Question
1. Journalize the necessary adjusting entries. [4%] 2. Show the adjustments in the cash account [2%] 3. Prepare the bank reconciliation statement [2%] The cash
1. Journalize the necessary adjusting entries. [4%]
2. Show the adjustments in the cash account [2%]
3. Prepare the bank reconciliation statement [2%]
The cash account for Boston Services at March 31, 20x1, indicated a balance of $2,581.37. The bank statement indicated a balance of $2,009.82 on March 31, 20x1. The records reveal the following differences;
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A cheque of $152.02 issued by a customer and deposit on March 19, 20x1 was dishonored.
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A cheque for $54 had been incorrectly recorded by business as $45. The cheque was for the payment of amount owing to a creditor for the purchase of offices supplies on account.
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Bank service charges for March amounted to $46.36.
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The bank had collected $335.14, an amount owing by a debtor.
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The following cheques issued by Boston Services had not yet been presented for payment as of March 31.
Cheque Number Amount
288 103.00
312 70.35
316 54.67
317 18.81
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A deposit of $595.14, representing receipts of March 31, had been made too late to appear on the bank statement.
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A cheque payment for $488 had been incorrectly recorded by the bank as $884.
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A cheque for $38 had been incorrectly recorded by business as $83. The cheque was for the payment of amount owing to a creditor for the purchase of equipment on account.
1. Journalize the necessary adjusting entries. [4%] | |||
Journal Jxx | |||
Date | Description | Debit | Credit |
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