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