Reference no: EM131558390

Question 1 - Prepare bank reconciliation and adjusting entries  

The following information pertains to Joyce Company.

1. Cash balance per bank, July 31, $7,328.

2. July bank service charge not recorded by the depositor $38.

3. Cash balance per books, July 31, $7,364.

4. Deposits in transit, July 31, $2,700.

5. Note for $2,000 collected for Joyce Company in July by the bank, plus interest $36 less fee $20. The collection has not been recorded by Joyce Company, and no interest has been accrued.

6. Outstanding checks, July 31, $686.

Instructions

(a) Prepare a bank reconciliation at July 31, 2014.

(b) Journalize the adjusting entries at July 31 on the books of Joyce Company.

Question 2 - Prepare bank reconciliation and adjusting entries

This information relates to the Cash account in the ledger of Treanor Company.

Balance September 1 - $16,400; Cash deposited - $64,000

Balance September 30 - $17,600; Checks written - $62,800

The September bank statement shows a balance of $16,500 at September 30 and the following memoranda.                                                                                                                                                                    

Credits                                                                                                  Debits                                                  

Collection of $1,800 note plus interest $30 $1,830               NSF checks:  H. Kane         $560

Interest earned on checking account            45                  Safety deposit box rent       60

At September 30, deposits in transit were $4,738 and outstanding checks totaled $2,383.

Instructions -

(a) Prepare the bank reconciliation at September 30, 2014.

(b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note.

Question 3 - Prepare a cash budget for two months

Enright company expects to have a cash balance of $46,000 on January 1, 2014.

These are the relevant monthly budget data for the first two months of 2014.

1. Collection from customers: January $71,000, February $146,000.

2. Payments to suppliers:  January $40,000, February $75,000.

3. Wages:  January $30,000, February $40,000.  Wages are paid in the month they are incurred.

4. Administrative expenses:  January $21,000, February $24,000. These costs include depreciation of $1,000 per month.  All other costs are paid as incurred.

5. Selling expenses:  January $15,000, February $20,000.  These costs are exclusive of depreciation.  They are paid as incurred.

6. Sales of short-term investments in January are expected to realize $12,000 in cash. Enright has a line of credit at a local bank that enables it to borrow up to $25,000. The company want to maintain a minimum monthly cash balance of $20,000.

Instructions -

Prepare a cash budget for January and February.

Attachment:- Assignment.rar