Problem 3-7 (IAA)PAPARBedlam Company provided the following data for the monthof December:November 30 December 313,160,0002,900,0001,080,000Cash 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 bankn0for collection and note is actuallycollected by bank in subsequentmonth and credited by bank toentity's account in same month2,032,0001,890,0001,440,000180,00080,000e592,000498,00040,000 50,0002,0004,000200,000300,000Required:a. Prepare a four-column reconciliation showing adjustedbalances.b. Prepare one adjusting entry only on December 31.

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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following information is for Ivanhoe Company in September. 1. Cash balance per bank, September…

A: A reconciliations statement that compares the cash balance on a company's balance sheet to the…

Q: In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles…

A: Bank reconciliation statement is prepared for reconciling the errors in cash or bank book. It is…

Q: [The following information applies to the questions displayed below.] The December bank statement…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: At April 30, Kessler Company has the following bank information: Cash balance per bank $6,900…

A: Lets undertand the basics. Bank reconciliation statement is prepared by entity in order to reconcile…

Q: The information below relates to the Cash account in the ledger of Blossom Company. Balance…

A: A bank reconciliation statement could be defined as the summary of the banking and business accounts…

Q: LILA company has the below information in its Bank Statement and the company book at the end of the…

A: Bank reconciliation statement: This statement is prepared to reconcile the entity cash balance with…

Q: The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journal…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: At April 30, Mazaya Company Has the following bank information: cash balance per book $7200;…

A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

Q: Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Cash…

A: A bank reconciliation statement is a financial document that reconciles the bank statement balance…

Q: Hills Company’s June 30 bank statement and the June ledger account for cash are summarized here:…

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book. The…

Q: rangelina Adoption Agency's general ledger shows a cash balance of $4,582. The balance of cash in…

A: Checks that have been drawn by the company but have not been deducted from the bank balance are…

Q: Instructions Labels and Amount Descriptions The cash account for Norwegian Medical Co. at April 30…

A: Ideally cash balance as per cashbook must reconcile with bank balance as per bank statement. If…

Q: The April 30, Current Year, bank statement and the April ledger account for cash showed the…

A: When the bank statement balance and cash account balance do not match due to some differences in the…

Q: On December 31, Reed Company's bank statement had a balance of $26,500. Analysis of the bank…

A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…

Q: Hills Company’s June 30 bank statement and the June ledger account for cash are summarized here:…

A: The bank reconciliaion statement can be made in the following manner :

Q: A company's Cash account shows a balance of $5,630 at the end of the month. Comparing the company's…

A: Bank Reco Statement :-…

Q: The following extract from the cash book of Jon for the month of January shows the company’s bank…

A: Corrected cash book Date Description RM Date Description RM 01-Jan Balance b/f 600 18 Jan…

Q: Choose the letter of the correct answer: Sassy Company provided the following data for the month of…

A: The bank reconciliation statement is prepared to equate the cash book and passbook balance with…

Q: County National Bank Disbursements Receipts Balance Balance, August 1 $10,915 Deposits during August…

A: Bank reconciliation statement :— It is the statement that shows the reconciliation of balance as per…

Q: Required: 1. Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading.…

A: Introduction:- Bank reconciliation statement identifying the cash balances on the balance sheet to…

Q: In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles…

A: Bank reconciliations are prepared at the end of each accounting period.It is the process of identify…

