ACCT 2240 Study Guide - Final Guide: Asset-Backed Commercial Paper, Accrual

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olivecrocodile438

20 Feb 2014

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Ii of the handbook or the ifrs in part i of the handbook: not for profit organizations apply either accounting standards for not for profit organizations in part iii of the handbook or the ifrs in part i of the handbook. Representational faithfulness: info reflects economic substance (faithfully represents) of the transaction. (reflects the true nature of events: complete: all information necessary to record events and transactions have been included. (example: liabilities that can be estimated are included on the financial statements, neutrality: info is factual, truthful, without bias. Info cannot be selected to favor one user over the other. (example: liabilities are not materially overstated: free from material error: there are no errors or emissions in the description of the phenomenon and the process used to produce the reported info has been selected and applies with no errors in the process. (doesn"t mean perfectly accurate.

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El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2018, reconciliation of the bank balance is as follows:

Balance per bank, November 30		$3,281
Add: Deposits outstanding		$1,250
Less: Checks outstanding
#363	$128
#365	$206
#380	$61
#381	$91
#382	$390	($876)
Adjusted balance per bank, November 30		3,655

The company’s general ledger checking account showed the following for December:

Balance, December 1	$3,655
Receipts	$43,150
Disbursements	($42,353)
Balance, December 31	$4,452

The December bank statement contained the following information:

Balance, December 1	$3,281
Deposits	$43,500
Checks processed	($42,418)
Service charges	($27)
NSF checks	($490)

Balance, December 31	3,846

The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discover that check #411 for $430 was correctly recorded by the bank but was incorrectly recorded on the books as a $340 disbursement for advertising expenses. Included in the bank’s deposits is a $1,800 deposit incorrectly credited to the company’s account. The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been redeposited and the company will seek payment from the customers involved.

Required
1. Prepare a bank reconciliation for the El Gato checking account on December 31, 2018.
2. Prepare any necessary adjusting journal entries indicated.

pinkcoyote651

mig stories developed the following information in recording itsbank statement for month of march

Balance per books March 31 8905

Balance per bank statement March 31 10900

1. check written in march but still outstanding 4000

2. check written in february but still outstanding 2800

3. deposits of march 30 and 31 not yet recorded by bank 5200

4. NSF check out customer returned by bank 1200

5. check No 210 for 594 was correctly issued and paid by bankbut incorrectlyenterned in the cash payments journal as pay ent onaccount for 549.

6. bank service charge for march was 50.

7. A payment on account was incorrectly entered in the cashpayment journal and posted to the accounts payable subsidiaryledger for $824 when check N0. 318 was correctly prepared for $ 284the check cleared the bank in march.

8. the bank collected a note receivable for the company for$1000 plus 150interest revenue.

Instruction.

prepare bank reconciliation for MIG stories at march31.

rubyeel224

P8-4A The bankportion of the bank reconciliation for Backhaus Company at November30, 2010, was as follows.

BACKHAUS COMPANY

Bank Reconciliation

November 30, 2011

Cash balance perbank $14,367.90

Add: Deposits intransit 2,530.20

16,898.10

Less: Outstanding checks

CheckNumber Check Amount

3451 $2,260.40

3470 720.10

3471 844.50

3472 1,426.80

3474 1,050.00 6,301.80

Adjusted cash balance perbank $10,596.30

The adjusted cash balance per bankagreed with the cash balance per books at November 30.

The December bank statement showedthe following checks and deposits.

Bank Statement
Checks			Deposits
Date	Number	Amount	Date	Amount
12-1	3451	$2,260.40	12-1	$2,530.20
12-2	3471	844.50	12-4	1,211.60
12-7	3472	1,426.80	12-8	2,365.10
12-4	3475	1,640.70	12-16	2,672.70
12-8	3476	1,300.00	12-21	2,945.00
12-10	3477	2,130.00	12-26	2,567.30
12-15	3479	3,080.00	12-29	2,836.00
12-27	3480	600.00	12-30	1,025.00
12-30	3482	475.50	Total	$18,152.90
12-29	3483	1,140.00
12-31	3485	540.80
	Total	$15,438.70

The cash records per books forDecember showed the following.

Cash Payments Journal						Cash Receipts Journal
Date	Number	Amount	Date	Number	Amount	Date	Amount
12-1	3475	$1,640.70	12-20	3482	$475.50	12-3	$1,211.60
12-2	3476	1,300.00	12-22	3483	1,140.00	12-7	2,365.10
12-2	3477	2,130. 00	12-23	3484	798.00	12-15	2,672.70
12-4	3478	621.30	12-24	3485	450.80	12-20	2,954.00
12-8	3479	3080.00	12-30	3486	1,889.50	12-25	2,567.30
12-10	3480	600.00	Total		$14,933.20	12-28	2,836.00
12-17	3481	807.40				12-30	1,025.00
						12-31	1,690.40
						Total	$17,322.10

The bank statement contained twomemoranda:

A credit of $4,145 for the collection of a $4,000 note forBackhaus Company plus interest of $160 and less a collection fee of$15. Backhaus Company has not accrued any interest on the note.

A debit of $572.80 for an NSF check written by D. Chagnon, acustomer. At December 31, the check had not been redeposited in thebank.

At December 31, the cash balance perbooks was $12,985.20, and the cash balanced per the bank statementwas $20,654.30. The bank did not make errors, but two errors weremade by Backhaus Company.

Instructions

Prepare a bank reconciliation at December 31.

Prepare the adjusting entries based on the reconciliation.(Hint: The correction of any errors pertaining to recording checksshould be made to Accounts Payable. The correction of any errors torecording cash receipts should be made to Accounts Receivable.)

periwinklebee868

ACCT 2240 Study Guide - Final Guide: Asset-Backed Commercial Paper, Accrual

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