1. For each source information shown below, prepare the appropriate journal entr
ID: 2423474 • Letter: 1
Question
1. For each source information shown below, prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. Purchase order dated October 13 for massage chairs costing $860 and oil supplies costing $335. b. Remittance advice from customer for $112, received October 17. c. Receiving report indicating October 22 receipt of October 13 order. Also received supplier invoice totaling $1,195 d. NGS check for payment in full of October 13 order.
Nicole has asked you to prepare a bank reconciliation for NGS. According to her records, NGS’s cash balance is $7,900 at December 31, but the bank reports a balance of $7,400.
NGS wrote a check to a supplier on account for $300 but mistakenly recorded it as $30.
Prepare journal entries for items (a)–(f) from the bank reconciliation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
If NGS also has $310 of petty cash and $1,000 invested in government Treasury bills purchased in August, what is the amount of Cash and Cash Equivalents on NGS’s December 31 balance sheet?
2.Nicole has asked you to prepare a bank reconciliation for NGS. According to her records, NGS’s cash balance is $7,900 at December 31, but the bank reports a balance of $7,400.
Explanation / Answer
Journal Entry Sr No Date Account Title Dr $ Cr $ a Oct 13. No Journal Entry Required b Oct 17. No Journal Entry Required c Oct 22. No Journal Entry Required for receiving Report For Invoice Oct 22. Fixed Asset (Massage Chair) 860.00 Supplies 335.00 Accounts Payable 1,195.00 d Accounts Payable 1,195.00 Bank 1,195.00 Bank Reconcilation as on Dec31 Details Amt $ Balance on Dec 31 as per bank 7,400.00 a Add : NSF Dec 22 not is cash GL 460.00 b Less: Checks outstanding (5,400.00) c Less : Interest Earned not in Cash GL (45.00) d Add: deposit in transit 5,170.00 e Add:Bank charges not in Cash GL 45.00 f Add: Mistake by NGS in check writing 270.00 Balance as per Cash GL as on Dec31. 7,900.00 Journal Entry Sr No Account Title Dr $ Cr $ a Accounts Receivable 460.00 Cash 460.00 b No Journal Entry Required c Interest Income 45.00 Cash 45.00 d No Journal Entry Required e Bank Charges 45.00 Cash 45.00 f Accounts Payable 270.00 Cash 270.00
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