Below is information about Adam Ltd’s cash position for the month of May 2020. The general ledger Cash at Bank account had a balance of $42,400 on 30 April. The cash receipts journal showed total cash receipts of $585,408 for May. The cash payments journal showed total cash payments of $530,148 for May. The June bank statement reported a bank balance of $82,368 on 30 May. Outstanding cheques at the end of May were: no. 221, $2896; no. 225, $308; and no. 230, $820. Cash receipts of $20,180 for 31 May were not included in the May bank statement. A dishonoured cheque written by a client Jim Ltd, $272 A credit for an electronic transfer from a customer of $1,288 Interest earned, $88 Account and transaction fees, $240. Required: Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for May. Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account. Prepare a bank reconciliation statement at 31 May. Cash Receipts Journal Date Particulars Cash at Bank 585,408 Cash Payments Journal Date Particulars Cash at Bank
Below is information about Adam Ltd’s cash position for the month of May 2020. The general ledger Cash at Bank account had a balance of $42,400 on 30 April. The cash receipts journal showed total cash receipts of $585,408 for May. The cash payments journal showed total cash payments of $530,148 for May. The June bank statement reported a bank balance of $82,368 on 30 May. Outstanding cheques at the end of May were: no. 221, $2896; no. 225, $308; and no. 230, $820. Cash receipts of $20,180 for 31 May were not included in the May bank statement. A dishonoured cheque written by a client Jim Ltd, $272 A credit for an electronic transfer from a customer of $1,288 Interest earned, $88 Account and transaction fees, $240. Required: Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for May. Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account. Prepare a bank reconciliation statement at 31 May. Cash Receipts Journal Date Particulars Cash at Bank 585,408 Cash Payments Journal Date Particulars Cash at Bank
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 19E
Related questions
Question
Below is information about Adam Ltd’s cash position for the month of May 2020.
- The general ledger Cash at Bank account had a balance of $42,400 on 30 April.
- The cash receipts journal showed total cash receipts of $585,408 for May.
- The cash payments journal showed total cash payments of $530,148 for May.
- The June bank statement reported a bank balance of $82,368 on 30 May.
- Outstanding cheques at the end of May were: no. 221, $2896; no. 225, $308; and no. 230, $820.
- Cash receipts of $20,180 for 31 May were not included in the May bank statement.
- A dishonoured cheque written by a client Jim Ltd, $272
- A credit for an electronic transfer from a customer of $1,288
- Interest earned, $88
- Account and transaction fees, $240.
Required:
- Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for May.
- Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account.
- Prepare a
bank reconciliation statement at 31 May.
Cash Receipts Journal |
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585,408
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Cash Payments Journal |
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Date |
Particulars |
Cash at Bank |
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