Problem 7 13 The cash account of Larkspur Co showed a ledger balance of $7,088 13 on June 30, 2017 The bank statement as of that date showed a balance of $7,470 00 Upon comparing the statement with the cash records, the following facts were determined 1 There were bank service charges for June of $45 00 2 A bank memo stated that Bao Dais note for $2,160 00 and interest of $64 80 had been collected on June 29, and the bank had made a charge of $9 90 on the collection (No entry had been made on Larkspurs books when Bao Dais note was sent to the bank for collection ) 3 Receipts for June 30 for $6,102 00 were not deposited until July 2 4 Checks outstanding on June 30 totaled $3,844 89 5 The bank had charged the Larkspur Co s account for a customers uncollectible check amounting to $455 76 on June 29 6 A customers check for $162 00 (as payment on the customers Accounts Receivable) had been entered as $108 00 in the cash receipts journal by Larkspur on June 15 7 Check no 742 in the amount of $491 00 had been entered in the cash journal as $419 00, and check no 747 in the amount of $104 76 had been entered as $1,047 60 Both checks had been issued to pay for purchase of equipment and were payments on Larkspurs Accounts Payable Prepare entries necessary to make the books correct and complete Use Office Expense account for bank service charges (Enter answers to 2 decimal places, e g 125 62 If no entry is required, select No Entry for the account titles and enter O for the amounts Credit account titles are automatically indented when the amount is entered Do not indent manually ) Debit Credit Account Titles and Exnlanation Cash Accounts Receivable Accounts Payable Notes Receivable Interest Revenue Interest Revenue (To record the Increases to cash) Accounts Receivable Accounts Payable Office Expense Cash Prepare entries necessary to make the books correct and complete Use Office Expense account for bank service charges (Enter answers to 2 decimal places, e g 125 62 If no entry is required, select No Entry for the account titles and enter O for the amounts Credit account titles are automatically indented when the amount is entered Do not indent manually ) Debit Credit Account Titles and Exnlanation Cash Accounts Receivable Accounts Payable Notes Receivable Interest Revenue Interest Revenue (To record the Increases to cash) Accounts Receivable Accounts Payable Office Expense Cash

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Problem 7-13 The cash account of Larkspur Co. showed a ledger balance of $7,088.13 on June 30, 2017. The bank statement as of that date

Problem 7-13

The cash account of Larkspur Co. showed a ledger balance of $7,088.13 on June 30, 2017. The bank statement as of that date showed a balance of $7,470.00. Upon comparing the statement with the cash records, the following facts were determined.

1.		There were bank service charges for June of $45.00.
2.		A bank memo stated that Bao Dais note for $2,160.00 and interest of $64.80 had been collected on June 29, and the bank had made a charge of $9.90 on the collection. (No entry had been made on Larkspurs books when Bao Dais note was sent to the bank for collection.)
3.		Receipts for June 30 for $6,102.00 were not deposited until July 2.
4.		Checks outstanding on June 30 totaled $3,844.89.
5.		The bank had charged the Larkspur Co.s account for a customers uncollectible check amounting to $455.76 on June 29.
6.		A customers check for $162.00 (as payment on the customers Accounts Receivable) had been entered as $108.00 in the cash receipts journal by Larkspur on June 15.
7.		Check no. 742 in the amount of $491.00 had been entered in the cash journal as $419.00, and check no. 747 in the amount of $104.76 had been entered as $1,047.60. Both checks had been issued to pay for purchase of equipment and were payments on Larkspurs Accounts Payable.

Prepare entries necessary to make the books correct and complete. Use Office Expense account for bank service charges. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Account Titles and Exnlanation Cash Accounts Receivable Accounts Payable Notes Receivable Interest Revenue | Interest Revenue (To record the Increases to cash) Accounts Receivable Accounts Payable Office Expense Cash Prepare entries necessary to make the books correct and complete. Use Office Expense account for bank service charges. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Account Titles and Exnlanation Cash Accounts Receivable Accounts Payable Notes Receivable Interest Revenue | Interest Revenue (To record the Increases to cash) Accounts Receivable Accounts Payable Office Expense Cash