Apex Company's bank statement for the month of September showed a balance per bank of S6,190. The company's Cash account in the general ledger had a balance of $4,830 at September 30. Other information is as follows: 26. Cash receipts for September 30 recorded on the company's books were $5,040 but this amount does not appear on the bank statement. This amount is a deposit in transit. 27. The bank statement shows a debit memorandum for $30 for check printing charges. 28. The total amount of checks still outstanding at September 30 amounted to $4,420. 29. Check No. 138 was correctly written and paid by the bank for $590. 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 S660. 30. The bank returned an NSF check from a customer for $320. 6. The bank included a credit memorandum for $2,260 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,200 and interest was $60. Interest has not been accrued. Instructions (b) Prepare any adjusting entries necessary as a result of the bank reconciliation

Apex Company's bank statement for the month of September showed a balance per bank of S6,190. The company's Cash account in the general ledger had a balance of $4,830 at September 30. Other information is as follows: 26. Cash receipts for September 30 recorded on the company's books were $5,040 but this amount does not appear on the bank statement. This amount is a deposit in transit. 27. The bank statement shows a debit memorandum for $30 for check printing charges. 28. The total amount of checks still outstanding at September 30 amounted to $4,420. 29. Check No. 138 was correctly written and paid by the bank for $590. 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 S660. 30. The bank returned an NSF check from a customer for $320. 6. The bank included a credit memorandum for $2,260 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,200 and interest was $60. Interest has not been accrued. Instructions (b) Prepare any 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

I'm a little confused how to prep the bank reconciliation and the journal entrys.

Apex Company's bank statement for the month of September showed a balance per bank of $6,190.
The company's Cash account in the general ledger had a balance of $4,830 at September 30. Other
information is as follows:
26. Cash receipts for September 30 recorded on the company's books were $5,040 but this amount does
not appear on the bank statement. This amount is a deposit in transit.
27. The bank statement shows a debit memorandum for $30 for check printing charges.
28. The total amount of checks still outstanding at September 30 amounted to $4,420.
29. Check No. 138 was correctly written and paid by the bank for $590. 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
$660.
30. The bank returned an NSF check from a customer for $320.
6. The bank included a credit memorandum for $2,260 which represents collection of a customer's
note by the bank for the company; principal amount of the note was $2,200 and interest was $60.
Interest has not been accrued.
Instructions
(a)
(b)
Prepare a bank reconciliation for Apex Corporation at September 30.
Prepare any adjusting entries necessary as a result of the bank reconciliation

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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