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Category > Management Posted 04 Mar 2018 My Price 7.00

Powers Imports’ bank reconciliation

Adjustments to the cash account based on the bank reconciliation
Required
Determine whether the following items in Powers Imports’ bank reconciliation require adjusting or correcting entries on Powers Imports’ books.
a. The bank collected $7,000 of Powers Imports’ accounts receivable. Powers Imports had instructed its customers to send their payments directly to the bank.
b. The bank mistakenly gave Imports, Inc., credit for a $500 deposit made by Powers Imports.
c. Deposits in transit were $5,600.
d. Powers Imports’ bank statement contained a $750 NSF check. Powers Imports had received the check from a customer and had included it in one of its bank deposits.
e. The bank statement indicated that Powers Imports earned $80 of interest revenue.
f. Powers Imports’ accountant mistakenly recorded a $230 check that was written to purchase supplies as $370.
g. Bank service charges for the month were $50.
h. The bank reconciliation disclosed the fact that $600 had been stolen from Powers Imports’ business.
i. Outstanding checks amounted to $1,700.

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Maurice Tutor
(5)
Status NEW Posted 04 Mar 2018 06:03 PM My Price 7.00

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