The following information is taken from the books of Motsepe Traders: Bank Reconciliation Statement of Motsepe...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information is taken from the books of Motsepe Traders: Bank Reconciliation Statement of Motsepe Traders as at 30 June 2019 Favourable balance as per bank statement 23600 Outstanding deposit Outstanding cheques: No. 202 18600 22400 No. 273 6600 No. 275 Balance as per bank account 14600 ??? Bonisile Dube's comparison with the above reconciliation statement, the cashbooks for July 2019 and the Bank Statement for July revealed the following: 1. Provisional totals in the Cashbook Receipts and the Cashbook Payments on 31 July 2019 were R221 000 and R193 000, respectively. 2. The outstanding cheque No. 202 did not appear on the bank statement. The cheque was originally issued to Monk Studios more than six months ago for advertising. 3. Cheque No. 273 which was issued during the previous month still did not appear on the bank statement. 4. Cheque No. 275 and the outstanding deposit of R18 600 appeared on the bank statement. 5. Cheque No. 285 appeared on the bank statement as R12 400 and had been recorded in the cashbook as R14 400. An investigation revealed that the amount in the cashbook was the correct amount. The cheque had been used for cash purchases of inventory. 6. A deposit dated 7 July was recorded in the cashbook as R14 000 and on the bank statement as R4 D Foc cheque had been used for cash purchases of inventory. 6. A deposit dated 7 July was recorded in the cashbook as R14 000 and on the bank statement as R4 000. An investigation revealed that the bank statement amount was the correct one. The money had been received for sales of merchandise. 7. A direct deposit of R7 000 appeared on the bank statement but not in the cashbook. It had been deposited by Neil Naidoo, a debtor settling his account of R8 000. 8. The bank statement revealed a R/D cheque for R4 000. This cheque had been received from a debtor, Kieran Knight. 9. The bank statement showed the following charges: Interest on overdraft R135 Services fees and cash handling fees (Bank charges) R240 Interest on CR balance R75. 10. A deposit dated 30 July 2019 for R7 000 recorded in the cashbook did not appear on the bank statement. 11. The following cheques No. 286 and No. 287 for R12 000 and R3 500, respectively, appeared in the cashbook but did not appear on the bank statement. 12. The bank statement showed a favourable balance as at 31 July 2019 of R58 800 Required: Use the information taken from the books of Motsepe Traders to complete the following: Q.1.4.1 The cashbook receipts and cashbook payments for July 2019. Total the journal. (10) Q.1.4.2 The Bank Account for July 2019 (Note you need to calculate the opening balance of the bank account on the 1 July 2019). Balance the account. (8%) Q.1.4.3 The Bank Reconciliation Statement as at 31 July 2019. (8%) The following information is taken from the books of Motsepe Traders: Bank Reconciliation Statement of Motsepe Traders as at 30 June 2019 Favourable balance as per bank statement 23600 Outstanding deposit Outstanding cheques: No. 202 18600 22400 No. 273 6600 No. 275 Balance as per bank account 14600 ??? Bonisile Dube's comparison with the above reconciliation statement, the cashbooks for July 2019 and the Bank Statement for July revealed the following: 1. Provisional totals in the Cashbook Receipts and the Cashbook Payments on 31 July 2019 were R221 000 and R193 000, respectively. 2. The outstanding cheque No. 202 did not appear on the bank statement. The cheque was originally issued to Monk Studios more than six months ago for advertising. 3. Cheque No. 273 which was issued during the previous month still did not appear on the bank statement. 4. Cheque No. 275 and the outstanding deposit of R18 600 appeared on the bank statement. 5. Cheque No. 285 appeared on the bank statement as R12 400 and had been recorded in the cashbook as R14 400. An investigation revealed that the amount in the cashbook was the correct amount. The cheque had been used for cash purchases of inventory. 6. A deposit dated 7 July was recorded in the cashbook as R14 000 and on the bank statement as R4 D Foc cheque had been used for cash purchases of inventory. 6. A deposit dated 7 July was recorded in the cashbook as R14 000 and on the bank statement as R4 000. An investigation revealed that the bank statement amount was the correct one. The money had been received for sales of merchandise. 7. A direct deposit of R7 000 appeared on the bank statement but not in the cashbook. It had been deposited by Neil Naidoo, a debtor settling his account of R8 000. 8. The bank statement revealed a R/D cheque for R4 000. This cheque had been received from a debtor, Kieran Knight. 9. The bank statement showed the following charges: Interest on overdraft R135 Services fees and cash handling fees (Bank charges) R240 Interest on CR balance R75. 10. A deposit dated 30 July 2019 for R7 000 recorded in the cashbook did not appear on the bank statement. 11. The following cheques No. 286 and No. 287 for R12 000 and R3 500, respectively, appeared in the cashbook but did not appear on the bank statement. 12. The bank statement showed a favourable balance as at 31 July 2019 of R58 800 Required: Use the information taken from the books of Motsepe Traders to complete the following: Q.1.4.1 The cashbook receipts and cashbook payments for July 2019. Total the journal. (10) Q.1.4.2 The Bank Account for July 2019 (Note you need to calculate the opening balance of the bank account on the 1 July 2019). Balance the account. (8%) Q.1.4.3 The Bank Reconciliation Statement as at 31 July 2019. (8%)
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
? ? The following information is taken from the books of Motsepe Traders: Bank Reconciliation Statement of Motsepe Traders as at 30 June 2019 Favourable balance as per bank statement Outstanding...
