Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The bank statement for Marley Co. indicates a cash balance of $10,000.50 on June 30, 2016. The cash account in Marley's records had a balance

The bank statement for Marley Co. indicates a cash balance of $10,000.50 on June 30, 2016. The cash account in Marley's records had a balance of $4,677.10. Illustrate the adjustments to the accounts and their effect on Marley's financial statements, based on the following reconciling items:

Cash sales of $342 had been erroneously recorded in the cash receipts journal as $324.

Deposits in transit not recorded by bank, $700.

Bank debit memorandum for service charges, $30.

Bank credit memorandum for note collected by bank, $2,050, including $50 interest.

Bank debit memorandum for $207.40 NSF (not sufficient funds) check from Alice Martin, a customer.

Checks outstanding, $4,192.80.

For the Statement of Cash Flows, list entries in order of Operating, Investing, and then Financing. Round your answers to two decimal places. For all other blanks, list amounts in the order given in the preceding reconciling items.

Assets = Liabilities + Stockholders' Equity
Cash Accounts Receivable Notes Receivable Accounts Payable Capital Stock Retained Earnings

Statement of Cash Flows Income Statement
Operating
Operating
Operating
Operating

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Audit In Higher Education

Authors: Alison Holmes, Sally Brown

1st Edition

0749433000, 978-0749433000

More Books

Students also viewed these Accounting questions

Question

What is cultural tourism and why is it growing?

Answered: 1 week ago