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acct 300 - Aztec Interiors deposits all cash receipts each Wednesday and Friday in a night

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Question;Aztec Interiors deposits all cash receipts each Wednesday and Friday in a nightdepository, after banking hours. The data required to reconcile the bank statementas of May 31 have been taken from various documents and records andare reproduced as follows. The sources of the data are printed in capital letters.All checks were written for payments on account.CASH ACCOUNT:Balance as of May 1 $9,578.00CASH RECEIPTS FOR MONTH OF May $5,948.81DUPLICATE DEPOSIT TICKETS:Date and amount of each deposit in May:Date Amount Date Amount Date AmountMay 2 $569.50 May 12 $580.70 May 23 $ 331.455 701.80 16 600.10 26 601.509 819.24 19 701.26 31 1,043.26CHECKS WRITTEN:Number and amount of each check issued in May:Check No. Amount Check No. Amount Check No. Amount614 $243.50 621 $309.50 628 $ 837.70615 350.10 622 Void 629 329.90616 279.90 623 Void 630 882.80617 395.50 624 707.01 631 1,081.56618 435.40 625 158.63 632 62.40619 320.10 626 550.03 633 310.08620 328.87 627 318.73 634 503.30Total amount of checks issued in May $8,405.01BANK RECONCILIATION FOR PRECEDING MONTH (DATED APRIL 30):Cash balance according to bank statement $ 9,422.80Add deposit of April 30, not recorded by bank 780.80$10,203.60Deduct outstanding checks:No. 580 $310.10No. 602 85.50No. 612 92.50No. 613 137.50 625.60Adjusted balance $ 9,578.00Cash balance according to company?s records $ 9,605.70Deduct service charges 27.70Adjusted balance $ 9,578.00Instructions1. Prepare a bank reconciliation as of May 31. If errors in recording deposits orchecks are discovered, assume that the errors were made by the company.Assume that all deposits are from cash sales except for the note receivableof $4,000 and interest of $160 collected on May 14. All checks are written tosatisfy accounts payable.2. Illustrate the effects on the accounts and financial statements of the bankreconciliation.3. What is the amount of Cash that should appear on the balance sheet as ofMay 31?4. Assume that a canceled check for $180 has been incorrectly recorded by thebank as $1,800. Briefly explain how the error would be included in a bankreconciliation and how it should be corrected.

 

Paper#43595 | Written in 18-Jul-2015

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