Mazor Inc.??s bank statement from Hometown Bank at August 31, 2012, gives the following information. A summary

Question:

Mazor Inc.??s bank statement from Hometown Bank at August 31, 2012, gives the following information.

image

A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,700; receipts $74,000; disbursements $73,570; and balance, August 31, $19,130. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,800 and outstanding checks of $4,500. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40.Instructions(a) Determine deposits in transit.(b) Determine outstanding checks. (Hint: You need to correct disbursements for the check error.)(c) Prepare a bank reconciliation at August 31.(d) Journalize the adjusting entry (ies) to be made by Mazor Inc. at August31.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

Question Posted: