Problem B – The following transactions were recorded for Echo Company for the month of July 2020: 1. The account "Cash in Bank" showed a balance of P261,320 as of July 31, 2020. 2. Bank statement ending balance for the same month amounted to P253,320. 3. At the last day of July, the company received a P100,000 payment from a walk-in customer. Due to a delay in the delivery to the bank, the amount was only credited by the bank on August 2, 2020. 4. The company issued a check worth P92,000 to a creditor. It was only encashed by the creditor on August 13, 2020. 5. The bank credited P400 interest income to the account of Echo Company for the month of July 2020. The company only knew of this amount upon receipt of the July bank statement on August 1, 2020. 6. The bank deducted P80 from the account of Echo Company as a 20% withholding tax for the P400 interest income. The company also knew about this upon receipt of the bank statement on August 1, 2020.

Problem B – The following transactions were recorded for Echo Company for the month of July 2020: 1. The account "Cash in Bank" showed a balance of P261,320 as of July 31, 2020. 2. Bank statement ending balance for the same month amounted to P253,320. 3. At the last day of July, the company received a P100,000 payment from a walk-in customer. Due to a delay in the delivery to the bank, the amount was only credited by the bank on August 2, 2020. 4. The company issued a check worth P92,000 to a creditor. It was only encashed by the creditor on August 13, 2020. 5. The bank credited P400 interest income to the account of Echo Company for the month of July 2020. The company only knew of this amount upon receipt of the July bank statement on August 1, 2020. 6. The bank deducted P80 from the account of Echo Company as a 20% withholding tax for the P400 interest income. The company also knew about this upon receipt of the bank statement on August 1, 2020.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 21E

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Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $7,500 from their personal account to the business account. B. Paid rent $600 with check #101. C. Initiated a petty cash fund $250 check #102. D. Received $350 cash for services rendered. E. Purchased office supplies for $125 with check #103. F. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days. G. Received $750 cash for services rendered. H. Paid wages $375, check #105. I. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106. J. Increased Petty Cash by $70, check #107.
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