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Friday, August 6, 2010

Valix Finacc vol 1 Problem 4- 20

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 4-20


          Sept. 30          Receipts       Disbursements      Oct. 31

Book balance                                   1,900,000          1,400,000           2,400,000         900,000
NSF check:
      September 30                            (    60,000)                                 (     60,000)
      October 31                                                                                       40,000      (    40,000)
Collection of accounts receivable
      September 30                                30,000            (    30,000)
      October 31                                                               50,000                                   50,000
Overstatement of check
       September 30                               90,000           (    90,000)
      October 31                                                           ________          (  120,000)        120,000
Adjusted balance                            1,960,000            1,330,000           2,260,000      1,030,000


Bank balance                                  2,100,000             1,200,000           2,500,000       800,000
Deposit in transit     
      September 30                               130,000           (   130,000)
      October 31                                                            260,000                                   260,000
Outstanding checks
      September 30                           (   270,000)                                  (    270,000)
      October 31                                                                                         30,000   (     30,000)
Adjusted balance                            1,960,000           1,330,000            2,260,000     1,030,000



Adjusting entries on October 31

1. Accounts receivable                                                                          40,000
           Cash in bank                                                                                                    40,000

2. Cash in bank                                                                                   170,000
           Accounts receivable                                                                                        50,000
           Salaries                                                                                                            120,000

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