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The cash account for Santiago Co. on May 31, 2011 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $4,820.00 b. A deposit of $3,796.00 had been made too late to appear on the bank statement. c. A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally issued to pay on account. d. The bank collected $5,541.00 on a note left for collection. e. Bank service charges for May amounted to $45.00. f. A check for $790.00 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31, 2011. Journalize the necessary entries.

The cash account for Santiago Co. on May 31, 2011 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $4,820.00 b. A deposit of $3,796.00 had been made too late to appear on the bank statement. c. A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally issued to pay on account. d. The bank collected $5,541.00 on a note left for collection. e. Bank service charges for May amounted to $45.00. f. A check for $790.00 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31, 2011. Journalize the necessary entries.

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 1PB
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3. The cash account for Santiago Co. on May 31, 2011 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $4,820.00 b. A deposit of S3,796.00 had been made too late to appear on the bank statement. A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally issued to pay on account. d. The bank collected $5,541.00 on a note left for collection. e. Bank service charges for May amounted to $45.00. f. A check for $790.00 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31, 2011. Journalize the necessary entries. a. с. Santiago Co. Bank Reconciliation Мaу 31, 2011 Journal Date Description Debit Credit
Transcribed Image Text:3. The cash account for Santiago Co. on May 31, 2011 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $4,820.00 b. A deposit of S3,796.00 had been made too late to appear on the bank statement. A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally issued to pay on account. d. The bank collected $5,541.00 on a note left for collection. e. Bank service charges for May amounted to $45.00. f. A check for $790.00 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31, 2011. Journalize the necessary entries. a. с. Santiago Co. Bank Reconciliation Мaу 31, 2011 Journal Date Description Debit Credit
4. Gadget Palace is a retailer selling unique hardware. Gadget Palace uses a perpetual inventory system. Journalize the following transactions: July 5 Gadget Palace purchases inventory for sale from Turbo Tools for $11,400 with terms 2/10, n/30. 6 Gadget Palace pays Fast Truck Transport $75 for freight on the July 5 order. 8 Gadget Palace receives a credit memo from Turbo Tools for $215 for damaged mer- chandise. 15 Gadget Palace pays Turbo Tools the balance due. Journal Date Account Debit Credit
Transcribed Image Text:4. Gadget Palace is a retailer selling unique hardware. Gadget Palace uses a perpetual inventory system. Journalize the following transactions: July 5 Gadget Palace purchases inventory for sale from Turbo Tools for $11,400 with terms 2/10, n/30. 6 Gadget Palace pays Fast Truck Transport $75 for freight on the July 5 order. 8 Gadget Palace receives a credit memo from Turbo Tools for $215 for damaged mer- chandise. 15 Gadget Palace pays Turbo Tools the balance due. Journal Date Account Debit Credit
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