Balance per the bank on May 31: $12,685. Deposits in transit not recorded by the bank:...

Balance per the bank on May 31: $12,685. Deposits in transit not recorded by the bank: $1,780. Bank error; check written by Best Beauty Supply was charged to Pro Beauty Supply’s account: $800. The following checks written and recorded by Pro Beauty Supply were not included in the bank statement: 3013 $ 145 3054 630 3056 1,390 Note collected by the bank: $900. Service charge for collection of note: $13. The bookkeeper recorded a check written for $622 to pay for the May utilities expense as $532 in the cash disbursements journal. Bank service charge in addition to the note collection fee: $50. Customer checks returned by the bank as NSF: $107. Required Determine the amount of the unadjusted cash balance per Pro Beauty Supply’s books.

Solutions

Expert Solution

Balance as per bank	$ 12,685
Add: Deposit in transit	$ 1,780
Add: Bank error in recording of check	$ 800
Less: Outstanding checks ($3,013+$145+$3,054+$630+$3,056+$1,390)	$ (11,288)
Adjusted bank balance	$ 3,977

Adjusted cash balance	$ 3,977
Less: Note collected by bank	$ (900)
Add: Service charge on note collected	$ 13
Add: Error in recording of utilities expense ($622-$532)	$ 90
Add: Bank service charges	$ 50
Add: NSF Check	$ 107
Unadjusted cash balance as per book	$ 3,337

You can reach me over comment box if you have any doubts. Please rate this answer

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

LANGER COMPANY Bank Reconciliation November 30, 2017 Cash balance per bank $14,717.90 Add: Deposits in transit...

LANGER COMPANY Bank Reconciliation November 30, 2017 Cash balance per bank $14,717.90 Add: Deposits in transit 2,530.20 17,248.10 Less: Outstanding checks Check Number Check Amount 3451 $ 2,260.40 3470 720.10 3471 844.50 3472 1,426.80 3474 1,056.00 6,307.80 Adjusted cash balance per bank $10,940.30 The adjusted cash balance per bank agreed with the cash balance per books at November 30. The December bank statement showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Date Amount 12-1 3451...

On May 31, 2017, Reber Company had a cash balance per books of $7,001.50. The bank...

On May 31, 2017, Reber Company had a cash balance per books of $7,001.50. The bank statement from New York State Bank on that date showed a balance of $6,624.60. A comparison of the statement with the cash account revealed the following facts. 1. The statement included a debit memo of $49.00 for the printing of additional company checks. 2. Cash sales of $731.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit...

On May 31, 2017, Reber Company had a cash balance per books of $7,071.50. The bank...

On May 31, 2017, Reber Company had a cash balance per books of $7,071.50. The bank statement from New York State Bank on that date showed a balance of $6,694.60. A comparison of the statement with the cash account revealed the following facts. 1. The statement included a debit memo of $45.00 for the printing of additional company checks. 2. Cash sales of $833.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit...

2, Interest earned on the cash balance in the bank is recorded by the bank as:...

2, Interest earned on the cash balance in the bank is recorded by the bank as: Multiple Choice An increase in the bank’s asset account. A decrease in the bank’s asset account. A decrease in the depositor’s bank account. An increase in the depositor’s bank account. An increase in the bank’s expense account. 3, Which of the following events would cause a bank to reduce a depositor's account? Multiple Choice The depositor orders new checks through the bank at a...

The following information was available for Wild Oat Company for the month ended May 31, 2020. (a) The book balance at May 31, 2020 was $6,890.22. (b) The bank balance at May 31, 2020 was $8,660.22.

The following information was available for Wild Oat Company for the month ended May 31, 2020.(a) The book balance at May 31, 2020 was $6,890.22.(b) The bank balance at May 31, 2020 was $8,660.22.(c) Outstanding cheques amounted to $6,310.(d) The may 31st cash receipts of $5,600 were deposited but have not yet appeared on the bank statement.(e) A $50 debit memorandum for cheques printed by the bank was included with the cancelled cheques.(f) A customer's note for $1,000 was collected...

At 31 July Ridley Pty Ltd has this bank information: cash balance as per bank $8420;...

At 31 July Ridley Pty Ltd has this bank information: cash balance as per bank $8420; unpresented cheques $862; outstanding deposits $2700; and a bank service charge $20. Determine the balance of the Cash at Bank account after any required adjustments. Prepare entry to replenish a petty cash fund. Please help me with this question

In May 2018, a Japanese investor is thinking about investing in bank deposits in Japan and...

In May 2018, a Japanese investor is thinking about investing in bank deposits in Japan and Mexico. The annual interest rate on Japanese deposits is 4%, versus 3.5% on deposits in Mexico. Assume that that the forward rate in May 2018 is equal to F¥/$ = 110.7 yens per peso= expected exchange rate in May 2019 [that is to say, the investor can buy a contract that guaranty him an exchange rate of 110.7 yens per peso in May 2020]....

An online bank is offering to pay 0.25% interest per month on deposits. Your local bank...

An online bank is offering to pay 0.25% interest per month on deposits. Your local bank offers to pay 0.65% interest quarterly (every 3 months). Which is the higher interest rate?

The following information is available for xyz company ltd. as at 12/31/17 Balance as per bank...

The following information is available for xyz company ltd. as at 12/31/17 Balance as per bank statement $50,207.50 Balance as per general ledger $ 41,608.50 outstanding cheques $9,267 bank service charge $52 NSF checks $616 prepare a bank reconciliation and journal entries

On October 31, 2021, Blossom Company had a cash balance per books of $8,967. The bank...

On October 31, 2021, Blossom Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,150. A comparison of the statement with the Cash account revealed the following: When the accountant of Pharoah Company prepared the bank reconciliation on May 31, 2021, there were three outstanding cheques: #690 for $306, #693 for $176, and #694 for $266. There were no deposits in transit as at May 31, 2021. The bank balance...

Subjects