Xanthous Company provided the following bank reconciliationThe following information was taken from the credit memoProblem 2-3 (IAA)on January 31 of the current year:Bank balanceAdd Deposit in transit300,000600,000TotalDeduct Outstanding checks:No. 114115116900,000240,000160,00060,000460,000Adjusted bank balance440,000All receipts of cash are deposited in the bank account. The bankstatement for the month of February is presented below.THIRD BANKChecksDepositDateBalance300,000660,0002,660,Q002,460,0001,960,0001,800,0002,800,0002,300,0003,500,0004,800,0004,250,0004,245,0003,795,0003,265,000Jan. 31Balance forwarded600,0002,000,000240,000Feb.13200,000900,000160,000400,00071,000,0001013500,0001,200,0001,300,0001621550,0005,000 SC1,000,000800,00023242728550,000270,000 CMof February 28:Face of the noteInterest on the note250,00030,000Maturity value of the noteCollection charge280,00010,000270,000Credit to your account61Cs The following data were taken from the cash journals ofXanthous Company:Cash Receipt JournalCash Disbursement JournalCredit Cash200,000900,000-800,000500,000550,000180,0001,000,000120,000250,000DateDebit CashCheck No.Feb. 21172,000,000400,000800,000200,0001,200,0001,300,000550,000450,000611811910120151212012224123281241256,900,0004,500,000Required:a. Prepare bank reconciliation on February 28, showing thebook balances before and after adjustment.b. Prepare journal entries to record the adjustments that areindicated by the bank reconciliation.CS

Name: Xanthous Company provided the following bank reconciliationThe follow
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Description: Xanthous Company provided the following bank reconciliationThe following information was taken from the credit memoProblem 2-3 (IAA)on January 31 of the current year:Bank balanceAdd Deposit in transit300,000600,000TotalDeduct Outstanding checks:No.

1 cheque deposited in January but credited to bank account paasbook in February worth 6,00,000 so no…

Business

Accounting

The following data were taken from the cash journals of Xanthous Company: Cash Receipt Journal Cash Disbursement Journal Credit Cash 200,000 900,000- 800,000 500,000 550,000 180,000 1,000,000 120,000 250,000 Date Debit Cash Check No. Feb. 2 117 2,000,000 400,000 800,000 200,000 1,200,000 1,300,000 550,000 450,000 6 118 119 10 120 15 121 20 122 24 123 28 124 125 6,900,000 4,500,000 Required: a. Prepare bank reconciliation on February 28, showing the book balances before and after adjustment. b. Prepare journal entries to record the adjustments that are indicated by the bank reconciliation.

The following data were taken from the cash journals of Xanthous Company: Cash Receipt Journal Cash Disbursement Journal Credit Cash 200,000 900,000- 800,000 500,000 550,000 180,000 1,000,000 120,000 250,000 Date Debit Cash Check No. Feb. 2 117 2,000,000 400,000 800,000 200,000 1,200,000 1,300,000 550,000 450,000 6 118 119 10 120 15 121 20 122 24 123 28 124 125 6,900,000 4,500,000 Required: a. Prepare bank reconciliation on February 28, showing the book balances before and after adjustment. b. Prepare journal entries to record the adjustments that are indicated by the bank reconciliation.

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Xanthous Company provided the following bank reconciliation
The following information was taken from the credit memo
Problem 2-3 (IAA)
on January 31 of the current year:
Bank balance
Add Deposit in transit
300,000
600,000
Total
Deduct Outstanding checks:
No. 114
115
116
900,000
240,000
160,000
60,000
460,000
Adjusted bank balance
440,000
All receipts of cash are deposited in the bank account. The bank
statement for the month of February is presented below.
THIRD BANK
Checks
Deposit
Date
Balance
300,000
660,000
2,660,Q00
2,460,000
1,960,000
1,800,000
2,800,000
2,300,000
3,500,000
4,800,000
4,250,000
4,245,000
3,795,000
3,265,000
Jan. 31
Balance forwarded
600,000
2,000,000
240,000
Feb.
1
3
200,000
900,000
160,000
400,000
7
1,000,000
10
13
500,000
1,200,000
1,300,000
16
21
550,000
5,000 SC
1,000,000
800,000
23
24
27
28
550,000
270,000 CM
of February 28:
Face of the note
Interest on the note
250,000
30,000
Maturity value of the note
Collection charge
280,000
10,000
270,000
Credit to your account
61
Cs

The following data were taken from the cash journals of
Xanthous Company:
Cash Receipt Journal
Cash Disbursement Journal
Credit Cash
200,000
900,000-
800,000
500,000
550,000
180,000
1,000,000
120,000
250,000
Date
Debit Cash
Check No.
Feb. 2
117
2,000,000
400,000
800,000
200,000
1,200,000
1,300,000
550,000
450,000
6
118
119
10
120
15
121
20
122
24
123
28
124
125
6,900,000
4,500,000
Required:
a. Prepare bank reconciliation on February 28, showing the
book balances before and after adjustment.
b. Prepare journal entries to record the adjustments that are
indicated by the bank reconciliation.
CS

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Is this correct in preparing for a proof of cash?