1. The following information is available for the Aston Company for the month of December. a. On December 31, after all transactions have been recorded, the balance in the company's Cash account has a balance of $272,020. b. The company's bank statement shows a balance on December 31 of $292,790. c. Outstanding checks at December 31 include check # 3030 in the amount of $15,250 and check # 3556 in the amount of $14,590. d. A credit memo included with the bank statement indicates that the bank collected $7,800 on a noninterest-bearing note receivable for Aston. The bank deducted a $100 collection fee, and credited the remainder of $7,700 to Aston's account. e. A debit memo included with the bank statement shows a $670 NSF check from a customer, J. Brown. I f. A deposit placed in the bank's night depository on December 31 totaled $16,750, and did not appear on the bank statement. g. Examination of the checks on the bank statement with the entries in the accounting records. reveals that check #3445 for the payment of an account payable was correctly written for $24,500, but was recorded in the accounting records as $25,400. h. Included with the bank statement was a debit memorandum in the amount of $250 for bank service charges. It has not been recorded on the company's books. Required: 1. Prepare the December bank reconciliation for the Aston Company.. 2. Prepare the general journal entries to bring the company's book balance of cash into conformity with the reconciled balance as of December 31.
1. The following information is available for the Aston Company for the month of December. a. On December 31, after all transactions have been recorded, the balance in the company's Cash account has a balance of $272,020. b. The company's bank statement shows a balance on December 31 of $292,790. c. Outstanding checks at December 31 include check # 3030 in the amount of $15,250 and check # 3556 in the amount of $14,590. d. A credit memo included with the bank statement indicates that the bank collected $7,800 on a noninterest-bearing note receivable for Aston. The bank deducted a $100 collection fee, and credited the remainder of $7,700 to Aston's account. e. A debit memo included with the bank statement shows a $670 NSF check from a customer, J. Brown. I f. A deposit placed in the bank's night depository on December 31 totaled $16,750, and did not appear on the bank statement. g. Examination of the checks on the bank statement with the entries in the accounting records. reveals that check #3445 for the payment of an account payable was correctly written for $24,500, but was recorded in the accounting records as $25,400. h. Included with the bank statement was a debit memorandum in the amount of $250 for bank service charges. It has not been recorded on the company's books. Required: 1. Prepare the December bank reconciliation for the Aston Company.. 2. Prepare the general journal entries to bring the company's book balance of cash into conformity with the reconciled balance as of December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:1. The following information is available for the Aston Company for the month of December.
a. On December 31, after all transactions have been recorded, the balance in the company's Cash
account has a balance of $272,020.
b. The company's bank statement shows a balance on December 31 of $292,790.
c. Outstanding checks at December 31 include check # 3030 in the amount of $15,250 and check
# 3556 in the amount of $14,590.
d. A credit memo included with the bank statement indicates that the bank collected $7,800 on a
noninterest-bearing note receivable for Aston. The bank deducted a $100 collection fee, and
credited the remainder of $7,700 to Aston's account.
e. A debit memo included with the bank statement shows a $670 NSF check from a customer, J.
I
Brown.
f. A deposit placed in the bank's night depository on December 31 totaled $16,750, and did not
appear on the bank statement.
g. Examination of the checks on the bank statement with the entries in the accounting records
reveals that check # 3445 for the payment of an account payable was correctly written for $24,500,
but was recorded in the accounting records as $25,400.
h. Included with the bank statement was a debit memorandum in the amount of $250 for bank
service charges. It has not been recorded on the company's books.
Required:
1. Prepare the December bank reconciliation for the Aston Company.
2. Prepare the general journal entries to bring the company's book balance of cash into
conformity with the reconciled balance as of December 31.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education