EBK INTERMEDIATE ACCOUNTING: REPORTING
2nd Edition
ISBN: 9781337268998
Author: PAGACH
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6, Problem 18P
1.
To determine
Prepare
2.
To determine
Prepare
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Daisy Company received a bank statement for February, as follows:
Date
Checks
Deposits
Balance
Feb
1
$ 4,524.80
7
$ 2,700.33
$8,642.61
9
3,484.81
14
6.00
sc
460.00
CM
16
274.09
21
4,133.60
3,385.49
23
69.69
NSF
28
$ 6,344.38
SC = Service Charge; NSF - Check Returned; CM = Credit Memo: DM = Debit Memo
The receipt of $460 on February 14 was for a $445 note collected by the bank, plus $20 current interest, minus a $5 service charge (Miscellaneous expense). The company's accounting records contained the following information:
Cash balance on February 28 from the books: $2,610.42
Brown Company's bank statement for September 30 showed:
Bank statement balance. $4,210
Book balance of cash. $6,560
The following information was also available as of September 30
a. A customer's check for $950 marked NSF was returned to Brown Company by the bank, In addition, the bank charged the company's account a $30 processing fee.
b. The September 30 cash receipts, $6,000 were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement.
c. Outstanding checks amounted to $3,910.
d. A check for rent expense was written for $2,198 but by mistake was recorded in the accounting records as $2,918.
Brown Company's bank statement for Septermber 30 showed:
Bank statement balance
Book balance of cash
$4,210
$6,560
The following information was also available as of September 30:
a. A customer's check for $950 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company's account a $30 processing fee.
b. The September 30 cash receipts, $6,000 were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September
30 bank statement.
c. Outstanding checks amounted to $3,910.
d. A check for rent expense was written for $2,198 but by mistake was recorded in the accounting records as $2,918.
Required:
Prepare bank reconciliation as of September 30.
Your Answer should be in the following format:
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...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Happy Tails Inc. has a September 1, 20Y4, accounts payable balance of 620, which consists of 320 due Labradore Inc. and 300 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of September 20Y4 are as follows: a. Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those used in the text. Place a check mark () in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Happy Tails Inc. uses the following accounts: b. Prepare a listing of accounts payable creditor balances on September 30, 20Y4. Verify that the total of the accounts payable creditor balances equals the balance of the accounts payable controlling account on September 30, 20Y4. c. Why does Happy Tails Inc. use a subsidiary ledger for accounts payable?arrow_forwardUsing the following information, prepare a bank reconciliation. Bank balance: $7,651 Book balance: $10,595 Deposits in transit: $2,588 Outstanding checks: $489 Interest income: $121 NSF check: $966arrow_forwardAcme Company has received its bank statement for the month ending May 31, which showed the following: Ending balance $10,650.05 NSF check 63.40 Service charge 10.70 After checking the bank statement and accounting records, the accountant has determined the following: The May cash balance per books is $10,781.76. The bank’s service charge and NSF check were not entered by the bookkeeper. A $354.60 deposit made on May 31 is not on the bank statement. Outstanding checks total $296.99. Prepare a proper bank reconciliation in proper format.arrow_forward
- Brown Company's bank statement for September 30 showed: Bank statement balance Book balance of cash $2,790 $3,724 The following information was also available as of September 30: a. A customer's check for $150 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company's account a $10 processing fee b. The September 30 cash receipts, $3,000 were placed in the bank's night depository after banking hours on that date and this amount did not appear on the Septemt bank statement. c. Outstanding checks amounted to $2, 190. d. A check for rent expense was written for $326 but by mistake was recorded in the accounting records as $362.arrow_forwardOn November 30, Hernandez Company's bank statement showed an ending balance of $37,361. The following information is available about Hernandez's account: Debit memo in bank statement for bank service charge, $47 Deposit in transit, $3,008 Outstanding checks, $3,196 Customer's NSF check for $743 was returned with the bank statement Required: b) Determine the unadjusted balance of the company's Cash account as of November 30.arrow_forwardAs of June 30, Year 1, the bank statement showed an ending balance of $18,181. The unadjusted Cash account balance was $17,028. The following information is available: 1. Deposit in transit, $2,795. 