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Solutions To Problems Set B Problem 7.1B Dodge, Inc.: 25 Minutes, Medium

1) Dodge Inc's bank statement showed a balance of $8,560 but after deducting outstanding checks the adjusted balance was $7,745. Dodge Inc's accounting records showed $6,750 but after adding a note collected by the bank of $4,000 and deducting service charges, an NSF check, and a recording error the adjusted balance also equaled $7,745. 2) Dodge Inc recorded the collection of a $4,000 note receivable by the bank and adjustments to accounts for service charges, an NSF check, and a recording error correction. 3) The cash balance to be reported on the November 30 balance sheet is the adjusted balance of $7,745

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185 views

Solutions To Problems Set B Problem 7.1B Dodge, Inc.: 25 Minutes, Medium

1) Dodge Inc's bank statement showed a balance of $8,560 but after deducting outstanding checks the adjusted balance was $7,745. Dodge Inc's accounting records showed $6,750 but after adding a note collected by the bank of $4,000 and deducting service charges, an NSF check, and a recording error the adjusted balance also equaled $7,745. 2) Dodge Inc recorded the collection of a $4,000 note receivable by the bank and adjustments to accounts for service charges, an NSF check, and a recording error correction. 3) The cash balance to be reported on the November 30 balance sheet is the adjusted balance of $7,745

Uploaded by

Md Musa Patoary
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SOLUTIONS TO PROBLEMS SET B

PROBLEM
25 Minutes, Medium     7.1B
DODGE, INC.
           
a.          
Balance per bank statement, November 30   $ 4,710
Add: Deposit in transit   3,850
    $ 8,560
Deduct: Outstanding checks      
no. 814   $ 115  
no. 816   170  
no. 830   530 815
Adjusted cash balance     $ 7,745
     
Balance per accounting records, November 30   $ 6,750
Add: Note receivable collected by   4,000
bank
$ 10,750
Deduct:    
Service charge $ 15  
NSF check 2,900  
Check recording error (no. 810) 90 3,005
Adjusted cash balance (as above)     $ 7,745
     
           
b.
20__    
Nov. 3 Cash   4,000
0
    Notes     4,000
Receivabl
e
  To record collection by bank
of note receivable
    from Wright Sisters.  
             
  3 Computer Equipment 90  
0
Bank Service   15
Charges
    Accounts   2,900  
Receivable
    Cash     3,005
  To adjust accounting
records for bank service
    charges, customer's check  
charged back as
    NSF, and correct the    
recorded cost of equipment.
             
             
         
             
c. The amount of cash that should be included in the balance sheet
  at November 30 is the adjusted balance of $7,745.
             
   
 
 
 
             
             
             
             
             
             
             
             
             
             
             
             
             
             

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