Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following data pertain to the cash transactions and bank account of Star Corp for May of the current year: Cash balance per accounting record Cash balance per bank statement Bank service charge Debit memo for cost of printed checks delivered by the bank; charge has not been recorded by Abra Outstanding checks Deposit of May 30 not recorded by bank until June 1 Proceeds of bank loan on May 30, not recorded by Abra, net of interest of P30,000 Proceeds from customer's promissory note, principal amount P800,000 collected by bank not taken up by Abra, with interest Check No. 1086 issued to a supplier entered by Abra as P210,000 but deducted in bank statement in error as Stolen check lacking authorized signature deducted by bank from Abra's account in error Customer's check returned by the bank marked NSF; no entry has been made by Abra to record the returned check 1,719,000 3,195,000 10,000 12,000 685,000 500,000 570,000 810,000 120,000 80,000 77,000 Required: a. Prepare a bank reconciliation statement using adjusted balances method. p. Prepare the necessary adjusting entries.

The following data pertain to the cash transactions and bank account of Star Corp for May of the current year: Cash balance per accounting record Cash balance per bank statement Bank service charge Debit memo for cost of printed checks delivered by the bank; charge has not been recorded by Abra Outstanding checks Deposit of May 30 not recorded by bank until June 1 Proceeds of bank loan on May 30, not recorded by Abra, net of interest of P30,000 Proceeds from customer's promissory note, principal amount P800,000 collected by bank not taken up by Abra, with interest Check No. 1086 issued to a supplier entered by Abra as P210,000 but deducted in bank statement in error as Stolen check lacking authorized signature deducted by bank from Abra's account in error Customer's check returned by the bank marked NSF; no entry has been made by Abra to record the returned check 1,719,000 3,195,000 10,000 12,000 685,000 500,000 570,000 810,000 120,000 80,000 77,000 Required: a. Prepare a bank reconciliation statement using adjusted balances method. p. Prepare the necessary adjusting entries.

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
See similar textbooks
icon
Related questions
Question
100%
The following data pertain to the cash transactions and bank account of Star Corp for May of the current year: Cash balance per accounting record Cash balance per bank statement Bank service charge Debit memo for cost of printed checks delivered by the bank; charge has not been recorded by Abra Outstanding checks Deposit of May 30 not recorded by bank until June 1 1,719,000 3,195,000 10,000 12,000 685,000 500,000 Proceeds of bank loan on May 30, not recorded by Abra, net of interest of P30,000 Proceeds from customer's promissory note, principal amount P800,000 collected by bank not taken up by Abra, with interest Check No. 1086 issued to a supplier entered by Abra as P210,000 but deducted in bank statement in error as Stolen check lacking authorized signature deducted by bank from Abra's account in error Customer's check returned by the bank marked NSF; no entry has been made by Abra to record the returned check 570,000 810,000 120,000 80,000 77,000 Required: a. Prepare a bank reconciliation statement using adjusted balances method. b. Prepare the necessary adjusting entries.
Transcribed Image Text:The following data pertain to the cash transactions and bank account of Star Corp for May of the current year: Cash balance per accounting record Cash balance per bank statement Bank service charge Debit memo for cost of printed checks delivered by the bank; charge has not been recorded by Abra Outstanding checks Deposit of May 30 not recorded by bank until June 1 1,719,000 3,195,000 10,000 12,000 685,000 500,000 Proceeds of bank loan on May 30, not recorded by Abra, net of interest of P30,000 Proceeds from customer's promissory note, principal amount P800,000 collected by bank not taken up by Abra, with interest Check No. 1086 issued to a supplier entered by Abra as P210,000 but deducted in bank statement in error as Stolen check lacking authorized signature deducted by bank from Abra's account in error Customer's check returned by the bank marked NSF; no entry has been made by Abra to record the returned check 570,000 810,000 120,000 80,000 77,000 Required: a. Prepare a bank reconciliation statement using adjusted balances method. b. Prepare the necessary adjusting entries.
Expert Solution
steps

Step by step

Solved in 2 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
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
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
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L…
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS