Analysis of the bank data reveals that the credits consist

Reference no: EM13597770

Videosoft Company maintains a checking account at the Intelex Bank. At July 31, selected data from the general ledger account and the bank statement are as follows:

Cash in Bank
Per Books Per Bank
Balance, July 1 $17,600 $18,800
July receipts 82,000
July credits 80,470
July disbursements 76,900
July debits . 74,740
Balance, July 31 $22,700 $24,530

Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $1,470 for the collection of a $1,400 note plus interest revenue of $70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $40 for printing additional company checks.

You also discover the following errors involving July checks: (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320; (2) a salary check to an employee for $255 was recorded by the bank for $155.

The June 30 bank reconciliation contained only two reconciling items: deposits in transit $5,000 and outstanding checks of $6,200.
Instructions:

(a) Prepare a bank reconciliation at July 31.
(b) Journalize the adjusting entries to be made by Videosoft Company at July 31. Assume that the interest on the note has been accrued.

Reference no: EM13597770

Questions Cloud

Recently a sales rep from waste radar company told the city : ignore income taxes in this problem. five years ago the city of paranoya spent 30000 to purchase a computerized radar

Operating expenses other than depreciation for the year : operating expenses other than depreciation for the year were 416818. prepaid expenses increased by 24003 and accrued

Preparing multistep income statement and calculating profit : preparing multistep income statement and calculating profit percentage.assume that you have been hired by big sky

A company had net income of 219632 depreciation expense is : a company had net income of 219632. depreciation expense is 26812. during the year accounts receivable and inventory

Analysis of the bank data reveals that the credits consist : videosoft company maintains a checking account at the intelex bank. at july 31 selected data from the general ledger

As of december 31 2009 there are three outstanding loans : as of december 31 2009 there are three outstanding loans with capitalized loan fees that are being amortized over the

Food bear grocery store purchased a new u-scan machine at a : food bear grocery store purchased a new u-scan machine at a cost of 100000. annual operating cash inflows are expected

Denver company recently hired terry davis as an accountant : denver company recently hired terry davis as an accountant. he was given responsibility for all accounting functions

Assume that alshare company uses a periodic inventory : assume that alshare company uses a periodic inventory system and has these account balances purchases 450000 purchase

User Account

All Pages