(A) Prepare a bank reconciliation for the Daenerys company at April 30.(B) Prepare the adjusting entries necessary as a result of the bank reconciliation. The Daenerys Company's bank statement for the month of April showed a balance perbank of $6,100. The company's Cash account in the general ledger had a balance of$4,759 at April 30. Other information is as follows:(1) Cash receipts for April 30 recorded on the company's books were $6,000 but thisamount does not appear on the bank statement.(2) The bank statement shows a debit memorandum for $40 for cheque printingcharges.(3) Cheque No. 119 payable to Jorah Company was recorded in the cash payments journalfor $248 and cleared the bank for $248. A review of the accounts payable subsidiaryledger shows a $36 credit balance in the account of Jorah Company and that thepayment to them should have been for $284.(4) The total amount of cheques still outstanding at April 30 amounted to $5,800.(5) Cheque No. 138 was correctly written and paid by the bank for $409. The cashpayment journal reflects an entry for Cheque No. 138 as a debit to AccountsPayable and a credit to Cash in Bank for $490.(6) The bank returned an NSF cheque from a customer for $560.(7) The bank included a credit memorandum for $2,060 which represents collection ofa customer's note by the bank for the company; principal amount of the note was$2,000 and interest was $60. Interest has not been accrued.

Bank reconciliation statement is s statement which prepared at the end of the month to correct the…

Answered: A) Prepare a bank reconciliation for…

A) Prepare a bank reconciliation for the Daenerys company at April 30. (B) Prepare the adjusting entries necessary as a result of the bank reconciliation.

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

(A) Prepare a bank reconciliation for the Daenerys company at April 30.

(B) Prepare the adjusting entries necessary as a result of the bank reconciliation.

The Daenerys Company's bank statement for the month of April showed a balance per
bank of $6,100. The company's Cash account in the general ledger had a balance of
$4,759 at April 30. Other information is as follows:
(1) Cash receipts for April 30 recorded on the company's books were $6,000 but this
amount does not appear on the bank statement.
(2) The bank statement shows a debit memorandum for $40 for cheque printing
charges.
(3) Cheque No. 119 payable to Jorah Company was recorded in the cash payments journal
for $248 and cleared the bank for $248. A review of the accounts payable subsidiary
ledger shows a $36 credit balance in the account of Jorah Company and that the
payment to them should have been for $284.
(4) The total amount of cheques still outstanding at April 30 amounted to $5,800.
(5) Cheque No. 138 was correctly written and paid by the bank for $409. The cash
payment journal reflects an entry for Cheque No. 138 as a debit to Accounts
Payable and a credit to Cash in Bank for $490.
(6) The bank returned an NSF cheque from a customer for $560.
(7) The bank included a credit memorandum for $2,060 which represents collection of
a customer's note by the bank for the company; principal amount of the note was
$2,000 and interest was $60. Interest has not been accrued.

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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