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
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