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On October 31, 2020, Montgomery Manufacturing Ltd. (MML) received its bank statement from the Big Bank. It stated that MML had a balance of $9,000
On October 31, 2020, Montgomery Manufacturing Ltd. (MML) received its bank statement from the Big Bank. It stated that MML had a balance of $9,000 on October 31. The companys general ledger showed a cash balance of $9,460 at that date. A comparison of the bank statement and the accounting records revealed the following information:
Bank service charges for the month were $50. | ||
The company had written and mailed out cheques with a value of $1,500 that had not yet cleared the bank. | ||
A cheque from one of MMLs customers in the amount of $700 that had been deposited during the last week of October was returned with the bank statement as NSF. | ||
A payment of $230 for monthly insurance expense was automatically deducted from MMLs bank account on October 22. MMLs bookkeeper had forgotten to record this transaction. | ||
During the month, the companys bookkeeper had recorded a cheque (#1872) paid for utilities as $575 rather than $755 (which was the amount written on the cheque and processed by the bank). | ||
The cash receipts for October 31 amounted to $800 and had been deposited in the night drop slot at the bank on the evening of October 31. These were not reflected on the bank statement for October. |
PART A: Please fill out the answer to the table like the two pictures above. Here is the list of accounts, please use them to fill out the table also.
Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Bad Debts Expense Bank Charges Expense Bank Loan Payable Cash Credit Card Expense Debit Card Expense Income Tax Receivable Insurance Expense Interest Expense Interest Revenue No Entry Notes Payable Notes Receivable Sales Revenue Utilities Expense |
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