Pip's Puppy Store has a balance in his Cash Ledger Account of $42,500 at July 31 st
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Question:
- Pip's Puppy Store has a balance in his Cash Ledger Account of $42,500 at July 31st 2023Pip receives his Bank Statement which shows an ending balance of $46,000.
Pip compares his records with the bank statement and discovers the following reconciling items:
- Deposits-in-Transit $2,250
- Bank Collects a $5,000 Note Receivable from Muffin for Pip, Muffin also pays $500 in interest and the Bank deducts a $150 Collection fee. The Monies were added to PIP's ACCOUNT as a CREDIT Memo for $5,350.
- Pip discovers they made an ERROR of $675.... Sales he made on July 28th of $4,750 were INCORRECTLY recorded in the Journal and Ledger for $4,075. The Bank recorded the correct amount.
- Outstanding Checks $895
- The BANK Charged Pip a $50 monthly management fee on his account They deducted the $50 as a DEBIT MEMO
- Pip's customer, gave him a check for $3,500 that was returned NSF (Non-Sufficient Funds)..The CHECK was deducted from Pip's Accounts as a DEBIT MEMO...
- The bank made an ERROR....They mistakenly add a deposit of $1,800 made by Pop's Poppy store into Pip's Account
- Pip MADE an ERROR of $580....Pip wrote out a check for $1,580 in payment to a vendor, but deducted $2,160 from his checkbook and his Cash Ledger.
Required:
Prepare a Bank Reconciliation for July 31st, 2023
Record the Adjusting entries in Pip's Journal
What is the ending Balance in Pip's Cash Account?
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