Cumberland City Cycles, Inc. opened a checking account at First City Bank when it opened onJanuary 1, 2021. It is preparing the bank reconciliation on January 31, 2021, for the first monthof operations. The bank statement, dated January 31, 2021, is below:First City BankCumberland CityJanuary 31, 2021Beginning Balance, January 31Deposits and other creditsJan. 2$ 50,0005001015206,000tel:10%20500%2015%206,000253,50025026EFT CC Youth Center'31Interest Revenue2561,025Checks and other debitsJan. 3Ck# 100250Ck# 103Ck# 1022,0005,0001,0004,0007505710Ck# 10515Ck# 10620Ck# 104EFT to CC Utilities?Bank service chargeEnding balance, January 31, 202125500315013,550$47,475On the Excel worksheet are the T-accounts for Cash and other accounts need to record thebank reconciliation. Also, the format for the bank reconciliation is provided. Complete the bankreconciliation, using formulas when possible.%24

Cumberland City Cycles, Inc. opened a checking account at First City Bank when it opened on January 1, 2021. It is preparing the bank reconciliation on January 31, 2021, for the first month of operations. The bank statement, dated January 31, 2021, is below: First City Bank Cumberland City January 31, 2021 Beginning Balance, January 31 $ 0 Deposits and other credits Jan. 2 $ 50,000 500 10 15 6,000 20 tel:10%20500%2015%206,000 25 26 31 EFT CC Youth Center' Interest Revenue 3,500 250 25 61,025 Checks and other debits Jan. 3 5 Ck# 100 Ck# 103 250 2,000 5,000 1,000 4,000 750 500 50 7 Ck# 102 Ck# 105 10 15 Ck# 106 Ck# 104 20 EFT to CC Utilities? Bank service charge Ending balance, January 31, 2021 25 31 13,550 $47,475 On the Excel worksheet are the T-accounts for Cash and other accounts need to record the bank reconciliation. Also, the format for the bank reconciliation is provided. Complete the bank reconciliation, using formulas when possible.

Cumberland City Cycles, Inc. opened a checking account at First City Bank when it opened on January 1, 2021. It is preparing the bank reconciliation on January 31, 2021, for the first month of operations. The bank statement, dated January 31, 2021, is below: First City Bank Cumberland City January 31, 2021 Beginning Balance, January 31 $ 0 Deposits and other credits Jan. 2 $ 50,000 500 10 15 6,000 20 tel:10%20500%2015%206,000 25 26 31 EFT CC Youth Center' Interest Revenue 3,500 250 25 61,025 Checks and other debits Jan. 3 5 Ck# 100 Ck# 103 250 2,000 5,000 1,000 4,000 750 500 50 7 Ck# 102 Ck# 105 10 15 Ck# 106 Ck# 104 20 EFT to CC Utilities? Bank service charge Ending balance, January 31, 2021 25 31 13,550 $47,475 On the Excel worksheet are the T-accounts for Cash and other accounts need to record the bank reconciliation. Also, the format for the bank reconciliation is provided. Complete the bank reconciliation, using formulas when possible.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5PB

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Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.
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The bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding checks: $558 Bank service charges: $50 NSF checks: $250 Prepare the correcting journal entry.
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