The document shows three methods - adjusted, book to bank, bank to book - for proving the cash of Bigotry Company for the month of August. It includes opening and closing balances, cash receipts, cash disbursements, and adjusting entries for errors and omissions.
The document shows three methods - adjusted, book to bank, bank to book - for proving the cash of Bigotry Company for the month of August. It includes opening and closing balances, cash receipts, cash disbursements, and adjusting entries for errors and omissions.
The document shows three methods - adjusted, book to bank, bank to book - for proving the cash of Bigotry Company for the month of August. It includes opening and closing balances, cash receipts, cash disbursements, and adjusting entries for errors and omissions.
The document shows three methods - adjusted, book to bank, bank to book - for proving the cash of Bigotry Company for the month of August. It includes opening and closing balances, cash receipts, cash disbursements, and adjusting entries for errors and omissions.
BIGOTRY COMPANY PROOF OF CASH For the Month of August
July 31 Cash Receipts Cash Disbursements August 31
Book Balance 1,200,000 4,400,000 3,600,000 2,000,000 Note Collected July 200,000 (200,000) August 300,000 300,000 NSF Check July (100,000) (100,000) August 50,000 (50,000) Error: Deposit Understatement August 180,000 180,000 Error: Payable Understatement August 540,000 (540,000) Adjusted balance 1,300,000 4,680,000 4,090,000 1,890,000
Bank Balance 800,000 5,000,000 3,940,000 1,860,000
Deposit in Transit July 600,000 (600,000) August 480,000 480,000 Outstanding Check July (100,000) (100,000) August 650,000 (650,000) Error: August (200,000) (200,000) Error: August (400,000) 400,000 Adjusted balance 1,300,000 4,680,000 4,090,000 1,890,000 *BOOK TO BANK METHOD
BIGOTRY COMPANY PROOF OF CASH For the Month of August
July 31 Cash Receipts Cash Disbursements August 31
Book Balance 1,200,000 4,400,000 3,600,000 2,000,000 Note Collected July 200,000 (200,000) August 300,000 300,000 NSF Check July (100,000) (100,000) August 50,000 (50,000) Deposit in Transit July (600,000) 600,000 August (480,000) (480,000) Outstanding Check July 100,000 100,000 August (650,000) 650,000 Error on collection: August 180,000 180,000 Error on payment August 540,000 (540,000) Error on deposit: August 200,000 200,000 Error on payment August 400,000 (400,000) Ending balance 800,000 5,000,000 3,940,000 1,860,000
Bank Balance 800,000 5,000,000 3,940,000 1,860,000
*BANK TO BOOK METHOD
BIGOTRY COMPANY PROOF OF CASH For the Month of August
July 31 Cash Receipts Cash Disbursements August 31
Bank Balance 800,000 5,000,000 3,940,000 1,860,000 Deposit in Transit: July 600,000 (600,000) August 480,000 480,000 Outstanding Check: July (100,000) (100,000) August 650,000 (650,000) Note Collected: July (200,000) 200,000 August (300,000) (300,000) NSF Check July 100,000 100,000 August (50,000) 50,000 Error on collection: August (180,000) (180,000) Error on payment August (540,000) 540,000 Error on deposit: August (200,000) (200,000) Error on payment August (400,000) 400,000
Present Value of Principal (8,000,000 X 0.6756) 5,404,800 Jan-01 Present Value of Semi Annual Interest (400,000 X 8.11) 3,244,000 Purchase Price 8,648,800 Jul-01
Present Value of Principal (8,000,000 X 0.6756) 5,404,800 Jan-01 Present Value of Semi Annual Interest (400,000 X 8.11) 3,244,000 Purchase Price 8,648,800 Jul-01
