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Friday, August 6, 2010

Valix Finacc vol 1 Problem 4-7

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 4-7


a. Balance per book – April 30                                                                                1,100,000
    Credit memo for note collected                                                                             60,000
    Outstanding checks:
          No. 1331                                                                                      40,000
                 1332                                                                                      30,000
                 1334                                                                                      60,000
                 1335                                                                                     10,000           140,000
    Total                                                                                                                    1,300,000
    Less: Bank service charge                                                                    5,000
             NSF check                                                                                 25,000
             Undeposited collections                                                         270,000           300,000
     Balance per bank – April 30                                                                               1,000,000


b. Adjusting entries:

    1. Cash in bank                                                                               60,000
                 Note receivable                                                                                         60,000
                                                                                                         
    2. Bank service charge                                                                       5,000
        Accounts receivable                                                                   25,000
                Cash in bank                                                                                              30,000

c. Balance per book – April 30                                                                                1,100,000
    CM for note collected                                                                                             60,000
    Bank service charge                                                                                          (       5,000)
    NSF check                                                                                                          (     25,000)
    Adjusted cash in bank                                                                                        1,130,000

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