Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $7,905. The bank statement indicated a balance of $10,270 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 $3,700. b. A deposit of $3,850, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $2,000 on a note left for collection. The face of the note was $1,900. d. A check for $660 returned with the statement had been incorrectly recorded by Deaver Consulting as $600. 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 $660 had been incorrectly charged by the bank as $60. f. Bank service charges for October amounted to $25. Instructions: 1. Prepare a bank reconciliation.
Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $7,905. The bank statement indicated a balance of $10,270 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 $3,700. b. A deposit of $3,850, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $2,000 on a note left for collection. The face of the note was $1,900. d. A check for $660 returned with the statement had been incorrectly recorded by Deaver Consulting as $600. 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 $660 had been incorrectly charged by the bank as $60. f. Bank service charges for October amounted to $25. Instructions: 1. Prepare a bank reconciliation.
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 $7,905. The bank statement indicated a balance of $10,270 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 $3,700.
b. A deposit of $3,850, representing receipts from October 31, had been made too late to appear on the bank statement.
c. The bank had collected $2,000 on a note left for collection. The face of the note was $1,900.
d. A check for $660 returned with the statement had been incorrectly recorded by Deaver Consulting as $600. 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 $660 had been incorrectly charged by the bank as $60.
f. Bank service charges for October amounted to $25.
Instructions:
1. Prepare a bank reconciliation.
Deaver Consulting
Bank Reconciliation
October 31, 20Y6
Cash balance according to bank statement
$ 10,270
Add: Deposit of October 31, not recorded by bank v
3,850
14,120
Deduct: Outstanding checks v
$ -3,700 V
Deduct: Bank error in charging check as $60 instead of $660 y
-600
Adjusted balance
Cash balance according to Deaver Consulting
7,905
Add: Proceeds of note collected by bank, including $100 interest v
Deduct: Error in recording check by the company as $600 instead of $660 y
Deduct: Bank service charges v
25 V
Adjusted balance
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