Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Question
Chapter 4, Problem 20EA
To determine
Compute true cash balance.
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3. Calculate the adjusted company book cash
balance from the following information:
On July 31st , after all transactions have
been recorded, the balance in the company's
Cash account has a balance of $27,202.
A credit memo included with the bank
statement indicates that the bank collected $770
on a note receivable.
A debit memo included with the bank
statement shows a $67 NSF check from a
customer ,Noora.
Examination of the checks on the bank
statement with the entries in the accounting
records reveals that 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.
Included with the bank statement was a
debit memorandum in the amount of $25 for bank
service charges. It has not been recorded on the
company's books.
At August 31, Saladino Coffee has the following bank information: cash balance per bank Rp5.200.000, outstanding
checks Rp1.462.000, deposits in transit Rp1.211.000, and a bank debit memo Rp110.000. Determine the adjusted
cash balance per bank at July 31.
Cash balance per bank
Add : ...
Less : ...
Adjusted cash balance per bank
The information below relates to the Cash account in the ledger of Saladino Coffee
Balance
Rp10.094.000
Collection of electronic funds transfer
Rp884.000
Interest earned on checking accounts
Rp26.000
NSF check: R. Doll
Rp245.000
Rp35.000
Safety deposit box rent
Cash balance per books
Add:
***
***
Less
***
Adjusted cash balance per books
Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on
September 30.
Chapter 4 Solutions
Financial Accounting
Ch. 4 - Prob. 1YTCh. 4 - Prob. 2YTCh. 4 - Suppose at the end of the year Pendleton Corp.s...Ch. 4 - Prob. 4YTCh. 4 - Prob. 5YTCh. 4 - Prob. 6YTCh. 4 - Prob. 7YTCh. 4 - Prob. 1QCh. 4 - Prob. 2QCh. 4 - Prob. 3Q
Ch. 4 - Prob. 4QCh. 4 - What does true cash balance refer to?Ch. 4 - Identify and explain the financial statements on...Ch. 4 - Describe how accounts receivable arise. What does...Ch. 4 - Prob. 8QCh. 4 - Define net realizable value, book value, and...Ch. 4 - Explain the difference between the direct...Ch. 4 - If a company uses the allowance method of...Ch. 4 - Describe the two allowance methods used to...Ch. 4 - Which method of calculating the allowance for...Ch. 4 - Which method of calculating the allowance for...Ch. 4 - What are the advantages and disadvantages of...Ch. 4 - What is the difference between accounts receivable...Ch. 4 - What is the formula to calculate the accounts...Ch. 4 - How does a firm use its accounts receivable...Ch. 4 - Prob. 19QCh. 4 - Prob. 20QCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Prob. 9MCQCh. 4 - Prob. 1SEACh. 4 - Prob. 2SEACh. 4 - Prob. 3SEACh. 4 - Prob. 4SEACh. 4 - Prob. 5SEACh. 4 - Prob. 6SEACh. 4 - Prob. 7SEACh. 4 - Prob. 8SEACh. 4 - Prob. 9SEACh. 4 - Prob. 10SEBCh. 4 - Prob. 11SEBCh. 4 - Prob. 12SEBCh. 4 - Prob. 13SEBCh. 4 - Prob. 14SEBCh. 4 - Prob. 15SEBCh. 4 - Prob. 16SEBCh. 4 - Prob. 17SEBCh. 4 - Prob. 18SEBCh. 4 - Prob. 19EACh. 4 - Prob. 20EACh. 4 - Prob. 21EACh. 4 - Prob. 22EACh. 4 - Prob. 23EACh. 4 - Prob. 24EACh. 4 - Prob. 25EACh. 4 - Prob. 26EACh. 4 - Prob. 27EACh. 4 - Prob. 28EACh. 4 - Prob. 29EACh. 4 - Prob. 30EACh. 4 - Prob. 31EACh. 4 - Prob. 32EBCh. 4 - Prob. 33EBCh. 4 - Prob. 34EBCh. 4 - Prob. 35EBCh. 4 - Prob. 36EBCh. 4 - Prob. 37EBCh. 4 - Prob. 38EBCh. 4 - Prob. 39EBCh. 4 - Prob. 40EBCh. 4 - Prob. 41EBCh. 4 - Prob. 42EBCh. 4 - Prob. 43EBCh. 4 - Prob. 44EBCh. 4 - Prob. 45PACh. 4 - Prob. 46PACh. 4 - Prob. 47PACh. 4 - Prob. 48PACh. 4 - Prob. 49PACh. 4 - Prob. 50PACh. 4 - Prob. 51PACh. 4 - Prob. 52PACh. 4 - Prob. 53PBCh. 4 - Prob. 54PBCh. 4 - Prob. 55PBCh. 4 - Prob. 56PBCh. 4 - Prob. 57PBCh. 4 - Prob. 58PBCh. 4 - Prob. 59PBCh. 4 - Prob. 60PBCh. 4 - Prob. 1FSACh. 4 - Prob. 2FSACh. 4 - The following information has been adapted from...Ch. 4 - Prob. 1CTPCh. 4 - Prob. 2CTPCh. 4 - The information given here was taken from Yahoo!...Ch. 4 - Prob. 1IECh. 4 - Prob. 2IECh. 4 - The information given here was taken from Yahoo!...
