Page 3 Requirements a) Extract a trial balance on August 31st.b) Prepare an Income Statement for the month ended August 31st, the owner’s equity statement and a Balance Sheet as at that date 22 AugPaid wages cash$8,000.0023 AugPaid Right Way Manufacturer the amount owing to themby cheque, they allowed us a 15% discount27 AugP&S Auto paid the amount owing by them inCash less 10 % discount27 AugElectricity paid by cash$1,500.0028 AugThe owner took $5000 out of the bank for his personal use.28 AugProvided services for cash12 small motorbike engines6 medium size motorbike engines4 medium size motor bike engines$350.00 per engine$550.00 per engine$800.00 per engineBought supplies on credit from big J Manufacturers4 Bottles Fuel Injector Cleaner9 Boxes Air Filters8 Boxes Sparks Plugs29 Aug$200.00 per bottle$720.00 per box$300.00 per box30 AugProvided service for cash8 small motorbike engines7 Large motorbike engines8 Medium motorbike engines$350.00 per engine$950.00 per engine$550.00 per engineSupplies on hand5 Boxes Air Filter31 Aug6 Bottles fuel injector cleaner12 Boxes Spark Plug13 Boxes Brake Shoe9 Boxes Disc Pads$720.00 per box$200.00 per bottle$300.00 per box$580.00 per box$400.00 per boxTo avoid duplication of account names and the use of improper account names, thecompany has provided the following list of accounts used to record its transactions asextracted from its chart of accounts:СapitalCashSuppliesRight Way ManufacturersJ ManufacturersP&S AutoCT LtdService RevenueDiscount Allowed Scenario:Assume that a relatively new company you and you group members are involved withhas presented you with the following transactions for 2021 from the books of thebusiness. This company operates one bank account to reflect all cash andcheque transactions. You are now required to read these transactions carefully thenprepare the relevant documents and books as outlined in the requirements below.1 AugStarted business with $150, 000 in the bank3 AugBought supplies on credit from Right Way Manufacturers24 Boxes Air Filter$720.00 per box$200.00 per bottle$300.00 per box$580.00 per box$400.00 per box96 Bottles fuel injector cleaner48 Boxes Spark Plug36 Boxes Brake Shoe24 Boxes Disc Pads5 AugProvided services for cash less 10% discount12 small motorbike engines6 large motorbike engines (full service)8 medium size motorbike engines (full service)$350.00 per engine$950.00 per engine$800.00 per engine7 AugPaid Rent by cheque$5,000.0010 AugPaid Wages by cheque$8,000.00Bought Fixtures from CT Limitedpaying by cash10 Aug$3,500.0011 AugProvided services on credit to Auto Care.24 small motorbike engines8 large motor bike engines (partial service)12 medium size motorbike engine (partial service)$350.00 per engine$650.00 per engine$550.00 per engine12 AugBought Fixtures on credit from CT Ltd$8,000.0013 AugReceived a loan from NBC cash$25,000.0014 AugProvided services on credit to P&S Auto18 Large motorbike engines (full service)12 medium size motor bike engines24 medium size motorbike engines20 small motorbike engines$950.00 per engine$650.00 per engine$550.00 per engine$350.00 per engine21 AugPaid CT Ltd by cheque$8,000.00

a) The trial balance is given as, PARTICULARS DEBIT CREDIT CASH 123036 CAPITAL 150000…

Answered: ment for the month ended August 31st,…

Business

Accounting

ment for the month ended August 31st, the owner’s equity statement and a Balance Sheet as at that date

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section5.2: Bank Reconciliation