-
2. The following information is taken from French Corporation's financial statements: (6 points) December 31 2021 2020 $ 27,000 80,000 (3,100) 175,000 6,800 60,000 244,000 (13,000) 35,000 $611,700...
-
The following information is taken from the accounting records of the Propst-Steele Production Corporation: 1. Issued 5,000 shares of no-par common stock at $15 per share. 2. Issued an additional...
-
Name the types of consumer decision-making processes. List some products you have bought using each type. Have you ever bought a product on impulse? If so, describe the circumstances.
-
Solve the systems in Problem graphically and indicate whether each solution region is bounded or unbounded. Find the coordinates of each corner point. 6x + 3y 24 3x + 6y 30 x 0 y 0
-
Exhibit 3.32 presents a statement of cash flows for Walmart for fiscal 2015, 2014, and 2013. This statement matches the Walmart statement of cash flows in Appendix A, and is an expanded version of...
-
Residential Demand for Electricity. Belotti, Hughes and Piano Mortari (2017) estimated residential demand for electricity covering the 48 states in the continental United States plus the district of...
-
East Mill Associates (EMA) was developing residential units in East Brunswick, New Jersey, within the service area of the East Brunswick Sewerage Authority (EBSA). The sewer system required an...
-
What would be the annual percentage yield for a savings account that earned $54 in interest on $750 over the past 365 days?
-
Given the extended LAN shown in Figure 3.46, indicate which ports are not selected by the spanning tree algorithm. Figure 3. 46) E G A B1 1 B7 B4 D B2 (B3) B6 (B5 F H J B
-
The Ballistic pendulum experiment combines two conservation laws; conservation of linear momentum and conservation of energy. If two objects collide and the only force present during the collision is...
-
An analyst has projected that a company will have assets of 2,000 at year-end and liabilities of 1,200. The analysts projection of total owners equity should be closest to: A. 800. B. 2,000. C. 3,200.
-
Compared to a company that uses the FIFO method, during periods of rising prices a company that uses the LIFO method will most likely appear more: A. liquid. B. efficient. C. profitable. Assume the...
-
To better evaluate the solvency of a company, an analyst would most likely add to total liabilities A. the present value of future capital lease payments. B. the total amount of future operating...
-
Zimt AG wrote down the value of its inventory in 2007 and reversed the write-down in 2008. Compared to the ratios that would have been calculated if the write-down had never occurred, Zimts reported...
-
For a lessor, the leased asset appears on the balance sheet and continues to be depreciated when the lease is classified as: A. a sales-type lease. B. an operating lease. C. a financing lease.
-
A company's CFO wants to maintain a target debt-to-equity ratio of 25%. If the WACC is 9%, and the pre-tax cost of debt is 2%, what is the cost of common equity assuming a corporate tax rate of 40%?
-
How is use of the word consistent helpful in fraud reports?
-
The Daisy Company received a bank statement for February 2007, as follows: From: Central Bank, Denver, Co. 80222 To: Daisy Company, 1313 Williams St., Denver, Co. 80218 The receipt of $460 on...
-
Information for Blake Corporation's property, plant, and equipment for 2007 is: Depreciation Method and Useful Life Building: 150%-declining-balance; 25 years. Machinery and equipment: Straight-line;...
-
Explain the issue of inventory liquidation when a company uses the LIFO cost flow assumption. Why is this an issue exclusive to LIFO?
-
If, during a stride, the stretch causes her center of mass to lower by \(10 \mathrm{~mm}\), what is the stored energy? A. \(3.0 \mathrm{~J}\) B. \(6.0 \mathrm{~J}\) C. \(9.0 \mathrm{~J}\) D. \(12...
-
A \(1.00 \mathrm{~kg}\) block is attached to a horizontal spring with spring INT constant \(2500 \mathrm{~N} / \mathrm{m}\). The block is at rest on a frictionless surface. A \(10.0 \mathrm{~g}\)...
-
We can make a static measurement to deduce the spring constant to use in the model. If a \(61 \mathrm{~kg}\) woman stands on a low wall with her full weight on the ball of one foot and the heel free...
Study smarter with the SolutionInn App