QUESTION THREE #2257. Both cheques cleared the bank in August, and Sims has admitted its error. Sims will BOBO Corporation received its August 31 bank statement showing total funds on deposit of K288, 090.09. This amount was K149, 158.22 in excess of the balance in the general ledger Cash account, Additional information consists of the following I. The company has a I-year, K100, 000, certificate of deposit (CD). This amount is included in be returning K3. 000 to BOBO recorded these charges. and s. The bank statemen t included momhly service charges of K125. BOBO has not previously 9. At the end of July, three cheques were outstanding (#121 70. K245,55HI 2200, K , ss966 #12202. K75). At the end or August, three cheques were outstanding (a12170,K245S; #1 2290. KI. 33 3.07, and #12291, KI, I 17.54). Page 4 the total funds listed on the bank statement. BOBO classifies this security in a separate Interest earned on the CD was K475 during the month. This interest is free for withdrawal and is automatically posted to the regular checking account.BOBO's first notification of the amount of interest for the month is via the bank statement, and the interest income has not yet been recorded in the general ledger Cash account. 2. (a) Prepare BOBO's bank reconciliation as of August 31, 20X5 b)What is the correct balance for Cash in the August 3I balance sheet? 3. BOBO Corporation received a K50, 000 bank draft for an oil and gas lease from XTX Exploration. This draft was presented to the bank in carly July. Drafts are not cash until the maker (XTX) honors them (at their option), and this process can take as long as several weeks. The bank statement included notification that XTX had honored and funded the draft in mid- August. This is the first notification to BOBO of actual funding, and BOBO has not previously recorded this transaction BOBO made a deposit late in the afternoon of August 31The amount of the deposit was K3. 666.04, but this amount did not appear on the August 31 bank statement. The bank has a sign in its lobby that says "Deposits after 3 pm w be processed on the next following business End of document 4. 5. BOBO has authorized automatic payments to its utility company for monthly charges. r in the bank statement for such utilities. This is the first Withdrawals of KI, 445.99 appea notification to BOBO, and BOBO has not previously recorded this transaction. 6. Late in August, BOBO did an online authorization for a credit card company payment. Due to a timing issue, the bank statement does not yet reflect the payment for K4, 446.09. BOBO has appropriately recorded the reduction in cash in the general ledger 7. BOBO prepared a K3, 000 payments to Sims via cheque 12234. Due to a bookkeeping crror BOBO issued a K3, 000 replacement cheque Siams repored that it had not received payment. QUESTION THREE #2257. Both cheques cleared the bank in August, and Sims has admitted its error. Sims will BOBO Corporation received its August 31 bank statement showing total funds on deposit of K288, 090.09. This amount was K149, 158.22 in excess of the balance in the general ledger Cash account, Additional information consists of the following I. The company has a I-year, K100, 000, certificate of deposit (CD). This amount is included in be returning K3. 000 to BOBO recorded these charges. and s. The bank statemen t included momhly service charges of K125. BOBO has not previously 9. At the end of July, three cheques were outstanding (#121 70. K245,55HI 2200, K , ss966 #12202. K75). At the end or August, three cheques were outstanding (a12170,K245S; #1 2290. KI. 33 3.07, and #12291, KI, I 17.54). Page 4 the total funds listed on the bank statement. BOBO classifies this security in a separate Interest earned on the CD was K475 during the month. This interest is free for withdrawal and is automatically posted to the regular checking account.BOBO's first notification of the amount of interest for the month is via the bank statement, and the interest income has not yet been recorded in the general ledger Cash account. 2. (a) Prepare BOBO's bank reconciliation as of August 31, 20X5 b)What is the correct balance for Cash in the August 3I balance sheet? 3. BOBO Corporation received a K50, 000 bank draft for an oil and gas lease from XTX Exploration. This draft was presented to the bank in carly July. Drafts are not cash until the maker (XTX) honors them (at their option), and this process can take as long as several weeks. The bank statement included notification that XTX had honored and funded the draft in mid- August. This is the first notification to BOBO of actual funding, and BOBO has not previously recorded this transaction BOBO made a deposit late in the afternoon of August 31The amount of the deposit was K3. 666.04, but this amount did not appear on the August 31 bank statement. The bank has a sign in its lobby that says "Deposits after 3 pm w be processed on the next following business End of document 4. 5. BOBO has authorized automatic payments to its utility company for monthly charges. r in the bank statement for such utilities. This is the first Withdrawals of KI, 445.99 appea notification to BOBO, and BOBO has not previously recorded this transaction. 6. Late in August, BOBO did an online authorization for a credit card company payment. Due to a timing issue, the bank statement does not yet reflect the payment for K4, 446.09. BOBO has appropriately recorded the reduction in cash in the general ledger 7. BOBO prepared a K3, 000 payments to Sims via cheque 12234. Due to a bookkeeping crror BOBO issued a K3, 000 replacement cheque Siams repored that it had not received payment
