Financial Statements:
Financial statements are the statements prepared for the specific period which comprises the financial information of the organization. It includes a statement of income which shows the profitability of the business,
Income statement:
This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time. It is prepared to find out the net income of an organization.
Classified Balance Sheet:
A balance sheet is a statement showing position of all assets, liabilities and equity of the company at a specific time. When assets, liabilities and shareholders’ equity are further sub-categorized to make it more readable and understandable then it is called classified balance sheet
To Prepare: An income statement for the year 2018, and also prepare the balance sheet of Corporation MG.
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INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
- Question#01: 06 The following information pertains to TNT Company for July 2017: 1. Cash balance per bank, July 31, Tk.7,586 2. July bank service charge not recorded by the depositor Tk.30 3. Bank Debited TK. 30 for printing cheque book. 4. Cash balance per books, July 31, Tk. 7,374 5. Deposits in transit, July 31, Tk.1,000 6. The note collected by the bank was Tk.700, 3-month, 12% note in July, less fee Tk. 14. The collection has not been recorded by Crane, and no interest has been accrued. 7. Outstanding checks, July 31, Tk.591 8. A TNT Company check for TK.362, dated July 10, cleared by the bank on July 25. The company recorded this check, which was a payment on account, for TK. 326. Instructions: a) Prepare bank reconciliation as at July 31. b) Journalize the entries required by the reconciliation.arrow_forwardQUESTION 1 The summary of the bank column in the cash book of APINO Ltd. for the month ended October 31, 2020 is presented to you below; CASH BOOK Bal. b/d 11,000 Total Payments 54,000 Receipts 79,000 Bal. c/d 36,000 90,000 90,000 When the bank statement of the company was received on 31st October 2020, it showed a balance which differed from that of the cash book. Your investigation of the accounting records for the period reveals the following information. Bank charges of GH¢320 appear in the bank statement on 30th October 2020 but have not been recorded in the cash book. Cheques from a customer Papa Kay totaling GH¢2,890 entered in the cash book on 29th October, 2020 were credited by the bank on 2nd November, 2020. A cheque for GH¢ 1,000 entered in the cash book was yet to be submitted for payment by the payee. A cheque for GH¢12, 900 drawn by APINO Ltd. To pay for a new item of plant had been mistakenly entered…arrow_forwardPROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November was customer's note for P300,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000. The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000. The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance of P1,456,800. Bank debit memos for December were: No. 121 for service…arrow_forward
- Question no 4 On Dec 31, 2017, Micro disc Company had a cash balance per books of $6,831.50. The bank statement from Dhaka Bank on that date showed a balance of $6,050.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $863.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $836.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks at Dec 31 totaled $472.25. Deposits in transit were $2,7 05.15. 4. On Dec 18, the company issued check No. 1181 for $672 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $627. 5. A $3,050 note receivable was collected by the bank for Reber Company on May 31 plus $20 interest. The bank charged a collection fee of $80. No interest has been…arrow_forwardFinancial Accounting I QUESTION TWO The John trading company has undertaken the following transactions during the month of May 2016. May 01: Cash balance $2,200, bank overdraft $365. May 03: Paid J & Co. by check $1,200, discount received from him $15. May 05: Received from A & Co. a check for $980, discount allowed to them $20. May 07: Deposited into bank the check received from A & Co. on May 05. May 10: Purchased stationary for cash, $150. May 15: Purchased merchandise for cash, $1,300. May 15: Cash sales for the first half of the month, 2,350. May 16: Deposited into bank $1,600. May 18: Cash withdrawn from bank for personal expenses $150. May 19: Issued a check for merchandise purchased, $1,650. May 21: Drew from bank for office use, $650. May 24: Received a check from S & Sons and deposited the same into bank, $1,560. May 25: Paid a check to Ali Inc. for $400 and received a discount of $15. May 27: Bought furniture for cash for office use, $390. May 29: Paid…arrow_forward! Required information Problem 8-4A (Algo) Preparing a bank reconciliation and recording entries LO P3 [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,605 debit balance, but its July bank statement shows a $27,389 cash balance. b. Check Number 3031 for $1,280, Check Number 3065 for $416, and Check Number 3069 for $2,048 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,210 but was erroneously entered in the accounting records as $1,200. d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not…arrow_forward
