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correct the red Pharoah Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2019, the company's Cash account
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Pharoah Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2019, the company's Cash account per its general ledger showed a balance of $6,868.90 The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Checks and Debits Deposits and Credits Daily Balance XXX XOX 5-31 7,098.00 A comparison of the details on the bank statement with the details in the cash account revealed the following facts. 1. The statement included a debit memo of $50.00 for the printing of additional company checks. 2. Cash sales of $893.15 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $943.15. The bank credited Pharoah Company for the correct amount. 3. Outstanding checks at May 31 totaled $294.25, and deposits in transit were $1,890.15. 4. On May 18, the company issued check No. 1181 for $683.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Pharoah Company for $638.00 S. A $2,830.00 note receivable was collected by the bank for Pharoah Company on May 31 through electronic funds transfer 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $350.00 that was incorrectly charged to Pharoah Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $510.00 for a check issued by Sara Ballard, a customer, to Pharoah Company on account Prepare the bank reconciliation at May 31, 2019. (List items that in PHAROAH COMPANY Bank Reconciliation May 31, 2019 $7098 Cash balance per bank statement Add: $1350 Bank error - Tomins Deposits in transit 11890.15 12240.15 19338.15 Less Outstanding checks 1294.25 TAdjusted cash balance per bank $9043.90 $16868.90 Cash balance per books Add: Electronic funds transfer received 12830) 19698.90 Less $150 Check printing charge Error in deposit Error in recording check TNSF check 745) 1510 655 Adjusted cash balance per books $19043.90 Your answer is partially correct. Try again. Prepare the necessary adjusting entries for Pharoah Company at May 31, 2019. Debit Credit Date Account Titles and Explanation May 31-Cash 28303 X Accounts Payable T2830) 1510) 1510) 150 (To record collection of note receivable by bank) 31" TAccounts Receivable Cash (To record NSF check) 314Sales Revenue Cash (To correct error in deposit) 31"Accounts Payable Cash (To correct error in recording check) 150 145 145 31 Accounts Payable 150 150 Cash (To record charge for printing company checks) Step by Step Solution
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