A. The August 31 balance shown on the bank statement is $9,799. b. There is a deposit in transit of $1,247 at August 31.
c. Outstanding checks at August 31 totaled $1,870.
d. Interest credited to the account during August but not recorded on the company's books amounted to $115.
e. A bank charge of $37 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $625 had been recorded as a disbursement of $367.
g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,356.

Required:
Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.

Answers

Answer 1
Answer:

Answer:

Part a.

No entry

Part b.

Debit  : Deposits in Transit $1,247

Credit : Bank Reconciliation Statement $1,247

Increase the Bank Statement Balance

Part c.

Debit  : Bank Reconciliation Statement $1,247

Credit : Out Standing Checks $1,870

Decrease theBank Statement Balance

Part d.

Debit  : Cash $115

Credit : Interest received $115

Interest credited in Bank Statement not recorded

Part e.

Debit  : Bank Charges $37

Credit : Cash $37

Recording of Bank Charges in the Books

Part f.

Debit  : Accounts Payable $258

Credit : Cash $258

Payment to Supplier understated by $258

Part d.

No entry

Explanation:

Corrections and Adjustments may be either to correct the Cash Book or the Bank Statement Balance as above.


Related Questions

If the tax on gasoline is increased to provide incentives to curb air pollution, then the tax serves as
Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets.Mark appears to be suggesting that Lite Bite use a(n): A. corporate distribution system.B. franchise arrangement.C. manufacturer-sponsored marketing chain.D.administered distribution system.
The demand for books is: The supply of books is: 9) Refer to Scenario 2.1. What is the equilibrium price of books? 9) A) 20 B) 15 C)5 D) 10 E) none of the above A-2 10) Refer to Scenario 2.1. What is the equilibrium quantity of books sold? 10) А)75 B) 100 C) 50 D) 25 E) none of the above
The adjusted trial balance of Warbocks Corporation at December 31, 2017 includes the following accounts: Retained Earnings $12,600; Dividends $5,000; Service Revenue $30,000; Salaries and Wages Expense $15,000; Insurance Expense $2,000; Rent Expense $4,500; Supplies Expense $500; and Depreciation Expense $1,000. Prepare a retained earnings statement for the year.
Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.On the basis of the given information a. Gamma should export both tea and pots to Sigma b. Sigma should export tea to Gamma and Gamma should export pots to Sigma c. Gamma should export tea to Sigma and Sigma should export pots to Gamma d. Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots

Consumption spending is:__________ A. spending by households, businesses, and government on all goods used up within one year. B. spending by individuals and households on both durable and nondurable goods. C. spending on goods and services by heads of households. D. spending by individuals and households on only nondurable goods, since they are used up quickly.

Answers

Answer:

b. spending by individuals and households on only non-durable goods.

Explanation:

Consumption spending is spending by individuals and households on only non-durable goods. Consumption is a component of GDP which includes spending on goods and services by individuals and households as it includes non-durable as well as durable goods on the basis of consumption patterns.

Capital accumulation is the​ _____, including​ _____ capital. (A) development of new​ goods; financial (B) increase in​ firms' profits; financial (C) growth of real​ GDP; physical (D) growth of capital​ resources; human

Answers

Answer:

Option "B" and "D" are correct answer

  • Increase in firm's profit; financial
  • growth of capital resources; human

Explanation:

  • Capital accumulation relates to an investment or profit increase in assets and is one of the building blocks of a capitalist economy.
  • The goal is to increase the value of an initial cost, whether it is through appreciation, lease, investment income, or interest, as a return on investment.
  • Profit margin tests a firm's productivity by measuring its net income by overall sales. Organizations may grow their net profit margin by increasing profits, e.g. by providing additional goods or by raising prices.

Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution. His basis in his partnership interest was $120,000 prior to the distribution. How much gain or loss does Landis recognize, and what is his basis in the asset received?a. $0 gain or loss; $30,000 basis.b. $0 gain or loss; $50,000 basis.
c. $0 gain or loss; $60,000 basis.
d. $20,000 gain; $50,000 basis.
e. $30,000 gain; $60,000 basis.

Answers

Answer:

a. $0 gain or loss; $30,000 basis.

Explanation:

Since the partnership is being liquidated, Landis doesn't have to recognize any gain or loss resulting from the liquidation because the cash amount that he is receiving is less than his partnership interest. The asset's basis = $120,000 - $90,000 (cash) = $30,000, regardless of its current market value or prior basis.

The adjusted trial balance of Ryan Financial Planners appears below.RYAN FINANCIAL PLANNERS
Adjusted Trial Balance
December 31, 2014
Debit Credit
Cash $2,660
Accounts Receivable 2,140
Supplies 1,850
Equipment 15,900
Accumulated Depreciation-Equipment $ 3,975
Accounts Payable 3,310
Unearned Service Revenue 3,205
Common Stock 10,000
Retained Earnings 4,510
Dividends 1,000
Service Revenue 4,300
Supplies Expense 410
Depreciation Expense 2,420
Rent Expense 2,920
$29,300 $29,300

Using the information from the adjusted trial balance, you are to prepare for the month ending December 31:
1. An income statement.
2. A balance sheet.
3. A retained earnings statement.

Answers

Answer:

1.

Income Statement

                                                     $

Service Revenue                     4,300

Less :Supplies Expense           410  

Gross Income                           3,890

Less :Depreciation Expense   2,420

Less :Rent Expense                (2,920)

Net Loss                                   1,450  

2.

Balance Sheet

Assets                                                     $

Non-Current Asset

Equipment (15,900-3,975)                 11,925    

Current Asset                $

Cash                            2,660

Accounts Receivable 2,140

Supplies                      1,850

                                                            6,650

Total Asset                                          18,575

Common Stock                                   10,000

Retained Earnings                               2,060

Liabilities

Current Liabilities                      $

Unearned Service Revenue  3,205

Accounts Payable                   3,310

                                                             6,515

Total Equity and Liability                     18,575

3.

Retained Earning Statement                  $

Retained Earning (at beginning)          4,510

Dividend Paid                                       (1,000)

Net Loss for the year                           (1,450)

Retained Earning (at Ending)               2,060

Explanation:

1.

Income statement shows the profit or loss for the period by deducting all the expenses from the revenue. The net value from here transferred to retained earning in the balance sheet.

2.

Balance sheet shows the financial position of the company. It contains assets, equity and liabilities balance.

3.

Statement of retained earning shows the balance of retained earnings and adjust all the payments made to shareholders in the form of dividend and net profit or loss for the period.

Final answer:

The income statement shows a net loss of $1,450. The retained earnings statement is $2,060 after accounting for the net loss and dividends. The balance sheet shows a total of $18,575 in assets, $6,515 in liabilities, and $12,060 in stockholders equity.

Explanation:

We will first need to prepare the income statement, followed by the retained earnings statement, and finally the balance sheet.

1. Income Statement

Service Revenue: $4,300

Less Expenses:

Supplies Expense: $410

Depreciation Expense: $2,420

Rent Expense: $2,920

Total Expense: $5,750

Net Income (Service Revenue - Total Expense): -$1,450

2. Retained Earnings statement

Beginning Retained Earnings: $4,510

Add: Net Income: -$1,450

Less: Dividends: $1,000

Ending Retained Earnings: $2,060

3. Balance Sheet

Assets:

Cash: $2,660

Accounts Receivable: $2,140

Supplies: $1,850

Equipment: $15,900

Less: Accumulated Depreciation: $3,975

Total Assets: $18,575

Liabilities:

Accounts Payable: $3,310

Unearned Service Revenue: $3,205

Total Liabilities: $6,515

Stockholders Equity:

Common Stock: $10,000

Retained Earnings: $2,060

Total Stockholders Equity: $12,060

Total Liabilities and Stockholders Equity: $18,575


Learn more about Financial Statements here:

brainly.com/question/32573447

#SPJ3

Based on murder rates in the United States, an Associated Press story reported that the probability that a newborn child has, of eventually being a murder victim, is 0:0263 for nonwhite males, 0:0049 for white males, 0:0072 for nonwhite females, and 0:0023 for white females. (a) Find the conditional odds ratio between race and whether a murder victim, given gender. Interpret your results. Do these variables exhibit homogeneous association? (b) Half the newborns are of each gender, for each race. Find the marginal odds ratio between race and whether a murder victim.

Answers

Answer:

The odds of being murder victims among nob white males are 5.485 times as compared to white males.

Explanation:

See attachment for explanation.

A merchandiser has four closing journal entries at the end of an accounting cycle. Select the correct entries below. (Check all that apply.) Close asset accounts. Close the dividends account. Close revenue accounts. Close expense accounts. Close the merchandise inventory account. Close the income summary account.

Answers

Answer:

A Merchandiser

Closing Journal Entries:

i) Close the dividends account.

ii) Close revenue accounts.

iii) Close expense accounts.

iv) Close the income summary account.

Explanation:

Closing journal entries are closing entries made at the end of an accounting period to zero out all temporary accounts so that their balances are transferred to permanent accounts.  To close temporary accounts is to set them at the end of the period to nil balances.

Temporary accounts are not permanent.  They do not have running balances that continue from one period to the next, unlike permanent accounts.  All temporary accounts are closed to the income statement and used to determine the financial performance of an entity.  Permanent accounts are stated in the balance sheet (to determine the financial position of an entity) and appear as opening balances in the next period's accounts.

A merchandiser has four closing journal entries: Close the dividends account. Close revenue accounts. Close expense accounts. Close the income summary account, hence options B, C, D, and F are correct.

Closing journal entries are entries made to close down all temporary accounts so that their balances may be transferred to permanent accounts at the conclusion of an accounting period.  

Unlike permanent accounts, they don't have running balances that carry over from one month to the next.  The income statement closes all temporary accounts, which is how an entity's financial success is assessed.

Learn more about dividends account, here:

brainly.com/question/16905667

#SPJ6

Other Questions
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 50,000 of these balls, with the following results:_______. Sales (50,000 balls) $ 1,250,000 Variable expenses 750,000 Contribution margin 500,000 Fixed expenses 320,000 Net operating income $ 180,000Required: 1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level. 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls? 3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $202,000, as last year? 4. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls? 6. Refer to the data in (5) above. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $202,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 37,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage.