Accounting homework help
helpme0128
2008-05-04_012745_p8-3a.xlsProblem P8-3A
| Name: | Date: | |||||||||
| Instructor: | Course: | |||||||||
| Financial Accounting, 5th Edition, by Weygandt, Kieso, and Kimmel | ||||||||||
| Solving Financial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse | ||||||||||
| Problem P8-3A, Agricultural Genetics Company of Lawrence, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2006, the company's cash account per its general ledger showed the following balance. | ||||||||||
| Date: | Explanation: | Ref: | Debit: | Credit: | Balance: | |||||
| May 31 | Balance | 6,781.50 | ||||||||
| The bank statement from Lawrence State Bank on that date showed the following balance. | ||||||||||
| Lawrence State Bank | ||||||||||
| Checks and Debits | Deposits and Credits | Daily Balance | ||||||||
| May 31 | 6,804.60 | |||||||||
| A comparison of the details on the bank statement with the details in the cash account revealed the following facts. | ||||||||||
| 1. The statement included a debit memo of | $40.00 | for the printing of additional company checks. | ||||||||
| 2. Cash sales of | $836.15 | on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were | ||||||||
| incorrectly made for | $846.15 | The bank credited Agricultural Genetics Company for the correct amount. | ||||||||
| 3. Outstanding checks at May 31 totaled | $315.25 | and deposits in transit were | $936.15 | |||||||
| 4. On May 18, the company issued check no. 1181 for | $685.00 | to M. Datz on account. The check which cleared the bank | ||||||||
| in May, was incorrectly journalized and posted by Agricultural Genetics Company for | $658.00 | |||||||||
| 5. A | $2,000.00 | note receivable was collected by the bank for Agricultural Genetics Company on May 31 plus | $80.00 | |||||||
| interest. The bank charged a collection fee of | $25.00 | No interest has been accrued on the note. | ||||||||
| 6. Included with the cancelled checks was a check issued by Bohr Company to Fred Mertz for | $600.00 | that was incorrectly | ||||||||
| charged to Agricultural Genetics Company by the bank. | ||||||||||
| 7. On May 31, the bank statement showed an NSF charge of | $734.00 | for a check issued by Tyler Gricius, a customer, to | ||||||||
| Agricultural Genetics Company. | ||||||||||
| Instructions: | ||||||||||
| (a) Prepare the bank reconciliation at May 31, 2006. | ||||||||||
| AGRICULTURAL GENETICS COMPANY | ||||||||||
| Bank Reconciliation | ||||||||||
| May 31, 2006 | ||||||||||
| Cash balance per bank statement | $6,804.60 | |||||||||
| Add:Deposit in Transit | $936.15 | |||||||||
| Bank Error-Bohr Check | 600.00 | 1,536.15 | ||||||||
| 8,340.75 | ||||||||||
| Less:Outstanding Checks | 315.25 | |||||||||
| Adjusted cash balance per bank | 8,025.50 | |||||||||
| Cash balance per books | $6,781.50 | |||||||||
| Add:Collection of Note Receivable | ||||||||||
| ($2,000+$80 - $25) | $2,055.00 | |||||||||
| 8,836.50 | ||||||||||
| Less:NSF | $734.00 | |||||||||
| Error in May 12 Deposit | 10 | |||||||||
| Error in Recording Check No. 1181 | 27 | |||||||||
| Check Printing Charge | 40.00 | 811.00 | ||||||||
| Adjusted cash balance per books | $8,025.50 | |||||||||
| (b) Prepare the necessary adjusting entries for Agricultural Genetics Company at May 31, 2006. | ||||||||||
| May 31 | Cash | 2,055 | ||||||||
| Miscellaneous Expense | 25 | |||||||||
| Notes Receivable | 2,000 | |||||||||
| Account title | 80 | |||||||||
| Accounts Receivable - Tyler Gricius | 734 | |||||||||
| Cash | 734 | |||||||||
| Sales | 10 | |||||||||
| Cash | 10 | |||||||||
| Accounts Payable - M. Datz | 27 | |||||||||
| Cash | 27 | |||||||||
| Miscellaneou Expense | 40 | |||||||||
| Cash | 40 |
&CFileName: &F, Tab: &A, Page &P of &N, &D, &T
