E7-9 Prepare bank reconciliation and adjusting entries. This information relates to the Cash account in the ledger of Treanor Company – SeeTutorials.com
7-8 Prepare bank reconciliation and adjusting entries
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The following information pertains to Joyce Company.
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1.
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Cash balance per bank, July 31, $7,328.
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2.
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July bank service charge not recorded by the depositor $38.
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3.
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Cash balance per books, July 31, $7,364.
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4.
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Deposits in transit, July 31, $2,700.
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5.
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Note for $2,000 collected for Joyce Company in July by the bank, plus
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interest $36 less fee $20. The collection has not been recorded by Joyce
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Company, and no interest has been accrued.
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6.
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Outstanding checks, July 31, $686.
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Instructions
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(a)
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Prepare a bank reconciliation at July 31, 2014.
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(b)
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Journalize the adjusting entries at July 31 on the books of Joyce Company.
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NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
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E7-9 Prepare bank reconciliation and adjusting entries
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This information relates to the Cash account in the ledger of Treanor Company.
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Balance September 1 – $16,400; Cash deposited – $64,000
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Balance September 30 – $17,600; Checks written – $62,800
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The September bank statement shows a balance of $16,500 at September 30 and the
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following memoranda.
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Credits
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Debits
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Collection of $1,800 note plus interest $30
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$1 830
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NSF checks: H. Kane
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$560
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Interest earned on checking account
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45
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Safety deposit box rent
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60
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At September 30, deposits in transit were $4,738 and outstanding checks totaled $2,383.
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Instructions
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(a)
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Prepare the bank reconciliation at September 30, 2014.
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(b)
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Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a
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customer on account, and (2) no interest had been accrued on the note.
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NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
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E7-14 Prepare a cash budget for two months
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Enright company expects to have a cash balance of $46,000 on January 1, 2014.
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These are the relevant monthly budget data for the first two months of 2014.
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1.
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Collection from customers: January $71,000, February $146,000.
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2.
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Payments to suppliers: January $40,000, February $75,000.
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3.
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Wages: January $30,000, February $40,000. Wages are paid in the month
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they are incurred.
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4.
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Administrative expenses: January $21,000, February $24,000. These costs
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include depreciation of $1,000 per month. All other costs are paid as incurred.
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5.
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Selling expenses: January $15,000, February $20,000. These costs are exclusive
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of depreciation. They are paid as incurred.
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6.
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Sales of short-term investments in January are expected to realize $12,000 in
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cash. Enright has a line of credit at a local bank that enables it to borrow up
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to $25,000. The company want to maintain a minimum monthly cash balance
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of $20,000.
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