Question

Please answer the 4 independent situations below.

1. The bank balance did not include the $10,000 of receipts for December 31, Year 2, that were deposited and recorded by the company on that day but were not recorded until January 4, Year 3, by the bank. Record the necessary Year 2 adjustments, if any.

2. The bank balance did not include the $10,000 of receipts for December 31, Year 2, that were deposited and recorded by the company on that day but were not recorded until January 4, Year 3, by the bank. Record the necessary Year 2 adjustments, if any.

3. A difference of $500 between the cash balance per books and the cash balance per bank statement arose from the Year 2 service fees charged on December 31, Year 2, by the bank. Record the necessary Year 2 adjustments, if any.

4. You receive a confirmation from a supplier indicating the receipt of a payment of $50,000 on 1/3/Year 2 while the client's payment was recorded in the cash disbursements journal at $15,000 on 12/25/Year 1. Record the necessary adjustments, if any.

Answer 1

Date	Accounts Titles and explanation	Debit	Credit
Dec 31	No adjustment is required.
	Deposits in transit are items known to the company but not known to the bank.
Dec 31	Miscellaneous expenses	$500
	Cash		$500
	(To record bank service charges)
Dec 31	No entry necessary
	The payment in the client’s records is properly recorded when the payment is made.