Bank reconciliation of B Company as at July 31, 2017.

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Answer 1

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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.

Chapter 6, Problem 4PSA

1.

To determine

To prepare: Bank reconciliation of B Company as at July 31, 2017.

2.

To determine

To prepare: Journal entries to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2017.

a.

To determine

To explain: effect on (i) the adjusted bank statement cash balance and (ii) the adjusted cash account book balance related to company’s unadjusted cash account balance of $27,497 which is listed on the reconciliation as $27,947.

b.

To determine

To explain: effect on (i) the adjusted bank statement cash balance and (ii) the adjusted cash account book balance related to the bank’s collection of $8,000 less collection fee which is added to the bank statement cash balance on the reconciliation.

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Sprite Company's unadjusted bank balance on March 31 is $6,490. The bank reconciliation revealed outstanding checks amounting to $940 and deposits in transit of $640. Based on this information, Sprite's true cash balance is _.

Answer 2

Question

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.

Chapter 6, Problem 4PSA

1.

To determine

To prepare: Bank reconciliation of B Company as at July 31, 2017.

2.

To determine

To prepare: Journal entries to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2017.

a.

To determine

To explain: effect on (i) the adjusted bank statement cash balance and (ii) the adjusted cash account book balance related to company’s unadjusted cash account balance of $27,497 which is listed on the reconciliation as $27,947.

b.

To determine

To explain: effect on (i) the adjusted bank statement cash balance and (ii) the adjusted cash account book balance related to the bank’s collection of $8,000 less collection fee which is added to the bank statement cash balance on the reconciliation.

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Answer 3

Question

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.

Chapter 6, Problem 4PSA

1.

To determine

To prepare: Bank reconciliation of B Company as at July 31, 2017.

2.

To determine

To prepare: Journal entries to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2017.

a.

To determine

To explain: effect on (i) the adjusted bank statement cash balance and (ii) the adjusted cash account book balance related to company’s unadjusted cash account balance of $27,497 which is listed on the reconciliation as $27,947.

b.

To determine

To explain: effect on (i) the adjusted bank statement cash balance and (ii) the adjusted cash account book balance related to the bank’s collection of $8,000 less collection fee which is added to the bank statement cash balance on the reconciliation.

Expert Solution & Answer

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Answer 4

Question

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.

Chapter 6, Problem 4PSA

1.

To determine