Problems - 4. The bank reconciliation is an important...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Unique Globe, Inc. Bank Reconciliation May 31 2010 Balance per bank, May 31 $53,451.46 Add deposit of May 31 in transit $5,220.94 $58,672.40 Less outstanding checks: $3,936.80 Adjusted bank balance, May 31 $54,735.60 Balance per books, May 31 $43,784.16 Add: Note receivable collected by the bank $12,000.00 Interest income $250.00 Check Collected by the Bank $750.00 $13,000.00 $56,784.16 Less: Overstatement of deposit of check $540.00 Service charge $30.00 NSF check of Eve Lay $178.56 $748.56 $56,035.60
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cash 5,220.94 Revenue 5,220.94 (Deposit did not appear on the bank statements) Cash 540 Sales 540 (Overstatement of cash) Bank Service Charge Accounts Payable (Bank service charge for May) Accounts Payable 12,000 Notes Receivable 12,000 (The bank collected on a note) Accounts Receivable Revenue (return of NSF check from Eve Lay) Sales 750 Cash 750 (The bank mistakenly charged for a check from another company) Accounts Payable 250 Interest income 250 (The bank credited the accouunt for interest) 3. The balance sheet should record $54,735.60.
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4. The bank reconciliation is an important control over cash because it determines the correct cash balance by identifying the items that make up the difference between the bank statement and the company's records. 2008 2007 Receivable turnover: 59034.00 53762.00 Walgreens 2527+2236.5 2236.5+2062.7 12.39 times 12.51 times CVS 87471.90 76329.50 5384.3+4579.6 6961.30 8.78 times 10.96 times Days' Sales uncollected: Walgreens 29.45 29.19 CVS 41.58 33.29 Caldwell’s actions are unethical; for both her and her company. She is making a small decision that could have huge consequences. Losses from uncollectible accounts are normally expected to be greater in a recession than during a period of economic growth. She is in a management position therefore she needs to make the choice. But she could consult those around her. She has to properly maintain the cash flow when there are changes in the economy like there are in her situation....
View Full Document

This note was uploaded on 01/23/2012 for the course BUS 1000 taught by Professor Annerich during the Fall '10 term at Cedarville.

Page1 / 4

Problems - 4. The bank reconciliation is an important...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online