Reference no: EM132729991

Questions -

Q1. Transatlantic Corporation recorded its May 25th receipts on its books as $96. However, the receipts were actually $43. The deposit slip for the bank was prepared correctly as $43. What adjustment is needed to the Cash balance book.

Q2. Transatlantic Corporation recorded its check number 7777 in its accounting records as $105. But, check number 7777 was actually written for $85 and it cleared the bank as $85. What adjustment is needed to the Cash balance book

Q3. Prepare journal entries to record the following transactions entered into by the Transatlantic Corporation:

2012

July 2- Received a $10,000, 6%, 1-year note from Jesse Ltd as full payment on his account.

Aug. 4 -Sold merchandise on account to Samuel Ltd for $14,000, terms 2/10, n/30.

Oct. 8 -Samuel, Inc., returned merchandise worth $1,000.

Dec. 4- Received payment in full from Samuel Inc.

Dec. 30 -Accrued interest on Jesse note.

2013

May 2 -Jesse Ltd honored his promissory note by sending the face amount plus interest. (2 marks)

Q4. Transatlantic Corporation Cash account has a balance of $851 as of May 31st. The bank statement for this account reports a balance of $1,430 as of May 31st. Meanwhile, there are outstanding checks totaling $840 and a deposit in transit of $60. The Company's bank statement shows interest earned of $19, service charges of $30, a customer's returned check of $100, and a check printing cost of $90. The reconciled Cash balance that should be reported on the Transatlantic balance sheet as of May 31st is how much?