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BSA-2APROBLEM 3-1 SASSY COMPANYBank Reconciliation, June 30Balance per book 1,000, Note collected 300, NSF check (100,000) Service charge (4,000) Adjusted book balance 1,196,Balance per bank 1,650, Deposits in transit 400, Outstanding checks (854,000) Adjusted bank balance 1,196,July 31: Computation...

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Boslon, Ma. Elizabeth B. BSA-2A PROBLEM 3-2 BEEHIVE COMPANY

PROBLEM 3-1 SASSY COMPANY Bank Reconciliation, June 30 Balance per book Note collected NSF check Service charge Adjusted book balance

1,000,000 300,000 (100,000) (4,000) 1,196,000

Balance per bank Deposits in transit Outstanding checks Adjusted bank balance

1,650,000 400,000 (854,000) 1,196,000

July 31: Computation of book balance: Balance, June 30 Book debits, July Book credits Book balance, July 31 Computation of bank balance: Balance, June 30 Bank credits, July Bank debits Bank balance, July 31

1,000,000 4,000,000 (3,600,000) 1,400,000

1,650,000 3,500,000 (2,500,000) 2,650,000

Computation of deposits in transit: Deposits in transit, June 30 400,000 Book debits 4,000,000 Credit memo (300,000) 3,700,000 Bank credits 3,500,000 Credit memo (500,000) (3,000,000) Deposits in transit, July 31 1,100,000 Computation of outstanding checks: Outstanding checks, June 30 854,000 Book credits 3,600,000 Debit memo (104,000) 3,496,000 Bank debits 2,500,000 Debit memo (1,000) (2,499,000) Outstanding checks, July 31 1,851,000 Bank Reconciliation, July 31 Book balance, July 31 Proceeds of bank loan Service charge Adjusted book balance

1,400,000 500,000 (1,000) 1,899,000

Bank balance, July 31 Deposits in transit Outstanding checks Adjusted bank balance

2,650,000 1,100,000 (1,851,000) 1,899,000

Adjusting Entries, July 31: Cash in bank 500,000 Loans receivable

500,000

November 30: Balance per book, Oct 31 Book debits Book credits Balance per book, Nov. 30

600,000 2,200,000 (1,800,000) 1,000,000

Balance per bank, Oct 31 (Squeeze) 400,000 Bank credits 2,500,000 Bank debits (1,970,000) Balance per bank, Nov. 30 930,000 Deposits in transit, Oct 31 Book debits 2,200,000 Understated collection 90,000 Bank credits 2,500,000 Credit memo (100,000) Deposits in transit, Nov. 30

300,000 2,290,000 (2,400,000) 190,000

Outstanding checks, Oct 31 (Squeeze) 100,000

Book credits 1,800,000 Understated check 270,000 Bank debits 1,970,000 Debit memo (200,000) Outstanding checks, Nov. 30

2,070,000 (1,770,000) 400,000

Bank Reconciliation, November 30: Balance per book 1,000,000 Understated collection 90,000 Understated check (270,000) Adjusted book balance 820,000 Balance per bank Deposits in transit Outstanding checks Check of Beeline Company Erroneous credit Adjusted bank balance

930,000 190,000 (400,000) 200,000 (100,000) 820,000

Adjusting Entries, Nov. 30: Cash in bank 90,000 Accounts Receivable 90,000 Accounts Payable 270,000 Cash in bank 270,000 Bank Reconciliation, October 31: Balance per bank 400,000 Deposits in transit 300,000 Outstanding checks (100,000) Adjusted bank balance 600,000 Balance per book Adjusted book balance

600,000 600,000

Bank service charge Cash in bank

1,000 1,000

Boslon, Ma. Elizabeth B. BSA-2A PROBLEM 3-3 FABULOUS COMPANY July 31: Book balance, July 1 Book debits Book credits Book balance, July 31

1,270,000 3,400,000 (4,200,000) 470,000

Bank balance, July 1 (squeeze) Bank credits Bank debits Bank balance, July 31

1,720,000 5,000,000 (4,020,000) 2,700,000

Bank Reconciliation, July 31: Bank balance, July 31 Deposits in transit Outstanding checks: No. 107 650,000 No. 108 500,000 Adjusted bank balance

(1,150,000) 1,950,000

Book balance, July 31 Note collected Service charge Adjusted book balance

470,000 1,500,000 (20,000) 1,950,000

2,700,000 400,000

Adjusting Entries, July 31: Cash in bank 1,500,000 Notes Receivable 1,500,000 Bank service charge 20,000 Cash in bank 20,000

PROBLEM 3-4 FLAMBOYANT COMPANY Balance per book, Oct 31 990,000 Book debits 710,000 Book credits (1,200,000) Balance per book, Nov. 30 500,000 Balance per bank, Oct 31 Bank credits Bank debits Balance per bank, Nov. 30

1,100,000 500,000 (1,000,000) 600,000

Deposits in transit, beg Book debits 710,000 Cash receipt (100,000) Deposits outs. (45,000) Bank credits 500,000 Error (10,000) Deposits in transit, Nov 30

45,000

Outstanding checks, beg Book credits 1,200,000 Debit memo (5,000) Bank debits 1,000,000 Debit memo (60,000) Outstanding checks, Nov 30

565,000 (490,000) 120,000 125,000 1,195,000 (940,000) 380,000

Bank Reconciliation, November 30: Book balance 500,000 Book error (100,000) NSF check (50,000) Service charge (10,000) Adjusted book balance 340,000

Bank Reconciliation, July 1: Bank balance, July 1 Deposits in transit Outstanding checks Adjusted bank balance

1,720,000 500,000 (950,000) 1,270,000

Bank balance Deposits in transit Outstanding checks Adjusted bank balance

Book balance, July 1 Adjusted book balance

1,270,000 1,270,000

Adjusting Entry: Accounts Receivable Service charge Notes receivable Cash in bank

600,000 120,000 (380,000) 340,000

10,000 10,000 100,000 120,000...