The Following Information Is Available for the Topper Company for the Month

question 205

Essay

The following information is available for the Topper Company for the month of July.
a. On July 31, after all transactions have been recorded, the balance in the company's Cash account has a balance of $15,244.
b. The company's bank statement shows a balance on July of $16,450.
c. Outstanding checks at July total $2,063.
d. A credit memo included with the bank statement indicates that the bank collected $570 on a note receivable for Topper. The $570 includes $550 principle and $20 interest.
e. A debit memo included with the bank statement shows a $107 NSF check from a customer, P. Flank.
f. A deposit placed in the bank's night depository on July 31 totaling $1,275 did not appear on the bank statement.
h. Included with the bank statement was a debit memorandum in the amount of $45 for check printing charges that have not been recorded on the company's books.
Prepare the July bank reconciliation for the Topper Company.

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Definitions:

Diluted Earnings

A metric that shows a company's earnings per share if all convertible securities were converted into common stock, often indicating a worst-case scenario for earnings per share.

Capital Structures

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Materiality

A concept in accounting and auditing that pertains to the significance of transactions, balances, and errors, which might influence the decision-making of users of financial statements.

Convertible Bonds

A type of bond that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.