Consolidated Paper has just completed its bank reconciliation for the month of Febrruary 2023 as shown below. Balance per bank............ Add: Deposit in transit.......... Less: Outstanding checks... **** Reconciled balance................ $16,200 2,600 4 (900) Balance per books......... Add: Interest earned.... *********** Less: Bank service charge......... Add: Error in posting customer. ........... payment of accounts receivable Reconciled balance........... ******** $17,400 200 (100) 400 $17,900 $17,900 a. Prepare the adjusting entry (debits and credits) that is needed as a result of the bank reconciliation. b. What cash balance will Consolidated Paper report on its February 28, 2023 financial statements

Consolidated Paper has just completed its bank reconciliation for the month of Febrruary 2023 as shown below. Balance per bank............ Add: Deposit in transit.......... Less: Outstanding checks... Reconciled balance................ $16,200 2,600 4 (900) Balance per books......... Add: Interest earned.... * Less: Bank service charge......... Add: Error in posting customer. ........... payment of accounts receivable Reconciled balance........... ** $17,400 200 (100) 400 $17,900 $17,900 a. Prepare the adjusting entry (debits and credits) that is needed as a result of the bank reconciliation. b. What cash balance will Consolidated Paper report on its February 28, 2023 financial statements

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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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
The bank statement for ABC Corp. shows a balance of $14300. Use the following reconciling items to determine the company's adjusted (corrected) book balance. Outstanding checks: $600 Deposits in Transit: $590 Interest earned on deposits: $23 EFT's from ABC Corp Customers: $1370 Customer's check returned due to NSF: $1550 A
3. Bank Reconciliation Barb Lee Inc. (BLI) is about to reconcile its bank statement for the month of May. Pertinent information follows: Bank statement balance $11,003.74. General ledger balance $8, 284.07. BLI mailed a deposit of $899.14 to the bank on May 28. The bank had not yet received it by month end. BLI issued cheques # 124 for $2,041.25; # 126 for $951.56; and #129 for $1,000 in May; however, these were not returned with the May 31 bank statement. BLI received notification that a cheque for $313 deposited to BLI's account was returned NSE. The bank levied a $32 returned cheque charge. The bank statement included a $29 service charge for the month.Required:a) Prepare the cash reconciliation for Barb Lee Inc. as at May 31. b) Prepare adjusting journal entries to correct for items noted in the cash reconciliations.
2. DETAILS rise BRECMBC9 4.11.TB.011. On May 27, you received your bank statement showing a balance of $1,026.34. Your checkbook shows a balance of $1,056.29. Outstanding checks are $245.50 and $377.20. The account earned $62.59. Deposits in transit amount to $705.24, and there is a service charge of $10.00. Calculate the reconciled balance. O $29.95 O $943.80 O $1,003.70 $1,108.88
The following data were collected to use in reconciling the bank account for Anderson Co.: Balance per bank statement...……...........….$23,900 Balance per company records (cash acct)…..8,700 Bank service charges...................................................50 Deposits in transit..................................................5,500 Note collected by bank with $450 interest..9,450 Outstanding checks..............................................11,300 a. How much is the correct or adjusted bank balance? b. How much is the correct or adjusted book balance? c. Prepare any necessary journal entries based on the bank reconciliations.
3. The April 30 bank statement of 10A Company showed a balance of $$24,635 and the following memoranda: Credits Collection of $1,250 note plus interest $50 Interest earned on checking account $65 Debits $75 NSF check: Banana Wang $635 Safety deposit box rent: 10A Company's cash account in the general ledger had a balance of $26,100 on April 30 and other information is as follows: (1) Cash receipts for April 30 recorded on the company's books were $6,695 but this amount does not appear on the bank statement. (2) The total amount of checks still outstanding at April 30 amounted to $6,575, including $2,000 certified checks. (3) Check No. 119 payable to 10B Company was recorded in the cash payments journal and cleared the bank for $248 but the payment should be $284. Instructions (a) (b) Prepare the bank reconciliation at April 30. Prepare any adjusting entries necessary as a result of the bank reconciliation. (Hint: Record Safety deposit box rent as Miscellaneous (Misc.) Expense)