Homework Help is Here – Start Your Trial Now!
Business
Accounting
Pathetic Company revealed the following facts on August 31: Balance of cash in bank account Balance of bank statement Outstanding checks, August 31: Number 555 1,300,000 1,200,000 10,000 55,000 40,000 25,000 65,000 70,000 275,000 761 762 763 764 765 Receipts of August 31, deposited September 1 1 The bank statement showed the following charges: a. Service charge for August b. NSF check received from a customer 5,000 85,000 The cashier-bookkeeper had misappropriated P30,000 and an additional P10,000 by charging sales discounts and crediting accounts receivable. The stub for check number 765 and the invoice relating thereto show that it was for P50,000. The check was recorded incorrectly in the cash disbursements journal as P70,000. The check was drawn in payment of an account payable. Payment has been stopped on check number 555 which was drawn in payment of an account payable. The payee cannot be located. Required: a. Prepare a bank reconciliation on August 31 using the adjusted balance method. b. Prepare adjusting entries to correct the cash in bank account on August 31.

Pathetic Company revealed the following facts on August 31: Balance of cash in bank account Balance of bank statement Outstanding checks, August 31: Number 555 1,300,000 1,200,000 10,000 55,000 40,000 25,000 65,000 70,000 275,000 761 762 763 764 765 Receipts of August 31, deposited September 1 1 The bank statement showed the following charges: a. Service charge for August b. NSF check received from a customer 5,000 85,000 The cashier-bookkeeper had misappropriated P30,000 and an additional P10,000 by charging sales discounts and crediting accounts receivable. The stub for check number 765 and the invoice relating thereto show that it was for P50,000. The check was recorded incorrectly in the cash disbursements journal as P70,000. The check was drawn in payment of an account payable. Payment has been stopped on check number 555 which was drawn in payment of an account payable. The payee cannot be located. Required: a. Prepare a bank reconciliation on August 31 using the adjusted balance method. b. Prepare adjusting entries to correct the cash in bank account on August 31.

College Accounting (Book Only): A Career Approach
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 5E
See similar textbooks
icon
Related questions
Question
Pathetic Company revealed the following facts on August 31: Balance of cash in bank account Balance of bank statement Outstanding checks, August 31: Number 555 1,300,000 1,200,000 10,000 55,000 40,000 25,000 65,000 70,000 275,000 761 762 763 764 765 Receipts of August 31, deposited September 1 T The bank statement showed the following charges: a. Service charge for August b. NSF check received from a customer 5,000 85,000 The cashier-bookkeeper had misappropriated P30,000 and an additional P10,000 by charging sales discounts and crediting accounts receivable. The stub for check number 765 and the invoice relating thereto show that it was for P50,000. The check was recorded incorrectly in the cash disbursements journal as P70,000. The check was drawn in payment of an account payable. Payment has been stopped on check number 555 which was drawn in payment of an account payable. The payee cannot be located. Required: a. Prepare a bank reconciliation on August 31 using the adjusted balance method. b. Prepare adjusting entries to correct the cash in bank account on August 31.
Transcribed Image Text:Pathetic Company revealed the following facts on August 31: Balance of cash in bank account Balance of bank statement Outstanding checks, August 31: Number 555 1,300,000 1,200,000 10,000 55,000 40,000 25,000 65,000 70,000 275,000 761 762 763 764 765 Receipts of August 31, deposited September 1 T The bank statement showed the following charges: a. Service charge for August b. NSF check received from a customer 5,000 85,000 The cashier-bookkeeper had misappropriated P30,000 and an additional P10,000 by charging sales discounts and crediting accounts receivable. The stub for check number 765 and the invoice relating thereto show that it was for P50,000. The check was recorded incorrectly in the cash disbursements journal as P70,000. The check was drawn in payment of an account payable. Payment has been stopped on check number 555 which was drawn in payment of an account payable. The payee cannot be located. Required: a. Prepare a bank reconciliation on August 31 using the adjusted balance method. b. Prepare adjusting entries to correct the cash in bank account on August 31.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Bank reconciliation statement
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
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS