Below is information about Adam Ltd’s cash position for the month of May 2020. The general ledger Cash at Bank account had a balance of $42,400 on 30The cash receipts journal showed total cash receipts of $585,408 forThe cash payments journal showed total cash payments of $530,148 forThe June bank statement reported a bank balance of $82,368 on 30Outstanding cheques at the end of May were: 221, $2896; no. 225, $308; and no. 230, $820.Cash receipts of $20,180 for 31 May were not included in the May bankA dishonoured cheque written by a client Jim Ltd, $272A credit for an electronic transfer from a customer of $1,288Interest earned, $88Account and transaction fees, $240. Required:Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for May. Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account. Prepare a bank reconciliation statement at 31 May.

1. The cash receipts CR and payments are adjusted as: Formulation: Computation:

Answered: Update the cash receipts and cash…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

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Required:

Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for May.
Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account.
Prepare a bank reconciliation statement at 31 May.

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