Western Flyers received its bank statement for the month of July 2019 with an ending balance of $11,065.00 whereas the cash book balance for Western Flyers is $12875. Western Flyers determined that check #598 for $125.00 and check #601 for $375.00 were both outstanding.Also, a $7,500.00 deposit for July 30th was in transit as of the end of the month. Big Bucks Bank also collected an amount of $5,300 from a client of Western Flyer as payment of a note ($5,000) and interest ($300) earned on a note. Big Bucks Bank charged Flyers a $15.00 fee for the collection service and $20 for issuance of 10 check books. 5. A check for $75.00 from Colin Abraham, a client, was returned with the bank statement marked “NSF”.

1. Cheque outstanding are not credited to the bank therefore same will be deducted. 2. Deposit in…

Answered: Western Flyers received its bank…

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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Western Flyers received its bank statement for the month of July 2019 with an ending balance of $11,065.00 whereas the cash book balance for Western Flyers is $12875.

Western Flyers determined that check #598 for $125.00 and check #601 for $375.00 were both outstanding.
Also, a $7,500.00 deposit for July 30th was in transit as of the end of the month.
Big Bucks Bank also collected an amount of $5,300 from a client of Western Flyer as payment of a note ($5,000) and interest ($300) earned on a note.
Big Bucks Bank charged Flyers a $15.00 fee for the collection service and $20 for issuance of 10 check books.

5. A check for $75.00 from Colin Abraham, a client, was returned with the bank statement marked “NSF”.

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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