INFORMATION: A comparison of the bank statement for January 2020, received from ABSA, with the January...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
INFORMATION: A comparison of the bank statement for January 2020, received from ABSA, with the January 2020 cash journal of Waldow Traders and the bank reconciliation statement as at 31 December 2019 revealed the following which must be taken into account: 1. On 31 December 2019 the Bank account in the general ledger reflected a debit balance of R17 200. The following items appeared on the bank reconciliation statement on 31 December 2019: A deposit of R2 200 made on 31 December 2019. ● The following cheques had not been presented for payment at the bank during December 2019: i. Cheque number 451 for R2 700 ii. Cheque number 473 for R3 100 iii. Cheque number 482 for R1 200 2. The outstanding deposit of R2 200 made on 31 December 2019, was credited in the bank statement for January 2020. ● 3. Cheque number 451 did not appear in the January bank statement. 4. Cheque number 482 issued to the SPCA as a donation is now stale and must be cancelled. No new cheque is to be issued. 5. The bank columns of the cash receipts journal and cash payments journal amounted to R67 500 and R55 200 respectively on 31 January 2020 before the bank statement was received. 6. The bank statement reflected a debit balance of R26 610 on 31 January 2020. 7. A cheque for R1 250 received from a debtor, D Fault, was returned by the bank because there was insufficient funds in his account. 8. A deposit made by Waldow Traders on 31 January 2020, R3 800, did not appear in the bank statement for January 2020. 9. The bank statement revealed the following charges: Service Fees R180 Interest on overdraft R 75 Cash deposit fee R125 10. A debit order for insurance on the business premises and delivery vehicles, R1 200. 11. Cheque no. 495 issued to Boxer Wholesalers for purchase of inventory was incorrectly recorded in the Cash Payments Journal as R2 070. The bank statement reflected the correct amount of R2 700. 12. The following cheques issued during January 2020 were not reflected in the January 2020 bank statement: Cheque no 502-R1 300 Cheque no 517 - R2 400 ● ● The following information was extracted from the accounting records of Waldow Traders. REQUIRED 2.1 Prepare the cash journals for January 2020. Commence with the provisional totals. Use the following format: (8 Marks) Cash Receipts Journal Details Cash Payments Journal Details Bank Bank 2.2 Prepare the bank account in the General Ledger as at 31 January 2020 2.3 Prepare the Bank Reconciliation Statement as at 31 January 2020 (4 Marks) (5 Marks) INFORMATION: A comparison of the bank statement for January 2020, received from ABSA, with the January 2020 cash journal of Waldow Traders and the bank reconciliation statement as at 31 December 2019 revealed the following which must be taken into account: 1. On 31 December 2019 the Bank account in the general ledger reflected a debit balance of R17 200. The following items appeared on the bank reconciliation statement on 31 December 2019: A deposit of R2 200 made on 31 December 2019. ● The following cheques had not been presented for payment at the bank during December 2019: i. Cheque number 451 for R2 700 ii. Cheque number 473 for R3 100 iii. Cheque number 482 for R1 200 2. The outstanding deposit of R2 200 made on 31 December 2019, was credited in the bank statement for January 2020. ● 3. Cheque number 451 did not appear in the January bank statement. 4. Cheque number 482 issued to the SPCA as a donation is now stale and must be cancelled. No new cheque is to be issued. 5. The bank columns of the cash receipts journal and cash payments journal amounted to R67 500 and R55 200 respectively on 31 January 2020 before the bank statement was received. 6. The bank statement reflected a debit balance of R26 610 on 31 January 2020. 7. A cheque for R1 250 received from a debtor, D Fault, was returned by the bank because there was insufficient funds in his account. 8. A deposit made by Waldow Traders on 31 January 2020, R3 800, did not appear in the bank statement for January 2020. 9. The bank statement revealed the following charges: Service Fees R180 Interest on overdraft R 75 Cash deposit fee R125 10. A debit order for insurance on the business premises and delivery vehicles, R1 200. 11. Cheque no. 495 issued to Boxer Wholesalers for purchase of inventory was incorrectly recorded in the Cash Payments Journal as R2 070. The bank statement reflected the correct amount of R2 700. 12. The following cheques issued during January 2020 were not reflected in the January 2020 bank statement: Cheque no 502-R1 300 Cheque no 517 - R2 400 ● ● The following information was extracted from the accounting records of Waldow Traders. REQUIRED 2.1 Prepare the cash journals for January 2020. Commence with the provisional totals. Use the following format: (8 Marks) Cash Receipts Journal Details Cash Payments Journal Details Bank Bank 2.2 Prepare the bank account in the General Ledger as at 31 January 2020 2.3 Prepare the Bank Reconciliation Statement as at 31 January 2020 (4 Marks) (5 Marks)
Expert Answer:
Answer rating: 100% (QA)
21 Cash Journals for January 2020 Cash Receipts Journal Date Details Bank Total Jan 2020 Balance BF ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The information provided below was extracted from the accounting records of Goldrand Traders. 1. Extract from the Bank Reconciliation Statement on 31 January 2019 R 1400 1650 250 1800 1200 2. 3. 4....
