Prepare a bank reconciliation for the msi checking account

Assignment Help Accounting Basics
Reference no: EM132049655

Question - The bank statement for the checking account of Management Systems Inc. (MSI) showed a December 31, 2013, balance of $16,637.12. Information that might be useful in preparing a bank reconciliation is as follows: a. Outstanding checks were $1,523.25. b. The December 31, 2013, cash receipts of $675 were not deposited in the bank until January 2, 2014. c. One check written in payment of rent for $266 was correctly recorded by the bank but was recorded by MSI as a $284 disbursement. d. In accordance with prior authorization, the bank withdrew $650 directly from the checking account as payment on a mortgage note payable. The interest portion of that payment was $450. MSI has made no entry to record the automatic payment. e. Bank service charges of $34 were listed on the bank statement. f. A deposit of $975 was recorded by the bank on December 13, but it did not belong to MSI. The deposit should have been made to the checking account of MIS, Inc. g. The bank statement included a charge of $75 for an NSF check. The check was returned with the bank statement and the company will seek payment from the customer. h. MSI maintains a $290 petty cash fund that was appropriately reimbursed at the end of December. i. According to instructions from MSI on December 30, the bank withdrew $20,000 from the account and purchased U.S. Treasury bills for MSI. MSI recorded the transaction in its books on December 31 when it received notice from the bank. Half of the Treasury bills mature in two months and the other half in six months.

Required:

1. Prepare a bank reconciliation for the MSI checking account at December 31, 2013. You will have to compute the balance per books.

2. Prepare any necessary adjusting journal entries indicated.

3. What amount would MSI report as cash and cash equivalents in the current asset section of the December 31, 2013, balance sheet?

Reference no: EM132049655

Questions Cloud

Zero-tax model-what is the value of levered firm : Under the MM zero-tax model, what is the value of the levered firm?
What length can a package be if the width and height : Up to what length can a package be if the width and height are 10 and 15 inches?
What is the maximum volume the box can have : If a box has a height of x, width of x - 4 and length of 2x - 11, what is the maximum volume the box can have, to the nearest whole number?
What is the cost for a letter weighing 3 ounces : What is the cost for a letter weighing 3 ounces?
Prepare a bank reconciliation for the msi checking account : Prepare a bank reconciliation for the MSI checking account at December 31, 2013. You will have to compute the balance per books
Increase a steady rate for several months : A new toy hits the local store. Sales (in tens) increase a steady rate for several months, then decrease at about the same rate.
Requires initial fixed asset investment : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3 million.
Compute the amount of gross profit : Compute the amount of gross profit to be recognized from the installment sale in 2013, 2014, 2015, and 2016 using point of delivery revenue recognition
Application of derivatives problem : This is an application of derivatives problem with some graphing that I am not sure I did correctly. Can you explain (show) how this should be done.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Over the years mclaughlin corporations stockholders have

over the years mclaughlin corporations stockholders have provided 35000000 of capital when they purchased new issues

  Aldridge enterprises has a long standing policy of

aldridge enterprises has a long standing policy of acquiring company equipment by leasing. early in 2011 the company

  Assume you are opening a bed bath and beyond store to

assume you are opening a bed bath and beyond store. to finance the business you need a 500000 loan and your banker

  Ethical requirements of anthropologist

As noted, anthropology's work with the military over the years has been wrought with controversy. Where do you stand on the issue regarding the use of anthropologists in intelligence gathering for the military?

  How does financing affect profit margins

How might differences across countries in the extent to which debt versus equity is the major source of financing affect profit margins, debt-to-equity ratios?

  Prepare the journal entry

Company Z has 2.85 million shares of common stock authorized with a par value of $1 and a market price of $67. Prepare the journal entry

  Effect of transactions on total amount of seller

A vacant lot acquired for $200,000, on which there is a balance owed of $120,000, is sold for $300,000 in cash. The seller pays the $120,000 owed. What is the effect of these transactions on the total amount of the seller's (1) assets, (2) liabili..

  What should be reported as total intangible assets

In the preparation of Banner's balance sheet as of December 31, 2004, what should be reported as total intangible assets

  Many accounting writers have emphasized the can have on

many accounting writers have emphasized the can have on managerial incentives to overproduce. when fixed overhead is

  Prepare departmental income statements

Hollywood Entertainment began operations in January 2011 with two operating (selling) departments and one service (office) department.

  Marsh corporation purchased a machine on july 1 2008 for

marsh corporation purchased a machine on july 1 2008 for 750000. the machine was estimated to have a useful life of 10

  Outstanding stock of the zone corporation included 20000

outstanding stock of the zone corporation included 20000 shares of 5 par common stock and 5000 shares of 5 10 par

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd