PROBLEM 7A-4Another Com-prehensiveBank Reconcil-Daytona Recycling Center reports the following information concerning cash bal-ances and cash transactions for the month of September:Cash balance per bank statement as of September 30 was $20,893.25.2 Two.debit memoranda accompanied the bank statement: one for $10 was forservice charges for the month; the other for $64.60 was attached to an NSFcheck from A. Smith.1Istlon3 Included with the bank statement was $69 credit memorandum for interestearned on the bank account in September.4 The paid checks returned with the September bank statement disclosed anerror in Daytona's cash records. Check no. 851 for $77.44 for telephone expensehad erroneously been listed in the cash payments journal as $44.77.5 A collection charge for $26.00 (not applicable to Daytona) was erroneously de-ducted from the account by the bank. Notice that this was the bank's error.6 Cash receipts of September 30 amounting to $585.25 were mailed to the banktoo late to be included in the September bank statement.6.7 Checks outstanding as of September 30 were as follows: no. 860 for $151.93,no. 867 for $82.46, and no. 869 for $123.61.8 The Cash account showed the following entries during September:CashSept18,341.82 Sept 30Month's payments 11,598.63-Balance30Month's recelpts14,441.58a Prepare a bank reconciliation at September 30.* Prepare the necessary adjusting entries in general journal form.

Bank Reconciliation Statement-: A Bank Reconciliation is a procedure by which the bank account…

Daytona Recycling Center reports the following information concerning cash ances and cash transactions for the month of September: 1 Cash balance per bank statement as of September 30 was $20,893.25. 2 Two.debit memoranda accompanied the bank statement: one for $10 w. service charges for the month; the other for $64.60 was attached to am check from A. Smith. 3 Included with the bank statement was $69 credit memorandum for in earned on the bank account in September. 4 The 'paid checks returned with the September bank statement disclos error in Daytona's cash records. Check no. 851 for $77.44 for telephone ex had erroneously been listed in the cash payments journal as $44.77.

Daytona Recycling Center reports the following information concerning cash ances and cash transactions for the month of September: 1 Cash balance per bank statement as of September 30 was $20,893.25. 2 Two.debit memoranda accompanied the bank statement: one for $10 w. service charges for the month; the other for $64.60 was attached to am check from A. Smith. 3 Included with the bank statement was $69 credit memorandum for in earned on the bank account in September. 4 The 'paid checks returned with the September bank statement disclos error in Daytona's cash records. Check no. 851 for $77.44 for telephone ex had erroneously been listed in the cash payments journal as $44.77.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 4AP

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

PROBLEM 7A-4
Another Com-
prehensive
Bank Reconcil-
Daytona Recycling Center reports the following information concerning cash bal-
ances and cash transactions for the month of September:
Cash balance per bank statement as of September 30 was $20,893.25.
2 Two.debit memoranda accompanied the bank statement: one for $10 was for
service charges for the month; the other for $64.60 was attached to an NSF
check from A. Smith.
1
Istlon
3 Included with the bank statement was $69 credit memorandum for interest
earned on the bank account in September.
4 The paid checks returned with the September bank statement disclosed an
error in Daytona's cash records. Check no. 851 for $77.44 for telephone expense
had erroneously been listed in the cash payments journal as $44.77.
5 A collection charge for $26.00 (not applicable to Daytona) was erroneously de-
ducted from the account by the bank. Notice that this was the bank's error.
6 Cash receipts of September 30 amounting to $585.25 were mailed to the bank
too late to be included in the September bank statement.
6.
7 Checks outstanding as of September 30 were as follows: no. 860 for $151.93,
no. 867 for $82.46, and no. 869 for $123.61.
8 The Cash account showed the following entries during September:
Cash
Sept
18,341.82 Sept 30
Month's payments 11,598.63-
Balance
30
Month's recelpts
14,441.58
a Prepare a bank reconciliation at September 30.
* Prepare the necessary adjusting entries in general journal form.

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Accounting for Cash and cash equivalents

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