As a staff assistant on the Portage Developers Corp. audit, you have been asked by your supervisor, Mary Reed, to prepare a cash summary or lead schedule for the working papers for the December 31, 19X0 cash balances. Portage Developers Corp. maintains a petty cash account and four checking accounts at local banks. At December 31, 19X0, the five accounts had a total balance of \(\$ 3,645,486.28\) consisting of

Working paper documentation of the work done on these accounts have been indexed on working papers A1-A5.
During her review of the working papers, Mary Reed concludes that (1) the overdraft in the Commercial Bank Corp. account should be reclassified as a current liability and (2) that an adjusting entry should be made for a \(\$ 20,000\) payment by a customer on account that was properly included in deposits in transit to the Eaton National Bank general account, but not recorded on the books prior to December 31, 19X0.
Required:
a. Prepare only the cash summary working paper. Use the following column headings: Account Number, Account Title, Working Paper Reference 12/31/XO Balance Per Books, Adjusting and Reclassifying Entries Dr. and Cr. and 12/31/XO Final Balance.
b. Below the summary totals, journalize the adjusting and reclassifying entries. Your firm uses numbers to identify adjusting entries and letters to identify reclassification entries.

Transcribed Image Text:

Account Title Petty cash Account Number December 31, 19X0 Balance 101 $ 27,000.00 Payroll account, Eaton National Bank 102 1,322,750.00 General account, Eaton National Bank 103 1,631,342.20 Special account, Tanglewood Bank of Commerce 104 928,487.18 General account, Commercial Bank Corp. 105 (264,093.10)