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

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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…
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Using the following information: a. The bank statement balance is $2,622. b. The cash account balance is $3,032. c. Outstanding checks amounted to $555. d. Deposits in transit are $835. e. The bank service charge is $121. f. A check for $52 for supplies was recorded as $43 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: A || A %24
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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
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
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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.
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