-
Use the information provided below to prepare the Bank account in the ledger of Prince Stores showing all the entries that would have been made in the cash journals. Clearly show the contra account...
-
a) prepare the correct bank reconciliation statement as at 31 July 2020. (Assume that the balances in the incorrect bank reconciliation statement are correct.) (4) b) prepare the bank account in the...
-
Question 2: Consider the market for Florida oranges. The demand for Florida oranges is given by the inverse demand function p = 70-2Q The market cost function for firms that sell Florida oranges is...
-
It has been argued that climate is a predominant explanatory variable in income distribution in the sense that nations along the equator are poor while those in cooler climates are rich. Can you...
-
Given i(t)=5 cos(400t 120) A, determine the period of the current and the frequency in hertz.
-
Using the Tsai-Hill criterion and the appropriate micromechanics equations, set up the equation for predicting the averaged isotropic shear strength for a randomly oriented short-fiber composite....
-
Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2014. The truck is not considered a passenger automobile for purposes of the listed property...
-
The Royal Gorge Bridge in Colorado rises 321 m above the Arkansas River. Suppose you kick a rock horizontally off the bridge. The magnitude of the rock's horizontal displacement is 45.0 m. Find the...
-
Consider Sales & Operations planning. If the costs for hiring and firing employees are very small relative to the inventory holding costs, then which Sales & Operations plan is likely to have the...
-
Baseline Capital wants to raise $1,000,000 to fund an expansion of its business. To do this, it will issue bonds with 10 years to maturity, a face value of $1,000 and semi-annual coupon payments. The...
-
On September 1, 2021, Eva Co., issued $168 million of its 10% bonds at face value. The bonds are dated June 1, 2021, and mature on May 30, 2031. Interest is payable semiannually on June 1 and...
-
CORE CONCEPTS OF MARKETING - Describe the similarities and differences of marketing core concepts I)Sunway lagoon II) Genting Skyworld
-
Critically evaluate the assembly of a NIVEA marketing mix from the existing product offering and provide recommendations for optimization of the mix to gain traction with customers. To what extent do...
-
We have two questions this week that address the direct delivery of goods to stores and to your home. And in today's climate of home delivery, the options for answering these questions are...
-
Provide four (4) major differences between differentiated marketing and undifferentiated marketing.
-
Arc Hospital received an unconditional pledge of $1 million, which will be paid in four installments of $250,000 over four years. What amount of installment pledge revenue should be recognized in the...
-
1. Using the information from Problem 16-4B, prepare a statement of cash flows for Lim Garden Supplies Inc. using the direct method of presenting cash flows from operating activities. 2. How does Lim...
-
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.2% Service years Final Years salary Stanley Mills was hired by Clark at the beginning of...
-
In 2011, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2013. Information related to the contract is...
-
On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $4 million, patent; $3 million, developed technology;...
-
Presented below is selected information related to Tsui Repairs at December 31, 2025. Tsui reports financial information monthly (amounts in thousands). a. Determine the total assets of Tsui Repairs...
-
Explain the career opportunities in accounting.
-
Collins Computer Timeshare entered into the following transactions during May 2025. 1. Purchased computers for R\($20,000\) from Digital Equipment on account. 2. Paid R\($4,000\) cash for May rent on...
Study smarter with the SolutionInn App