The following ledger account is a copy of the bank account in the ledger of Extreme...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following ledger account is a copy of the bank account in the ledger of Extreme Company. METROBANK Dec Dec 1 6 12 Deposit 24 Deposit 31 Deposit Date Dec. 1 Balance Deposit 882559 100.000 30,000 40,000 50,000 60,000 NSF Check Service charge 768 771 772 773 4 774 776 1042 169192 10 The following bank statement was received from METROBANK by Extreme Company: Deposits Checks Balance Check No. 14 18 Check No. 10,000 20,000 5,000 35,000 15,000 52,000 8,000 10.000 5.000 30,000 40,000 771 20,000 772 5.000 773 35.000 774 15.000 775 30.000 776 25.000 777 40,000 50,000 45,000 CM Balance 130,000 Additional information: a. The Extreme Company reconciled its bank balance on November 30 with two checks. No. 768 for P10,000 and 770 for P20,000 outstanding. b. Check No. 1042 was drawn by Extreme Garage. The bank charged it in error to the account of Extreme Company. c. Check No. 776 was correctly drawn for P52,000 in payment of account. The amount P25,000 was entered in the books of original entry. d. The credit on December 28 represents the proceeds of a P50,000 note, less a collection fee of P5,000 collected by the bank and credited to the account. e. The NSF check was received from a customer in payment of account. REQUIRED: 1. Prepare a bank reconciliation statement as of December 31. 2. Adjusting entries in the books of Extreme Company. 3. Compute the correct amount of cash in bank to be presented in the balance sheet The following ledger account is a copy of the bank account in the ledger of Extreme Company. METROBANK Dec Dec 1 6 12 Deposit 24 Deposit 31 Deposit Date Dec. 1 Balance Deposit 882559 100.000 30,000 40,000 50,000 60,000 NSF Check Service charge 768 771 772 773 4 774 776 1042 169192 10 The following bank statement was received from METROBANK by Extreme Company: Deposits Checks Balance Check No. 14 18 Check No. 10,000 20,000 5,000 35,000 15,000 52,000 8,000 10.000 5.000 30,000 40,000 771 20,000 772 5.000 773 35.000 774 15.000 775 30.000 776 25.000 777 40,000 50,000 45,000 CM Balance 130,000 Additional information: a. The Extreme Company reconciled its bank balance on November 30 with two checks. No. 768 for P10,000 and 770 for P20,000 outstanding. b. Check No. 1042 was drawn by Extreme Garage. The bank charged it in error to the account of Extreme Company. c. Check No. 776 was correctly drawn for P52,000 in payment of account. The amount P25,000 was entered in the books of original entry. d. The credit on December 28 represents the proceeds of a P50,000 note, less a collection fee of P5,000 collected by the bank and credited to the account. e. The NSF check was received from a customer in payment of account. REQUIRED: 1. Prepare a bank reconciliation statement as of December 31. 2. Adjusting entries in the books of Extreme Company. 3. Compute the correct amount of cash in bank to be presented in the balance sheet
Expert Answer:
Answer rating: 100% (QA)
Bank Reconciliation Statement as of December 31 Bank Statement Extreme Companys Records Balance per ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
form 1 this form is a copy of a sales invoice in the city in which unique global imports is located, a 925 sales tax is levied on all retail sales
-
Figure 9.5 is a copy of the auditors working paper for auditing accounts receivable balances for the client New Millennium Ecoproducts. It shows the details of the cut-off tests. Required a. Find the...
-
Figure 10.6 is a copy of the auditors working paper for auditing accounts payable for the client New Millennium Ecoproducts. Required a. Explain the nature of the test being documented in the working...
-
In practice, bar charts are used occasionally to summarize a numerical variable over time, which can be handy. The bar chart below shows the inflation rate based on the Consumer Price Index in India....
-
The completed financial statement columns of the worksheet for Woods Company Inc. are shown below. Instructions (a) Prepare an income statement, a retained earnings statement, and a classified...
-
This week, you will answer questions about the governance of a nonprofit organization. You have been asked to join the board of directors of the Contemporary Art Museum (CAM), a medium-sized art...
-
Design a heat exchanger network for MER with at most 15 heat exchangers (including utility heaters) and \(\Delta T_{\text {min }}=10^{\circ} \mathrm{C}\) for the following streams: When MER targets...
-
Selected data for The Walt Disney Company appear below (in millions). Examine the differences between net income, cash flow from operations, and EBITDA for The Walt Disney Company. Comment on the...
-
Define ADR. Provide an example of when you would want to use ADR and another example of when you would not want to use ADR and use a different method. Identify that second method and explain why you...
-
On January 1, 2010, Porter Company purchased an 80% interest in the capital stock of Salem Company for $850,000. At that time, Salem Company had capital stock of $550,000 an retained earnings of...
-
For uniformity purposes, there is already a given set of procedures and an audit program template. Arrange the audit procedures on its logical sequence and prepare an audit program guide using the...
-
Describe what you think is the difference between a retailer and wholesaler. Would you categorize Dr. Green's health and wellness shop as a retailer or wholesaler? Explain. What two accounts should...
-
One example provided by our guest lecturer, Eliana Hruby, is the use of RPA to generate supplier statements to send to the University's suppliers. (a) Explain how this process change enables greater...
-
I borrow $10 000.00 at 10% p.a. compound (or reducible rate of) interest, but paid off $3000.00 at the end of the first year.I was charged $1000.00 interest in the first year.How much interest will I...
-
8. Use the substitution method to prove that the recurrence T(n) = T(n 1) + O(n) has the solution T(n) = O(n), as claimed at the beginning of Section 7.2 in the textbook. Note I am asking for (n),...
-
How could the auditor, Arthur Andersen in this case, have performed Enron's audits and not caught the fraud? Is it possible for a financial statement auditor to perform an audit in compliance with...
-
You are considering a new product. Machinery and equipment will cost $60,000 if bought today and it will be depreciated straight line to zero over the next three years. In addition, you will require...
-
The figure shows six containers, each of which is filled from the top. Assume that water is poured into the containers at a constant rate and each container is filled in 10 seconds. Assume also that...
-
Leslie is a single taxpayer who is under age 65 and in good health. For 2012, she has a salary of $23,000 and itemized deductions of $1,000. Leslie is entitled to one exemption on her tax return. a....
-
Calculate the amount of the child and dependent care credit allowed for 2012 in each of the following cases, assuming the taxpayers had no income other than the stated amounts. a. William and Carla...
-
Sherry Hopson owns a retail family clothing store. Her store is located at 4321 Circle Drive, Houston, TX 77001. Her employer identification number is 95- 1234321 and her Social Security number is...
-
Donna Corporation manufactures custom cabinets for kitchens. It uses a normalcosting system with two direct-cost categoriesdirect materials and direct manufacturing laborand one indirect-cost pool,...
-
Donna Corporation manufactures custom cabinets for kitchens. It uses a normalcosting system with two direct-cost categoriesdirect materials and direct manufacturing laborand one indirect-cost pool,...
-
Donna Corporation manufactures custom cabinets for kitchens. It uses a normalcosting system with two direct-cost categoriesdirect materials and direct manufacturing laborand one indirect-cost pool,...
Study smarter with the SolutionInn App