Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31.095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks an memos with the records revealed the following reconciling items: a. Checks outstanding totaled $10,125. b. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. d. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. check drawn for $320 had been incorrectly charged by the bank as $230. f. Bank service charges for October amounted to $70. e. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement 31.095 Add: Deposit of October 31, not recorded by bank 4,120 $35.215 Add: Outstanding checks 10.125 Deduct: Bank error in charging check as $230 instead of $320 90 10,215 Adjusted balance Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $400 interest
Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31.095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks an memos with the records revealed the following reconciling items: a. Checks outstanding totaled $10,125. b. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. d. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. check drawn for $320 had been incorrectly charged by the bank as $230. f. Bank service charges for October amounted to $70. e. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement 31.095 Add: Deposit of October 31, not recorded by bank 4,120 $35.215 Add: Outstanding checks 10.125 Deduct: Bank error in charging check as $230 instead of $320 90 10,215 Adjusted balance Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $400 interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bank Reconciliation and Entries
The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31.095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and
memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $10,125.
b. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement.
c. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000.
d. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account.
e. A check drawn for $320 had been incorrectly charged by the bank as $230.
f. Bank service charges for October amounted to $70.
Instructions:
1. Prepare a bank reconciliation.
Deaver Consulting
Bank Reconciliation
October 31, 20Y6
Cash balance according to bank statement
31,095
Add: Deposit of October 31, not recorded by bank
4,120
35,215
Add: Outstanding checks
10,125
Deduct: Bank error in charging check as $230 instead of $320
90
10,215
Adjusted balance
Cash balance according to Deaver Consulting
Add: Proceeds of note collected by bank, including $400 interest
Adjusted balance
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