INTERMEDIATE ACCOUNTING

GIVE THE REQUIRED

Xanthous Company provided the following bank reconciliation on January 31 of the current year: Bank balance 300,000 Add Deposit in transit 610.000 Total 900 000 Deduct Outstanding checks: No. 114 240.000 115 160,000 116 60.000 460,000 Adjusted bank balance 440,000 All receipts of cash are deposited in the bank account. The bank statement for the month of February is presented below. THIRD BANK Checks Deposit Date Balance Balance forwarded Jan. 31 300,000 240,000 600.000 Feb. 1 660,000 2,000,000 2,660,900 200.000 2,460,000 900,000 400.000 1,960,000 160,000 9 1,800.000 1,000,000 10 2,800.000 600,000 13 2,300,000 1,200,000 16 3,500,000 1,300,000 21 4,800,000 650,000 23 4.250,000 5,000 SC 24 4,245,000 1,000,000 550,000 27 3,795,000 800,000 270,000 CM 28 3,265,000 The following information was taken from the credit memo of February 28: Face of the note 260.000 Interest on the note 30.000 Maturity value of the note 280,000 Collection charge 10,000 Credit to your account 270,000The following data were taken from the cash journals of Xanthous Company: Cash Receipt Journal Cash Disbursement Journal Date Debit Cash Check No. Credit Cash Feb. 2 2,000,000 117 200,000 6 400,000 118 900,000 9 800,000 119 800,000 10 200,000 120 500,000 15 1,200,000 121 550,000 20 1,300,000 122 180,000 550,000 123 1,000,000 28 450,000 124 120,000 125 250,000 6,900,000 4,500,000 Required: A. Prepare bank reconciliation on February 28, showing the book balances before and after adjustment. b. Prepare journal entries to record the adjustments that are indicated by the bank reconciliation