Please help me to solve this problem Q2. The cash book of Ernest in December, 2020 showed acredit balance of GSH121,000, the bank statement balanceshowed a debit balance of GS70,600. The following errorswas identified.1. A cheque drawn amounting GHS42,000 had not beenpresented for payment2. Uncredited cheque accounted for GHS36,0003. Bank charges of GHS7,600 entered into the bank statementwas omitted from the cashbook4. The received side of the cashbook ohad been understated byGHS10,0005. A cheque for GHS52,000 drawn by Ernest had been chargedby the bank in error to another customer's account.6. A divided of GHS3,000 paid direct into the bank had notbeen entered into the cashbook.7. A dishonoured cheques amounted to GHS7,000, but noentry had been made in the books.8. A cheque drawn for GHS6,400 had been entered in thecashbook as GHS4,6009. A cheque for GHS4,200 drawn by another customer of thesame name had been charged to Ernest's account.You are required toa. Update the cashbookb. Prepare a bank reconciliation statement for the period.

In this question we have to make the bank reconciliation statement and the updated cash book.

Answered: Please help me to solve this probl

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

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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.
Unknown Book Balance (Appendix 6.1) The following information pertains to the Cash account of Nakamoto Corporation for the month of July 2019: Required: 1. Prepare a bank reconciliation to determine Nakamotos adjusted cash balance on July 31. 2. Next Level Determine Nakamotos unadjusted cash balance (per books) on July 31. 3. Prepare the adjusting entries necessary to bring Nakamotos cash account balance up to date on July 31.

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