Question

In: Accounting

We Chat Ltd has Cash at Bank balance as per the company’s record of $10,665 debit...

We Chat Ltd has Cash at Bank balance as per the company’s record of $10,665 debit as at 29th February 2020. The bank statement balance from Citigroup Bank showed a credit balance of $9,450. A comparison of the statement with the cash account revealed the following:

1.     Unpresented cheques at 29 February totalled $5,405, and outstanding deposits were $6,900.

2.     Included with the cheques paid was a cheque issued by Click and Go Ltd to M. Phelps for $450 that was incorrectly charged to We Chat Ltd by the bank.

3.     The bank statement included a debit entry of $90 for the printing of additional company cheques.

4.     Included on the bank statement was a credit entry of $820 indicating the collection of a note receivable for We Chat Ltd by the bank on 15 February

Required

a.     Prepare a bank reconciliation at 29th February based on the provided information.

b.     Prepare the necessary adjusting entries as at 29th February 2020

Solutions

Expert Solution

Bank Reconciliation
Bal per Bank $    9,450
Add: Cheque wrongly charged $        450
Cheque Deposited but not credited $    6,900 $    7,350
Less:
Unpresented Cheque $    5,405 $    5,405
Adjust Bal per Bank $ 11,395
Bal per Book $ 10,665
Add:
Note credited in bank $        820 $        820
Less:
Cheque printing charges $          90 $          90
Adjust Bal per Book $ 11,395
Date Journal Entry Debit Credit
Bank $        820
Notes Receivable $        820
(Funds collected in bank)
Cheque printing charges $          90
Bank $          90
(Service charges debited by bank)

Related Solutions

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
Note the following information related to a company’s cash account : Cash Balance per Bank Cash...
Note the following information related to a company’s cash account : Cash Balance per Bank Cash balancer per bank, 12/31/19 9,610 Check #6832 cleared the bank for $240, but erroneously recorded by company for $268 Outstanding checks 2,417 Deposit by ABC Inc erroneously recorded to the company by the bank 486 NSF check returned by bank 281 Cash balance per books, 12/31/19 7,430 December 2019 interest per bank 30 Check mailed to bank for a deposit that had not reached...
BANK RECONCILIATION STATEMENT The cash at bank ledgerof Starlet Limted shows a debit balance of £...
BANK RECONCILIATION STATEMENT The cash at bank ledgerof Starlet Limted shows a debit balance of £ 4,500 on 31st October 2017. Cheques for £ 2,000 from customers that were recently paid into the bank have not yet been processed. Payments totalling £ 6,200 made by the business to its suppliers and others have not yet been presented to the bank statement for payment. The bank has charged £ 700 in bank charges. A cheque for £ 300 from a customer...
Brighton Ltd has unadjusted trial balance as follows on 30 June 2020. Debit Credit Cash at...
Brighton Ltd has unadjusted trial balance as follows on 30 June 2020. Debit Credit Cash at bank 20,820 Accounts receivable 6,800 Prepaid insurance 5,200 Office supplies 1,200 Motor vehicles 108,000 Accumulated depreciation – Motor vehicles 45,000 Equipment 2,850 Accumulated depreciation – Equipment 1,120 Accounts payable 7,900 Bank loan 42,100 Unearned rental revenue 1,150 Capital 45,600 Drawings 13,100 Rental revenue 55,200 Salaries expense 24,200 Repairs and maintenance expense 4,100 Office supplies expense 9,900 Electricity expense 1,900 Totals 198,070 198,070 Additional information:...
1. Client’s cash balance per book and cash balance per bank are often different and this...
1. Client’s cash balance per book and cash balance per bank are often different and this difference is mostly driven by timing difference and/or errors. Please list at least 3 reconciliation items which may create timing difference. 2. Please identify and describe important internal controls over the credit sale (NOT cash sale) process. 3. Please identify and describe important internal controls over the credit sale (NOT cash sale) process. 4. How does the presence of perpetual records affect the audit?...
White Ltd has adjusted trial balance as follows on 30 June 2020. Debit Credit Cash 1,280,000...
White Ltd has adjusted trial balance as follows on 30 June 2020. Debit Credit Cash 1,280,000 Service fee revenue 81,000 Account receivable 650,000 Prepaid insurance expense 55,000 Equipment 980,000 Accumulated depreciation-Equipment 305,000 Salaries expense 753,000 Depreciation expense 21,000 Accounts payable 281,000 Loan 730,000 Capital 400,000 Drawings 15,000 Retained earnings 310,000 Rent expense 23,000 Sales 7,021,000 Rent revenue 6,000 Cost of goods sold 4,100,000 Prepaid rent expense 71,000 Inventory 430,000 Accrued service fee revenue 11,000 Insurance expense 25,000 Interest expense 50,000...
Trial balance Account Debit Credit Cash at bank $48,907.71 Petty cash $4,000.00 Stock on hand $36,942.00...
Trial balance Account Debit Credit Cash at bank $48,907.71 Petty cash $4,000.00 Stock on hand $36,942.00 Deposits $3310.00 Trade debtors $43,437.00 Plant and equipment $46,502.29 Motor vehicle $52,500.00 Account depreciation – Plant and equipment $6,540.00 Bank loans $58,500.00 Trade creditors $92,000.00 GST collected $15,303.00 GST paid $43,171.18 Payroll liabilities $2,767.00 Owner capital/issued capital $15,000.00 Owner drawings $35,195.00 Retained earnings $65,500.00 Sales goods and services $363,684.00 Interest received $1,050.00 COGS $80,000.01 Accounting and audit fees $4,772.73 Advertising and marketing $5,600.00 Bank...
1. The entry to record interest expense on a bank loan payable is a debit to...
1. The entry to record interest expense on a bank loan payable is a debit to interest expense and credit to note payable. debit to note payable and credit to interest revenue. debit to interest payable and credit to interest revenue. debit to interest expense and credit to interest payable. 2.Which of the following statements is true? If any portion of a non-current liability is to be paid in the next year, the entire debt should be classified as a...
At July 31, Crane Company has this bank information: cash balance per bank $8,360, outstanding checks...
At July 31, Crane Company has this bank information: cash balance per bank $8,360, outstanding checks $800, deposits in transit $1,325 and a bank service charge $20. Determine the adjusted cash balance per bank at July 31. The adjusted cash balance per bank at July 31 $
ACCOUNTS DEBIT £ CREDIT £ Cash in hand 3,400 Bank Balance 18,660 Stock 1st Jan 2016...
ACCOUNTS DEBIT £ CREDIT £ Cash in hand 3,400 Bank Balance 18,660 Stock 1st Jan 2016 46,000 Purchase 150,200 purchase returns 600 Freehold premises 38,600 Incidental trade expenses 840 Insurance 1,640 Audit fees 280 Commission received 3,300 Bank overdraft 4,000 Interest on Bank Overdraft 200 Trade Debtors 36,000 Trade Creditors 34,670 Wages 25,000 Salaries 14,000 Capital 114,000 Drawings 5,000 Income tax 1,600 Investments 4,000 Discount allowed 6,300 Discount received 4600 Sales return 550 sales 201350 Bills receivable 3,200 Office furniture...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT