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In: Accounting
Question 2 Culver Company has just received the August 31, 2017, bank statement, which is summarized...
Question 2
Culver Company has just received the August 31, 2017, bank
statement, which is summarized below.
County National Bank
Disbursements
Receipts
Balance
Balance, August 1
$13,192
Deposits during August
$45,338 58,530
Note collected for depositor, including $56 interest
1,464
59,994
Checks cleared during August
$48,576
11,418
Bank service charges 28
11,390
Balance, August 31
11,390
The general ledger Cash account contained the following entries for the month of August.
Cash
Balance, August 1 14,150
Disbursements in August 49,150
Receipts during August
49,280
Deposits in transit at August 31 are $5,350, and checks outstanding at August 31 total $1,478. Cash on hand at August 31 is $436. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.
Prepare any entries necessary to make the books correct and complete. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Aug. 31, 2017
(To record collection of note and interest)
Aug. 31, 2017
(To record August bank charges)
Aug. 31, 2017
(To record error in recording check for supplies)
What amount of cash should be reported in the August 31 balance
sheet?
Cash to be reported in the August 31 balance sheet $
Solutions
Expert Solution
| Date | Accounts Titles & Explanation | Debit | Credit | |
| August 31, 2017 | Cash | $1,464 | ||
| Interest Revenue | $56 | |||
| Note Receivable | $1,408 | |||
| (To record collection of note and interest) | ||||
| August 31, 2017 | Bank Service Charges | $28 | ||
| Cash | $28 | |||
| (To record August bank charges) | ||||
| August 31, 2017 | Supplies Expenses | $18 | ||
| Cash | $18 | |||
| (To record error in recording check for supplies) | ||||
| Cash to be reported in the August 31 balance sheet = $15,698 | ||||
| Working | ||||
| Bank | Book | |||
| Balance As per bank / Book | $11,390 | $14,280 | ||
| Deposit outstanding | $5,350 | - | ||
| Note collected | - | 1,464.00 | ||
| Cash on hand | 436.00 | |||
| $17,176 | $15,744 | |||
| Service charges | $0 | -$28 | ||
| Cheque not cleared | -$1,478 | - | ||
| Error | $0 | -$18 | ||
| $15,698 | $15,698 | |||
ekkarill92 answered 1 year agoRelated Solutions
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