Purchase Solution

Trial Balance-adjusting entries; Bank Reconciliation

Not what you're looking for?

Ask Custom Question

The trial balance of Ramsey Company shows the following balances for selected accounts on November 30, 2003:
Prepaid Insurance $10,000 Unearned Revenue $ 2,400
Equipment 60,000 Notes Payable 20,000
Accumulated Depreciation 6,600 Interest Payable 400

Instructions: Using the additional information given below, prepare the appropriate monthly adjusting entries at November 30. Show computations.

A. Revenue for services rendered to customers, but not yet billed, totaled $6,000 on November 30.
B. The note payable is a 12%, 1 year note issued September 1, 2003.
C. The equipment was purchased on January 2, 2002, for $60,000. It has an estimated life of 10 years and an estimated salvage value of $6,000. Ramsey uses the straight-line depreciation method.
D. An insurance policy was acquired on June 30, 2003; the premium paid for 2 years was $12,000.
E. Ramsey received $2,400 revenue in advance from a customer on November 1, 2003. Three-fourths of this amount was earned by November 30.

A review of the November 30 bank statement and other data of James Company reveals the following:

1. Balance per bank statement on November 30 $18,800
2. Balance per books on November 30 $12,458
3. NSF Check from J. Smith in payment of account $320
4. Collection of $4,500, 4-month, 12% note with a $45 collection fee. No interest
had been accrued 4,635
5. Deposits in transit at November 30 3,200
6. Outstanding checks at November 30 5,400
7. A check written by James to Green for equipment on November 10 was
recorded at $463 but correctly cleared the bank at $436.
8. A check drawn on the account of Jomes Company for $200 was mistakenly
charged against James' account by the bank.

Instructions: Prepare the November 30 (a) bank reconciliation (omit heading) and (b) related journal entries.

Amount Amount
Balance per bank statement $18,800 Balance per books $12,458

Adjusted balance per bank $ Adjusted balance per books $

Account Titles Debit Credit

Please see attached.

Purchase this Solution

Solution Summary

Prepares the monthly adjusting entries and bank reconciliation and related journal entries.

Purchase this Solution

Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking