The Lakewood Realty Company's bank statement has just arrived. To reconcile the statement, Lakewood's bookkeeper. gathered the following information: 1 The bank statement is dated June 30, 2016 and shows a balance of $4, 845.18.1 The bank statement has the following deposits on it: → June7 → → June 10 → June 14 → June 25 Lakewood's checkbook has the following deposits-in-it: $5,315.75 -1,345.699 2,456.75 --3,456.80 -1,500.00 → June 5→ → June 9 → → June 12 → June 25 → June 29 → ******** $5,315.75 -1,345.69% --2,456.75 --3,456.801 →
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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.On December 31, 2021, the cash account of Coco Corp, showed a balance of P391,480. The bank statement on that date showed a balance of P409,500. Upon examining the cash records and the bank statement, the following information were determined.a. There was a bank service charge of P 1,500 for the month of December 2021.b. There was a credit memo for a note collected by the bank for oOco Corp. The customer’s note is P90,000 with interest of P2,600. The bank charged a collection fee of P550c. December 31, 2021 receipts for P289,000 were deposited only on January 2, 2022d. Checks issued which have not yet cleared the bank as at December 31,2021 amounts to P186,610e. There is a debit memo for P45,320 for a customer’s check returned marked “DAIF”f. A receipt of P90,000 had been entered as P60,000 in the cash book. Check # 12345 issued amounting to P49,100 was erroneously recorded as P41,900 and check # 12346 issued in the correct amount of P5,820 had been taken up as P58,200.What is the…The following data were accumulated for use in reconciling the bank account of Zek’sCo. for May 2016:1. Cash balance according to the company’s records at May 31, 2016, $22,110.2. Cash balance according to the bank statement at May 31, 2016, $29,650.3. Checks outstanding, $13,875.4. Deposit in transit, not recorded by bank, $6,770.5. A check for $50 in payment of an account was erroneously recorded in the checkregister as $500.6. Bank debit memo for service charges, $15.a. Prepare a bank reconciliation, using the format shown in Exhibit 13.b. If the balance sheet were prepared for Zek’s Co. on May 31, 2016, what amount shouldbe reported for cash?c. Must a bank reconciliation always balance (reconcile)?
- Tom Brady Ltd received a bank statement from their bank, Westpac, showing a credit balance of $8,800, while Cash at Bank balance as per the company’s record showed a debit balance of $8,331 on 31 March 2023. The following were discovered in an attempt to reconcile the two records: 1. Outstanding EFTs at 31 March totalled $5,400. 2. The bank has collected $2,200 on the behalf of Tom Brady Ltd for the note of $2,000 plus interest of $200. Tom Brady Ltd has not accrued any interest. 3. On 31 March the bank statement showed a reversal entry of $750 that had been originally deposited by a customer, Ms Fulton, to Tom Brady Ltd. 4. A deposit of $6,300 appears in the cash at bank account but had not been recorded by the bank at 31 March 2023. 5. On 20 March Tom Brady Ltd authorised an EFT (Ref no. 202) for $690 to M. Johnson on account. The EFT, which was processed by the bank in March was incorrectly journalised and posted by Tom Brady Ltd for $609. Required a. Prepare a bank reconciliation…The Richard’s Red Company maintains a checking account at the Bank of the North. The bank statement for the month of October 2024 indicated the following: balance on October 1, 2024 was $32,690, deposits for October totaled $86,000, checks paid in October totaled $75,200, service charges for October totaled $350; October NSF checks totaled $1,600; a monthly loan payment deducted by the bank directly from the company’s bank account totaled $3,400; and the ending balance on October 31, 2024 totaled $38,140. At the end of October 2024, Richard’s accounting records indicated a balance in its checking account of $42,544. October 31st deposits in transit were $4,224, and outstanding checks totaled $5,620. In addition, a check for $500 to purchase office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctly processed the check during October. Assuming the company has no other cash, the amount Richard’s Red would report for cash as a current asset on…Universal Bhd had a debit balance of RM56,500 in the cashbook on 31 December 2021. TheBank Statement received for the month showed a credit balance of RM76,710. On comparingthe cashbook with the Bank Statement, the following were discovered:A deposit entry of RM19,500 which appears in the cashbook at 31 December 2021 hadnot yet been credited in the bank statement.The bank had collected on the firm's behalf a check for RM30,360 being proceeds of asale.A check amounting to RM10,500 which was recorded as a receipt in the cashbook wasreturned to the firm by the bank, stamped with the word"insufficient funds'The last check entered in the cash payment, No 1234, for RM3,630 appears in the bankstatement as RM3,600. An examination of the cashbook reveals that the bank figure iscorrect.Check No 1236 for RM3,180 has been correctly debited in the bank statement but notshown in the cashbook of the firm.6The checks No1237 RM9,000 and No1238 RM21,000 drawn by the firm have not yetbeen presented to…
