L14 Notes 2 - 6 The accountant records customers dishonored...

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© W.R. Knechel 2. A summary of the bank statement for December 19X7. Balance brought forward $ 19,400 Deposits 148,700 168,100 Charges 132,500 Balance, December 31, 19X7 $35,600 3. A summary of the cash book for December 19X7 before adjustment. Balance brought forward $ 18,200 Receipts 149,690 167,890 Disbursements 124,885 Balance, December 31, 19X7 $ 43,005 4. Included with canceled checks returned with the December bank statement were the checks listed on next slide. 5. The Tuck Company discounted its own 60-day note for $9,000 with the bank on December 1, 19X7. The discount rate was 6 percent. The accountant recorded the proceeds as a cash receipt at the face value of the note.
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Unformatted text preview: 6. The accountant records customers' dishonored checks as a reduction of cash receipts. When the dishonored checks are redeposited they are recorded as a regular cash receipt. Two N.S.F. checks for $180 and $220 were returned by the bank during December. The $180 check was redeposited, but the $220 check was still on hand at December 31. Cancelations of Tuck Company checks are recorded by a reduction of cash disbursements. 7. December bank charges were $20. In addition, a $10 service charge was made in December for the collection of a foreign draft in November. These charges were not recorded on the books....
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