Chapter 1 Problem 4-9
Balance per book 2,700,000
Add: Proceeds of bank loan 940,000
Note collected by bank 435,000 1,375,000
Total 4,075,000
Less: Service charge 10,000
Customer’s check charged back 50,000 60,000
Adjusted book balance 4,015,000
39
Balance per bank 4,000,000
Add: Deposit in transit 475,000
Incorrect deposit 90,000
Erroneous bank charge 150,000
Erroneous debit memo 200,000 915,000
Total 4,915,000
Less: Outstanding checks 600,000
Erroneous bank credit 300,000 900,000
Adjusted bank balance 4,015,000
Adjusting entries:
1. Cash in bank 1,375,000
Bank service charge 5,000
Interest expense (60,000 x 1/6) 10,000
Prepaid interest expense 50,000
Loan payable (940,000/94%) 1,000,000
Note receivable 400,000
Interest income 40,000
2. Bank service charge 10,000
Accounts receivable 50,000
Cash in bank 60,000
No comments:
Post a Comment