Finding something? Use this search bar!

Friday, August 6, 2010

Valix Finacc vol 1 Problem 4-3

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 4-3


Balance per book                                                                                                     110,000  Add: CM for note collected                                                                                             45,000
Total                                                                                                                          155,000       
Less: DM for service charge                                                                    5,000                 
         NSF check                                                                                    10,000                 
         Book error (52,000 – 25,000)                                                         27,000             42,000      
Adjusted book balance                                                                                            113,000       
                                                                                                    






                                                                                                             35

Balance per bank                                                                                                       135,000      
Add: Deposit in transit                                                               60,000                       
Erroneous bank debit                                                                              8,000             68,000
Total                                                                                                                           203,000 
Less: Outstanding checks:                                                   
              No. 770                                                                                    20,000                            
                     775                                                                                    30,000
                     777                                                                                    40,000             90,000 
Adjusted bank balance                                                                                             113,000
                                                                            
Adjusting entries:                                                    
                                                                                   
1. Cash in bank                                                                                     45,000                       
    Bank service charge                                                                            5,000
          Note receivable                                                                                                50,000      
                                                                                   
2. Bank service charge                                                                            5,000
    Accounts receivable                                                                         10,000
    Accounts payable                                                                             27,000
           Cash in bank                                                                                                    42,000

1 comment: