On October 31, 2015, the bank statement shows that your company has $13,256.73 i

Question

On October 31, 2015, the bank statement shows that your company has $13,256.73 in its checking account. You are aware of three outstanding checks for a total of $2,562.19. During October, 2015, the bank rejected two deposited checks from customers totaling $729.19 because of insufficient funds and charged you $18.00 in service fees. You had not yet received notice about the bad checks, but you were aware of and have recorded the $18.00 of service fees. Prior to adjustment on October 31, 2015, your Cash account would have a balance of O $9,983.35 $16,530.11 O $15,071.73 O $15,07173 O $1142373

Explanation / Answer

1)

Cash book balance before adjustment = 13256.73 + rejected deposits $729.19 - outstanding checks $2562.19 = $11423.73 (option 4th)

1A) Book are short entered by $89 - $60=$29, so $29 would be added to Book balance. (option 1st)

1B) Outstanding checks amount in the July Bank Reconciliation Statement=

$5590 +40800 - 29150 = $17240 (option 4th)

1C) As the cash in counting is overage by $3000, so the Journal entry to record the days' sale would include:

(option 2nd) Credit of cash overage for $3000

1D) Insurance Expense recorded on Dec 2016 for 8 months would include following amount=

= 23400 * 8 / 36 = $5200 (option 3rd)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.