Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Pip's Puppy Store has a balance in his Cash Ledger Account of $42,500 at July 31st 2023 Pip receives his Bank Statement which
2. Pip's Puppy Store has a balance in his Cash Ledger Account of $42,500 at July 31st 2023 Pip receives his Bank Statement which shows an ending balance of $46,000. Pip compares his records with the bank statement and discovers the following reconciling items: a. Deposits-in-Transit $2,250 b. Bank Collects a $5,000 Note Receivable from Muffin for Pip, Muffin also pays $500 in interest and the Bank deducts a $150 Collection fee. The Monies were added to PIP's ACCOUNT as a CREDIT Memo for $5,350. c. Pip discovers they made an ERROR of $675.... Sales he made on July 28th of $4,750 were INCORRECTLY recorded in the Journal and Ledger for $4,075. The Bank recorded the correct amount. d. Outstanding Checks $895 e. The BANK Charged Pip a $50 monthly management fee on his account They deducted the $50 as a DEBIT MEMO f. Pip's customer, gave him a check for $3,500 that was returned NSF (Non- Sufficient Funds)..The CHECK was deducted from Pip's Accounts as a DEBIT MEMO... Required: g. The bank made an ERROR....They mistakenly add a deposit of $1,800 made by Pop's Poppy store into Pip's Account h. Pip MADE an ERROR of $580....Pip wrote out a check for $1,580 in payment to a vendor, but deducted $2,160 from his checkbook and his Cash Ledger. Prepare a Bank Reconciliation for July 31st, 2023 Record the Adjusting entries in Pip's Journal What is the ending Balance in Pip's Cash Account?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started