Picard Company and Part 2 is Lyleen Boat Company’s Picard Company

| June 9, 2016

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.


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.


(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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