Calculate the correct ending balance of cash

Assignment Help Financial Accounting
Reference no: EM131262312

On October 31, 2018, Damon Company’s general ledger shows a checking account balance of $8,436. The company’s cash receipts for the month total $74,580, of which $71,360 has been deposited in the bank. In addition, the company has written checks for $72,506, of which $71,216 has been processed by the bank.

The bank statement reveals an ending balance of $12,676 and includes the following items not yet recorded by Damon: bank service fees of $280, note receivable collected by bank of $6,300, and interest earned on the account balance plus from the note of $970. After closer inspection, Damon realizes that the bank incorrectly charged the company’s account $820 for an automatic withdrawal that should have been charged to another customer’s account. The bank agrees to the error.

Required:

1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2018. (Amounts to be deducted should be indicated with a minus sign.)

Reference no: EM131262312

Questions Cloud

Prepare the entry after eight months to record receipt : Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $36,000 at the beginning of each mont..
Compounded monthly to meet her retirement goal : Jennifer is the owner of a video game and entertainment software retail store. She is currently planning to retire in 30 years and wishes to withdraw $10,000/month for 20 years from her retirement account starting at that time. How much must she cont..
What will be the size of each installment : Yumi's grandparents presented her with a gift of $20,000 when she was 12 years old to be used for her college education. Over the next 5 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest..
What should be the size of each repayment : The Flemings secured a bank loan of $384,000 to help finance the purchase of a house. The bank charges interest at a rate of 3%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay..
Calculate the correct ending balance of cash : On October 31, 2018, Damon Company’s general ledger shows a checking account balance of $8,436. The company’s cash receipts for the month total $74,580, of which $71,360 has been deposited in the bank. Prepare a bank reconciliation to calculate the c..
Prepared during year and no adjusting entries were recorded : Below are transactions for Hurricane Company during 2018. a. On October 1, 2018, Hurricane lends $7,700 to another company. The other company signs a note indicating principal and 12% interest will be paid to Hurricane on September 30, 2019. Record t..
Prepare journal entries to record transactions : During the current month, a company that uses job order costing incurred a monthly factory payroll of $194,500. Of this amount, $50,000 is classified as indirect labor and the remainder as direct. Prepare journal entries to record these transactions.
What would felix have to include in his gross income : Felix Boots, a 35-year-old male, is vice president of the Kitty-Lit Pet Products Company and earns $50,000 per year. The company provides paid group-term life insurance of twice the officers’ salaries for all officers of the company. If Kitty-Lit cha..
Deposit your savings in account : You want to buy a new sports car 3 years from now, and you plan to save $4, 200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 3rd deposit, ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute break-even at each level

Compute break-even at each level and is the company likely to achieve its desired target profit of $4,000,000 or more? Support your discussion with financial analysis and compute the margin of safety and explain the meaning of the number derived.

  Line-item amounts for net income and income tax expense

Howard Co.'s 2016 income from continuing operations before income taxes was $292,000. Howard Co. reported a before-tax income on discontinued operations of $68,000. All tax items are subject to a 32% tax rate. In its income statement for 2016, Howard..

  Compute december sales and cost of goods sold

It was discovered that the insurance policy was renewed on December 1st; coverage will cost $6,720 for the next 12 months. Prepare the necessary entries.

  How formatting operating activities by the indirect method

A. Karev had no noncash investing and financing transactions during 2008. During the year, A. Karev made no sales of land or equipment, no issuance of notes payable, no retirement of stock, and no treasury stock transactions.

  Sinking fund payments for issue of bondsodowell tool and

sinking fund payments for issue of bondsodowell tool and machine company is about to sell a 100 million issue of bonds.

  What is the amount of insurance expense

On May 1, a two-year insurance policy was purchased for $50,400 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?

  Provide the necessary journal entry

Des Peres Company issues 450 shares of common stock (par value $0.01) for $32 per share on June 30, 2009 - Provide the necessary journal entry to record this transaction.

  Date of acquisition consolidation eliminating entries

Calculate total goodwill and its allocation to the controlling and non controlling interests.

  What is the significance of the subjective data

What is the significance of the subjective and objective data provided with regard to follow-up diagnostic/laboratory testing, education, and future preventative care? Provide rationale for your answer.

  What is the market value of 10 percent bonds

What is the market value of 10% bonds sold on bond issue date; 10 yr life; interest payable semiannually; effective rate,12% and what formulas do I use ? PV = FV x IF with my present value of a single payment

  Compute the beginning balance in the cash account

Compute the beginning balance in the cash account and how much cash was provided by (or used in) operating activities

  What is book value of device before and after modification

What is book value of the device before and after the modification? What will be annual straight-line depreciation expense for the device after the modification?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd