Shalimar Group of Industries reports the following information concerning cash balances and cash transactions for the month of April:A Cash balance per bank statement as of April 30 was $22,992.50Two debit memoranda accompany the bank statement: one for $9 was for service charges for the month; the other for $62.50 was attached to an NSF check from Rizwan.Included with the bank statement was $3123.25 credit memorandum for interest earned on the bank account in April.The paid checks returned with the April bank statement disclosed an error in Shalimar cash records. Check no.751 for $67.35 for telephone expense had erroneously been listed in the cash payments journal as $76.35.A collection charge for $25 (not applicable to Daytona) was erroneously deducted from the account by the bank. Notice that this was the bank’s error.Cash receipts of April 30 amounting to $484.75 were mailed to the bank too late to be included in the April bank statement.Checks outstanding as of April 30 were as follows: no.661 for $161.50, no.657 for $72.55, and no. 669 for $122.45.The cash account showed the following entries during September.CASHApril 1Balance17,241.52April 30Month’s Payments12,498April 30Month’s receipts15,341.48 Instructions:Prepare a bank reconciliation Statement at September 30.

BRS is the reconciliation of Pass book balance and Cash book balance.

Answered: debit memoranda accompany the bank…

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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Shalimar Group of Industries reports the following information concerning cash balances and cash transactions for the month of April:

A Cash balance per bank statement as of April 30 was $22,992.50

Two debit memoranda accompany the bank statement: one for $9 was for service charges for the month; the other for $62.50 was attached to an NSF check from Rizwan.
Included with the bank statement was $3123.25 credit memorandum for interest earned on the bank account in April.
The paid checks returned with the April bank statement disclosed an error in Shalimar cash records. Check no.751 for $67.35 for telephone expense had erroneously been listed in the cash payments journal as $76.35.
A collection charge for $25 (not applicable to Daytona) was erroneously deducted from the account by the bank. Notice that this was the bank’s error.
Cash receipts of April 30 amounting to $484.75 were mailed to the bank too late to be included in the April bank statement.
Checks outstanding as of April 30 were as follows: no.661 for $161.50, no.657 for $72.55, and no. 669 for $122.45.
The cash account showed the following entries during September.

CASH

April 1	Balance	17,241.52	April 30	Month’s Payments	12,498
April 30	Month’s receipts	15,341.48

Instructions:

Prepare a bank reconciliation Statement at September 30.

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