Changing prices to attract customers is most difficult in a

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance

daser333 [38]

Answer:

1. Pala Medical Co. Bank Reconciliation Statement as on June 30, 20Y1

PARTICULARS $ $

Balance as per cash book 166,436

Add: Cheques issued but not yet presented 19,427

25,000 note collected by Bank 26,500

45,927

212,363

Deduct: Checks deposited but not yet collected

by the bank 12,300

Overstatement of figure by the bank 720

Returned check wrongly recorded by Pala

Medical Co. 3,600

Bank service charge 55

16,675

Balance as per bank statement as on June 30, 20Y1 195,688

2. DETAIL DR CR

$ $

Cash Account 25,000

Investment 25,000

Matured Investment ($25,000 Notes)

Cash Account 1,500

Interst Income 1,500

Being interest on $25,000 Notes received

Cash Account 400

Creditors - Skyline Supply Co. 400

Being correction of Payment to Skyline Supply Co. wronfly recorded

Creditors - Skyline Supply Co. 4,000

Cash Account 4,000

Being Payment to Skyline Supply Co.

Bank Charges 55

Cash Account 55

Bank Charges recorded captured in the bank statement

3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1 the amount to be reported as cask is $166,436

Explanation:

1. The balance shown by the bank statement seldom agree with the balance shown by the cash book, bank reconciliation statement is usually drawn up to agree the balance shown by the bank statement with the balance shown by the cash book.

In this question:

a. Check outstanding of $19,427 are checks issued to creditors which where not presented for payment. generally known as unpresented checks.

b. The receipts of $12,300 recorded in Pala Medical Co. cash book was not credited by the bank, this will obviously cause a disagreement between the bank statement and the cash book at month end.

c. The amount of $26,500 recorded in the bank statement must be reported correctly the the cash book and the relevant ledger by debiting the cash book by the total receipt of $26,500 and crediting investment and with $25,000 and crediting the interest elements to interest income account.

d. The wrong recording of $400 instead of $4000 must be corrected by reversing the initial entry. this is done by debiting Cash book with $400 and crediting Creditor account - Skyline Supply Co. with $400 and recording the correct entry by debiting Creditor account - Skyline Supply Co. with $4000 and crediting cash book by $4000.

e. The check of $195 is recorded correctly already in the cash book, it is the bank to pass the necessary entry but it will only enter the company cash book.

f. Bank service charge should be recorded by debiting bank charges with $55 and crediting cash book with $55

8 0

3 years ago

A list of accounts and balances before adjustments are recorded is known as a(n)?

djverab [1.8K]

A list of accounts and balances before adjustments are recorded is known as a(n) Unadjusted trial balance.

What is accounts?

The entry of a transaction in a financial statement is referred to as a “accounts.” The account has been updated to reflect the debit and credit transactions. Assets, liabilities, revenue, equity, and expenses are all types of financial activity.

The unadjusted before trial balance as the adjustment of the record in the accounts. The trial balance as the entry in the double-entry account book, as the indicating the errors of the accounting.

As a result, the unadjusted trial balance, list of accounts and balances before adjustments are recorded.

Learn more about accounts, here:

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6 0

1 year ago

The Office of Management and Budget ______. Group of answer choices

Serga [27]

Answer Choices:

A. is staffed by accountants, economists, tax lawyers

B. keeps Congress well informed on international affairs

C. was created by Article III of the Constitution

D. consents to treaties and trade agreements negotiated by the President

Answer:

A.

7 0

3 years ago

Read 2 more answers

You've started using the sq3r method of learning. after surveying a reading assignment, you go to the next step, which does this

Blababa [14]

You've started using the sq3r method of learning. after surveying a reading assignment, you go to the next step, Reading the headings and turning them into question.

4 0

3 years ago

Suppose you inherit an apartment building from your uncle. You anticipate making some income from the rent on

alexira [117]

Answer:

Would you cut back on making repairs and keeping the building in a safe and

livable condition?

No, I would maintain the building as good as posible.

How might you keep the building in good shape and still turn a profit?

the value of the building will increase over time. Then, is a matter of patience to make a profit out of the sell of it.

Is it possible to manage the building or change it to make it both livable and profitable?

yes, What usually happens with rent control properties is that the landlords use the building for commercial or create condos use to avoid the law.

5 0

3 years ago