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- The balance of the general ledger cash accounts as of December 31, 20P1 is P7,120. On the other hand, the bank statement showed a December 31 20P1 balance of P6,580. You were tasked to prepare the bank reconciliation statement for the company's bank account. Your analysis of the bank statement and the general ledger account revealed the following: |Deposit in transit Credit memo for direct collection of a note receivable Credit memo for interest income Auto debit of cell phone bill Customers NSF check |Outstanding check Debit memo for bank charges A check received from a customer was recorded in the accounting books for P3,280. The bank statement revealed that the customer check cleared at the correct amount of P3,820. P1,345 755 65 290 455 575 25 The bank deducted P360 from the account of JECAF for a check issued by Claire Inc. Page 13 of 17 Required: Prepare the bank reconciliation statement as of December 31, 20P1 for JECAF bank account. Solution: Bank Bookarrow_forwardIn the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information: Cash balance per company books on April 30 Deposits in transit at month-end Outstanding checks at month-end Bank charge Note collected by bank on Donahue's behalf A check paid to Donahue during the month by a customer is returned by the bank as NSF The adjusted cash balance per the books on April 30 is: $6,275 $1,300 $ 620 $ 45 $770 $ 480arrow_forwardPrepare bank reconciliation and adjusting entries. 2. (LO 3) The information below relates to the Cash account in the ledger of Hillfarms Company. Balance June 1-$9,947; Cash deposited-$37,120. Balance June 30-$10,094; Checks written-$36,973. The June bank statement shows a balance of $9,525 on June 30 and the following memoranda. Credits At June 30, deposits in transit were $2,581, and outstanding checks totaled $1,382. Instructions a. Prepare the bank reconciliation at June 30. b. Prepare the adjusting entries at June 30, assuming the NSF check was from a customer on account. Balance @ 06/30/2022 Debits Collection electronic funds transfer $884 NSF check: R. Doll $245 Interest earned on checking accounts $26 Safety deposit box rent $35 Adjusted Balance @ 06/30/2022 Cash Book. 0 Bank Statement. Date Account Name Debit 0 Creditarrow_forward
- rangelina Adoption Agency's general ledger shows a cash balance of $4,582. The balance of cash in the March-end bank statement s $7,323. A review of the bank statement reveals the following information: checks outstanding of $2,792, bank service fees of $74, and interest earned of $23. Calculate the correct balance of cash at the end of March. (Amounts to be deducted should be indicated with a minus sign.) Bank balance Company balance Checks outstanding Service fees Interest earned Cash balance per reconciliation Cash balance per reconciliationarrow_forwarda) Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for June. b) Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account. c) Prepare a bank reconciliation statement at 30 June. d) What is the amount of cash that should be reported on the 30 June balance sheet?arrow_forwardRequired:1. Prepare a bank reconciliation as of February 28.2. Prepare adjusting entries for Valentine based on the information developed in the bank reconciliation.3. What is the amount of cash that should be reported on the February 28 balance sheet?arrow_forward
