After Picard Company had completed all posting for the month of December, the sum of the balances in

After Picard Company had completed
all posting for the month of December, the sum of the balances in the following
accounts payable subsidiary ledger did not agree with the balance of the
control account in the general ledger.
Name Ryker’s
Address 286 Buck Avenue
———————————————————————————————
Date Item Post. Ref. Debit Credit Balance
————————————————————————————————
Dec. 2 P25 2,400 2,400

Name Geordie Company
Address 818 Western Avenue
————————————————————————————————
Date Item Post. Ref. Debit Credit Balance
————————————————————————————————
Dec. 1 Balance 7,600

10 CP23 7,600 —
20 P32 3,300 3,300
29 J15 800 4,100

Name Laforge Company
Address 90210 Baker Boulevard
———————————————————————————————
Date Item
Post. Ref. Debit Credit Balance
———————————————————————————————
Dec. 1 Balance
9,900
18 CP28 9,900 —
29 P34 10,500 600

Name Deanna Troi
Address 2720 Sommers Avenue
———————————————————————————
Date Item
Post. Ref. Debit Credit Balance
—————————————————————————————
Dec. 8 P27 6,000 6,000
27 P33 8,000 14,000

Name OBrien Supplies
Address 1560 Puckett Street
—————————————————————————————————
Date Item
Post. Ref. Debit Credit Balance
—————————————————————————————————
Dec. 1 Balance
8,200
7 P26 5,600 13,800

12 J11 620 12,180

20 CP29 6,000 18,180

The balance in the Accounts Payable
control account of $36,580 has been verified as correct. Also assume that the
journals references in the Post Ref. columns of the accounts payable subsidiary
ledger have been verified as correct.

Instructions
Determine the errors in the
preceding accounts payable subsidiary accounts and prepare a corrected schedule
of accounts payable.

Part 2 is as follows:
Lyleen Boat Company’s bank statement
for the month of September showed a balance per bank of $7,000. The company’s
Cash account in the general ledger had a balance of $5,459 at September 30.
Other information is as follows:
(1) Cash receipts for September 30
recorded on the company’s books were $5,700 but this amount does not appear on
the bank statement.
(2) The bank statement shows a debit
memorandum for $40 for check printing charges.
(3) Check No. 119 payable to Mann
Company was recorded in the cash payments journal and cleared the bank for
$248. A review of the accounts payable subsidiary ledger shows a $36 credit
balance in the account of Mann Company and that the payment to them should have
been for $284.
(4) The total amount of checks still
outstanding at September 30 amounted to $5,000.
(5) Check No. 138 was correctly
written and paid by the bank for $409. The cash payment journal reflects an entry
for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank
for $490.
(6) The bank returned an NSF check
from a customer for $360.
(7) The bank included a credit
memorandum for $2,560 which represents collection of a customer’s note by the
bank for the company; principal amount of the note was $2,500 and interest was
$60. Interest has not been accrued.
Instructions
(a) Prepare a bank reconciliation
for Lyleen Boat Company at September 30.
(b) Prepare any adjusting entries
necessary as a result of the bank reconciliation.

 

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