Question
In connection with your examination, the Reef Company presented to you the following information regarding its Cash in Bank account for the month of June
In connection with your examination, the Reef Company presented to you the following information regarding its Cash in Bank account for the month of June of the current year:
a. balances per bank statements: May 31 $1,250,000 and June 30, $ 1,350,000
b. balances of cash in bank account in company's books: May 31, $ 1,251,000 and June 30, $1,051,000
c. Total charges in the bank statement during June were $1,300,000
d. Undeposited receipts were: May 31, $200,000 and June 30, $153,000
e. Outstanding checks as of May 31, $150,000
f. Erroneous bank credits were: May 31, $45,000 and June 30, $17,000
g. Erroneous bank charge were: May 31, $20,000 and June 30, $30,000
h. Collections by bank not recorded by Company were $125,000 in May and $150,000 in June.
I. NSF not entered in Company's books were: May 31, $110,000 and June 30, $75,000.
j. Customer's check deposited in May amounting to $21,000 was erroneously entered in the books as $12,000. Assume this was corrected in June.
Questions:
Based on the above and the results of the audit, answer the following: (please include solutions & explanations. thank you)
- How much were the cash disbursements per books in June?
a. $1,365,000
b. $1,491,000
c. $1,500,000
d. $1,565,000
2.How much are the outstanding checks at the end of June?
a. $110,000
b. $330,000
c. $381,000
d. $390,000
3.How much is the adjusted cash balances as of May 30?
a. $1,257,000
b. $1,266,000
c. $1,275,000
d. $1,291,000
4.How much is the adjusted book disbursements for June?
a. $1,315,000
b. $1,381,000
c. $1,456,000
d. $1,465,000
5.How much is the adjusted cash balance as of June 30?
a. $1,126,000
b. $1,135,000
c. $1,276,000
d. $1,346,000
6.Which of the following adjusting entry would be made by the company at the end of June?
a. Bank service charge $75,000
Cash in bank $75,000
Accounts receivable $150,000
b. Cash in bank $50,000
Accounts Receivable. $75,000
Cash in bank $125,000
c. Cash in bank $84,000
Accounts Receivable $84,000
d. Cash in bank $75,000
Accounts Receivable $75,000
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Data Analytics for Accounting
Authors: Vernon Richardson
1st edition
1260375196, 9781260375183 , 978-1260375190
