Ling Corp. deposits all receipts intact and makes all payments by cheque. The following information is available

Question:

Ling Corp. deposits all receipts intact and makes all payments by cheque. The following information is available from the cash records:

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Instructions

a. Determine the amount of deposits in transit and outstanding cheques at May 31. Keep in mind the time lag between deposits and cheques being recorded in the books and when they are recorded by the bank.

b. Prepare a May 31 bank reconciliation showing balance per bank statement and balance per books and correct cash balance.

c. Prepare the journal entry or entries to correct the Cash account at May 31.

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Related Book For  book-img-for-question

Intermediate Accounting Volume 1

ISBN: 978-1119496496

12th Canadian edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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