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Quiz 2

The document provides bank reconciliation information for Cantor Company as of October 31. It shows the cash account balance, adjustments for deposits in transit, outstanding checks, and bank service charges. These are used to calculate the adjusted balance per book and balance per bank statement. Additional information is given about debit memos, bank errors, and notes receivable for the subsequent month of November.

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Fiona Miralpes
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4K views7 pages

Quiz 2

The document provides bank reconciliation information for Cantor Company as of October 31. It shows the cash account balance, adjustments for deposits in transit, outstanding checks, and bank service charges. These are used to calculate the adjusted balance per book and balance per bank statement. Additional information is given about debit memos, bank errors, and notes receivable for the subsequent month of November.

Uploaded by

Fiona Miralpes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Cantor Company prepared the following bank reconcillation on October 31

Cash account balance 990,000


Bank service charge -5,000
deposit in transit -45,000
check erroneously charged by bank against entity's ac -10,000 -60,000
Total 930,000
Checks outstanding 125,000
Unrecorded collections 45,000 170,000
Bank Statement balance 1,100,000

October 31 balance per book 990,000


Book credits 1,200,000
Book debits 710,000
October 31 balance per bank statement 1,100,000
Bank credits 500,000
Bank debits 1,000,000

Debit memo for service charge in november 10,000


Debit memo for a customer's NSF check in november 50,000

During the month of November, the bank corrected the 10,000 error committed in prior month
The entity recorded as cash receipt a customer note receivable of 100,000 placed with the bank for collection on No

Requirements:
Pepare bank reconcillation statement on November 30 showing adjusted balances.
Prepare one adjusting entry only on November 30
Bank Reconcillation
ctober 31 For the month of November 30
Balance per book
Uncollectible notes receivable
Total
Bank service charge 10,000
NSF check 50,000
Adjusted book balance
Balance per bank
Deposit in transit
Total
Outstanding checks
Adjusted bank balance

h the bank for collection on November 30. The note was not collected until the subsequent month.
ation
ovember 30 Computation for balance per book - November 30
500,000 Balance per book - Oct 31 990,000
-100,000 Book debits 710,000
400,000 Book credits -1,200,000
Balance per book - November 30 500,000
-60,000
340,000 Computation for balance per bank - November 30
600,000 Balance per bank - Oct 31 1,100,000
120,000 Bank Credits 500,000
720,000 Book Credits -1,000,000
-380,000 Balance per bank - November 30 600,000
340,000

ADJUSTING ENTRY
Bank service charge 10,000
Cash 10,000
To record bank service charge
Cash 50,000
Accounts receivable - NSF 50,000
To record accounts receivable
Cash in bank 100,000
Notes receivable 100,000
To record notes receivable

Bank service charge 10,000


Accounts receivable - 50,000
Notes receivable 100,000
Cash in bank 160,000
Computation for outstanding checks- November 30
Oct 31 125,000
Book credits 1,200,000
Bank service charge -5,000 1,195,000
Total 1,320,000
Bank debits 1,000,000
Bank service charge -10,000
NSF check -50,000 -940,000
Outstanding checks - Nov 30 380,000
Computation for deposit in transit- November 30
Oct 31 45,000
Book debits 710,000
Unrecorded collection -45,000
Uncollected notes -100,000 565,000
Total 610,000
Bank credits 500,000
Prior month error -10,000 -490,000
Deposit in transit - Nov 30 120,000
King company showed the following information
Cash in bank balance, March 31 200,000
Book credits for april 720,000
Book debits for april 800,000

Bank statement balance, March 31 330,000


Bank credits 530,000
Bank debits 700,000

Note collected by bank


March 60,000
April 100,000

Service charge
March 8,000
April 2,000

NSF check
March 20,000
April 30,000

Deposit in transit
March 31 80,000
April 30 220,000

Outstanding checks
March 31 178,000
April 30 372,000

Requirements:
Prepare a proof of cash for the month of april following the book to bank method
PROOF OF CASH
For the month of April 30
March 31 Receipts Disbursement April 30
Balance per book 200,000 800,000 720,000 280,000
Note collected by bank
March 60,000 -60,000
April 100,000 100,000
Service charge
March -8,000 -8,000
April 2,000 -2,000
NSF check
March -20,000 -20,000
April 30,000 -30,000
Deposit in transit
March -80,000 80,000
April -220,000 -220,000
Outstanding check
March 178,000 178,000
April -372,000 372,000
Bank balance 330,000 700,000 530,000 500,000

April 30 balance per book computation


Balance per book - March 200,000
Book credits for April -720,000
Book debits for April 800,000
Balance per book - April 280,000

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