Solutions to exercises/assignment

Problem #1. Dianne Corporation

Cash on hand 80,000
Checking account 170,000
120 day certificate of deposit 600,000
BSP TB#2 1,000,000
money market fund 2,000,000
cash and cash equivalents 3,850,000 a

Problem #2. Abigail Co.

Coins and currency 17,000
check drawn by company payable to
to order of petty cash custodian
representing salary for the month 18,000 accomodation check
petty cash fund 35,000 c

Problem #3 Aira Marie Zhon Co.

Sept. 30 Oct. 31
Balance receipts disbursementsbalance
unad. Bank bal 130,560 149,951 110,098 170,413
undep. Colln- sept 30 5,200 - 5,200
oct. 31 11,256 11,256
outs.check-sept 30 - 8,007 - 8,007
oct. 31 9,821 - 9,821
erron.bank debit-Sep 600 600
oct. 31 - 900 900
err. Bank credit-sept - 1,000 1,000
oct. 31 - 3,000 - 3,000

127,353 154,007 111,612 169,748

Sept. 30 Oct. 31
Balance receipts disbursementsbalance
unad. Book bal 126,429 151,230 111,423 166,236
nsf check-sept. 30 -526.00 - 526
oct. 31 700 - 700
CM -Sept. 30 1,500 - 1,500
oct. 31 4,277 4,277
bsc-sept.30 - 50 - 50
0ct.31 65 - 65

127,353 154,007 111,612 169,748

- - -
Q#1. 111,612 b
Q#2: 11,256 b
Q#3: 9,821 a
Q#4: 127,353 a
Q#5: 169,748 d
Problem #4 Jazz Company
May-31 Jun-30
Balance receipts disbursementsbalance
unad. Bank bal 2,600,000 2,090,000 2,310,000 2,380,000
undep. Colln- may 31 300,000 - 300,000
Jun-30 500,000 500,000
outs.check-May 31 - 100,000 - 100,000
Jun-30 400,000 - 400,000
erron.bank debit-may 40,000 40,000
june
err. Bank credit-may - 60,000 60,000
june

2,780,000 2,350,000 2,650,000 2,480,000

May. 31 June. 30
Balance receipts disbursementsbalance
unad. Book bal 2,190,000 2,400,000 2,510,000 2,080,000
nsf check-may 31
jue 30 100,000 - 100,000
CM -may 600,000 - 600,000
june 550,000 550,000
bsc-May 31 - 10,000 - 10,000
june 50,000 - 50,000

2,780,000 2,350,000 2,650,000 2,480,000

- -
Q#1: 400,000 a
Q#2 500,000 b
Q#3 2,350,000 a
Q#4 2,650,000 a
Q#5 2,480,000 a

Computation of outstanding check

Outstanding check,beg 100,000
Add: checks issued, june 2,500,000
Total checks to be acknowledged 2,600,000
Total checks recorded by bank 2,200,000
outstnaind check,end 400,000

computation of deposit in transit

deposit in transit, beg. 300,000
Total deposits by book 1,800,000
Total deposits to be acknowledged 2,100,000
deposits acknowledged by bank - 1,600,000
deposit in transit,end 500,000
Problem No. 5 Dolly Inc
Balance balance
per bank per book
unadjusted balance 21,209.45 17,056.48
nsf check - 1,143.00
dm - 3,050.83
understament of cust. Check 100.00
understatement of issued check - 18.00
1242.50-1224.5
overstatement of chech
329-32.9 296.10
bsc - 39.43
proceeds of note 2500+62.5-12.5 2,550.00
deposit in transit 6,850.00
oustanding checks - 12,308.13
15,751.32 15,751.32 b

Problem #6: kathereen Company

Nov.30 Dec.31
Balance receipts disbursementsbalance
unad. Bank bal 18,500 145,000 137,000 26,500
dep in transit-nov 12,500 - 12,500
dec 20,000 20,000
outs.check-nov - 16,250 - 16,250
dec 12,500 - 12,500
eerroneous debit - 3,750 3,750

14,750 152,500 129,500 37,750

Nov.30 Dec.31
Balance receipts disbursementsbalance
unad. Book bal 16,250 150,000 128,750 37,500
nsf check-may 31
jue 30
-
uderfooted cash receipts 2,500 2,500
bsc-nov. - 1,500 - 1,500
dec 2,250 - 2,250

14,750 152,500 129,500 37,750

- -
Q#1 book disbursement 128,750 c
Q#2 Dep in transit-dec 20,000 d
Q#3 adj. cash bal-dec.31 37,750 c
Q#4. unrecorded BSC-dec.
BSC per bank 3,250
recorded by book(2500-1000) - 1,000
2,250 d
Q#5 adj.cash bal. nov.30 14,750 b
computation of unadj. Disbursement per bank
Total checks paid 133,750
bsc 3,250
Total disb. 137,000
computation of adjusted disbursement
unadjusted disb.(above) 137,000
oc-nov. given - 16,250
oc-dec.given 12,500
err. Debit-given - 3,750
Adj. disb. Per bank 129,500
bsc-nov.-given 1,500
bsc-dec. 3250-1000 - 2,250
Book disbursement 128,750 Q#1:c

Computation of deposit in transit-end

dep. In transit-beg 12,500
total deposits per books 152,500
Total deposits to be acknowledged 165,000
Total deposits acknowledged by bank - 145,000
dep. In transit,end 20,000 Q#2:d

PROBLEM # 7 Brayden Company

Sept.30 Oct.31
Balance receipts disbursementsbalance
unad. Bank bal 100,000 200,000 150,000 150,000
dep in transit-sep 5,000 - 5,000
oct 7,000 7,000
outs.check-sept - 8,000 - 8,000
oct 6,000 - 6,000
eerroneous debit

97,000 202,000 148,000 151,000

Sept.30 Oct.30
Balance receipts disbursementsbalance
unad. Book bal 91,500 194,000 146,000 139,500
nsf check-sept
oct 3,000 - 3,000
unrecorded dep 3,000 3,000
CM-sept 8,000 - 8,000
-oct 13,000 13,000
bsc-sep. - 2,500 - 2,500
oct 1,500 - 1,500

97,000 202,000 148,000 151,000

- -
Q#1: Outstanding check-sept 8,000 b
OC,beg 8,000
checks issued-oct 146,000
Total checks to be acknowledged by bank 154,000
Total checks acknowledged by bank - 148,000
Outstanding check-oct (given) 6,000

Q#2: Cash in bak balance-sept 30 97,000 a

Q#3 cash receipts-oct. 31 202,000 b
Q#4 Cash disb.-oct 31 148,000 c
Q#5 cash balance oct.31 151,000 a