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Friday, August 6, 2010

Valix Finacc vol 1 Problem 4-21

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 4-21


  May 31             Receipts        Disbursements        June 30

Balance per book                   2,500,000             5,300,000            5,400,000           2,400,000
Bank service charge:
      May 31                             (      20,000)                                   (     20,000)
      June 30                                                                                       25,000          (     25,000)
NSF check:
      June 30                                                                                     200,000           (   200,000)
Interest collected:
      June 30                                                               75,000                                        75,000
Book error:             
      June 30                                                          _________      (    300,000)             300,000
Adjusted balance                    2,480,000              5,375,000          5,305,000            2,550,000


Balance per bank                    2,700,000              5,500,000          5,600,000            2,600,000
Deposit in transit     
      May 31                                  625,000            (   625,000)
      June 30                                                            500,000                                       500,000
Outstanding checks
      May 31                             (   845,000)                                   (    845,000)
      June 30                                                                                     550,000         (    550,000)
Adjusted balance                   2,480,000               5,375,000          5,305,000           2,550,000

Adjusting entries on June 30:

1. Cash in bank                                                                              375,000
            Interest income                                                                                             75,000
            Equipment                                                                                                   300,000

2. Bank service charge                                                                     25,000
    Accounts receivable                                                                  200,000
            Cash in bank                                                                                               225,000

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