Answered step by step
Verified Expert Solution
Question
1 Approved Answer
When Ivanhoe Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $19,658 as
When Ivanhoe Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $19,658 as at October 31. Ivanhoe's general ledger showed a cash balance of $20,590 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. Bank service charges and debit and credit card processing fees for the month were $66. 2. Acheque in the amount of $628 from one of Ivanhoe's customers that had been deposited during the last week of October was returned with the bank statement as "NSF". 3. Cheque #3421, which was a payment for utilities expenses, had been correctly written for $926 but had been incorrectly recorded in the general ledger as $740. 4. Ivanhoe had written and mailed out cheques with a value of $2,886 that had not yet cleared the bank account. 5. During the month, the bank collected a $2,160 note receivable plus the outstanding interest of $194 on behalf of fvanhoe. The interest had already been accrued by lvanhoe. 6. The cash receipts for October 31 amounted to $5,292 and had been deposited in the night deposit chute at the bank on the evening of October 31 . These were not reflected on the bank statement for October. The parts of this queston muse the
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