The cash record of Silver Maple Art Gallery for April, 2014 follows: Cash Receipts (CR) Cash Payment (CP) Date Cash Debit Cheque # Cash Credit April 2 $4,174 3113 $891 April 8 501 3114 147 April 10 559 3115 1,930 April 16 2,187 3116 664 April 22 1,854 3117 1,472 April 29 1,060 3118 1000 Apri 30 337 3119 632 Total $10,672 3120 1,675 3121 100 2122 2413 Total The Cash account of Silver Maple Art Gallery shows the following at April 30, 2014 Cash Date Item Jrnl Ref. Debit Credit Balance April 1 Balance 13,911 April 30 CR.6 10,672 24,583 April 30 CR.11 10,924 13,659 On April 30, 2014, Silver Maple Art Gallery received the following bank statement: Bank Statement for April 2014 Beginning Balance $13,911 Deposits & Other Credits: April 1 $300 EFT April 4 4,174 April 9 501 April 12 559 April 17 2,187 April 22 1,300BC April 23 1,854 10,875 Cheques & other Debits: April 7 (cheque no. 3113) $ 891 April 13 (cheque no, 3115) 1,390 April 14 900US April 15 (cheque 3114) 147 April 18 (cheque 3116) 664 April 21 200EFT April 26 (cheque no. 3117) 1,472 April 30(cheque no, 3118) 1,000 April 30 20SC (6,684) Ending Balance $18,102 Explanations: EFT – electronic funds transfer; BC – bank collections; US – unauthorized signature; SC – service charge. Additional data for the bank reconciliation: a. The EFT deposit was a receipt of rent. The EFT debit was an insurance payment. b. The unauthorized-signature check was received from a customer. c. The $1,300 bank collection was for a note receivable d. The correct amount of cheque number 3115 is $1,390. (Silver Maple Art Gallery’s accountant mistakenly recorded the cheque for $1,930.) Required: i) Prepare Silver Maple Art Gallery’s bank reconciliation at April 30, 2014. ii) Prepare the journal entries to adjust the accounts on April 30. Assume that the accounts have not been closed. iii) State the amount of cash that should be included in the balance sheet at April 30
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
The cash record of Silver Maple Art Gallery for April, 2014 follows:
| Cash Receipts (CR) | Cash Payment (CP) |
| Date | Cash Debit | Cheque # | Cash Credit |
| April 2 | $4,174 | 3113 | $891 |
| April 8 | 501 | 3114 | 147 |
| April 10 | 559 | 3115 | 1,930 |
| April 16 | 2,187 | 3116 | 664 |
| April 22 | 1,854 | 3117 | 1,472 |
| April 29 | 1,060 | 3118 | 1000 |
| Apri 30 | 337 | 3119 | 632 |
| Total | $10,672 | 3120 | 1,675 |
| 3121 | 100 | ||
| 2122 | 2413 | ||
| Total |
The Cash account of Silver Maple Art Gallery shows the following at April 30, 2014
| Cash |
| Date | Item | Jrnl Ref. | Debit | Credit | Balance |
| April 1 | Balance | 13,911 | |||
| April 30 | CR.6 | 10,672 | 24,583 | ||
| April 30 | CR.11 | 10,924 | 13,659 |
On April 30, 2014, Silver Maple Art Gallery received the following bank statement:
| Bank Statement for April 2014 |
| Beginning Balance | $13,911 | |
| Deposits & Other Credits: | ||
| April 1 | $300 EFT | |
| April 4 | 4,174 | |
| April 9 | 501 | |
| April 12 | 559 | |
| April 17 | 2,187 | |
| April 22 | 1,300BC | |
| April 23 | 1,854 | 10,875 |
| Cheques & other Debits: |
| April 7 (cheque no. 3113) | $ 891 | |
| April 13 (cheque no, 3115) | 1,390 | |
| April 14 | 900US | |
| April 15 (cheque 3114) | 147 | |
| April 18 (cheque 3116) | 664 | |
| April 21 | 200EFT | |
| April 26 (cheque no. 3117) | 1,472 | |
| April 30(cheque no, 3118) | 1,000 | |
| April 30 | 20SC | (6,684) |
| Ending Balance | $18,102 |
Explanations: EFT – electronic funds transfer; BC – bank collections; US – unauthorized signature; SC – service charge.
Additional data for the bank reconciliation:
a. The EFT deposit was a receipt of rent. The EFT debit was an insurance payment.
b. The unauthorized-signature check was received from a customer.
c. The $1,300 bank collection was for a note receivable
d. The correct amount of cheque number 3115 is $1,390. (Silver Maple Art Gallery’s accountant mistakenly recorded the cheque for $1,930.)
Required:
i) Prepare Silver Maple Art Gallery’s bank reconciliation at April 30, 2014.
ii) Prepare the
iii) State the amount of cash that should be included in the balance sheet at April 30
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