During the month of July, Clanton Industries issued a check in the amount of $845 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should: Multiple Choice Deduct the check amount from the book balance of cash. Add the check amount to the book balance of cash. Deduct the check amount from the bank balance. Add the check amount to the bank balance. Make a journal entry in the company records for an error.

During the month of July, Clanton Industries issued a check in the amount of $845 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should: Multiple Choice Deduct the check amount from the book balance of cash. Add the check amount to the book balance of cash. Deduct the check amount from the bank balance. Add the check amount to the bank balance. Make a journal entry in the company records for an error.

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 following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $26,490. Cash balance according to the bank statement at July 31, $27,860. Checks outstanding, $5,380. Deposit in transit, not recorded by bank, $4,320. A check for $480 issued in payment of an account was erroneously recorded in the check register as $840. Bank debit memo for service charges, $50. Question Content Area a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co.Bank ReconciliationJuly 31 Cash balance according to bank statement $fill in the blank e16548065fc8f8c_1 - Select - - Select - Adjusted balance $fill in the blank e16548065fc8f8c_6 Cash balance according to company's records $fill in the blank e16548065fc8f8c_7 - Select - - Select - Adjusted balance $fill in the blank e16548065fc8f8c_12 Question Content Area b. If the…
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The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized): Balance, April 1, Current Year BANK STATEMENT Deposits during April Interest collected Checks cleared during April NSF check-A. B. Wright Bank service charges Balance, April 30, Current Year Checks Deposits Balance $32,500 $37,300 69,800 1,350 71,150 $44,500 300 70 26,650 26,350 26,280 26,280 Cash (A) Debit Credit April 1 Balance April Deposits 24,300 42,400 April Checks written 42,600 A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $6,300 (including $4,400 written before and $1,900 written during April). No deposits in transit were carried over from March,…
On November 30A, ABC Company received its bank statement. However, the closing balance of the account was unreadable. Attempts to contact the bank after hours did not secure the desired information. The following data are available in preparing a bank reconciliation. October 31 book balance 146,000. Note collected by bank 10, 000. interest earned on note 1,000; NSF check of customer 13,000. Bank service charge on NSF check 200; Other bank service charges 300; Outstanding checks 20, 200; Deposit of October 31 placed in night depository 8,500; Check issued by JKI. Company charged to ABC Co. 2,000; What is the cash balance per bank stament.
please help find the multiple choice answer, the answer on the multiple choice image is incorrect.
The accountant of Sophia Manufacturing Company was tasked to perform monthly bank reconciliation. She downloaded the company’s April 30, 2019 bank statement that showed a balance of P32,400. She also printed the cash ledger from the company’s computerized accounting system. It contains the ending balance of P8,350. She also found the following reconciling items:a. The bank statement showed bank service fee of P800.b. The bank collected P1,500 from a note receivable for Sophia Manufacturing. Also, a collection fee of P250.00 was charged.c. Deposit in transit, P51,000.d. Checks outstanding on April 30, P79,100.e. The accountant found a check issued to Rhys Corp. for P4,500 that cleared the bank but was not in the cash ledger. Requirement:a. Prepare the bank reconciliation statement.b. Journalize the adjusting entries.
Prepare any necessary journal entries that Organic Food Company must record as a result of preparing the bank reconciliation. Organic Food Company's Cash account shows a $7,200 debit balance and its bank statement shows $6,350 on deposit at the close of business on August 31. August 31 cash receipts of $2,940 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement. The bank statement shows a $290 NSF check from a customer; the company has not yet recorded this NSF check. Outstanding checks as of August 31 total $2,820. In reviewing the bank statement, an $250 check written by Organic Fruits was mistakenly drawn against Organic Food’s account. The August 31 bank statement lists $190 in bank service charges; the company has not yet recorded the cost of these services.
Using the following information, prepare the journal entries to reconcile the bank statement. Bank balance: $6,988 Book balance: $8,923 Deposits in transit: $1,875 Outstanding checks: $569 and $1,423 Bank service charges: $75 Bank incorrectly charged the account $75. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $123 but posted in the accounting records as $213. This check was expensed to Utilities Expense. If an amount box does not require an entry, leave it blank.
At the end of April, Meyer Company had a $7,990 balance in its cash account, while its bank statement for April showed an ending cash balance of $7,100. The April bank statement showed $10 of interest earned by Meyer on its checking account and a $200 NSF check written by one of Meyer's customers. Meyer's records show a $800 deposit in transit and $100 of outstanding checks at the end of April. Prepare the bank reconciliation of Meyer for April.
Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 31 the cash account had a balance of $6,105.42. The bank statement on July 31 reported a balance of $4,146.46. Upon comparing the bank statement to the books, the following items were found.
Iron Company receives a bank statement dated April 30 that shows a balance of $3,276.82. Iron’s checkbook balance, as of April 30, is $3,205.37. The bank has not processed check 892 for $45 or check 895 for $640. A $550 deposit made on April 30 does not appear on the bank statement. The bank statement shows a few items that Iron is unaware of: check printing charges of $65 and interest earned of $11.45. Iron recorded check 890 as $122, but the bank processed the check correctly as $132. Find the reconciled balance by completing the bank reconciliation:
Ace Inc. made a recording error. The check written to a supplier for $650 was incorrectly recorded in the ledger as $560. During a bank reconciliation process, $90 should be 1. Added to the bank statement balance 2. Added to the depositor's balance 3. Subtracted to the bank statement balance 4. Subtracted to the depositor's balance 5. Both 1 and 2 6. Both 3 & 4 7. No adjustment is requirement *Enter the item number for your answer 1