Accounting PrincipleMonday, April 5, 2021
KEMENTERIAN PENDIDIKAN DAN KEBUDAYAAN UNIVERSITAS SAM RATULANGI
FAKULTAS EKONOMI DAN BISNIS Alamat: Kampus UNSRAT Manado
1. On June 30, 2020, Covid Ltd. had a cash balance per books of £6,781.50. The bank statement from Home Town Bank on that date showed a balance of £6,824.60. A comparison of the statement with the Cash account revealed the following facts.
a. The statement included a debit memo of £60 for the printing of additional company checks. b. Cash sales of £836.15 on June 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for £886.15. The bank credited Covid Company
for the correct amount.
c. Outstanding checks at June 30 totaled £276.25. Deposits in transit were £1,916.15.
d. On June 18, the company issued check No. 1181 for £685 to Barry Dietz on account. The
check, which cleared the bank in June, was incorrectly journalized and posted by Covid for
£658.
e. A £3,000 note receivable was collected by the bank for Covid on June 30 plus £80 interest.
The bank charged a collection fee of £20. No interest has been accrued on the note.
f. Included with the cancelled checks was a check issued by Bridges plc to Jon Newton for
£600 that was incorrectly charged to Covid by the bank.
g. On June 30, the bank statement showed an NSF charge of £640 for a check issued by Sani