Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Question
Chapter 4, Problem 33EB
To determine
Compute the true cash balance.
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Students have asked these similar questions
Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on
September 30.
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
Book
a) 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?
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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- In 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_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_forwardrangelina 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_forward
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