Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

- (b) Journalize the adjusting entries to be made by Martinez at August 31. Assume that interest on the note has not been accrued by

- (b) Journalize the adjusting entries to be made by Martinez at August 31. Assume that interest on the note has not been accrued by the company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

image text in transcribed
Problem 7-58 (Part Level Submission) Martinez SpA's bank statement from Eastern National Bank at August 31, 2017, shows the information below. Balance, August 1 C11,793 Bank credit memoranda: August deposits 51,794 Collection of note receivable plus C105 interest (4,615 Checks cleared in August 44,112 Interest earned m Balance, August 31 24,099 Bank debit memorandum: Safety deposit box rent A summary of the Cash account in the ledger for August shows: balance, August 1, E11,082; receipts 654,134; disbursements (45,918; and balance, August 31, C19,298. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for C2,095 and outstanding checks of C2,806. The deposit in transit was the first deposit recorded by the bank in August. In addition, you determine that there were two errors involving company checks drawn in August: (1) A check for E317 to a creditor on account that cleared the bank in August was journalized and posted for C457. (2) A salary check to an employee for C281 was recorded by the bank for E301

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Best Practices

Authors: Steven M Bragg

7th Edition

1118404149, 9781118404140

More Books

Students also viewed these Accounting questions