- Problem 1.5: Anne Corporation accounts for its sales under the cash basis. Anne Corporation cash receipts books amounted to P 1,400,000. Total collections from customers, including cash sales made and recoveries of previously written-off accounts. Based on Audit investigation, they revealed that the additional information are the following: Accounts receivable, January 1, 2021 Accounts receivable, December 31, 2021 Notes receivable, trade outstanding, January 1, 2021 Notes receivable, trade outstanding, December 31, 2021 Sales discount taken by customers Sales returns before collections were made (Evidenced by issued credit memos) Sales returns after collections were made, thus refunds were given Write-off worthless accounts receivable Cash recoveries from accounts previously write-off 100,000 140,000 80,000 90,000 40,000 25,000 5,000 30,000 10,000 Requirements: Compute for the following under the accrual basis of accounting: a. Gross sales for the year b. Net sales for the year c.…arrow_forward! Required information Problem 8-4A (Algo) Preparing a bank reconciliation and recording entries LO P3 [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,117 debit balance, but its July bank statement shows a $27,000 cash balance. b. Check Number 3031 for $1,320, Check Number 3065 for $436, and Check Number 3069 for $2,088 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230. d. The July bank statement shows the bank collected $9,000 cash on a note for Branch. Branch had not recorded this me Bank Stat event before receiving the statement. www e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw.…arrow_forwardPlease reconcile The Hylton Enterprise Company bank statement to the cash book as of August 31, 2022. 1. Balance per cash book is $10,500 2. Balance per bank statement is 15,600 3. Bank charges recorded in bank but not In cash book is $115. 4. Checks issued but not yet cashed at the bank is $45,800 5. Deposit in Transit is $58,700 6. Proceeds from the closure of an Investment account is $26,700. plus Interest revenue of 1,500 7. Customer check was returned as Non-Sufficient Fund for $10,085.arrow_forward
- bb 2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessio. Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31 $20,280. 2. Cash balance according to the bank statement at July 31, $21,480. 3. Checks outstanding, $4,120. 4. Deposit in transit, not recorded by bank, $3,310. 5. A check for $270 in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. Mathers Co. Bank Reconciliation July 31 Cash balance according to bank statement Adjusted balance Cash balance according to company's records Adjusted balance Check My Work Previou ASUS VivoBookarrow_forwardcam - Intermediate Accounting 1.docx Open with Google Docs For Nos. 26- 27 Tron Company has provided the following data in relation to its bank reconciliation for April 2019. From March 31 bank recondliation: Deposit in transit Outstanding checks P6,800 15,600 April 2019 data: Per Bank Per Book Balance, March 31 Deposits reflected 296,560 190,400 287,760 196,000 Checks reflected (246,800) (244,000) Note collected 80,000 Service charge (480) 319,680 Balance, April 30 239,760 The checks reflected by the bank in April includes a P6,000 check drawn by Boron Company. 26. How much is Iron's deposits in transit at April 30? a. P12,400 b. P18,000 C. P1,200 d. P5,600 27. How much is Iron's outstanding checks at April 30? P27,600 b. a. P34,400 P18,800 d. P24,800 C. For Nos. 28-30 Page 4 / 5 The entity sold P1,500,000 of accounts receivable for cash proceeds of P1,390,000. No bad debt allowance was associated with these acarrow_forwardProblems on Bank Reconciliation Q1 From the following particulars of Al Nava Industries LLC, prepare bank reconciliation statement as on December 31, 2018 -Bank balance as per cash book RO 32,500 -Cheques deposited into bank but not credited up to December 31, 2018 is RO 8,900. -Cheques issued but not presented for payment RO 12,500.* -Bank credited RO 5,000 for receiving dividend through Electronic Clearing System. * -Bank charges debited by Bank RO 400.arrow_forward
- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning