2. Nicole has asked you to prepare a bank reconciliation for NGS. According to her records, NGS's cash balance is $6,000 at December 31, but the bank reports a balance of $5,500. a. The bank deducted $250 for an NSF check from a customer deposited on December 22 b. NGS has written checks totaling $3,500 that have not yet cleared the bank. c. The bank added $10 cash to the account for interest earned in December. d. NGS made a $3,480 deposit on December 31, which will be recorded by the bank in January. e. The bank deducted $10 for service charges. f. NGS wrote a check to a supplier on account for $300 but mistakenly recorded it as $30. NICOLE'S GETAWAY SPA Bank Reconciliation At December 31 Bank Statement Company's Books Ending Balance per Bank stemer Ending Balance per Cash Account Additions: Additions: Deductions: Deductions: Up-to-Date Cash Balance Up-to-Date Cash Balance

2. Nicole has asked you to prepare a bank reconciliation for NGS. According to her records, NGS's cash balance is $6,000 at December 31, but the bank reports a balance of $5,500. a. The bank deducted $250 for an NSF check from a customer deposited on December 22 b. NGS has written checks totaling $3,500 that have not yet cleared the bank. c. The bank added $10 cash to the account for interest earned in December. d. NGS made a $3,480 deposit on December 31, which will be recorded by the bank in January. e. The bank deducted $10 for service charges. f. NGS wrote a check to a supplier on account for $300 but mistakenly recorded it as $30. NICOLE'S GETAWAY SPA Bank Reconciliation At December 31 Bank Statement Company's Books Ending Balance per Bank stemer Ending Balance per Cash Account Additions: Additions: Deductions: Deductions: Up-to-Date Cash Balance Up-to-Date Cash Balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using the following information, prepare a bank reconciliation. Bank balance: $6,788 Book balance: $6,525 Deposits in transit: $1,688 Outstanding checks: $569 and $1,523 Bank charges: $75 Bank incorrectly charged the account $75. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $245 but posted in the accounting records as $254. This check was expensed to Utilities Expense. Bank Reconciliation Bank Statement Balance at (date) $fill in the blank 1 Add: Deposits in Transit Outstanding Checks Less: - Select - Adjusted Bank Balance $fill in the blank 8 Book Balance at (date) $fill in the blank 9 Add: - Select - Less: - Select - Adjusted Book Balance $fill in the blank 14
If deposits per the cash ledger are $2,200, deposits per the bank ledger are $1,800, and the bank erroneously recorded a $400 deposit as $40, an adjustment of $360 for deposits in transit will be recorded on the bank reconciliation. O True O False
In preparing its bank reconciliation for the month of March 2007, Derby Company has available the following information: Balance per bank statement 3/31/07 $36,050, Deposit in transit 3/31/07 6,250, Outstanding checks 3/31/07 5,750, Credit erroneously recorded by bank in Derby's account 3/12/07 250, Bank service charges for March 50. What should be the correct balance of cash, at March 31, 2007? $35,250 O $36,250 $36,300 $36,550
The June 30 bank statement shows a balance of $7,100. The following information as discovered while the bank reconciliation was prepared: A bookkeeper error where a $400 check written to a supplier was incorrectly recorded as $500 Two outstanding checks totaling $840 A bank service charge of $29 A deposit in transit of $330 Bank interest revenue of $20 What is the adjusted bank balance?
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The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T-account for cash (summarized) are below. Martin Company's bank reconciliation at the end of April showed a cash balance of $23,300. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17 May 22 May 27 May 31 Balance, May 31 May 1 May 1 May 7 May 29 May 31 Debit Balance Balance # 301 #302 #303 # 304 Checks $ 12,000 8,000 600 23,300 9,000 11,000 8,000 Required: 1. Prepare a bank reconciliation for May. Cash (A) 22,800 BANK STATEMENT Deposits $9,000 5,600 11,000 12,000 8,000 600 5,600 2,300 Interest earned. NSF check Service charge Credit # 301 May 2 #302 May 4 Other # 303 May 11 # 304 May 23 # 305 May 29 $ 220 380 110 Balance $ 23 300 32,300 20,300 12,300 23,300 22,700 22,920 22,540 16,940 16,830 16,830
Answer
Required information [The following information applies to the questions displayed below.] The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T-account for cash (summarized) are below. Martin Company's bank reconciliation at the end of April showed a cash balance of $21,500. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17 May 22 May 27 May 31 Balance, May 31 May 1 May 1 May 7 May 29 May 31 Debit Balance Balance #301 #302 #303 # 304 Checks Total Amount of Cash and Cash Equivalents $ 12,000 7,200 560 Cash (A) 21,500 9,000 11,000 7,200 5,200 21,840 BANK STATEMENT Deposits $ 9,000 12,000 7,200 560 5,200 1,900 11,000 Interest earned NSF check Service charge Credit Other # 301 May 2 # 302 May 4 #303 May 11 # 304 May 23 # 305 May 29 $ 180 340 90 Balance $ 21,500 30,500 18,500 11,300 22,300 21,740 21,920 21,580…
Using the following information, prepare a bank reconciliation. • Bank balance: $6,988 • Book balance: $6,706 • Deposits in transit: $1,770 • Outstanding checks: $599 and $1,423 • Bank charges: $75 • Bank incorrectly charged the account $75. The bank will correct the error next month. • Check number 2456 correctly cleared the bank in the amount of $137 but posted in the accounting records as $317. This check was expensed to Utilities Expense. Bank Reconciliation Bank Statement Balance at (date) Add: Less: Adjusted Bank Balance Book Balance at (date) Add: Less: Adjusted Book Balance
A. At July 31, Ramirez Company has the following bank information: cash balance per bank $8,039, outstanding checks $691, deposits in transit $1,163, and a bank service charge $26. Determine the adjusted cash balance per bank at July 31. B. Differences between when a company records a transaction and when the bank records the same transaction are called timing differences. True or False? C. When performing a bank reconciliation, checks outstanding are added back to the bank balance. True or False?