EBK INTERMEDIATE ACCOUNTING: REPORTING
2nd Edition
ISBN: 9781337268998
Author: PAGACH
Publisher: YUZU
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Chapter 6, Problem 11MC
To determine
Identify the balance of
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Kingbird, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information.
Balance, August 1
August deposits
Checks cleared in August
Bank credit memorandum:
$18,770 Bank debit memorandum:
71,370 Safety deposit box fee
$ 105
68,598 Service charge
Balance, August 31
125
130
21,432
Interest earned
A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,070; receipts $74,370; disbursements $73,49o; and balance, August 31, $19,950. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in
transit for $4,880 and outstanding checks of $4,580. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40.
Determine deposits in transit.
Deposits in transit
SHOW LIST OF ACCOUNTS
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VIDEO: APPLIED SKILLS
Determine outstanding…
How much is the total book receipts in December?
The balance of the general ledger cash account as of December 31, 2017 is P7,120.00. On the other hand, the bank statement showed a December 31, 2017 balance of P6,580. You were tasked to prepare the bank reconciliation statement for the company’s bank account.
Your analysis of the bank statement and the general ledger account revealed the following:
Deposit in Transit
P1,345
Credit memo for direct collection of a note receivable
755
Credit memo for interest income
65
Auto debit of cell phone bill
290
Customer NSF check
455
Outstanding Check
575
Debit memo for bank charges
25
A check received from a customer was recorded in the accounting books for P3,280. The bank statement revealed that the customer check cleared at the correct amount of P3,820.
The bank deducted P360 from the account of KCLC for a check issued by Elvira Inc.
Required: Prepare the bank reconciliation statement as of December 31,2020 for KCLC ‘s bank…
Chapter 6 Solutions
EBK INTERMEDIATE ACCOUNTING: REPORTING
Ch. 6 - What are the components of cash? What items may be...Ch. 6 - Prob. 2GICh. 6 - Prob. 3GICh. 6 - How are trade receivables different from nontrade...Ch. 6 - Prob. 5GICh. 6 - Prob. 6GICh. 6 - Prob. 7GICh. 6 - What is a sales return? A sales allowance?...Ch. 6 - Discuss the differences between the allowance...Ch. 6 - Prob. 10GI
Ch. 6 - Prob. 11GICh. 6 - What method of bad debt estimation categorizes...Ch. 6 - Why does the write-off of uncollectible accounts...Ch. 6 - Discuss the difference between a secured borrowing...Ch. 6 - When does a company record the transfer of...Ch. 6 - Prob. 16GICh. 6 - What is a non-interest-bearing note? How does...Ch. 6 - Prob. 18GICh. 6 - How are the cash proceeds determined when a note...Ch. 6 - Under IFRS, what criteria must be satisfied in...Ch. 6 - Prob. 21GICh. 6 - (Appendix 6. 1) What is the purpose of a petty...Ch. 6 - (Appendix 6. 7) Why are actual expenses, rather...Ch. 6 - Prob. 24GICh. 6 - Prob. 25GICh. 6 - Prob. 1MCCh. 6 - Prob. 2MCCh. 6 - A company is in its first year of operations and...Ch. 6 - Prob. 4MCCh. 6 - Prob. 5MCCh. 6 - Prob. 6MCCh. 6 - A method of estimating bad debts that focuses on...Ch. 6 - When the accounts receivable of a company are sold...Ch. 6 - Prob. 9MCCh. 6 - Prob. 10MCCh. 6 - Prob. 11MCCh. 6 - On December 31, Harrison Company reports the...Ch. 6 - Lindley Enterprises sells hand woven rugs. Paige...Ch. 6 - Long Corporation is a fabric manufacturing...Ch. 6 - Prob. 4RECh. 6 - Prob. 5RECh. 6 - Prob. 6RECh. 6 - Prob. 7RECh. 6 - On December 1 of the current year, Jordan Inc....Ch. 6 - On December 1 of the current year, Jordan Inc....Ch. 6 - On December 1, Newton Enterprises sells 100,000 of...Ch. 6 - Kaseys Cake Shop made 20,000 in sales of wedding...Ch. 6 - On June 1, Phillips Corporation sold, with...Ch. 6 - Prob. 13RECh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Journal Entry to Separate Receivables An...Ch. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Aging Analysis of Accounts Receivable Cowens, a...Ch. 6 - Bradford Companys accounting records on December...Ch. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Transfer of Accounts Receivable Inder Corporation...Ch. 6 - Prob. 16ECh. 6 - Prob. 17ECh. 6 - Computing the Proceeds from the Sale of Notes...Ch. 6 - Recording the Sale of Notes Receivable Singer...Ch. 6 - Prob. 20ECh. 6 - Prob. 21ECh. 6 - Prob. 22ECh. 6 - Prob. 23ECh. 6 - Prob. 24ECh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - From inception of operations to December 31, 2015,...Ch. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Factoring and Assignment of Accounts Receivable...Ch. 6 - Recording Note Transactions The following...Ch. 6 - Notes Receivable Transactions The following notes...Ch. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 1CCh. 6 - Prob. 2CCh. 6 - Bad Debt Expense When a company has a policy of...Ch. 6 - Prob. 4CCh. 6 - Prob. 5CCh. 6 - Components of Cash Cash is an important asset of a...Ch. 6 - Prob. 7CCh. 6 - Transfer of Accounts and Notes Receivable Tidal...Ch. 6 - Prob. 9CCh. 6 - Prob. 10CCh. 6 - Researching GAAP Situation Hamilton Company...
