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  • Problem 2-3 Xanthous Company

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    This document shows the adjusted bank balance and unadjusted book balance for Xanthous Company. The adjusted bank balance is $3,105,000, which matches the adjusted book balance after accounting for deposits in transit, outstanding checks, and a bank service charge. Adjusting entries are also provided to record a $250,000 note collected and $30,000 interest income, as well as a $5,000 bank service charge.

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    PROBLEM 2-3 XANTHOUS COMPANY

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    This document shows the adjusted bank balance and unadjusted book balance for Xanthous Company. The adjusted bank balance is $3,105,000, which matches the adjusted book balance after accounting for deposits in transit, outstanding checks, and a bank service charge. Adjusting entries are also provided to record a $250,000 note collected and $30,000 interest income, as well as a $5,000 bank service charge.

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    © All Rights Reserved
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    43 views1 page

    Problem 2-3 Xanthous Company

    Uploaded by

    school works
    This document shows the adjusted bank balance and unadjusted book balance for Xanthous Company. The adjusted bank balance is $3,105,000, which matches the adjusted book balance after accounting for deposits in transit, outstanding checks, and a bank service charge. Adjusting entries are also provided to record a $250,000 note collected and $30,000 interest income, as well as a $5,000 bank service charge.

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    of 1

    PROBLEM 2-3

    XANTHOUS COMPANY

    BANK PER BANK 2,840,000


    ADD:DEPOSIT IN TRANSIT 270,000
    TOTAL: 3,110,000

    LESS:OUTSTANDING CHECKS

    NO.116 60,000
    122 180,000
    124 120,000
    125 250,000 610,000
    ADJUSTED BANK BALANCE 3,105,000

    UNADJUSTED BOOK BALANCE

    BALANCE PER BOOK 2,840,000


    ADD:CM FOR NOTE COLLECTED 270,000
    TOTAL: 3,110,000
    LESS:DM FOR SERVICE CHARGE 5,000
    ADJUSTED BOOK BALANCE 3,105,000

    BALANCE PER BANK 3,265,000


    ADD:DEPOSIT IN TRANSIT 450,000
    TOTAL 3,715,000
    LESS:OUTSTANDING CHECKS
    NO.116 60,000
    122 180,000
    124 120,000
    125 250,000 610,000
    ADJUSTED BANK BALANCE 3,105,000

    ADJUSTING ENTRIES

    (A)
    CASH IN BANK 270,000
    BANK SERVICE CHARGE 10,000
    NOTES RECEIVABLE 250,000
    INTEREST INCOME 30,000
    (B)
    BANK SERVICE CHARGE 5,000
    CASH IN BANK 5,000

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