Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 4, Problem 11E
To determine
Ascertain the true cash balance of Company T as of June 30.
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Exercise 6-11A (Algo) Determining the true cash balance, starting with the unadjusted bank balance LO
6-3
The following information is available for Trinkle Company for the month of June:
1. The unadjusted balance per the bank statement on June 30 was $56,805.
2. Deposits in transit on June 30 were $2,450.
3. A debit memo was included with the bank statement for a service charge of $27.
4. A $5,823 check written in June had not been paid by the bank.
5. The bank statement included a $1,300 credit memo for the collection of a note. The principal of the note was $1,245, and the
interest collected amounted to $55.
Required
Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true
balance.)
True cash balance
PROBLEM 7A-4
Another Com-
prehensive
Bank Reconcil-
Daytona Recycling Center reports the following information concerning cash bal-
ances and cash transactions for the month of September:
Cash balance per bank statement as of September 30 was $20,893.25.
2 Two.debit memoranda accompanied the bank statement: one for $10 was for
service charges for the month; the other for $64.60 was attached to an NSF
check from A. Smith.
1
Istlon
3 Included with the bank statement was $69 credit memorandum for interest
earned on the bank account in September.
4 The paid checks returned with the September bank statement disclosed an
error in Daytona's cash records. Check no. 851 for $77.44 for telephone expense
had erroneously been listed in the cash payments journal as $44.77.
5 A collection charge for $26.00 (not applicable to Daytona) was erroneously de-
ducted from the account by the bank. Notice that this was the bank's error.
6 Cash receipts of September 30 amounting to $585.25 were mailed to the…
QUESTION 9
The Gatedown Company's bank statement has an ending cash balance of $14,110.00. The cash account
in the general ledger has a balance of $12,477.00. Based on the following reconciling items, prepare a
bank reconciliation.
a) Bank service charge of $20.00
b) Deposit in transit $3,190.00
c) A check was returned NSF $645.00
d) Outstanding check $688.00
e) Note collected by the bank, credit memoranda, $4,800.00
What is the total of subtractions to arrive at the book balance?
A)
645.00
B)
555.00
Chapter 4 Solutions
Survey Of Accounting
Ch. 4 - Prob. 1QCh. 4 - Prob. 2QCh. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - What is meant by separation of duties? Give an...Ch. 4 - 9. What are the attributes of a high-quality...Ch. 4 - 10. What is a fidelity bond? Explain its purpose.Ch. 4 - Prob. 10Q
Ch. 4 - Prob. 11QCh. 4 - Prob. 12QCh. 4 - Prob. 13QCh. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - Prob. 16QCh. 4 - Prob. 17QCh. 4 - Prob. 18QCh. 4 - Prob. 19QCh. 4 - Prob. 20QCh. 4 - Prob. 21QCh. 4 - Prob. 22QCh. 4 - Prob. 23QCh. 4 - Prob. 24QCh. 4 - Prob. 25QCh. 4 - Prob. 26QCh. 4 - Prob. 27QCh. 4 - Prob. 28QCh. 4 - Prob. 29QCh. 4 - Prob. 30QCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Fraud triangle Sam Sharp is an accountant with a...Ch. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 1ATCCh. 4 - Prob. 3ATCCh. 4 - Prob. 4ATCCh. 4 - ATC 6-7 Ethical Dilemma I need just a little extra...
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- Question Content Area Using the following information: The bank statement balance is $5,065. The cash account balance is $5,459. Outstanding checks amounted to $866. Deposits in transit are $1,191. The bank service charge is $60. A check for $34 for supplies was recorded as $25 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co. Bank Reconciliation May 31 Cash balance according to bank statement $fill in the blank 1 Adjustments: $- Select - - Select - Total adjustments fill in the blank 6 Adjusted balance $fill in the blank 7 Cash balance according to company's records $fill in the blank 8 Adjustments: $- Select - - Select - Total adjustments fill in the blank 13 Adjusted balance $fill in the blank 14arrow_forwardExercise 6-12A (Algo) Determining the true cash balance, starting with the unadjusted book balance LO 6-3 Nickleson Company had an unadjusted cash balance of $4,499 as of May 31. The company's bank statement, also dated May 31, included a $81 NSF check written by one of Nickleson's customers. There were $493 in outstanding checks and $270 in deposits in transit as of May 31. According to the bank statement, service charges were $70, and the bank collected an $700 note receivable for Nickleson. The bank statement also showed $15 of interest revenue earned by Nickleson. Required: Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.) True cash balance ..I.....arrow_forwardQUESTION 12 Brown Company's bank statement for September 30 showed: 6 poinis 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 September 30 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. Required: Prepare bank reconciliation as of September 30.arrow_forward
- 18 The May 31 balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a debit memo for direct payment of the telephone bill of $350. Required: a. Prepare a bank reconciliation to determine the true cash balance at May 31. b. Indicate how each of the required adjusting entries impact the financial statements. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Indicate how each of the required adjusting entries impact the financial statements. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Outstanding checks Horizontal Statements Model Balance Sheet Income Statement Item Assets Liabilities Cash Accounts Receivables Stockholders' Equity Revenue Expenses Net Income Statement of Cash Flows (1.700)…arrow_forwardExercise 4 Snail Company's bank statement for the month of August showed balance per bank of P44,000. Cash in Bank account per general ledger showed a balance of P40,000 as of August 31. The following are additional information for the month. a. 7251,589 M auto o es on August 31 recorded on the company's books amounted to 18,600 but Cash receipts this does not appear on the bank statement. b. The bank included a credit memorandum for 12,520 representing a customer's note collected by the bank for the company. The principal amount of the note was 12,000 with 520 interest which was not accrued. 222579 112 C. The bank statement showed a debit memorandum of 500 for the cost of the check book. d. Checks outstanding as of August 31 amounted to 12,000. (2qmo) 16.02. doo LILL e. The bank returned an NSF check from a customer in the amount of 1,420. Required: 1. Prepare a statement of bank reconciliation. 2. Prepare the journal entries in the books as a result of the bank reconciliation.…arrow_forwardExercise 7-24 Barbara Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records. June 30 Bank Reconciliation Balance per bank $12,600 Add: Deposits in transit 2,772 Deduct: Outstanding checks (3,600 ) Balance per books $11,772 Month of July Results Per Bank Per Books Balance July 31 $15,570 $16,650 July deposits 8,100 10,458 July checks 7,200 5,580 July note collected (not included in July deposits) 2,700 July bank service charge 27 July NSF check from a customer, returned by the bank (recorded by bank as a charge) 603 Your answer is partially correct. Try again. Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance. BARBARA LANSBURY COMPANYBank ReconciliationJuly 31…arrow_forward
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