Sensible Company provided the following ledger account of thecash in bank maintained with Second Bank:Problem 2-2 (IAA)Dec. 1 Balance6 Deposit12 Deposit24 Deposit31 DepositSECOND BANK100,00030,00040,00050,00060,00020,0005,00035,00015,00030,000776 25,00040,000Dec. 1 Check No. 7717724.6.77377477510141824777The following bank statement was received from the SecondBank by Sensible Company.ChecksDepositsBalanceDateDec. 1 BalanceCheck No.130,00076810,00020,0005,00035,00015,00052,0008,00010,0005,00017714.6.1277277377430,00040,0007761250,00045,000 CM10422428 NSF check28 Service charge Other information1. Sensible Company reconciled its bank balance onNovember 30 with two checks, No. 768 for P10,000 andNo. 770 for P20,000 outstanding.2. Check No. 1042 was drawn by Sensitive Company.The bank charged it in error to the account of SensibleCompany.3. Check No. 776 was correctly drawn for P52,000 in paymentof account.The amount P25,000 was entered in the books of originalentry.4. The bank credit on December 28 represents the proceedsof a P50,000 note, less a collection fee of P5,000 collectedby the bank and credited to the account.5 The NSF check was received from a customer in paymentof account.Required:a Prepare a bank reconciliation statement on December 31.b. Prepare adjusting entries on December 31.

Sensible Company provided the following ledger account of the cash in bank maintained with Second Bank: Problem 2-2 (IAA) Sensible Company provided the following ledger account of the SECOND BANK Dec. 1 Balance 6 Deposit 12 Deposit 24 Deposit 31 Deposit 100,000 30,000 40,000 50,000. 60,000 772 5,000 773 35,000 774 15,000 775 30,000 776 - 25,000 777 40,000 Dec. 1 Check No. 771 20,000 4. 10 14 18 24 The following bank statement was received from the Second Bank by Sensible Company. Balance 130,000 Date Checks Deposits Dec. 1 Balance Check No. 10,000 20,000 5,000 35,000 15,000 52,000 8,000 10,000 5,000 768 771 772 773 774 776 1042 4 6. 30,000 40,000 12 12 24 50,000 45,000 CM 28 NSF check 28 Service charge

Sensible Company provided the following ledger account of the cash in bank maintained with Second Bank: Problem 2-2 (IAA) Sensible Company provided the following ledger account of the SECOND BANK Dec. 1 Balance 6 Deposit 12 Deposit 24 Deposit 31 Deposit 100,000 30,000 40,000 50,000. 60,000 772 5,000 773 35,000 774 15,000 775 30,000 776 - 25,000 777 40,000 Dec. 1 Check No. 771 20,000 4. 10 14 18 24 The following bank statement was received from the Second Bank by Sensible Company. Balance 130,000 Date Checks Deposits Dec. 1 Balance Check No. 10,000 20,000 5,000 35,000 15,000 52,000 8,000 10,000 5,000 768 771 772 773 774 776 1042 4 6. 30,000 40,000 12 12 24 50,000 45,000 CM 28 NSF check 28 Service charge

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

aj.2
REQUIRED: Prepare a proof of cash using book to bank method
From the give Problem 2, What is the adjusted cash in bank on December 31?
Please show me a solution of correct amount of cash in bank to be presented in the balance sheet.
Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,672 debit balance, but its July bank statement shows a $27,829 cash balance. b. Check No. 3031 for $1,430, Check No. 3065 for $491, and Check No. 3069 for $2,198 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230. d. The July bank statement shows the bank collected $10,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $15 bank service charge. It has…
Control Features of a Bank Account: Reconciling the Bank Account (Entries from Bank Reco Knowledge Check A bank reconciliation from Ware, Inc. is provided here. Cash balance per bank statement Add: Deposits in transit $18,200 2,100 20,300 Less: Outstanding checks 1,050 Adjusted cash balance per bank 19,250 Cash balance per books 17,000 Add: Electronic funds transfer received $2,650 Interest earned 30 2,680 19,680 Less: NSF check-J. King 400 Bank charges 30 430 Adjusted cash balance per books $19,250 Prepare all necessary journal entries as a result of the bank reconciliation. (List all debit entries before credit entries. Credi titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Nov 30 Cash Debit Credit
Current Attempt in Progress Identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank reconciliation. 1. 2 3. 4. 5. EFT transfer to a supplier. Bank service charge. Check printing charge. Error recording check # 214 which was written for $260 but recorded for $620. Collection of note and interest by the bank on the company's behalf.
QUESTION 9 The Gatedown Company's bank statement has an ending cash balance of $14,110.00. The cash account in the general ledger has a balance of $12,477.00. Based on the following reconciling items, prepare a bank reconciliation. a) Bank service charge of $20.00 b) Deposit in transit $3,190.00 c) A check was returned NSF $645.00 d) Outstanding check $688.00 e) Note collected by the bank, credit memoranda, $4,800.00 What is the total of subtractions to arrive at the book balance? A) 645.00 B) 555.00
For each of the following independent situations, prepare journal entries to record the initial transaction on December 31 and the adjustment required on January 31.a. Magnificent Magazines received $12,000 on December 31, 2015, for subscription servicesrelated to magazines that will be published and distributed in January through December 2016.b. Walker Window Washing paid $1,200 cash for supplies on December 31, 2015. As of January 31,2016, $200 of these supplies had been used up.c. Indoor Raceway received $3,000 on December 31, 2015, from race participants for providingservices for three races. One race is held January 31, 2016, and the other two will be held inMarch 2016
Which of the following journal entries is recorded as a result of the bank reconciliation process to record a NSF check for $250? A. Cash 250 Accounts Receivable 250 B. Accounts Receivable 250 Petty Cash 250 C. Accounts Receivable 250 Cash 250 D. Cash 250 Accounts Payable 250
At year-end (December 31). The Company estimates its bad debts as 0.60% of its annual credit sales of $997,00o. The Company records its Bad Debts Expense for that estimate. On the following February 1. The Company decides that the $499 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare The Company's journal entries for the transactions. View transaction list Journal entry worksheet 1 3 4 > 2 Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal
ss