Cottage Company deposits all cash receipts on the day they are received, and it makes all cash payments by check. At the close of business on December 31, Its Cash account shows a debit balance of $18,703. The company's bank statement as of December 31 shows an ending cash balance of $16,081. The following information was also available. • Outstanding checks as of December 31 total $2,341. • Included with the bank statement was a debit memo in the amount of $75 for bank service charges. • Check Number 2519, listed with the canceled checks, was correctly drawn for $845 in payment of a utility bill on December 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $930. • The December 31 cash receipts of $3,625 were placed in the bank's night depository after banking hours and were not recorded on the December 31 bank statement. • The bank deducted $1,244 for an NSF check from a customer deposited on December 10. Required: Prepare the journal entries for the items that would appear on the company's bank reconciliation as of December 31. (If no entry Is required for a transaction/event, select "No Journal Entry Required" in the first account fleld.) No 1 2 3 Date December 31 December 31 December 31 Cash Utilities Expense Accounts Receivable Cash General Journal Bank Charges Expense Cash ▶ ▶ Debit 85 1,244 75 Credit 85 1,244 75
Cottage Company deposits all cash receipts on the day they are received, and it makes all cash payments by check. At the close of business on December 31, Its Cash account shows a debit balance of $18,703. The company's bank statement as of December 31 shows an ending cash balance of $16,081. The following information was also available. • Outstanding checks as of December 31 total $2,341. • Included with the bank statement was a debit memo in the amount of $75 for bank service charges. • Check Number 2519, listed with the canceled checks, was correctly drawn for $845 in payment of a utility bill on December 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $930. • The December 31 cash receipts of $3,625 were placed in the bank's night depository after banking hours and were not recorded on the December 31 bank statement. • The bank deducted $1,244 for an NSF check from a customer deposited on December 10. Required: Prepare the journal entries for the items that would appear on the company's bank reconciliation as of December 31. (If no entry Is required for a transaction/event, select "No Journal Entry Required" in the first account fleld.) No 1 2 3 Date December 31 December 31 December 31 Cash Utilities Expense Accounts Receivable Cash General Journal Bank Charges Expense Cash ▶ ▶ Debit 85 1,244 75 Credit 85 1,244 75
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cottage Company deposits all cash receipts on the day they are received, and it makes all cash payments by check. At the close of
business on December 31, Its Cash account shows a debit balance of $18,703. The company's bank statement as of December 31
shows an ending cash balance of $16,081. The following information was also available.
• Outstanding checks as of December 31 total $2,341.
• Included with the bank statement was a debit memo in the amount of $75 for bank service charges.
• Check Number 2519, listed with the canceled checks, was correctly drawn for $845 in payment of a utility bill on December 16.
The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $930.
• The December 31 cash receipts of $3,625 were placed in the bank's night depository after banking hours and were not recorded
on the December 31 bank statement.
• The bank deducted $1,244 for an NSF check from a customer deposited on December 10.
Required:
Prepare the journal entries for the items that would appear on the company's bank reconciliation as of December 31. (If no entry Is
required for a transaction/event, select "No Journal Entry Required" in the first account fleld.)
No
1
2
3
Date
December 31
December 31
December 31
Cash
Utilities Expense
Accounts Receivable
Cash
General Journal
Bank Charges Expense
Cash
▶
▶
Debit
85
1,244
75
Credit
85
1,244
75
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