1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lutik1710 [3]
3 years ago
10

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

of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $19,427.
b. A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank collected $26,500 on a $25,000 note, including interest of $1,500.
d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
e. A check drawn for $195 had been erroneously charged by the bank as $915.
f. Bank service charges for June amounted to $55.

1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles.
3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
Business
1 answer:
daser333 [38]3 years ago
8 0

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                          <u>26,500  </u>

                                                                                        <u> 45,927 </u>

                                                                                       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                                         <u>        55   </u>

                                                                                     <u>     16,675  </u>

Balance as per bank statement as on June 30, 20Y1       <u>   </u><u>195,688  </u>

<u></u>

<u></u>

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

You might be interested in
Your local bakery gives you information on consumer purchasing habits for muffins and cupcakes. It tells you that, when the pric
raketka [301]

Answer:

c. 0.25

Explanation:

Cross-price elasticity = [(Q2-Q1/)((Q1-Q2)/2) * 100] / [(P2-P1/)((P1-P2)/2) * 100]

Cross-price elasticity = [(65-55)/((65+55)/2)*100] / [(2-1)/((1+2)/2)*100]

Cross-price elasticity = 16.6667/66.6667

Cross-price elasticity = 0.25000037

Cross-price elasticity = 0.25

8 0
2 years ago
In Littleville, which has 1,000 residents, 400 people do not currently work. Of these 400 persons, 240 are under age 16, 10 are
marin [14]

Answer:

7.69%

Explanation:

The official unemployment rate includes people who do not have a job but are able to take a job and are currently seeking one.

People with part time jobs are considered employed.

Littleville has 1,000 residents, 600 are employed = 400 do not work but how many are considered unemployed:

400 - 240 (under age 16) - 10 (institutionalized) - 100 (are not looking for work, including students and homemakers) = 50 unemployed

Littleville's unemployment rate = number of unemployed / total labor force = 50 / (600 + 50) = 50 / 650 = 7.69%

6 0
3 years ago
Prime Cuts was the brainchild of Karen Terrier, who guided all the marketing efforts of the product. She made the decisions rega
gulaghasi [49]

Answer: Brand manager

Explanation: It is most likely that Karen serves in the job of brand manager as she is directly responsible for all the elements of the marketing mix (package, brand name, pricing, promotion and placement) for one brand or one product line. A brand manager is defined as one who is responsible for ensuring that the products, services and product lines of a company or business adapts to its target market. They continuously monitor marketing trends while keeping watch on competitive products in the marketplace or industry.

5 0
3 years ago
Momentum Rollerblades has three product lineslong dash​D, ​E, and F. The following information is​ available: D E F Sales revenu
maksim [4K]

Answer:

Increase in Net Operating Income = $3,000

Explanation:

Provided Current Operating income

D = $45,000

E = $15,000

F = ($5,000)

Total operating Income = $55,000

In case product f is dropped then fixed cost of $21,000 will not be incurred.

Total fixed cost of Product F = $23,000

Avoidable fixed cost = $21,000

Fixed cost still to be incurred = $23,000 - $21,000 = $2,000

Net operating Income will arise same for Product D and E, there will be additional fixed cost of $2,000 without product F

Net Operating Income will be

D = $45,000

Add: E = $15,000

Operating Income = $60,000

Less: Fixed Cost = -$2,000

Net Operating Income = $58,000 after dropping product F

Less: Net operating income with product F = $55,000

Increase in Net Operating Income = $3,000

4 0
3 years ago
For more advanced language learners, these can provide both news and drama from which teachers can create motivational practice
Georgia [21]
The answer is: Radio Broadcast

Radio broadcast is a perfect platform for people who want to learn a new language because its provide:
- a 24 hour shows, so you could listen it anytime you want
- It only require your hearing, so you could do it while driving, cooking, or do other thing
8 0
3 years ago
Other questions:
  • Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrig
    14·1 answer
  • Duffert Industries has total assets of $940,000 and total current liabilities (consisting only of accounts payable and accruals)
    7·1 answer
  • "the accounts receivable account goes up when a shipment is sent."
    12·1 answer
  • Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $13,000 of cash sales that ar
    8·1 answer
  • On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing
    8·1 answer
  • Hawke Company had the following assets and liabilities on the dates indicated. December 31 Total Assets Total Liabilities 2019 $
    8·1 answer
  • regarding references what are some things to keep in mind when creating a reference list for a potential employer
    12·2 answers
  • A producer using very aggressive promotion to get final consumers to ask intermediaries for a new product has a(n) ________ poli
    6·1 answer
  • Teknosa, a multinational technology company sells computers, peripherals, and software overseas. The corporation separates its c
    11·1 answer
  • Helen Ming receives a travel allowance of $120 each week from her company for time away from home. If this allowance is taxable
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!