2. Credit memo in bank statement for interest earned in June: $14. 3. Outstanding check: $3,946. 4. Debit memo for service charge: $12. Required: Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information. Note: Negative amounts should be indicated with minus sign. Bank Reconciliation Unadjusted bank balance 6/30/Year 1 True cash balance 6/30/Year 1 Unadjusted book balance 6/30/Year 1 True cash balance 6/30/Year 1 $ $ $ 18,181 18,181 4 0arrow_forward
- The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journal entries for October had been posted, the cash account had a balance of $8,998. Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495. Deposits in transit not recorded by bank, $778. Bank debit memo for service charges, $40. Bank credit memo for note collected by bank, $23,985 plus $885 interest. Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer. Checks outstanding, $1,860. Record the appropriate journal entries that would be necessary for Jeffrey Co. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select -arrow_forwardAccounting please answer asap? John Corporation's bank statement for April 30 showed an ending cash balance of $1,350. The company's Cash account in its general ledger showed a $995 debit balance. The following information was also available as of April 30: • The bank deducted $125 for an NSF check from a customer deposited on April 15. • The April 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the April 30 bank statement. • A$15 debit memorandum (service charges) for checks printed by the bank was included with the canceled checks. • Outstanding checks amounted to $1,145. • Included with the bank statement was a credit memo in the amount of $875 for an EFT in payment of a customer's account. • Included with the canceled checks was a check for $275, drawn on the account of another company by error. Required: 1. Prepare a bank reconciliation as of April 30. 2. Prepare the journal entries for the…arrow_forwardThe information below relates to the Cash account in the ledger of Lily Company. Balance September 1—$17,260; Cash deposited—$64,040. Balance September 30—$18,104; Checks written—$63,196. The September bank statement shows a balance of $17,122 on September 30 and the following memoranda. Credits Debits Collection of $1,841 note plus interest $39 $1,880 NSF check: Richard Nance $775 Interest earned on checking account $54 Safety deposit box rent $74 At September 30, deposits in transit were $4,800, and outstanding checks totaled $2,733. 1. Prepare the bank reconciliation at September 30. (List items that increase cash balance first.) 2. Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent…arrow_forward
- The information below relates to the Cash account in the ledger of Wildhorse Company. Balance September 1—$17,180; Cash deposited—$64,400. Balance September 30—$17,764; Checks written—$63,816. The September bank statement shows a balance of $16,782 on September 30 and the following memoranda. Credits Debits Collection of $1,670 note plus interest $40 $1,710 NSF check: Richard Nance $605 Interest earned on checking account $55 Safety deposit box rent $75 At September 30, deposits in transit were $4,630, and outstanding checks totaled $2,563. Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Sept. 30 enter an account title to record note receivable on September 30…arrow_forwardThe information below relates to the Cash account in the ledger of Wildhorse Company. Balance September 1—$17,180; Cash deposited—$64,400. Balance September 30—$17,764; Checks written—$63,816. The September bank statement shows a balance of $16,782 on September 30 and the following memoranda. Credits Debits Collection of $1,670 note plus interest $40 $1,710 NSF check: Richard Nance $605 Interest earned on checking account $55 Safety deposit box rent $75 At September 30, deposits in transit were $4,630, and outstanding checks totaled $2,563. Prepare the bank reconciliation at September 30. (List items that increase cash balance first. Reconcile cash balance per bank first.) Wildhorse CompanyBank Reconciliationchoose the accounting period select an opening name for section one (Cash balance per bank statement/ Deposits in transit/ Outstanding checks/ Collection of note receivable/ Bank service charge/…arrow_forwardPlease Provide Answer in text Formatearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning