The following errors were found when the controller at East Mountain Motel was doing the June 30
Question:
1. On June 7, East Mountain recorded a payment of an account payable as $2,180. The correct amount was $2,810.
It was correctly recorded by the bank.
2. On June 20, East Mountain recorded a deposit as $3,330. The correct amount was $4,440. The deposit was for the collection of an account receivable and the bank recorded it correctly.
3. On June 25, the bank posted a cheque in the amount of $825 to East Mountain's bank account. The cheque had been written by another company, East Mountainside Company.
For each of these errors,
(a) Indicate if and how it would be shown on the bank reconciliation, and
(b) Prepare an adjusting entry for East Mountain if required?
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Related Book For
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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