Revise your worksheet to reflect the following transactions and updated values at the end of the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Revise your worksheet to reflect the following transactions and updated values at the end of the accounting period, then answer the questions that follow. 1 Cash on hand at the company and not yet deposited at the bank. 2 EFT for monthly utility bill not yet recorded by the company. 3 Note collected by the bank and not yet recorded by the company. 4 Interest collected by the bank from note in #3 not yet recorded by the company. 5 A check witten for insurance expense for $110 was cashed. The check was recorded on the books for $190. 6 Checks written by the company but not yet processed by the bank. 7 Service fee charged by bank but not yet recorded by the company. 8 Customer checks determined by the bank to have nonsufficient funds. 7,200 1,400 9,900 1,100 3,100 100 2,700 Bank balance at the end of the period. Company balance at the end of the period. 19,610 16,830 Required: 1-a. What is the revised Cash balance at the end of the period? 1-b. Is the bank reconciliation in balance? Yes No 2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made? Cash 2-b. Would the bank reconciliation still be in balance? Yes No 3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $190,000 rather than $19,000? No effect on the bank reconciliation. The difference of $171,000 will be subtracted from the book balance. The difference of $171,000 will be added to the book balance. The bank balance will be increased by $190,000. Revise your worksheet to reflect the following transactions and updated values at the end of the accounting period, then answer the questions that follow. 1 Cash on hand at the company and not yet deposited at the bank. 2 EFT for monthly utility bill not yet recorded by the company. 3 Note collected by the bank and not yet recorded by the company. 4 Interest collected by the bank from note in #3 not yet recorded by the company. 5 A check witten for insurance expense for $110 was cashed. The check was recorded on the books for $190. 6 Checks written by the company but not yet processed by the bank. 7 Service fee charged by bank but not yet recorded by the company. 8 Customer checks determined by the bank to have nonsufficient funds. 7,200 1,400 9,900 1,100 3,100 100 2,700 Bank balance at the end of the period. Company balance at the end of the period. 19,610 16,830 Required: 1-a. What is the revised Cash balance at the end of the period? 1-b. Is the bank reconciliation in balance? Yes No 2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made? Cash 2-b. Would the bank reconciliation still be in balance? Yes No 3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $190,000 rather than $19,000? No effect on the bank reconciliation. The difference of $171,000 will be subtracted from the book balance. The difference of $171,000 will be added to the book balance. The bank balance will be increased by $190,000.
Expert Answer:
Answer rating: 100% (QA)
Bank Reconciliation Bank balance at the end of the period ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod-Dick I
Posted Date:
Students also viewed these accounting questions
-
What are necessary at the end of an accounting period because some account balances do not show proper financial statement balances caused by the passage of time?
-
At the end of the accounting period, Adams Companys general ledger contained the following adjusted balances: Required 1. Set up the preceding spreadsheet format. 2. Record the closing entries in the...
-
At the end of the accounting period, an adjusting entry is made for the accrued wages of production workers. How would this entry affect assets, liabilities, and equity? What is the effect on the...
-
Marcia Stubern is planning for her golden years. She will retire in 20 years at which time she plans to begin withdrawing 60,000 annually. She is expected to live for 20 years following her...
-
Albuquerque Wood Crafts, Inc., is a manufacturer of furniture for specialty shops throughout the south-west and has an annual sales volume of $24 million. The company has four major product lines:...
-
This exercise tests your understanding of the information needed to trace a sale through a multistep ERP sales cycle: sales order, inventory sourcing, delivery, billing, and payment. Assume that an...
-
Discuss the relationship between investment risk and the expected rate of return on an investment. Explain why accounting information is useful in evaluating the risk/return trade-off inherent in all...
-
On April 15, 2010, Powell, Inc., obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $300,000. The interest rate charged by the bank was...
-
Do you think that more technology as well as automation systems can assist manufacturing firms to make better decision in their supply chain structure?
-
Centrum Manufacturing makes a single product with the following attributes: Product per Unit Price $130.00 Variable costs per unit: Direct materials $30.00 Direct labor $40.00 Total VC $70.00...
-
Write a research paper on the mammal of your own choice, Issues to address in each scientific study should include, but are not limited to: Where did study take place? What were the objectives of the...
-
In the Plan Solicitation phase, which buyer job task is the most important? Why? Substantiate your answer and be prepared to defend your answer.
-
If the employee has $ 7 0 0 withheld from their check for FICA Social Security, what is the amount that the employer would need to record as payroll tax expense?
-
How do you define excellent customer service in a Human Resources setting?
-
Log(7) = 0.85. Use this fact, together the log laws, to list the steps you would take to solve log(7000) 5 if you did not have a calculator.Label the steps with the log laws (1-4) you use and provide...
-
Neo-institutional theory suggests that, in order to survive, organizations need to gain legitimacy and do so through isomorphism with salient institution. According to your understanding Provide a...
-
Problem 2: Miami Roadbuilding Company (MRC) is considering the purchase of a new steamroller. The steamroller costs $95,000, and an additional $5,000 is needed to paint it with the firm logo and...
-
1. Following are information about Alhadaf Co. Cost incurred Inventory Purchases Sales Adverting expense Salary Expense Depreciation Beginning Inventory Ending Inventory Amount 118,000 350.000 90,000...
-
What is measurement uncertainty?
-
What is the usual format of the statement of changes in equity?
-
An examiners close inspection of the annual financial statements and the accounting records revealed that Mawani Inc. may have violated some accounting principles. The examiner questioned the...
-
Calculate and Use Overhead Rate Bagley Corporation expects to incur \($450,000\) of factory over- head and \($600,000\) of general and administrative costs next year. Direct labor costs at \($20\)...
-
KAB, Inc. has two service departments (S1 and S2) and two production departments (P1 and P2). Information from the most recent year shows the following for each department: KAB allocates S1 to the...
-
Calculate and Use Overhead Rate Bagley Corporation expects to incur \($450,000\) of factory over- head and \($600,000\) of general and administrative costs next year. Direct labor costs at \($20\)...
Study smarter with the SolutionInn App