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
guapka [62]
3 years ago
14

Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with can

celed checks on the last day of each month. The July 2016 bank statement included the following information:
Balance, July 1, 2016 $ 57,053
Deposits 180,600
Checks processed (193,710 )
Service charges (30 )
NSF checks (1,750 )
Monthly loan payment deducted directly by bank from account
(includes $970 in interest) (3,870 )
Balance, July 31, 2016 $
38,293

The company’s general ledger account had a balance of $40,293 at the end of July. Deposits outstanding totaled $7,400 and all checks written by the company were processed by the bank except for those totaling $8,530. In addition, a $3,100 July deposit from a credit customer was recorded as a $310 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $30 disbursement was incorrectly processed by the bank as a $300 disbursement.

Required:

1.Prepare a bank reconciliation for the month of July

2.Prepare the necessary journal entries at the end of July to adjust the general ledger cash account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field).

Business
1 answer:
oksano4ka [1.4K]3 years ago
5 0

Answer:

Harrison company

Step 1.

Preparation of adjusted Cash Book

Balance as at July 31, 2016 = $40,293

Add: bal. of Deposit by credit customer = ($3,100 - $310) = $2,790

Deduct: Bank Service charge = -$30

Deduct: NSF checks = -$1,750

Deduct: loan repayment plus interest = -$3,870

Adjusted Balance =$37,433

Step 2. Bank reconciliation statement

As at 31st July 2016

Balance as per Bank Statement = $38,293

Deduct: uncleared Cheques = -$8,530

Add: Deposits outstanding = $7,400

Add: over disbursement by bank due for recovery = $270

Adjusted Bank Statement = $37,433

Compared to Adjusted Cash Book = $37,433

Difference = $0.

Step 3.

Journal entries required

Debit Cash Account with $2,790

Credit Account Receivables with $2,790

(Under recorded Customer deposit on sales)

Debit NSF expense = $1,750

Debit Loan Account with $2,900

Debit interest on Loan Account with $970

Debit Bank Charges expense a account with $30

Credit Cash Account with $5,650

(Direct debits to bank account on sundry transactions)

Explanation:

A bank reconciliation statement is presented to reconcile a 3rd party (Bank) statement of our Account and the Account maintained by the business in house.

The objective of the Bank reconciliation statement includes:

1. Identify the missing entries in either records

2. Flag the corrections the Bank needs to do to bring our balance to a correct state

3. Pass Journals to capture entries we have missed out or captured incorrectly

4. Identify unassigned entries for investigation

You might be interested in
What are some of the ways in which the government is involved in the economy? what are the advantages and disadvantages of gover
ArbitrLikvidat [17]
The government can control tariffs and can limit how much can be imported into the usa.
The government can provide subsidies to certain producers, typically farmers.
The government can put a ceiling and a floor on prices as they wish. They can control the lowest and highest price a commodity can sell for.
The government can own public works such as a water company if they feel they can provide the service for a lower cost than the local competitors.
The government can decide which companies are monopolies and which companies are violating federal policies regarding trade. The government has the power to break up monopolies.
Each of these has advantages and disadvantages. For example, for farmers, when prices on their crops are too low, the government "gives" them money for their crops so they can stay in business.
A monopoly business controls the price and supply. If the monopoly is broken up, then competitors can enter the field- this can help drive down prices.
If the government can provide utility services for cheaper, that is good.

5 0
3 years ago
Beauty Island Corporation began operations on April 1 by issuing 60,000 shares of $5 par value common stock for cash at $13 per
Eddi Din [679]
Norovirus is a very contagious virus that causes vomiting and diarrhea. People of all ages can get infected and sick with norovirus. Norovirus spreads easily! People with norovirus illness can shed billions of norovirus particles. And only a few virus particles can make other people sick.
6 0
3 years ago
The limited liability of a stockholder in a closely-held corporation may be challenged successfully if the stockholdera. Underca
lina2011 [118]

Answer:

The correct Option is A

Explanation:

When the limited liability of the stockholder and it is a closely held corporation which might be challenged successfully if the stockholder, undercapitalized the corporation  which means that the corporation does not have enough capital to pay creditors and conduct normal operations of the business and it will be done when it is established or formed.

5 0
3 years ago
actionow and becca enter into an oral contract in which becca agrees to work on a project for actionow’s living opportunities ce
JulsSmile [24]

Based on the fact that ActioNOW and Becca entered into an oral contract where Becca agrees to work on a project for ActioNOW for eighteen months, the enforcers of this contract are d. none of the choices.

<h3>Who can enforce this contract?</h3>

This transaction between Becca and ActioNOW was an oral contract which means that it falls under the Statute of Frauds. However, for an oral contract to be enforceable under this Statute, the goods or services exchanged have to be less then $500 in value.

The services or goods also have to be less than 1 year in duration. Because Becca and ActioNow agreed for a contract of 18 months which is more than a year, this contract is not enforceable under the Statute of Frauds and so the government cannot enforce this contract.

Options include:

  • a. ActioNOW.
  • b. Becca.
  • c. any third party, such as ActioNOW’s clients.
  • d. none of the choices

Find out more on the Statute of Frauds at brainly.com/question/14854791

#SPJ1

8 0
1 year ago
Max and nora have modified agi of $75,000, and adopted a little boy from san antonio, texas, in the current year and incurred a
miskamm [114]

Answer:$9,000

Explanation:

The tax credit offered to adoptive parents to encourage adoption is reffered to as ADOPTION TAX CREDIT. The adoption tax credit is a nonrefundable tax credit. This means that people owing taxes are also fit or qualified to apply for the adoption tax credit.

In the United States of America, adoption tax credit qualified expenses include court costs, traveling expenses, lawyer's or Attorney's fee and other expenses for legal adoption of an eligible child.

It can be calculated by subtracting

the max's employer provided for the couple with adoption benefits of $4,000 from the incurred expenses of a total of $13,000 in qualified adoption expenses(from the question).

That is; $13,000-$4,000.

= $9,000.

Hence, the maximum amount of adoption credit they can take this year is $9,000.

4 0
3 years ago
Other questions:
  • The next wave of marketable innovations may involve new ways to produce and conserve energy. If we can turn new technology into
    8·1 answer
  • Consider the following situations for Shocker: a. On November 28, 2018, Shocker receives a $2,700 payment from a customer for se
    7·1 answer
  • 2. Selected data from the Carmen Company at year end are presented below: Total assets $2,000,000 Average total assets 2,200,000
    6·1 answer
  • An agent of a broker-dealer "A" has been terminated and is associating with broker-dealer "B." The terminated agent agrees to tu
    6·1 answer
  • JCS Incorporated experienced the following transactions during its first year of business. The company purchased $16,000 of merc
    5·1 answer
  • true or false losing inventory for the year ended 31 August 2018 will be closing inventory for the year ended 31 August 2019
    6·1 answer
  • How important is following up with your potential employers after an interview?
    6·2 answers
  • The Harris-Todaro model has all of the following features EXCEPT A. migration is driven by actual rural-urban earnings different
    9·1 answer
  • In one paragraph describe the general advantages and drawbacks of the premium pricing strategy.For exapmle, explain where it fal
    14·1 answer
  • Who is your fav group or solo singer
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!