Problem 1OYO

See similar textbooks

Similar questions

ABC company are involved with the following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below. 1 Aug 3 Aug 5 Aug 7 Aug 10 Aug 10 Aug 11 Aug 12 Aug Started business with $150, 000 in the bank Bought supplies on credit from Right Way Manufacturers 24 Boxes Air Filter 96 Bottles fuel injector cleaner 48 Boxes Spark Plug 36 Boxes Brake Shoe 24 Boxes Disc Pads Provided services for cash less 10% discount 12 small motorbike engines 6 large motorbike engines (full service) 8 medium size motorbike engines (full service) Paid Rent by cheque Paid Wages by cheque Bought Fixtures from CT Limited paying by cash Provided services on credit to Auto Care. 24 small motorbike engines 8 large motor bike engines (partial service) 12 medium size motorbike engine (partial service)…
PROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November was customer's note for P300,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000. The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000. The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance of P1,456,800. Bank debit memos for December were: No. 121 for service…
following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below. 4/9 1 Aug Started business with $150, 000 in the bank 3 Aug Bought supplies on credit from Right Way Manufacturers 24 Boxes Air Filter $720.00 per box 96 Bottles fuel injector cleaner $200.00 per bottle 48 Boxes Spark Plug $300.00 per box 36 Boxes Brake Shoe $580.00 per box 24 Boxes Disc Pads $400.00 per box 5 Aug Provided services for cash less 10% discount 12 small motorbike engines $350.00 per engine 6 large motorbike engines (full service) $950.00 per engine 8 medium size motorbike engines (full service) $800.00 per engine 7 Aug Paid Rent by cheque $5,000.00 10 Aug Paid Wages by cheque $8,000.00 10 Aug Bought Fixtures from CT Limited $3,500.00 paying by cash 11 Aug Provided services on credit to…
Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2019, 2020, and 2021. 2019 2020 2021 Cash receipts from sales: On 2019 sales $295,000 $160,000 $ 30,000 On 2020 sales –0– 355,000 90,000 On 2021 sales 408,000 Cash payments for expenses: On 2019 expenses 185,000 67,000 25,000 On 2020 expenses 40,000a 160,000 55,000 On 2021 expenses 45,000b 218,000 a Prepayments of 2020 expenses. b Prepayments of 2021 expenses. Instructions a. Using the data above, prepare abbreviated income statements for the years 2019 and 2020 on the cash basis. b. Using the data above, prepare abbreviated income statements for the years 2019…
2. The bank sends you a memorandum informing you that they have increased the balance of your account... A. Credit Memo B. Debit MemoC. Deposit in Transit D. Outstanding Checks 3. An entity has P2,201,000 cash balance per books, P521,000 deposit in transit, P543,000 outstanding checks, P390,000 notes collected by the bank from entity's customer, P600 bank service charge and P89,000 NSF check. What is the adjusted cash balance? A. P2,048,000 B. P2,502,400 C. P2,501,400 D. P2,179,000 4. When preparing a bank reconciliation, interest credited to the business’ bank account but not yet recorded in the books of account is... A. Added to the balance of cash per books B. Deducted from the balance of cash per books C. Added to the balance per bank statement D. Deducted from the balance per bank statement
Calculate the profit of a bank by preparing income and expenditure statement. -Assume that you are an accountant in a PNZ Bank. From the following particulars, prepare the profit and loss account of bank PNZ for the year ended 31-03-2020. Particulars OMR Particulars OMR Locker rent Discount on bills discounted Director and auditor fee Establishment Expenses Interest on loan Interest on fixed deposit Interest on cash credit Sundry expenses Impairment for credit loss Transfer fee Fee and commission expenses Provision for doubtful debts Decrease in net changes in face value of sale of investment 70,000 2,100,000 50,000 600,000 2,800,000 2,980,000 2,400,000 20,000 2,000 5,000 25,000 300,000 900 Interest on current account Interest on over draft Interest on savings bank account Postage and telegram Printing and stationary Discount on bills discounted Rent and taxes Income tax expenses Depreciation Fee and commission income Profit on exchange difference arising on foreign…
SP 6 Serial Problem Business Solutions (Algo) LO P3 Santana Rey receives the March bank statement for Business Solutions on April 11, 2022. The March 31 bank statement shows an ending cash balance of $67,666. The general ledger Cash account, Number 101, shows an ending cash balance per books of $68,266 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, Number 101, reveals the following. a. The bank erroneously cleared a $600 check against the company account in March that S. Rey did not issue. The check was actually issued by Business Systems. b. On March 25, the bank statement lists a $57 charge for a safety deposit box. Santana has not yet recorded this expense. c. On March 26, the bank statement lists a $110 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense. d. On March 31, the bank statement lists $36 interest earned on Business Solutions's checking…
