50. A bank credit memo issued for interest of $19 earned during the month. On November 30, a deposit of $1,177 was made, which is not shown on the bank statement. A bank debit memo issued for $17.50 for bank service charges. Checks No. 549, 561, and 562 for the amounts of $185, $21, and $9.40, respectively, were written during November but have not yet been received by the bank. The reconciliation…