- Using the following information, prepare a bank reconciliation for Cullumber Company for July 31, 2022. a. The bank statement balance is $3,700. b. The cash account balance is $4,100. C. Outstanding checks totaled $1,260. d. Deposits in transit are $1,620. e. The bank service charge is $31. f. A check for $87 for supplies was recorded as $78 in the ledger.arrow_forwardMDB Company provided the following data pertaining to the cash transactions and bank account for the month of May: Cash balace pжт ассошіg гессиі Cash balance per bank statement Bank service charge Bank Debit Memo Outstanding checks Deposits made on May 30 and xot yet reflected in the bank statement Collections made by the bank from a custoner promissory note, the principal amount of Phps800,000 with interest Check No. 1234 issued to a supplier entered in the accounting recond as Php 1,719,000 3,195,000 10,000 5,000 685,000 500,000 810,000 21,000 P210,000 but deducted in the bank statement at an erroneous amount of Customer check returned by the bank marked as NSF. No entry has been made to record the retumed check What is the adjusted cash in bank? 77,000arrow_forward25. Stellar Company provided the bank statement for the month of December which included the following information: Ending balance, December 31 Bank service charge for December Interest paid by bank to Stellar Company for December In comparing the bank statement to its own cash records, the entity found the following Deposit made but not yet recorded by the bank Checks written and mailed but not yet recorded by the bank In addition, the entity discovered that it had draw and eroneously recorded a check for P46,00 that should have been recorded for P64,000, What is the cash balance per ledger on December 31? 2,800,000 12,000 10,000 350,00 650,000arrow_forward
- 11. The following data pertaining to the cash transactions and bank account of Mandirigma Company for the month of May are available to you: Cash balance, per bank statement, 5/31 - 31,948; Bank service charge for May - 109; Debit memo for the cost of printed checks delivered by the bank - 125; Outstanding checks, May 31 - 6,728; Deposit of May 30 not recorded by bank until June 1 - 4,880; Proceeds of a bank loan of May 30, net of interest of P300 - 5,700; Proceeds from a customer's promissory note, including interest of P100 - 8,100; Check No. 2772 issued to a supplier entered in the accounting records at P2,100 but deducted in the bank statement at an erroneous amount of - 1,200; Stolen check lacking an authorized signature, deducted from Mandirigma's account by the bank in error - 800; Customer's check returned by the bank marked NSF; no entry has been made in the accounting records to record the returned check - 760. What is the cash balance per books at May 31? * a. P18,994…arrow_forwardAt November 30, Mazaya Company has the following bank information. cash balance per book RO4.600, outstanding checks RO 280; depositsin transit RO550, credit memo for interest RO10, bank service charge R.O.20. What is Mazaya's adjusted cash balance on November 30?arrow_forwardMDB Company provided the following data pertaining to the cash transactions and bank account for the month of May: Cash balance per accounting record Cash balance per bank statement Bank service charge Php 1,719,000 3,195,000 10,000 5,000 Bank Debit Memo Outstanding checks Deposits made on May 30 and not yet reflected in the bank statement Collections made by the bank from a customer promissory note, the principal amount of Php800,000 with interest Check No. 1234 issued to a supplier entered in the accounting record as P210,000 but deducted in the bank statement at an erroneous amount of Customer check returned by the bank marked as NSF. No entry has been made to record the returned check 685,000 500,000 810,000 21,000 77,000 What is the adjusted cash in bank?arrow_forward
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