Please answer the Question 2 and Qestion 3. One Trick Pony Company, Inc. receive

Question

Please answer the Question 2 and Qestion 3.

One Trick Pony Company, Inc. received their bank statement for October 31, 2014, showing a balance of $11,073. Prepare the bank statement in good form, given the following information: General Ledger Cash Balance is shown as $12,606. One Trick made a deposit on October 31 of $1, 250 which is not shown on the statement. There are three outstanding checks, 5587 $186, 5588 $85 and 5595 $175. The bank acts as the collection agency for interest earned on One Trick investments. The statement revels $465 was collected during the month, but not recorded. There is a bank charge of $50, and interest earned of $55. A check from Dead Beat, Inc. in the amount of $166 was returned for NSF. A deposit of $123 was not on the bank statement. Investigation revealed that the bank credited the account of Tricky Fishy for the deposit. Another deposit in the amount of $101 was made, however the new accountant recorded the amount on the books as $ 1,011. Prepare any necessary adjusting entries. What is the correct cash balance to be shown on the Balance Sheet?

Explanation / Answer

Column1 Column2 Column3 Column4 Column5 Column6 General ledger cash balance 12,606 Add: Interest income 465 interest earned 55 total 520 520 less: bank charges -50 NSF -166 Erro (1,011 - 101) -910 total -1126 -1126 Adjusted balance 12,000 Column1 Column2 Column3 Column4 Column5 balance as per bank 11,073 Add: Deposits in transit 1,250 bank error 123 total 1,373 1,373 less: outstanding checks -446 total -446 Adjusted balance 12,000

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