Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The ending cash balance for Rote Memory Systems, Inc. on April 30, 20XX was $11,893.12. Appropriate portions of the cash receipts and cash payments records

image text in transcribed
image text in transcribed
The ending cash balance for Rote Memory Systems, Inc. on April 30, 20XX was $11,893.12. Appropriate portions of the cash receipts and cash payments records are illustrated below. Cash Receipts Cash Payments Date Amount Date Amount May 4 S1,191.84 May 1 S1,305.66 May 8 1.576.42 May 4 2,070.10 May 121,528.80 May 8 1,617.12 May 18 1,817.53 May 14 1,015.71 May 21 1.865.73 May 17 426.81 May 26 1,486,35 May 20 957.32 May 31 1.862.20 May 22 84.73 Total $11.928.87 May 25 261.42 May 26 334.81 May 28 886.40 May 31 2.521.65 Total $10,481.73 The bank statement for May is presented below: Last County Bank 571 Embezzlement Blvd. In account with: Rote Memory Systems, Inc. Date Checks and other items: Deposits Balance May 1 Balance forward $9.487.87 May 1 125.12 28.22 1,274.30 10,608.83 May 1 128.34 465.33 224.63 10.239.79 May 5 1.305.66 2070.10 1,791.84 8.655.87 May 9 1,617.12 NSF 285.63 1,576.42 8,329.54 May 15 1,015.71 1,528.80 8,842.63 May 22 426.81 957.32 1,817.53 9.276.03 May 26 84.73 621.42 1,865.73 10,435.61 May 31 1,486.35 11,921.96 May 31 SC 62.00 INTEREST 8.48 11,868.44 Additional Information: 1. The NSF check was from customer Lippy Dipp and had been included in the deposit of May 4. 2. The service charge of $62.00 includes a $20 fee for the NSF check. 3. During the April reconciliation, deposits in transit of $1,274.30, S224.63 and 1,188.00 were noted. The $1,188.00 is from February, and continues as a DIT in April and May. In addition outstanding checks from April consisted of $125.12, $28.22 and $128.34. 4. There is an error in the checks that consists of a transposition. 5. You will find an item that bears no explanation. You should make an assumption about what you think it to be, label it appropriately and then adjust which party you assume it affects. Required: 1. Prepare the bank reconciliation for May. Use the two-column approach. You must label all amounts and show all of your work to be ready for the quiz questions. Assume the bank's records are correct 2. Are there any alarm(s) present that might indicate that embezzlement is in progress? If so, what? 3. What is the true amount of cash the firm has (what can they spend)? 4. Which items from the reconciliation would need to be recorded in the firm's accounting records

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

Financial Accounting For Decision Makers

Authors: Peter Atrill, Eddie McLaney

9th Edition

1292251255, 9781292251257

More Books

Students also viewed these Accounting questions