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inn [45]
3 years ago
15

Using the following information, prepare a bank reconciliation for Cullumber Company for May 31, 2022. a. The bank statement bal

ance is $9,100. b. The cash account balance is $6,830. c. Outstanding checks totaled $2,460. d. Deposits in transit are $600. e. The bank service charge is $10. f. Collection of note by the bank, $420.
Business
2 answers:
N76 [4]3 years ago
7 0

Answer:

Bank Reconciliation Statement:

<u>Balance as per bank Statement    $9,100</u>

Balance as per Cash Book:           $6,830

Less: Bank Charges:                      $(10)

Add: Note Collection in bank:       <u>$420</u>

Adjusted cash book balance        $7,240

Add: Outstanding Checks             $2,460

Less: Uncleared Deposits             <u>$600</u>

<u>Balance as per cash book:           $9,100</u>

Explanation:

Starting point to prepare bank statement is to calculate adjusted cash bank balance by making transactions recorded in bank but not in cash book i.e bank charges and direct deposits.

After that timing differences are adjusted for checks sent for payment but not presented yet in bank to be paid often know as un presented checks and uncleared deposits.

Hitman42 [59]3 years ago
5 0

Answer:

          Bank reconciliation for Cullumber Company for May 31, 2022

                                                        Amount in $             Amount in $

Balance per bank statement                                              9,100

Less:

Outstanding checks                            2,460

collection of note by bank                     420    

Subtotal                                                                             (2,880)                      

Add:

Deposit in transit                                    600

Bank service charge                                 10      

Subtotal                                                                              <u>     610</u>            

Balance per cash  book                                                      6,830        

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement.

This is usually as a result of transactions known as reconciling items. These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.

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3 years ago
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Answer:

                                                                        Debit                   Credit

Work in process inventory                            $15,000

Manufacturing overhead clearing account                              $15,000                                    

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First determine the amount of applied overhead which can be calculated as follows

Applied overhead=Rate per machine hour*number of hours

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The journal entry for the applied overhead shall be made as follow

                                                                        Debit                   Credit

Work in process inventory                            $15,000

Manufacturing overheads clearing account                              $15,000                                    

8 0
3 years ago
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tankabanditka [31]

Answer:

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5 0
3 years ago
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