### Bank ReconciliationThe following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:1. **Cash balance according to the company's records** at July 31, $14,590.2. **Cash balance according to the bank statement** at July 31, $15,500.3. **Checks outstanding**, $2,960.4. **Deposit in transit**, not recorded by the bank, $2,380.5. **A check for $480 issued in payment of an account** was erroneously recorded in the check register as $840.6. **Bank debit memo for service charges**, $30.#### Tasksa. **Prepare a bank reconciliation**, using the format shown in Exhibit 12.#### Bank Reconciliation Format**Nakajima Co. Bank Reconciliation July 31**- **Cash balance according to bank statement**: $[ ] - **Add deposit in transit, not recorded by bank**: $[ ] - **Deduct outstanding checks**: $[ ] **Adjusted balance**: $[ ] - **Cash balance according to company's records**: $[ ] - **Add error in recording check $840 instead of $480**: $[ ] - **Deduct bank service charge**: $[ ] **Adjusted balance**: $[ ]b. **If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash?** $[ ]c. **Must a bank reconciliation always balance (reconcile)?** Yes ✔️#### ExplanationIn bank reconciliation:- Adjust the bank statement balance by adding deposits in transit and subtracting outstanding checks to find the adjusted bank balance.- Adjust the company's record by correcting recording errors and deducting any bank service charges to find the adjusted company's balance.- The final adjusted balances from the bank statement and the company's records should match.

Bank reconciliation statement is prepared to reconcile the balance as per Cash book and Bank balance. b. The reported cash balance in Balance Sheet would be $14920 c. The bank reconciliation statement must always reconcile.

Business

Accounting

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company's records at July 31, $14,590. 2. Cash balance according to the bank statement at July 31, $15,500. 3. Checks outstanding, $2,960. 4. Deposit in transit, not recorded by bank, $2,380. 5. A check for $480 issued in payment of an account was erroneously recorded in the check register as $840. 6. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement Add deposit in transit, not recorded by bank v Deduct outstanding checks v Adjusted balance Cash balance according to company's records Add error in recording check $840 instead of $480 v Deduct bank service charge v Adjusted balance

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company's records at July 31, $14,590. 2. Cash balance according to the bank statement at July 31, $15,500. 3. Checks outstanding, $2,960. 4. Deposit in transit, not recorded by bank, $2,380. 5. A check for $480 issued in payment of an account was erroneously recorded in the check register as $840. 6. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement Add deposit in transit, not recorded by bank v Deduct outstanding checks v Adjusted balance Cash balance according to company's records Add error in recording check $840 instead of $480 v Deduct bank service charge v Adjusted balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $26,490. Cash balance according to the bank statement at July 31, $27,860. Checks outstanding, $5,380. Deposit in transit, not recorded by bank, $4,320. A check for $480 issued in payment of an account was erroneously recorded in the check register as $840. Bank debit memo for service charges, $50. Question Content Area a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co.Bank ReconciliationJuly 31 Cash balance according to bank statement $fill in the blank e16548065fc8f8c_1 - Select - - Select - Adjusted balance $fill in the blank e16548065fc8f8c_6 Cash balance according to company's records $fill in the blank e16548065fc8f8c_7 - Select - - Select - Adjusted balance $fill in the blank e16548065fc8f8c_12 Question Content Area b. If the…
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $22,840. Cash balance according to the bank statement at August 31, $24,240. Checks outstanding, $4,640. Deposit in transit, not recorded by bank, $3,720. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co. Bank Reconciliation August 31, 20Y6 Cash balance according to bank statement $fill in the blank 0bcdbe01704cf97_1 fill in the blank 0bcdbe01704cf97_3 fill in the blank 0bcdbe01704cf97_5 Adjusted balance $fill in the blank 0bcdbe01704cf97_6 Cash balance according to company's records $fill in the blank 0bcdbe01704cf97_7 fill in the blank 0bcdbe01704cf97_9 fill…
The following data were gathered to use in reconciling the bank account of Reddan Company: $ 17,900 10,300 Balance per bank Balance per company records Bank service charges 40 Deposit in transit Note collected by bank with $170 interest Outstanding checks a. What is the adjusted balance on the bank reconciliation? 3,400 4,900 6,140 b. Journalize any necessary entries for Photo Op. Company based on the bank reconciliation. If an amount box does not require an entry, leave it blank.
Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $7,745. The bank statement indicated a balance of $9,950 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 $3,580. b. A deposit of $3,730, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $1,940 on a note left for collection. The face of the note was $1,840. d. A check for $550 returned with the statement had been incorrectly recorded by Deaver Consulting as $500. 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 $560 had been incorrectly charged by the bank as $60. f. Bank service charges for October amounted to $35. Instructions:
Instructions The following data were gathered to use in reconciling the bank account of Donovan Company: Balance per bank $14,385 Balance per company records 11,200 Bank service charges 60 Deposit in transit 2,125 NSF check 1,480 Outstanding checks 6,850 Required: a. What is the adjusted balance on the bank reconciliation? b. On March 1, journalize any necessary entries for Donovan Company based on the bank reconciliation. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Journal b. On March 1, journalize any necessary entries for Donovan Company based on the bank reconciliation. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line…
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company’s records at July 31, $49,910. 2. Cash balance according to the bank statement at July 31, $48,250. 3. Checks outstanding, $4,460. 4. Deposit in transit, not recorded by bank, $6,450. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $30. Required: Journalize the entry or entries that should be made by the company. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTSNakajima Co.General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes…
The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank $18,250 Balance per company records 12,045 Bank service charges 30 Deposit in transit 3,500 Note collected by bank with $160 interest 4,160 Outstanding checks 5,575 a. What is the adjusted balance on the bank reconciliation? b. Journalize any necessary entries for Reddan Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank. ? ? ? ? ? ? ? ? ? ? ? ? ? Please don't provide images in answers thank you
Prepare a bank reconciliation from the following information:a. Balance per bank statement as of May 31, $17,755.44b. Balance per books as of May 31, $12,211.94c. Deposits in transit, $2,254.81d. Outstanding checks, $7,819.16e. Bank service charge, $20.85
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $16,290. Cash balance according to the bank statement at August 31, $17,260. Checks outstanding, $3,310. Deposit in transit, not recorded by bank, $2,660. A check for $480 in payment of an account was erroneously recorded in the check register as $840. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co. Bank Reconciliation August 31, 20Y6 Cash balance according to bank statement $ Add: Deposit in transit on August 31 $ Deduct: Outstanding checks Adjusted balance $ Cash balance according to company's records $ Add: Error in recording check Deduct: Bank service charge Adjusted balance $ Feedback a. Set…
Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $23,900. Cash balance according to the bank statement at July 31, $25,170. Checks outstanding, $4,850. Deposit in transit, not recorded by bank, $3,900. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $40. Journalize the entries that should be made by the company, part (a) Error and part (b) Service Charge. If an amount box does not require an entry, leave it blank. a. July 31 - Select - - Select - - Select - - Select - b. July 31 - Select - - Select - - Select - - Select -
Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $25,010. Cash balance according to the bank statement at July 31, $26,060. Checks outstanding, $5,080. Deposit in transit, not recorded by bank, $4,080. A check for $340 issued in payment of an account was erroneously recorded in the check register as $430. Bank debit memo for service charges, $40. Journalize the entries that should be made by the company, part (a) Error and part (b) Service Charge. If an amount box does not require an entry, leave it blank. a. July 31 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 b. July 31 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12
Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $22,240. Cash balance according to the bank statement at July 31, $23,450. Checks outstanding, $4,510. Deposit in transit, not recorded by bank, $3,630. A check for $590 in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $30. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge. a. July 31 b. July 31