At 31 December 2021, Golden Music Company has the following account balances before recording any adjusting entries: Debit $89,670 $21,100 $100,000 Credit Cash Accounts Receivable Equipment Allowance for doubtful accounts Accumulated Depreciation- Equipment Bond payable Premium on bond payable $700 $20,000 $50,000 $641,60 a) The 31 December 2021 bank statement showed a balance of $90,790. All cash of the company is deposited in the same bank account in general. You are to prepare the bank reconciliation of Golden Music Company at 31 December 2021, using the following supplementary information: I. Cash deposits to bank account at 31 December 2021, $23,250, were not recorded by bank until 2 January 2022. II. Outstanding checks: no. 1379, $5,270; no. 1386, $10,400. III. Service charge by bank, $1,400 shown on bank statement. IV. A note receivable for $10,000 left by Golden Music Company with bank for collection and the related interest of $1,000 had been collected and credited to company's account. No interest revenue or receivable is recorded before. V. Golden's check no. 1485, issued in payment of $3,230 worth of office equipment, correctly written in the amount of $3,230 but erroneously recorded in its accounting records as $2,330. i) Prepare the bank reconciliation of Golden Music Company at 31 December 2021. ii) Prepare the entry or entries necessary to correct accounting records as of 31 December 2021. (No narratives required.)
At 31 December 2021, Golden Music Company has the following account balances before recording any adjusting entries: Debit $89,670 $21,100 $100,000 Credit Cash Accounts Receivable Equipment Allowance for doubtful accounts Accumulated Depreciation- Equipment Bond payable Premium on bond payable $700 $20,000 $50,000 $641,60 a) The 31 December 2021 bank statement showed a balance of $90,790. All cash of the company is deposited in the same bank account in general. You are to prepare the bank reconciliation of Golden Music Company at 31 December 2021, using the following supplementary information: I. Cash deposits to bank account at 31 December 2021, $23,250, were not recorded by bank until 2 January 2022. II. Outstanding checks: no. 1379, $5,270; no. 1386, $10,400. III. Service charge by bank, $1,400 shown on bank statement. IV. A note receivable for $10,000 left by Golden Music Company with bank for collection and the related interest of $1,000 had been collected and credited to company's account. No interest revenue or receivable is recorded before. V. Golden's check no. 1485, issued in payment of $3,230 worth of office equipment, correctly written in the amount of $3,230 but erroneously recorded in its accounting records as $2,330. i) Prepare the bank reconciliation of Golden Music Company at 31 December 2021. ii) Prepare the entry or entries necessary to correct accounting records as of 31 December 2021. (No narratives required.)
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 11EA: Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables....
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:At 31 December 2021, Golden Music Company has the following account balances before
recording any adjusting entries:
Debit
Credit
Cash
$89,670
$21,100
$100,000
Accounts Receivable
Equipment
Allowance for doubtful accounts
$700
Accumulated Depreciation- Equipment
Bond payable
Premium on bond payable
$20,000
$50,000
$641,60
a) The 31 December 2021 bank statement showed a balance of $90,790. All cash of the
company is deposited in the same bank account in general. You are to prepare the bank
reconciliation of Golden Music Company at 31 December 2021, using the following
supplementary information:
I. Cash deposits to bank account at 31 December 2021, $23,250, were not recorded by
bank until 2 January 2022.
II. Outstanding checks: no. 1379, $5,270; no. 1386, $10,400.
III. Service charge by bank, $1,400 shown on bank statement.
IV. A note receivable for $10,000 left by Golden Music Company with bank for
collection and the related interest of $1,000 had been collected and credited to
company's account. No interest revenue or receivable is recorded before.
V. Golden's check no. 1485, issued in payment of $3,230 worth of office equipment,
correctly written in the amount of $3,230 but erroneously recorded in its accounting
records as $2,330.
i) Prepare the bank reconciliation of Golden Music Company at 31 December 2021.
ii) Prepare the entry or entries necessary to correct accounting records as of 31
December 2021. (No narratives required.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning