The National Bank collected $3,000 including $300 interest on behalf of Z Inc. from one of its debtors on May 29, 2017. No entry for this collection was made by Z Inc. till May 31, 2017.How will Z Inc. have adjusted the collection of $3,000 by National Bank on a bank reconciliation prepared on May 31, 2017?Add $2,700 to cash balance on May 31, 2017, as per bank statement.Add $3,000 to cash balance on May 31, 2017, as per bank statement.Add $3,000 to cash balance on May 31, 2017, as per books.Add $2,700 to cash balance on May 31, 2017, as per books.

In this scenario, the National Bank has collected $3,000 on behalf of Z Inc. from one of its…

Answered: The National Bank collected $3,000…

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

Question for Week 6-Bank Reconciliation Statement. The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63 as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following: A deposit of $6,794.62 was received by the bank on August 31 after the bank statement was prepared. Cheques #251 for $1,200 and #260 for $1,333.25 were not presented to the bank for encashment as at August 31, 2020. The bank erroneously debited a cheque drawn Corey’s Construction as $16,000 instead of $1,600. The company’s accountant recorded a $3,500.00 cheque for payment of accounts payables as $35,000 The bank credited a deposit of $200 as $2,000 to Corey’s Construction account. A cheque for $13,500 from a customer Ali Woods was returned for insufficient funds. The bank charged $50 for…
On December 31, 2021, the cash account of Brown Company showed a balance of P391,480. The bank statement on that date showed a balance of P409,500. Upon examining the cash records and the bank statement, the following information were determined.a. There was a bank service charge of P 1,500 for the month of December 2021.b. There was a credit memo for a note collected by the bank for Brown Co. The customer’s note is P90,000 with interest of P2,600. The bank charged a collection fee of P550c. December 31, 2021 receipts for P289,000 were deposited only on January 2, 2022d. Checks issued which have not yet cleared the bank as at December 31,2021 amounts to P186,610e. There is a debit memo for P45,320 for a customer’s check returned marked “DAIF”f. A receipt of P90,000 had been entered as P60,000 in the cash book. Check # 12345 issued amounting to P49,100 was erroneously recorded as P41,900 and check # 12346 issued in the correct amount of P5,820 had been taken up as P58,200.What is the…
On December 31, 2020, the cash account of Jungkook Company showed a balance of P396,980. Upon examining the cash records and the bank statement, the following information were determined. There was a bank service charge of P 1,500 for the month of December There was a credit memo for a note collected by the bank for Jungkook. The customer’s note is P90,000 with interest of P2,600. The bank charged a collection fee of P550 December 31, 2020, receipts for P289,000 were deposited only on January 2, 2021 Checks issued which have not yet cleared the bank as at December 31,2020 amounts to P186,610 There is a debit memo for P45,320 for a customer’s checked returned marked “DAIF” A receipt of P90,000 had been entered as P60,000 in the cash book. Check # 12345 issued amounting to P49,100 was erroneously recorded as P41,900 and check # 12346 issued in the correct amount of P5,820 had been taken up as P58,200. Jungkook’s correct amount of cash presented in its December…
An entity has prepared its bank reconciliation at 31 March 2014 taking the following information into account: $ $ Outstanding lodgements 5,000 Unpresented cheques 2,800 Bank charges included in the bank statement but not recorded in the cash book were $125. The adjusted cash book balance per the bank reconciliation was a debit balance of $1,060. What was the balance as shown on the bank statement at 31 March 2014?
2. At 31 March 2019, the cash book of Company 2 showed a debit balance of £56. An examination of the bank statements and the accounting records of the company revealed the following: On 30 March 2019, the bank wrote to Company 2 stating that a cheque of £360 received from a customer and banked on 25 March 2019 had bounced and had been dishonoured. This letter was only received by Company 2 on 2 April 2019. Bank charges of £460 appeared on the bank statement on 30 March 2019 but the company was unaware of this transaction. Receipts of £9,215 banked on 31 March 2019 were not cleared through the banking system until April 2019, while payments totalling £19,401, issued by the company in March 2019 were also not cleared through the banking system until April 2019. What was the balance appearing on the bank statement at 31 March 2019? A B C D £9,422 £(10,950) £9,310 £10,142
Activities: Prepare a bank reconciliation statement. Write your answer on a separate sheet of paper. IV. Activity 1 The bank statement of the Fast Company shows a balance of P10,000 on 31 January 2015 whereas the company's ledger shows a balance of P8,525. The following reasons have been identified for this discrepancy. 1. An amount of P822 sent to the bank for a deposit on January 31, 2015, does not appear in the bank statement. 2. The following checks issued during January have not yet been cleared by the bank. a. Check No: 201, Issue date: 15 January 2015, Amount; P200. b. Check No: 212, Issue date: 19 January 2015, Amount; P20. c. Check No: 216, Issue date: 25 January 2015, Amount; P610. 3. A note receivable amounting to P1,588 has been collected by the bank for the company. 4. The bank statement shows that interest amounting to P50 has been earned on average account balance during January. 5. The bank has charged P10 for the collection of a note. 6. A check of P100 deposited by…
May you please help me determine the true cash balance for February 28, 2020?
Abdulla Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on July 31, 2018, its Cash account shows an $25,000 debit balance. Abdulla Company’s July 31 bank statement shows $21,646 on deposit in the bank. Prepare a bank reconciliation for Abdulla Company using the following information: a)The July 31 bank statement included a $90 debit memorandum for bank services. b)Check No. 123, listed with the canceled checks, was correctly drawn for $1,437 in payment of a utility bill on July 15. Abdulla Company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $1,473. c)In reviewing the bank statement, a $2,200 check written by Ayesha Company was mistakenly drawn against Abdulla’s account.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS