Question

Ample Company carries its chequing account with Commerce Bank. he company is ready to prepare its 31 December bank reconcilia-tion. The following information is available:
a. The 30 November bank reconciliation showed the following:
i. Cash on hand ( held back each day by Ample Company for change), $ 400 ( included in Ample’s Cash account).
ii. Deposit in transit, # 51, $ 2,000.
iii. Cheques outstanding, # 121, $ 1,000; # 130, $ 2,000; and # 142, $ 3,000.
b. Ample Company cash account for December:
Balance, 1 December ................. $ 64,000
Deposits: # 52—# 55, $ 186,500; # 56, $ 3,500........ 190,000
Cheques: # 143—# 176, $ 191,000; # 177, $ 2,500; # ...... 178,
$ 3,000; and # 179, $ 1,500................ (198,000)
Balance, 31 December ( includes $ 400 cash held for change).. $56,000
c. Bank statement, 31 December:
Balance, 1 December .................. $ 67,600
Deposits: # 51—# 55 .................. 188,500
Cheques: # 130, $ 2,000; # 142, $ 3,000; # 143—# 176, $ 191,000. (196,000)
Account receivable collected for Ample Co. ......... 6,720
Cash received from foreign customer: prepayment on order;
not yet recorded by Ample Co. .............. 10,000
NSF cheque, Customer Belinda (200) United Fund ( automatic charitable donation per transfer authorization signed by Ample Co.) ( 50) Bank service charges ( 20) Balance, 31 December $ 76,550

Required:
1. Identify by number and dollars the 31 December deposits in transit and cheques outstanding.
2. Prepare the 31 December bank reconciliation.
3. Prepare all journal entries.



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  • CreatedFebruary 17, 2015
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