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, $272A credit for an electronic transfer from a customer of $1,288Interest earned, $88Account 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.

Cash receipts journal: A cash receipts journal is a special kind of journal book that only records…

Answered: Below is information about Adam Ltd’s…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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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.

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