Your examination of the accounts revealed the following information:1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4.2. Merchandise that was billed to the branch at P7,500 was in transit at December 31.3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections.4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,0005. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively.What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?

Your examination of the accounts revealed the following information:1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4.2. Merchandise that was billed to the branch at P7,500 was in transit at December 31.3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections.4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,0005. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively.What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 2SEQ

See similar textbooks

Similar questions

Your examination of the accounts revealed the following information: 1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4. 2. Merchandise that was billed to the branch at P7,500 was in transit at December 31. 3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections. 4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,000 5. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively. What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?
Your examination of the accounts revealed the following information:1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4.2. Merchandise that was billed to the branch at P7,500 was in transit at December 31.3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections.4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,0005. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively. What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?
The cash account for Deaver consulting at October 31,20Y6 indicated a balance of $ 15, 750. The bank statement indicated a balance of $ 31 , 095 in October 31,20Y6.comparing the bank statement and accopaying canceled checks and memos with the records revealed the following reconciling items. A. Check outstanding totaled $10,125 B. A deposite of 4,120 representing receipts from October 31, had been made too late to appear on the bank statement. C. The bank had collected $10,400 on a note for collection . The face of the note was 10,000. D. A check for 1,200 returned with the statement had been incorrectly recorded by Deaver consulting as $120. The check was for the payment of an obligation to Oxford office supplies CO. For the. Purchase of office supplies on account E. A check drawn for $320 had been incorrectly charged by the bank as $230. F.Bank service charges for October amounted to $70. 1. Prepare a bank reconciliation 2. Illustrate the effect on the account and financial…
a. The home office has billed the branch the amount of P37,500 for the merchandise, which was in transit on December 31. b. A home office accounts receivable for P10,500 was collected by the branch. Said collection was not reported to the home office by the branch. c. Supplies of P4,500 was returned by the branch to the home office but the home office has not yet reflected in its records the receipt of the supplies. d. The branch made profit of P10,100o for the month of December but the home office erroneously recorded it as P11,180. e. The branch has not received the cash in the amount of P25,000 sent by home office on December 31. This was charged to General Expense account.
Wright Company's cash account shows a $30,500 debit balance and its bank statement shows $28,800 on deposit at the close of business on May 31. The May 31 bank statement lists $250 in bank service charges; the company has not yet recorded the cost of these services. Outstanding checks as of May 31 total $7,100. May 31 cash receipts of $7,700 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. In reviewing the bank statement, a $550 check written by Smith Company was mistakenly drawn against Wright’s account. The bank statement shows a $300 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information.
A fire destroyed certain accounting records of Green Books. The controller, Marilyn Green, asks your help in reconstructing the records. All of the sales are on account, with credit terms of n/30. The only accounting record preserved from the fire is the accounts receivable subsidiary ledger, which follows. Requirements Determine the beginning and ending balances of Accounts Receivable. Determine the sales on account in the month of April. Determine total cash receipts on account from customers during April
Organic Food Company's Cash account shows a $7,400 debit balance and its bank statement shows $6,490 on deposit at the close of business on August 31. a. August 31 cash receipts of $3,140 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. Deduct b. The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $3,020. d. In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information. Bank statement balance i Add: Adjusted bank balance ORGANIC FOOD COMPANY Bank Reconciliation August 31 $ 0 0 Book balance Add: Deduct: 0 0 Adjusted book balance $ 0 0 0 0
Organic Foods Co's cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit at close of business on August 31. Prepare a bank reconciliation using the following information. a) August 31 cash receipts of $1,240 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. b) The bank statement shows a $120 NSF check from a customer; the company has not yet recorded this NSF check. c) Outstanding checks as of August 31 total $1,120. d) In reviewing the bank statement, an $80 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e) The August 31 bank statement lists $20 in bank service charges; the company has not yet recorded the cost of these services.
Organic Food Co.’s Cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit at the close of business on August 31. Prepare a bank reconciliation using the following information. a. August 31 cash receipts of $1,240 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement. b. The bank statement shows a $120 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $1,120. d. In reviewing the bank statement, an $80 check written by Organic Fruits was mistakenly drawn against Organic Food’s account. e. The August 31 bank statement lists $20 in bank service charges; the company has not yet recorded the cost of these services.
On January 31, Jema hardware received a check from a customer for payment of an invoice. The 6,000 invoice was dated May 22, and included credit terms of 1/10, n/45. On January 25, the customer returned P600 of the merchandise because it was defective. How would this transaction be recorded in Jema's cash receipts journal?
Wright Company's cash account shows a $31,500 debit balance and its bank statement shows $29,800 on deposit at the close of business on May 31. a. The May 31 bank statement lists $300 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $7,600. c. May 31 cash receipts of $8,200 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement. d. In reviewing the bank statement, a $600 check written by Smith Company was mistakenly drawn against Wright's account. e. The bank statement shows a $200 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information. WRIGHT COMPANY Bank Reconciliation May 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance
a. The home office inadvertently faxed a note to the branch informing the branch of a collection of one of the home office's customers amounting to P23,000. This amount was ignored by the branch's accountant. b. The branch returned merchandise to the home office worth P 256,000. This was not the item ordered by the branch. The accountant of the home office was not able to update the records pertaining to this transaction. c. Merchandise worth P66,340 is still in transit to the branch. d. The branch accountant recorded a merchandise worth P245,000 as P254,000. e. The home office collected an account receivable of the branch amounting to P35,670. The home office accountant repeatedly sent a note to the branch regarding this collection. The branch, in error, recorded the amount twice in its books. f. The branch accountant became aware of the transposition error he committed when he recorded the receipt of the merchandise and made the correcting entry accordingly. g. The branch's net…