Finding something? Use this search bar!

Friday, August 6, 2010

Valix Finacc vol 1 Problem 4-5

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 4-5


Balance per book                                                                                                   5,000,000      
Add: Note collected by bank                                                                     2,150,000
Total                                                                                                                        7,150,000      
Less: Bank service charge                                                                      50,000                                
         NSF check                                                                                   500,000           550,000 
Adjusted book balance                                                                                          6,600,000             
Balance per bank                                                                                                    4,450,000      
Deposit in transit                                                                                                     3,000,000                 
Total                                                                                                                        7,450,000 
Less: Outstanding checks                                                                                           850,000
Adjusted bank balance                                                                                          6,600,000

Adjusting entries:

1. Cash in bank                                                                               2,150,000
    Bank service charge                                                                        50,000
Note receivable                                                                                          2,000,000
Interest income                                                                                              200,000

2. Bank service charge                                                                        50,000
    Accounts receivable                                                                      500,000
Cash in bank                                                                                                  550,000

No comments:

Post a Comment