Q: The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journals…

A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

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

100%

Problem 3-7 (IAA)
PAPAR
Bedlam Company provided the following data for the month
of December:
November 30 December 31
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
n0for collection and note is actually
collected by bank in subsequent
month and credited by bank to
entity's account in same month
2,032,000
1,890,000
1,440,000
180,000
80,000
e592,000
498,000
40,000 50,000
2,000
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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The ending bank statement balance at November 30 is $6,850. The bank statement shows a service charge of $85, electronic funds receipts of $500, and a NSF check for $350. Deposits in transit total $2,350 and outstanding checks are $1,535. The balance per books at November 30 is $7,600. What is the adjusted bank balance at November 30? A. $8,415 B. $6,915 C. $6,850 D. $7,665
Madison Company's cash ledger reports the following for the month ending March 31. Date Amount No. Date Amount Deposits: 3/4 $ 1,400 Checks: 541 3/2 $ 5,700 3/11 1,700 542 3/8 700 3/18 3,700 543 3/12 3,000 3/25 3,500 544 3/19 1,500 Cash receipts: 3/26-3/31 2,100 545 3/27 700 $ 12,400 546 3/28 800 547 3/30 1,200 Balance on March 1 $ 6,100 $ 13,600 Receipts 12,400 Disbursements (13,600 ) Balance on March 31 $ 4,900 Information from March's bank statement and company records reveal the following additional information: The ending cash balance recorded in the bank statement is $6,970. Cash receipts of $2,100 from 3/26–3/31 are outstanding. Checks 545 and 547 are outstanding. The deposit on 3/11 included a customer's check for $410 that did not clear the bank (NSF check). Check 543 was written…
The information below relates to the Cash Account in the Ledger of Vaughn Company. Balance September 1-$17,060; Cash Deposited-$64,330. Balance September 30-$17,784: Checks written-$63,606. The September bank statement shows a balance of $16,802 on September 30 and the following memoranda. CREDITS Collection of $1684 note plus interest $36 $1720 Interest earned on checking account $51 DEBITS NSF check: Richard Nance $615 Safety Deposit box Rent $71 At September 20, Deposits in Transit were $4640, and outstanding checks totaled $2573 Make a bank Recociliation
Beverly Hills, Inc. developed the following information in recording its bank statement for the month of November. Balance per books November 30 $22,014 Balance per bank statement November 30 $24,635 1. Checks written in November but still outstanding $1,450. 2. Checks written in October but still outstanding $1,107. 3. Deposits of November 29th and 30th not yet recorded by bank $5,496. 4. NSF check of customer, A. Lincoln, returned by bank, $704. 5. The bank statement contained an electronic funds transfer received from customer Theodora Company for $6,150 plus interest for $150. 6. Check No. 151 for $562 was correctly issued and paid by bank, but incorrectly entered in the Cash Payments Journal as $526. It was a payment made to vendor, Smith Concrete. A. Prepare a Bank Reconciliation Statement at November 30. B. For Beverly Hills, Inc. prepare the next journal entry from the bank reconciliation. C. For Beverly Hills, Inc. prepare the final journal entry from the bank…
Use the following data the answer questions 11 to 14 The cash records of Company Inc. show the following: 3. The August 31 bank reconciliation indicated that deposits in transit totaled $390. During September the general ledger account "Cash" shows deposits of $11,800, but the bank statement indicates that only $9,540 in deposits were received during the month. 4. The August 31 bank reconciliation also reported outstanding cheques of $850. During the month of September, the Company books show that $11,670 of cheques were issued, yet the bank statement showed that $10,500 of cheques cleared the bank in September. There were no bank debit or credit memoranda and no errors were made by either the bank or the Company. 11) What were the deposits in transit at September 30? f) $2,260 g) $2,150 h) $1,960 i) $2,650 j) None of the above 12) What were the outstanding cheques at September 30? f) $2,020 g) $2,120 h) $1,170 i) $1,980 j) None of the above FlDage 13) Which of the following is are the…
Hills Company's June 30 bank statement and the June ledger account for cash are summarized here: BANK STATEMENT Balance, June 1 Deposits during June Checks cleared during June Bank service charges Balance, June 30 Cash (A) Debit June 1 Checks $ 19,900 Deposits Other $ 18,800 Credit Balance 7,360 June Deposits 20,600 20,200 Checks written June June 30 Balance 7,760 $31 Balance $ 7,360 26,160 6,260 6,229 6,229 1. In addition to the balance in its bank account, Hills Company also has $420 of petty cash on hand. This amount is recorded in a separate account called Petty Cash on Hand. What is the total amount of cash that should be reported on the balance sheet at June 30?
Bridgeport Company's bank statement for the month ended January 31 showed a balance per bank of $34,728. The company's Cash balance at January 31 was $16,398. Other information is as follows: 1. 2. 3. 4. 5. 6. 7. Cash receipts for January were $87,679, of which $5,295 was outstanding at January 31. The bank statement shows a debit memorandum for $135 for cheque printing charges. Cheque no. 119 payable to Sunland Company was recorded in the general journal and cleared the bank for $343. A review of the Accounts Payable subsidiary ledger shows a $131 credit balance in the account of Sunland Company and that the payment to it should have been for $474. The total amount of cheques written during January was $75,126, of which $5,979 was outstanding at January 31. Cheque No. 127 was correctly written and paid by the bank for $109. The general journal reflects an entry for cheque no. 127 as a debit to Accounts Payable and a credit to Cash for $190. The bank returned an NSF cheque from a…
Hills Company’s June 30 bank statement and the June ledger account for cash are summarized here: BANK STATEMENT Checks Deposits Other Balance Balance, June 1 $ 7,320 Deposits during June $ 18,600 25,920 Checks cleared during June $ 19,700 6,220 Bank service charges $ 31 6,189 Balance, June 30 6,189 Cash (A) Debit Credit June 1 Balance 7,320 June Deposits 20,200 20,000 Checks written June June 30 Balance 7,520 E5-5 (Algo) Part 2 Prepare any journal entries that should be made as a result of the bank reconciliation.