Trillo Company - Instructions(a Prepare a bank...

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Trillo Company's bank statement for May 2010 shows these data. $12,650 Balance May 31 Credit memorandum: 175 Collection of note receivable The cash balance per books at May 31 is $13,319. Your review of the data reveals the following. 1. The NSF check was from Hup Co., a customer. 2. The note collected by the bank was a $500, 3-month, 12% no collection fee. No interest has been previously accrued. 3. Outstanding checks at May 31 total $2,410. 4. Deposits in transit at May 31 total $1,752. 5. A Trillo Company check for $352 dated May 10 cleared the b which was a payment on account, was journalized for $325.
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Unformatted text preview: Instructions (a) Prepare a bank reconciliation at May 31. (b) Journalize the entries required by the reconciliation. Solution to Comprehensive Action Plan • Follow the four steps used in reconciling items (earlier in the chapter). • Work carefully to minimize mathematical errors in the reconciliation. • Prepare entries based on reconciling items per books. • Make sure the cash ledger balance after posting the reconciling entries agrees with the adjusted cash balance per books. (a) (b)...
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This note was uploaded on 11/06/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.

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Trillo Company - Instructions(a Prepare a bank...

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