Kitty Wilkinson records her weekly cash flow for her business. The below are her records for...

  

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Kitty Wilkinson records her weekly cash flow for her business. The below are her records for the month of May 2023 May 1 May 2 May 5 May 6 May 7 May 8 May 10 May 15 May 16 May 19 May 23 May 25 May 29 May 30 Opening balances, overdrawn bank balance at the bank $11,890, Cash balance $2,300 Cash sales amounted to $25,690. Deposited cash in the bank, $25,000 Paid Purchases by cheque $10,470 Cashier with draws $2,000 cash from bank for business use. Owner withdraws cash from bank to pay his house rent $8,000. Debtor - M Kennedy paid with a cheque for $2,000 after he deducted a $500 cash discount to which he was entitled. Cash sales immediately deposited to the bank account $31.110. Payment to creditor -C Barry by cheque $9,900 in full settlement of amounts owing to him of $10,500. Purchases paid by the business' debit card $12,000. Cash sales $6,840 Wages paid in cash $5,400. Paid creditor- B Goode $3,400 by cheque Received $3,000, cheque from J Jacobs settling amounts owed Required: a) Record the above transactions in the Three Column Cash Book of Kitty Wilkinson. Balance the cash book and bring down the balances. On June 3, 2023, Kitty Wilkinson received a bank statement from the bank for the month of May which showed an overdrawn balance of $700, it was also noted that there was a debit balance of $3,450 in the cash book. This did not agree with the balance as per her bank statement; therefore, you as the part time accountant was asked to assist with the preparation of Kitty's bank reconciliation statement. After careful examination, the following discrepancies and omissions were discovered: i. ii. iii. Bank charges amounted to $1,500 were not recorded in the cash book Cheque received from M Kennedy on May 10 had been dishonoured. Amount deposited on May 30 from J Jacobs have not been included in the bank statement. iv. Standing orders for the utility bills of $2,800 had been paid by the bank, this has not yet been recorded in the cash book, v. Three of Kitty's customers chose to deposit directly to her bank account, these amounted to $1,750. vi. The cheque which was drawn in the amount of $3,400 for B Goode on May 29 was not among the cheques returned with the bank statement. There was also no record of it on the bank statement. Required: b) Update Kitty Wilkinson's cash book, starting with the closing balance in her cash book from the required above. e) Prepare Kitty Wilkinson's bank reconciliation statement for the month of May 2023 using appropriate headings. Kitty Wilkinson records her weekly cash flow for her business. The below are her records for the month of May 2023 May 1 May 2 May 5 May 6 May 7 May 8 May 10 May 15 May 16 May 19 May 23 May 25 May 29 May 30 Opening balances, overdrawn bank balance at the bank $11,890, Cash balance $2,300 Cash sales amounted to $25,690. Deposited cash in the bank, $25,000 Paid Purchases by cheque $10,470 Cashier with draws $2,000 cash from bank for business use. Owner withdraws cash from bank to pay his house rent $8,000. Debtor - M Kennedy paid with a cheque for $2,000 after he deducted a $500 cash discount to which he was entitled. Cash sales immediately deposited to the bank account $31.110. Payment to creditor -C Barry by cheque $9,900 in full settlement of amounts owing to him of $10,500. Purchases paid by the business' debit card $12,000. Cash sales $6,840 Wages paid in cash $5,400. Paid creditor- B Goode $3,400 by cheque Received $3,000, cheque from J Jacobs settling amounts owed Required: a) Record the above transactions in the Three Column Cash Book of Kitty Wilkinson. Balance the cash book and bring down the balances. On June 3, 2023, Kitty Wilkinson received a bank statement from the bank for the month of May which showed an overdrawn balance of $700, it was also noted that there was a debit balance of $3,450 in the cash book. This did not agree with the balance as per her bank statement; therefore, you as the part time accountant was asked to assist with the preparation of Kitty's bank reconciliation statement. After careful examination, the following discrepancies and omissions were discovered: Kitty Wilkinson records her weekly cash flow for her business. The below are her records for the month of May 2023 May 1 May 2 May 5 May 6 May 7 May 8 May 10 May 15 May 16 May 19 May 23 May 25 May 29 May 30 Opening balances, overdrawn bank balance at the bank $11,890, Cash balance $2,300 Cash sales amounted to $25,690. Deposited cash in the bank, $25,000 Paid Purchases by cheque $10,470 Cashier with draws $2,000 cash from bank for business use. Owner withdraws cash from bank to pay his house rent $8,000. Debtor - M Kennedy paid with a cheque for $2,000 after he deducted a $500 cash discount to which he was entitled. Cash sales immediately deposited to the bank account $31.110. Payment to creditor -C Barry by cheque $9,900 in full settlement of amounts owing to him of $10,500. Purchases paid by the business' debit card $12,000. Cash sales $6,840 Wages paid in cash $5,400. Paid creditor- B Goode $3,400 by cheque Received $3,000, cheque from J Jacobs settling amounts owed Required: a) Record the above transactions in the Three Column Cash Book of Kitty Wilkinson. Balance the cash book and bring down the balances. On June 3, 2023, Kitty Wilkinson received a bank statement from the bank for the month of May which showed an overdrawn balance of $700, it was also noted that there was a debit balance of $3,450 in the cash book. This did not agree with the balance as per her bank statement; therefore, you as the part time accountant was asked to assist with the preparation of Kitty's bank reconciliation statement. After careful examination, the following discrepancies and omissions were discovered: i. ii. iii. Bank charges amounted to $1,500 were not recorded in the cash book Cheque received from M Kennedy on May 10 had been dishonoured. Amount deposited on May 30 from J Jacobs have not been included in the bank statement. iv. Standing orders for the utility bills of $2,800 had been paid by the bank, this has not yet been recorded in the cash book, v. Three of Kitty's customers chose to deposit directly to her bank account, these amounted to $1,750. vi. The cheque which was drawn in the amount of $3,400 for B Goode on May 29 was not among the cheques returned with the bank statement. There was also no record of it on the bank statement. Required: b) Update Kitty Wilkinson's cash book, starting with the closing balance in her cash book from the required above. e) Prepare Kitty Wilkinson's bank reconciliation statement for the month of May 2023 using appropriate headings. i. ii. iii. Bank charges amounted to $1,500 were not recorded in the cash book Cheque received from M Kennedy on May 10 had been dishonoured. Amount deposited on May 30 from J Jacobs have not been included in the bank statement. iv. Standing orders for the utility bills of $2,800 had been paid by the bank, this has not yet been recorded in the cash book, v. Three of Kitty's customers chose to deposit directly to her bank account, these amounted to $1,750. vi. The cheque which was drawn in the amount of $3,400 for B Goode on May 29 was not among the cheques returned with the bank statement. There was also no record of it on the bank statement. Required: b) Update Kitty Wilkinson's cash book, starting with the closing balance in her cash book from the required above. e) Prepare Kitty Wilkinson's bank reconciliation statement for the month of May 2023 using appropriate headings.

Answer rating: 100% (QA)

Kitty Wilkinsons Three Column Cash Book May 2023 Date Description Debit Credit Balance May 1 Opening ... View the full answer