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e bank reconciliation

e bank reconciliation

FINANCIAL ACCOUNTING
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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Question no 4 On Dec 31, 2017, Micro disc Company had a cash balance per books of $6,831.50. The bank statement from Dhaka Bank on that date showed a balance of $6,050.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $863.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $836.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks at Dec 31 totaled $472.25. Deposits in transit were $2,7 05.15. 4. On Dec 18, the company issued check No. 1181 for $672 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $627. 5. A $3,050 note receivable was collected by the bank for Reber Company on May 31 plus $20 interest. The bank charged a collection fee of $80. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Stiner Company to reber for $800 that was charged to Reber Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $680 for a check issued by Sue Allison, a customer, to Roser Company on account. Required: (a) Prepare the bank reconciliation at Dec 31, 2017.
Transcribed Image Text:Question no 4 On Dec 31, 2017, Micro disc Company had a cash balance per books of $6,831.50. The bank statement from Dhaka Bank on that date showed a balance of $6,050.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $863.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $836.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks at Dec 31 totaled $472.25. Deposits in transit were $2,7 05.15. 4. On Dec 18, the company issued check No. 1181 for $672 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $627. 5. A $3,050 note receivable was collected by the bank for Reber Company on May 31 plus $20 interest. The bank charged a collection fee of $80. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Stiner Company to reber for $800 that was charged to Reber Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $680 for a check issued by Sue Allison, a customer, to Roser Company on account. Required: (a) Prepare the bank reconciliation at Dec 31, 2017.
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