Epto Ergo’s bank statement from Crypto Bank at July 31, 2020, gives thefollowing information.Balance, July 1 $18,400 Bank debit memorandum:August deposits 71,000 Safety deposit box fee $ 25Checks cleared in July 68,678 Service charge 50Bank credit memorandum: Balance, July 31 20,692Interest earned 45A summary of the Cash account in the ledger for July shows the following:balance, July 1, $18,700; receipts $74,000; disbursements $73,570;and balance, July 31, $19,130.Analysis reveals that the only reconciling items on the June 30 bank reconciliation were adeposit in transit for $4,800 and outstanding checks of $4,500. In addition, you determine thatthere was an error involving a company check drawn in July: A check for $400 to a creditor onaccount that cleared the bank in July was journalized and posted for $40.Instructionsa) Determine deposits in transit.b) Determine outstanding checks. (Hint: You need to correct disbursements for thecheck error.)c) Prepare a bank reconciliation at July…
Question 2 You are the bookkeeper of Holmes Traders. You undertake a bank reconciliation at the end of every month. Holmes Traders received its bank statement for the month ending 31 March 2021. The bank reconciliation at the end of February showed a deposit in transit of $780 and two outstanding cheques (no. 563 for $204 and no. 571 for $420). The adjusted cash balance in the entity’s records was $7087 debit at the end of February. Below are the entity’s March bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of March: AU Bank - Bank Statement For the period 01/03/2021 – 31/03/2021 Holmes Traders, NSW Dr Cr Balance $ Balance brought forward 6931 CR 1 March Deposit 780 7711 CR 3 March Deposit 708 8419…
Question 28 On July 31, 2028, Massive Ltd. had a cash balance of $6,793 in its general ledger. The bank statement from the Bank of Auditing on that date showed a balance of $6,578. A comparison of the bank statement with the Cash account revealed the following: a. Cash receipts for July 31 recorded on the company's books were $3,500, but this amount does not appear on the bank statement. b. A cheque of $5,100 made by another company was incorrectly deducted to Massive's account by the Bank of Auditing. c. The bank statement included service charges and debit and credit card processing fees of $65. d. Cheques outstanding on June 30 totaled $6,200. Of these, $4,600 worth cleared the bank in July. All cheques written in July cleared the bank in July. e. The bank statement included electronic collections from customers on account totaling $8,800. Massive had not recorded the EFT. f. Salaries of $4,800 were paid electronically during the month. The company has already recorded these. g. An…
cam - Intermediate Accounting 1.docx Open with Google Docs For Nos. 26- 27 Tron Company has provided the following data in relation to its bank reconciliation for April 2019. From March 31 bank recondliation: Deposit in transit Outstanding checks P6,800 15,600 April 2019 data: Per Bank Per Book Balance, March 31 Deposits reflected 296,560 190,400 287,760 196,000 Checks reflected (246,800) (244,000) Note collected 80,000 Service charge (480) 319,680 Balance, April 30 239,760 The checks reflected by the bank in April includes a P6,000 check drawn by Boron Company. 26. How much is Iron's deposits in transit at April 30? a. P12,400 b. P18,000 C. P1,200 d. P5,600 27. How much is Iron's outstanding checks at April 30? P27,600 b. a. P34,400 P18,800 d. P24,800 C. For Nos. 28-30 Page 4 / 5 The entity sold P1,500,000 of accounts receivable for cash proceeds of P1,390,000. No bad debt allowance was associated with these ac
PROBLEM 1. The accounting records for Ortiz, Inc. revealed the following information on April 30, 2020: $51,000 Bank statement balance, April 30, 2020 Credit memo with bank statement for interest 15 earned during April on bank account Debit memo with bank statement for April's service charge 27 2,000 Deposits in transit on April 30 Cash on hand 500 1,000 NSF customer check on April 30 A $175 deposit made on April 3 was recorded incorrectly by the bank as The bank collected a customer's note receivable 125 (including 10% interest) Outstanding checks on April 30 Cash account balance, April 30, 2020 1,100 3,900 50,000 Required: Prepare a bank reconciliation using good format. b. Prepare any necessary adjusting journal entries for April 30, 2020. а.