Direction: Compute for Deposits in Transits and Outstanding Checks. After which, prepare the bank reconciliation of Astro Merchandising for the month of January. The following is taken from the books of Astro Merchandising:CASH RECEIPTSCASH PAYMENTSChkNo. 301ChkNo. 302ChkNo. 303ChkNo. 304ChkNo. 305ChkNo. 306ChkNo. 30710,00030,0004,0002,00040,000112,0006,0004.000208,000Jan-2Jan-9Jan-10Jan-16Jan-23Jan-3020,00040,00020,00080,00040,00070.000P270,000ChkNo. 308The beginning balance of cash per general ledger is P112,000.Presented below is the bank statement of Twice Bank for the month of January.Twice BankQuezon CityAstro MerchandisingAccount No.09772444 Congressional Avenue, Quezon CityJanuary 31, 2022DateDebitsCreditsBalanceDec 3160,000Mar 420,00080,000Mar 6Chk No. 30110,00070,000Mar 11Chk No. 30230,00040,00060,000100,000Mar 12Chk No. 3042,00098,000Mar 1880,000178,000Mar 19Chk No. 30540,000138,000Mar 25Chk No. 3076,000132,00040,000172,000Mar 262,000 NSF170,000Chk No. 29910,000160,000Mar 27Chk No. 306112,00048,000Mar 28100,000 CM148,000Mar 31400 DM148,400Legend:DM - Debit MemoCM - Credit MemoNSF - No Sufficient FundNote: The P400 DM represents bank service charges.The P100,000 CM represents the proceeds of bank loan.

Bank reconciliation statement is the statement which is prepared by the company with the aim and…

Answered: Compute for Deposits in Transits and…

Compute for Deposits in Transits and Outstanding Checks. After which, prepare the bank reconciliation of Astro Merchandising for the month of January.

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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prepare a bank reconciliation report.
The following information is available for the Savvy Company for the month of June. a. On June 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $17,202. b. The company's bank statement shows a balance on June 30 of $19,279. c. Outstanding checks at June 30 total $2,984. d. The bank collected $770 on a note receivable that is not yet recorded by Savvy Company. e. A $67 NSF check from a customer, J. Maroon is shown on the bank statement but not yet recorded by the company. f. A deposit placed in the bank's night depository on June 30 totaling $1,675 did not appear on the bank statement. g. Check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540. h. Included with the bank statement was a bank service charge in the amount of $25. It has not been recorded on the company's books. 1. Prepare the June bank reconciliation for the Savvy Company. 2. Prepare the…
Part 1: 1. Identify and list the deposits in transit at the end of December. 2. Identify and list the outstanding checks at the end of December. Part 2: Prepare a bank reconciliation for December. Part 3: 1. Record the interest of $60 received from the bank. 2. Record the service charges of $130 deducted by the bank. 3. Record the return of the J. Left check of $280 due to insufficient funds 4. Record the checks outstanding at the end of the month. 5. Record the deposit in transit at the end of the month. Part 4: After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? If the company also has $280, of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet?
(BANK DEPOSITS) Serrano Company’s policy for store sales collections requires that the cashier must deposit its available cash on hand at the end of the day. Cutoff time is 4pm, meaning to say, all cash collections received for the day UNTIL 4pm will be deposited in its depository bank. The store office hours run from 8am to 5pm. Any cash collected after the cutoff until 5pm will be deposited the following day together with its cash collection for that day. The following details relate to November 5: Cash sales, per tape receipts (in coins and currencies) – 13,455 Petty cash fund – 3,000 Change fund – 1,000 Cash stored in the store vault collected after 4pm on November 4 – 540 Cash collections after cutoff, November 5 – 730 What is the amount of cash deposited in the bank on November 5?
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Mazaya Company gathered the following reconciling information in preparing its November bank reconciliation: Cash balance per books (11/30) R.O.4,400; Deposits in transit R.O. 6oo; Notes receivable and interest collected by bank R.O. 1,400; Bank charge for check printing
Beverly Hills, Inc. developed the following information in recording its bank statement for the month of November. Balance per books November 30 $22,014 Balance per bank statement November 30 $24,635 1. Checks written in November but still outstanding $1,450. 2. Checks written in October but still outstanding $1,107. 3. Deposits of November 29th and 30th not yet recorded by bank $5,496. 4. NSF check of customer, A. Lincoln, returned by bank, $704. 5. The bank statement contained an electronic funds transfer received from customer Theodora Company for $6,150 plus interest for $150. 6. Check No. 151 for $562 was correctly issued and paid by bank, but incorrectly entered in the Cash Payments Journal as $526. It was a payment made to vendor, Smith Concrete. A. Prepare a Bank Reconciliation Statement at November 30. B. For Beverly Hills, Inc. prepare the next journal entry from the bank reconciliation. C. For Beverly Hills, Inc. prepare the final journal entry from the bank…
You are the bookkeeper of Mel Traders. You undertake a bank reconciliation at the end of every month. Mel Traders received its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April. Below are theentity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May: AU Bank - Bank Statement For the period 01/05/2021 – 31/05/2021 Mel Traders Dr Cr Balance $ Balance brought forward 103,965 CR 1 May Deposit 11,700 115,665 CR 3 May Deposit 10,620 126,285 CR May Cheque # 682 4,680 121,605 CR 6 May Deposit 6,120 127,725 CR 8 May # 671 6,300 121,425 CR…
The following information is produced by comparing the cash deposits and withdrawals recorded by the M&N Windows Ltd for the month with their most recent bank statement received at 30 June 2019:a. M&N Windows Ltd’ cash at bank ledger at 30 June 2019 is: $75,864b. Credit balance as per bank statement as at 30 June 2019 is: $101,160c. Bank statement shows an electronic transfer from a customer of $3,864d. Deposits in transit, $12,540e. Interest earned on bank account, $75f. Unpresented cheques, $37,407g. Service charge included in bank statement, $150h. Cheque for insurance expense, $5,370 incorrectly recorded in books as $5,910i. A dishonoured cheque written by a client Jim Smith, $3,900The entity doesn’t use special journals for record keeping. The entity prepares bank reconciliation statement at the end of each month.Required:a) Prepare a bank reconciliation statement for M&N Windows Ltd at 30 June 2019. b) Discuss why a bank reconciliation is still necessary even most of…
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Del Gato Clinic's cash account shows a $15,374 debit balance and its bank statement shows $15,539 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,735. b. The June 30 bank statement lists a $55 bank service charge. c. Check No. 919, listed with the canceled checks, was correctly drawn for $289 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $298. d. The June 30 cash receipts of $2,524 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Exercise 6-12 Bank reconciliation LO P3 "repare its bank reconciliation using the above information. DEL GATO CLINIC Bank Reconciliation June 30 Bank statement balance Book balance Add: Add: Deduct:…
At the end of April, Meyer Company had a $7,890 balance in its cash account, while its bank state-ment for April showed an ending cash balance of $7,200. The April bank statement showed $10 of interest earned by Meyer on its checking account and a $200 NSF check written by one of Meyer’s customers. Meyer’s records show a $600 deposit in transit and $100 of outstanding checks at the end of April. Prepare the bank reconciliation of Meyer for April.