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- The bank reconciliation shows the following adjustments. Deposits in transit: $1,698 Notes receivable collected by bank: $2,500; interest: $145 Outstanding checks: $987 Error by bank: $436 Bank charges: $70 Prepare the correcting journal entry.arrow_forwardUsing the following information, prepare a bank reconciliation. Bank balance: $4,021 Book balance: $2,928 Deposits in transit: $1,111 Outstanding checks: $679 Bank charges: $35 Notes receivable: $1,325; interest: $235arrow_forwardBank reconciliation problem: The bank statement for Juan Company shows a balance per bank of $15,907.45 on April 30, 2015. On this date, the balance cash per books is $11,589.45. Additional information: Deposits in transit: April 30 deposit (Received by the bank on May 1) $2,201.40 $3,000.00 $1,401.30 S1,502.70 Outstanding checks: No. 453 No. 457 No. 460 Errors: Juan wrote the check no. 443 for $1,226.00 and the bank correctly paid that amount. However, he recorded the check as $1,262.00. Bank memoranda: Debit – NSF check from Pedro $425.60 Debit – Charge for printing company checks $30.00 Credit – Collection of note receivable for $1,000 plus interest earned $50, less bank collection fee of $15.00. Required: Prepare a bank reconciliation statement using the adjusted method. Hint: Bank Debit Memo are deductions made by the bank to the account of the depositor. Bank Credit Memo are additions made by the bank to the account of the depositor.arrow_forward
- In connection with your audit of the cash account of SIX CORP., you gathered the following information. a. Balance per bank, December 1, 2016 145,000 b. Total bank receipts (credits) in December 346,000 c. Balance per bank, December 31, 2016 114,500 d. Outstanding checks, Nov. 30, 2016 (including P12,000 paid by bank in December) 67,000 e. Outstanding checks, December 31, 2016 (including checks issued in November) 94,162 f. Deposit in transit, November 30, 2016 39,458 g. A customer’s check received on December 4, 2016, was returned by bank on December 7 marked “NSF.” It was redeposited on December 8, 2016. The only entry made was to take up the collection on December 4, 2016. 11,143 How much is the total book receipts in December?arrow_forwardWhat is the cash balance per bank on June 30?arrow_forwardBank reconciliation and entries The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $6,440. b. A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement. c. The bank had collected for Brentwood Bike Co. $5,250 on a note left for collection. The face of the note was $5,000. d. A check for $390 returned with the statement had been incorrectly charged by the bank as $930. e. A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $30. g. A…arrow_forward
- Prepare a Bank Reconciliation Statement using: a. Adjusted Balance Method b. Book to Bank Method c. Bank to Book Methodarrow_forwardIn preparing its bank reconciliation for the month of April 2018, Haskins, Inc. has available the following information. Balance per bank statement, 4/30/18 $40,920 NSF check returned with 4/30/18 bank statement 1,350 Deposits in transit, 4/30/18 10,500 Outstanding checks, 4/30/18 15,600 Bank service charges for April 60What should be the adjusted cash balance at April 30, 2018? Question 22 options: $34,410 $34,470 $35,760 $35,820arrow_forwardEntries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 2016: 1. Cash balance according to the company's records at August 31, $25,320. 2. Cash balance according to the bank statement at August 31, $26,660. 3. Checks outstanding, $5,140. 4. Deposit in transit not recorded by bank, $4,130. 5. A check for $590 in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $30. Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash. a, 2016 Aug. 31 b. Aug. 31arrow_forward
- Bank reconciliationAdjusted balance: $44,235The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 2016:1. Cash balance according to the company's records at August 31,$42,920. 2. Cash balance according to the bank statement at August 31, $56,300.3. Checks outstanding, $25,390.4. Deposit in transit not recorded by bank, $13,325. 5. A check for $150 in payment of an account was erroneously recordedin the check register as $1,500.6. Bank debit memo for service charges, $35. a. Prepare a bank reconciliation, using the format shown in Exhibit 13.b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash?C. Must a bank reconciliation always balance (reconcile)?arrow_forward(Bank Reconciliation and Adjusting Entries) The cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2017. The bank statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash records, the following facts were determined.1. There were bank service charges for June of $25.2. A bank memo stated that Bao Dai’s note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.50 on the collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the bank for collection.)3. Receipts for June 30 for $3,390 were not deposited until July 2.4. Checks outstanding on June 30 totaled $2,136.05.5. The bank had charged the Aguilar Co.’s account for a customer’s uncollectible check amounting to $253.20 on June 29.6. A customer’s check for $90 (as payment on the customer’s Accounts Receivable) had been entered as $60 in the cash receipts journal by Aguilar on June 15.7. Check…arrow_forwardBank reconciliation problem: The bank statement for Juan Company shows a balance per bank of P15,907.45 on April 30,2015. On this date the balance of cash per books is P11,589.45. Additional information are provided below: Deposits in transit: April 30 deposit (received by the bank on May 1) P2,201.40 Outstanding checks: No. 460-P1,502.70 No. 453-P3,000.00 No. 457-P1,401.30 Errors: Juan wrote check no. 443 for P1,226.00 and the bank correctly paid that amount. However, he recorded the check as P1,262.00. Bank memoranda: Debit- NSF check from Pedro P425.60. Debit- Charge for printing company checks P30.00 Credit – Collection of note receivable for P1,000 plus interest eamed of P50, less bank collection fee of P15.00. Required: Prepare a bank reconciliation statement using the adjusted method. Hint: Bank Debit Memo are deductions made by the bank to the account of the depositor Bank Credit Memo are additions made by the bank to the account of the depositorarrow_forward
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