- Shan Enterprises received a bank statement listing its May 31, 2018, bank balance as $47,582. Shan determinedthat as of May 31 it had cash receipts of $2,500 that were not yet deposited and checks outstanding of $7,224.Calculate Shan’s correct May 31, 2018, cash balance.On 30th June, 2015, D’s Cash Book showed that he had an overdraft of $ 300 on his Current Account at the bank. On checking the Cash Book with the bank statement you find the following: (a) Cheques drawn amounting to $ 500 had been entered in the Cash Book but had not been Presented; (b) Cheques received, amounting to $ 400, had been entered in the Cash Book but had not been credited by the bank ; (c) On instructions from D the bank had transferred interest, $ 60, from his deposit account to his current account recording the transfer on 5th July 2015. This amount had, however, been credited in the Cash Book as on 30th June, 2015. (d) Bank charges, $ 35, shown in the Bank statement had not been entered in the Cash Book; (e) The payment side of the Cash Book had been undercast by $ 10 ; (f) Dividends amounting to $ 200 had been paid direct to the Bank and not entered in the Cash Book ; (g) A cheque of $ 50 drawn on deposit account had been shown in…On 30th June, 2015, D’s Cash Book showed that he had an overdraft of $ 300 on his Current Account at the bank. On checking the Cash Book with the bank statement you find the following: (a) Cheques drawn amounting to $ 500 had been entered in the Cash Book but had not been Presented; (b) Cheques received, amounting to $ 400, had been entered in the Cash Book but had not been credited by the bank ; (c) On instructions from D the bank had transferred interest, $ 60, from his deposit account to his current account recording the transfer on 5th July 2015. This amount had, however, been credited in the Cash Book as on 30th June, 2015. (d) Bank charges, $ 35, shown in the Bank statement had not been entered in the Cash Book; (e) The payment side of the Cash Book had been undercast by $ 10 ; (f) Dividends amounting to $ 200 had been paid direct to the Bank and not entered in the Cash Book ; (g) A cheque of $ 50 drawn on deposit account had been shown in the Cash Book as drawn…
- At 31 March 2015, the balance of the Cash account according to the records of Harmony Company was $14,432. The 31 March bank statement showed a balance of $17,596. You are going to prepare the bank reconciliation of Harmony Company at 31 March 2015, using the following supplementary information:(1) Service charge by bank, $100.(2) The bank has collected a total of $10,100 and directly credited to Harmony, which represents the principal and interest owed by Peace Company. Interest amounted to $200.(3) A check for $180 drawn by a customer, Charlotte Lava, but deducted from Harmony’s account by the bank and returned with the notation “NSF.”(4) Harmony’s records showed that it has made a total deposit of $32,088 during March 2015, but according to the bank statement it only showed deposits of $18,544. No deposit-in-transit is carried forwarded from February 2015.(5) Outstanding checks: no. 18120, $280; no. 18121, $1,864; no. 18127, $614; no. 18134, $4,400.(6) Harmony’s check no. 18114,…On December 31, 2021, the cash account of Brown Company showed a balance of P391,480. The bank statement on that date showed a balance of P409,500. Upon examining the cash records and the bank statement, the following information were determined.a. There was a bank service charge of P 1,500 for the month of December 2021.b. There was a credit memo for a note collected by the bank for Brown Co. The customer’s note is P90,000 with interest of P2,600. The bank charged a collection fee of P550c. December 31, 2021 receipts for P289,000 were deposited only on January 2, 2022d. Checks issued which have not yet cleared the bank as at December 31,2021 amounts to P186,610e. There is a debit memo for P45,320 for a customer’s check returned marked “DAIF”f. A receipt of P90,000 had been entered as P60,000 in the cash book. Check # 12345 issued amounting to P49,100 was erroneously recorded as P41,900 and check # 12346 issued in the correct amount of P5,820 had been taken up as P58,200.What is the…Presented below is information related to Simalan Dive Company. The balance according to the books at October 31, 2017, was $99,657.29; cash receipts recorded during November were $64,805.69; and cash disbursements recorded for November were $76,850.30. The balance according to the bank statement on November 30, 2017, was $82,370.68. The following cheques were outstanding at November 30: Cheque Amount #920 .................................................... 947.29 #991 .................................................... 2,843.50 #1030 ................................................... 1,971.34 #1064 ................................................... 824.66 Included with the November bank statement and not recorded by the company were a bank debit memo for $32.26 covering bank charges for the month, a debit memo for $5,200.75 for a customer's cheque (Marnie Wiesen) returned and marked NSF, and a credit memo for $615.32…