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On 31 October 2008 the cash book of N. Orange showed a balance at bank of $570. An examination of his records located the following errors. (1) Orange paid to R. Jones $175 by cheque on 15 October. This cheque was entered in the cash book as $195. (11) Bank charges not recorded in the cash book amounted to $25. (111) A cheque dated 19 October, value $150, payable to T. Jack was not paid by the bank until 5 November. (iv)Orange on 23 October received from W. Green a cheque, value $125. This cheque was dishonoured on 29 October. No entry for the dishonour has been made in the cash book. (v) On 31 October a cheque, value $200, received from F. Brown was banked; however, the bank statement was not credited until 1 November. You are required to: (a) make the necessary entries in the cash book in order to show the revised cash book balance at 31 October 2008; (b) prepare a statement reconciling the corrected cash book balance with the bank statement at 31 October 2008; (c) state the balance at bank at 31 October 2008 as shown by the bank statement.

On 31 October 2008 the cash book of N. Orange showed a balance at bank of $570. An examination of his records located the following errors. (1) Orange paid to R. Jones $175 by cheque on 15 October. This cheque was entered in the cash book as $195. (11) Bank charges not recorded in the cash book amounted to $25. (111) A cheque dated 19 October, value $150, payable to T. Jack was not paid by the bank until 5 November. (iv)Orange on 23 October received from W. Green a cheque, value $125. This cheque was dishonoured on 29 October. No entry for the dishonour has been made in the cash book. (v) On 31 October a cheque, value $200, received from F. Brown was banked; however, the bank statement was not credited until 1 November. You are required to: (a) make the necessary entries in the cash book in order to show the revised cash book balance at 31 October 2008; (b) prepare a statement reconciling the corrected cash book balance with the bank statement at 31 October 2008; (c) state the balance at bank at 31 October 2008 as shown by the bank statement.

Financial Accounting
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 18E
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4X On 31 October 2008 the cash book of N. Orange showed a balance at bank of $570. An examination of his records located the following errors. (1) Orange paid to R. Jones $175 by cheque on 15 October. This cheque was entered in the cash book as $195. (11) Bank charges not recorded in the cash book amounted to $25. (111) A cheque dated 19 October, value $150, payable to T. Jack was not paid by the bank until 5 November. (iv)Orange on 23 October received from W. Green a cheque, value $125. This cheque was dishonoured on 29 October. No entry for the dishonour has been made in the cash book. (v) On 31 October a cheque, value $200, received from F. Brown was banked; however, the bank statement was not credited until 1 November. You are required to: (a) make the necessary entries in the cash book in order to show the revised cash book balance at 31 October 2008; (b) prepare a statement reconciling the corrected cash book balance with the bank statement at 31 October 2008; (c) state the balance at bank at 31 October 2008 as shown by the bank statement.
Transcribed Image Text:4X On 31 October 2008 the cash book of N. Orange showed a balance at bank of $570. An examination of his records located the following errors. (1) Orange paid to R. Jones $175 by cheque on 15 October. This cheque was entered in the cash book as $195. (11) Bank charges not recorded in the cash book amounted to $25. (111) A cheque dated 19 October, value $150, payable to T. Jack was not paid by the bank until 5 November. (iv)Orange on 23 October received from W. Green a cheque, value $125. This cheque was dishonoured on 29 October. No entry for the dishonour has been made in the cash book. (v) On 31 October a cheque, value $200, received from F. Brown was banked; however, the bank statement was not credited until 1 November. You are required to: (a) make the necessary entries in the cash book in order to show the revised cash book balance at 31 October 2008; (b) prepare a statement reconciling the corrected cash book balance with the bank statement at 31 October 2008; (c) state the balance at bank at 31 October 2008 as shown by the bank statement.
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