Samba Corporation operates in an industry with high collectability issues. Recently, one of Samba's customers wrote a check for $235 for services performed. Samba's bank later informed Samba that its customer did not have cash available in his account to cover the $235 charge. As a result, Samba's bank assesses a $30 fee as the result of the NSF check received. Samba has not yet adjusted its books for the bank fee or the NSF check. Required: Record the appropriate journal entry to update Samba's books. If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9

Samba Corporation operates in an industry with high collectability issues. Recently, one of Samba's customers wrote a check for $235 for services performed. Samba's bank later informed Samba that its customer did not have cash available in his account to cover the $235 charge. As a result, Samba's bank assesses a $30 fee as the result of the NSF check received. Samba has not yet adjusted its books for the bank fee or the NSF check. Required: Record the appropriate journal entry to update Samba's books. If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 2SEQ

See similar textbooks

Similar questions

Southern Company pays its employees weekly by issuing checks on its regular bank account. The owner thinks it would be too much trouble to have a second checking account. Explain to the owner why having this account might be worth the additional effort.
During the preparation of the bank reconciliation for The Image Co., Chris Renees, the assistant controller,discovered that Empire National Bank incorrectly recorded a $936 check written by The Image Co. as $396. Chris has decided not to notify the bank but wait for the bank to detect the error. Chris plans to record the $540 error as Other Income if the bank fails to detect the error within the next three months. Determine whether Chris is behaving in a professional manner.
Samba Corporation operates in an industry with a high collectability issues. Recently, one of Samba's customers wrote a check for $235 for services performed. Samba's bank later informed Samba that its customer did not have cash available in his account to cover the $235 charge. As a result, Samba's bank assesses a $30 fee as the result of the NSF check received. Samba has not yet adjusted its books for the bank fee or the NSF check. Required: Hide Record the appropriate journal entry to update Samba's books. For a compound transaction, if an amount box does not require an entry, leave it blank.
On November 1, 2022, Broom Company received a bank statement that showed a $2,950 balance. Broom showed a $4,010 checking account balance. The bank did not return check number 124 for $1,080 and check number 138 for $720. A $3,200 deposit made on October 30 was in transit. The bank charged Broom $12 for check printing and $18 for an NSF check. Broom forgot to record a $30 withdrawal at the ATM. The bank also collected a $400 note for Broom. Prepare bank reconciliation.
In comparing the canceled checks on the bank statement with the entries in the accounting records, Tanner Company found that check number 4239 for May's rent was correctly written and drawn for $6,750 but was erroneously entered in the accounting records as $6,570. When preparing the May bank reconciliation, the Tanner Company should: Select one: A. Add $180 to the book balance of cash B. Deduct $180 from the bank statement balance C. Add $180 to the bank statement balance D. Deduct $180 from the book balance of cash
While performing its monthly bank reconciliation, XYZ Inc. discovered that it recorded a cash receipt from a customer for an incorrect amount. The company debited “Cash” and credited “Sales Revenue” for $920 instead of $290. On its bank reconciliation, how should the company adjust for this error? Add $630 to the company (book) side. Subtract $630 from the company (book) side. Add $630 to the bank side. Subtract $630 from the bank side.
If a check correctly written and paid by the bank for $649 is incorrectly recorded on the company's books for $694, the appropriate treatment on the bank reconciliation would be to add $45 to the book's balance. subtract $45 from the book's balance. deduct $45 from the bank's balance. deduct $649 from the book's balance. A check written by the company for $129 is incorrectly recorded by a company as $192. On the bank reconciliation, the $63 error should be added to the balance per books. deducted from the balance per books. added to the balance per bank. deducted from the balance per bank. Pharoah Company had checks outstanding totaling $40200 on its June bank reconciliation. In July, Pharoah Company issued checks totaling $289400. The July bank statement shows that $195700 in checks cleared the bank in July. A check from one of Pharoah Company's customers in the amount of $2200 was also returned marked "NSF." The amount of outstanding checks on Pharoah Company's July bank…
Question Description Lincoln Company accepted a check for $1,675 from a customer for a cash purchase of merchandise. The customer did not have sufficient funds to cover the check and the bank adjusted the company's account for the amount of the returned check. What entry is required to record this NSF check?
During the preparation of the bank reconciliation for Building Concepts Co., Joel Kimmel, the assistant controller, discovered that Lone Peak National Bank incorrectly recorded a $3,290 check written by Building Concepts Co. as $329. Joel has decided not to notify the bank but wait for the bank to detect the error. Joel plans to record the $2,961 error as Other Income if the bank fails to detect the error within the next three months. Discuss whether Joel is behaving in a professional manner.
During the preparation of the bank reconciliation for Apache Grading Co., Sarah Ferrari, the assistant controller, discovered that Rocky Spring Bank incorrectly recorded a $610 check written by Apache Grading Co. as $160. Sarah has decided not to notify the bank but wait for the bank to detect the error. Sarah plans to record the $450 error as Other Income if the bank fails to detect the error within the next three months. Discuss whether Sarah is behaving in a professional manner.
If a check correctly written and paid by the bank for $637 is incorrectly recorded on the company's books for $673, the appropriate treatment on the bank reconciliation would be to add $36 to the book's balance. deduct $637 from the book's balance. subtract $36 from the book's balance. deduct $36 from the bank's balance.
Nizwa traders purchased OMR 9000 spare parts from Darvesh Automobiles and issued check immediately . Because of a busy schedule , and internal audit , the Darvesh Automobiles not yet sent the check for collection . How will you adjust the above reconciliation item in bank reconciliation statement ? a . Less OMR 9000 from Cash book balance b . Less OMR 9000 from bank statement balance c . Add OMR 9000 to bank statement balance d . Less OMR 9000 from cash book balance