Question

Subject: Accounting Lesson preference: No preference Created: Jan. 21, 2018, 10:47 p.m. What would you like...

Subject:

Accounting

Lesson preference:

No preference

Created:

Jan. 21, 2018, 10:47 p.m.

What would you like help with?

Larkspur, Inc.’s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1 $18,525 Bank debit memorandum: August deposits 71,125 Safety deposit box fee $ 100 Checks cleared in August 68,603 Service charge 125 Bank credit memorandum: Balance, August 31 20,942 Interest earned 120 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,825; receipts $74,125; disbursements $73,495; and balance, August 31, $19,455. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,875 and outstanding checks of $4,575. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. Journalize the adjusting entries to be made by Larkspur, Inc. at August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Homework Answers

Answer #1

Adjustment Entry

Total Payment which had to be done to Creditor on Account = $400

Wrongly Entered and Journalize the Amount = $40

The balance amount to be adjusted to Creditors = 400 - already entered 40 = $360

Following Adjustment Entry is to be passed:

Debit: Accounts Payable $360

Credit: Cash $360

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT