Redlam Company provided the following data for the monthof December:November 30 December 312,032,0001,890,0003,160,0002,900,0001,080,000Cash in bank account balanceBank statement balanceBank debitsBank creditsBook debitsBook creditsOutstanding checksDeposit in transitCheck erroneously charged bybank against entity's accountand corrected in subsequent monthBank service chargeNote recorded as cash receipt byentity when placed with bankfor collection and note is actuallycollected by bank in subsequentmonth and credited by bank toentity's account in same month1,440,000180,00080,000592,000498,00040,0002,00050,0004,000200,000300,000Required:a. Prepare a four-column reconciliation showing adjustedbalances.b. Prepare one adjusting entry only on December 31.

Given: The data is given and the calculation as follows, The bank reconciliation process defines the…

Answered: Bedlam Company provided the following…

Bedlam Company provided the following data for the month of December: November 30 December 31 Cash in bank account balance Bank statement balance 2,032,000 1,890,000 3,160,000 2,900,000 1,080,000

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

Redlam Company provided the following data for the month
of December:
November 30 December 31
2,032,000
1,890,000
3,160,000
2,900,000
1,080,000
Cash in bank account balance
Bank statement balance
Bank debits
Bank credits
Book debits
Book credits
Outstanding checks
Deposit in transit
Check erroneously charged by
bank against entity's account
and corrected in subsequent month
Bank service charge
Note recorded as cash receipt by
entity when placed with bank
for collection and note is actually
collected by bank in subsequent
month and credited by bank to
entity's account in same month
1,440,000
180,000
80,000
592,000
498,000
40,000
2,000
50,000
4,000
200,000
300,000
Required:
a. Prepare a four-column reconciliation showing adjusted
balances.
b. Prepare one adjusting entry only on December 31.

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