Record each of the below transactions in general journal form for Kingston Bank. June 15: Owners...
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Record each of the below transactions in general journal form for Kingston Bank. June 15: Owners started the banking business by depositing $2,000,000 received from the sale of capital stock. June 16: The following day, owners purchased lands and buildings, which are stated at the city centres. Prices of the lands and buildings are listed below. (All of the assets were paid in cash) Main Branch London: $600,000 ($400,000 Building + $200,000 Land) Sub-Branch Leeds: $400,000 ($250,000 Building + $150,000 Land) Sub Branch Manchester: $200,000 ($120,000 Building + $80,000 Land) June 17: Purchased Furniture from Argos LTD. amounting $120,000 for three of the branches and signed a note payable. This amount is to be repaid in three equal payments at the end of June, July and August. June 18: Bought $1,800 of office supplies, paying cash. Such as; Stationary, Receipt papers, Letter covers...etc) June 18: Bought $ 30,000 of equipments from PC World (Computers, calculators, printers...etc) for three of the branches, bank issued a cheque for this payment. (Date of the cheque was June 23rd, Cheque could not be cleared until this day) June 19: Bank made an opening ceremony open to public and started the banking business officially. Cost of the ceremony was $60,000. At the ceremony, bank announced that no Loan would be provided until 25th June. . June 22: Bank purchased $900 worth of stamps to be used on commercial papers, paying cash. June 22: Bank purchased $1,200 worth of cheque books to supply its customers, paying cash. June 23: PC World requested to cash the cheque which was given on June 18th, June 24: Paid the first instalment of note payable to Argos LTD for the furniture purchased on June 17th June 24: Bank purchased a new land in Birmingham area to construct its new branch and signed a 90 day note payable. Amount of the Land was $130,000; Land transfer fees cost $5,000. June 25: The bank opened on June 19th; and in the first week of business ending on June 25, total money deposited to bank was $900,000. June 25: Bank provided total loan of $350,000 to its customers on 25th June. June 25: Error discovered in February 18th transaction with PC World. Bank paid for computers $11,000, when bank should have paid $10,000 June 28: $90,000 clearing house cheques have been taken in by the receiving teller (i.e. cashier) and sent to Clearing House Bank. June 28: Bank incurred extra money amounting $2,000 to upgrade its accounting system, paying cash to PC World Ltd. At the same day, the bank received refund for computers amounting $1,000 June 29: Clearing House Bank verified the accuracy of some of the cheques amounting $70,000 to the bank. Rest of the cheques were dishonoured as payers didn't have the sufficient corresponding funds in their account. . June 30: Number of customers withdrew money from their accounts. Total withdrawal amounted to $450,000 . June 30: Other Banks paid the corresponding amount of cheques that were verified by Clearing House Banks June 30: The total money deposited to bank within the second week of business, and until end of the month June 30th was $850,000 June 30: At the end of the month, Bank deposited total of $5,000 interest to customer's deposit accounts as agreed in the customer contracts June 30: Total revenue derived from types of bank services provided was amounting $40,000. Bank usually charges customer accounts for the services provided. June 30: Total loan of $200,000 given to the customers within the second week. June 30: Bank sent 10% of total deposits received in June to the Central Bank of Cyprus as a reserve requirement. (Make T-Account for the Cash account of the bank to analyse the reserve requirement) Record each of the below transactions in general journal form for Kingston Bank. June 15: Owners started the banking business by depositing $2,000,000 received from the sale of capital stock. June 16: The following day, owners purchased lands and buildings, which are stated at the city centres. Prices of the lands and buildings are listed below. (All of the assets were paid in cash) Main Branch London: $600,000 ($400,000 Building + $200,000 Land) Sub-Branch Leeds: $400,000 ($250,000 Building + $150,000 Land) Sub Branch Manchester: $200,000 ($120,000 Building + $80,000 Land) June 17: Purchased Furniture from Argos LTD. amounting $120,000 for three of the branches and signed a note payable. This amount is to be repaid in three equal payments at the end of June, July and August. June 18: Bought $1,800 of office supplies, paying cash. Such as; Stationary, Receipt papers, Letter covers...etc) June 18: Bought $ 30,000 of equipments from PC World (Computers, calculators, printers...etc) for three of the branches, bank issued a cheque for this payment. (Date of the cheque was June 23rd, Cheque could not be cleared until this day) June 19: Bank made an opening ceremony open to public and started the banking business officially. Cost of the ceremony was $60,000. At the ceremony, bank announced that no Loan would be provided until 25th June. . June 22: Bank purchased $900 worth of stamps to be used on commercial papers, paying cash. June 22: Bank purchased $1,200 worth of cheque books to supply its customers, paying cash. June 23: PC World requested to cash the cheque which was given on June 18th, June 24: Paid the first instalment of note payable to Argos LTD for the furniture purchased on June 17th June 24: Bank purchased a new land in Birmingham area to construct its new branch and signed a 90 day note payable. Amount of the Land was $130,000; Land transfer fees cost $5,000. June 25: The bank opened on June 19th; and in the first week of business ending on June 25, total money deposited to bank was $900,000. June 25: Bank provided total loan of $350,000 to its customers on 25th June. June 25: Error discovered in February 18th transaction with PC World. Bank paid for computers $11,000, when bank should have paid $10,000 June 28: $90,000 clearing house cheques have been taken in by the receiving teller (i.e. cashier) and sent to Clearing House Bank. June 28: Bank incurred extra money amounting $2,000 to upgrade its accounting system, paying cash to PC World Ltd. At the same day, the bank received refund for computers amounting $1,000 June 29: Clearing House Bank verified the accuracy of some of the cheques amounting $70,000 to the bank. Rest of the cheques were dishonoured as payers didn't have the sufficient corresponding funds in their account. . June 30: Number of customers withdrew money from their accounts. Total withdrawal amounted to $450,000 . June 30: Other Banks paid the corresponding amount of cheques that were verified by Clearing House Banks June 30: The total money deposited to bank within the second week of business, and until end of the month June 30th was $850,000 June 30: At the end of the month, Bank deposited total of $5,000 interest to customer's deposit accounts as agreed in the customer contracts June 30: Total revenue derived from types of bank services provided was amounting $40,000. Bank usually charges customer accounts for the services provided. June 30: Total loan of $200,000 given to the customers within the second week. June 30: Bank sent 10% of total deposits received in June to the Central Bank of Cyprus as a reserve requirement. (Make T-Account for the Cash account of the bank to analyse the reserve requirement)
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Here are the journal entries for the transactions in general journal form June 15 Capital StockDr 2000000 CashCr 2000000 To record owners deposit of 2... View the full answer
Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
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