Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 4 of 5 < > -/3E Sunland Grow-Fast spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company's
Question 4 of 5 < > -/3E Sunland Grow-Fast spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company's Cash account per its general ledger showed the following balance 8,100.00. The bank statement from Manchester Bank on that date showed the following balance. Checks and Debits Lancaster Bank Deposits and Credits Daily Balance XXX XXX 5/31 8,713.50 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 40.00 for the printing of additional company checks. 2. 3. 4. Cash sales of 750.60 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for 800.60. The bank credited Sunland Genetics for the correct amount. Outstanding checks at May 31 totaled 201.60, and deposits in transit were 1,942.10. On May 18, the company issued check No. 1181 for 662.00 to M. Datz on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sunland Genetics for 626.00. 5. 3,500.00 was collected by the bank for Sunland on May 31 through electronic fund transfer. 6. 7. Included with the cancelled checks was a check issued by Tomins to C. Pernod for 430.00 that was incorrectly charged to Sunland by the bank. On May 31, the bank statement showed an NSF charge of 590.00 for a check issued by Sara Ballard, a customer, to Sunland on account.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started