Journalize the neccessary entries

Assignment Help Accounting Basics

Reference no: EM131928072

Problem

The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,620. The bank statement indicated a balnce of $128,660 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the flollowing reconciling items:

a. Checks outstanding totaled $32,700.

b. A deposit of $ 18,550, representing receipts of November 30, had been made too late to appear on the bank statement.

c. The bank collected $26,750 on a $25,000 note, including interest of $1,750.

d. A check for $1,500 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $150. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account.

e. A check drawn for $490 had been erroneously charged by the bank as $940.

f. Bank service charges for November amounted to $60

INSTRUCTIONS

1. Prepare a bank reconciliation

2. Journalize the neccessary entries. The accounts have not been closed.

3. If a balance sheet were prepared for Capstone Medical Co. on November 30, 2016, what amount should be reported as cash?

Reference no: EM131928072

Questions Cloud

Record the journal entry when the bonds are issued : The market interest rate for this type of bond is 10%. Record the journal entry when the bonds are issued, and for the first two coupon payments.

What would be reported for ending merchandise inventory : Beginning Merchandise Inventory 100 units at $ 81, What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018

What is meant by security financing-what is debt financing : The various sources of financing. What is meant by security financing? What is debt financing?

Calculate the cost of ending inventory on december : If the company uses the weighted-average inventory costing method, calculate the cost of ending inventory on December 31

Journalize the neccessary entries : Journalize the neccessary entries. The accounts have not been closed. Prepare a bank reconciliation. What amount should be reported as cash?

How much must you save annually : What if your opportunities in 8 years, which would you accept your opportunity cost is 15%? What if your opportunity cost is 5%?

Evaluate the viability of the four projects : Evaluate the viability of the four (4) projects given that the cash inflows and cash outflows of the projects are as shown below on the Net Present Value basis.

What is the cost of ending inventory on december : What is the cost of ending inventory on December 31 if the company uses the first-in, first-out (FIFO) inventory costing method

Review problem of tv production : Working as a grip in a TV production remake of The Little Rascals; you suffered a workplace accident, which has left you unable to work for the next five years.

User Account

All Pages