Entries based on bank reconciliationWhich of the reconciling items listed below require an entry in the company's accounts? (None of the transactions reported by bank debitand credit memos have been recorded by the company.)Item1. Bank service charges, $50.2. Check of a customer returned by bank to company because of insufficient funds,$520.3. Check for $345 incorrectly recorded by the company as $435.4. Check for $200 incorrectly charged by bank as $2,000.5. Deposit in transit, $4,250.6. Outstanding checks, $5,420.7. Note collected by bank, $5,300.Entry Required

The objective of the question is to determine which of the listed items require an entry in the…

Answered: Entries based on bank reconciliation…

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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Indicate how each of the following items would be included on a bank reconciliation. Deposits in transit at end of period Increase balance per bank Decrease balance per bank Cheques recorded on this period's bank statement Increase balance per books Decrease balance per books Company cheque recorded incorrectly as $400 that cleared the bank in the correct amount of $350 Not included Interest earned on bank account during the period EFT payments from customers Deposits recorded in the company's books this period that were also recorded on this period's bank statement Bank processed deposit of $649 as $964 in error Bank charges that appear on the bank statement Bank correction of an error from the prior period EFT payment for equipment rental > > > > > >
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esc QUESTIONS On May 31, Money Corporation's Cash account showed a balance of $12,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: Checks outstanding Deposits outstanding NSF check from a customer Service fees Error: Money Corporation wrote a check for $65 but recorded it incorrectly for $650. What is the amount of cash that should be reported in the company's balance sheet as of May 31? O $10,915 O $12,215 O $11,630 O $12.850 None of the above Click Save and Submit to save and submit. Click Save All Answers to save all answers. ! 1 9 F1 Q A 1 N NO @ 2 39 F2 W S #3 X H aption command 20 F3 E D $ 4 Q F4 C R F 07 dº % 5 e F5 T V MacBook Air ^ 6 G F6 Y B & 7 8 H F7 U * 00 8 N $ 1,450 2,300 240 130 DII F8 J ( 1 9 DD K M ) 0 0 Save All F10 E
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A check written by the company for $272 is incorrectly recorded by a company as $227. On the bank reconciliation, the $45 error should be added to the balance per bank. added to the balance per books. deducted from the balance per bank. deducted from the balance per books. O O O O
6, 7, A bank reconciliation for October 31 follows. Bank statement balance Add: Deposit in transit Deduct: Outstanding checks Adjusted bank balance View transaction list < 1 2 Note: Enter debits before credits. Date October 31 Bank Reconciliation October 31 Journal entry worksheet Cash $ 6,482 3 291 6,773 79 $ 6,694 Prepare the necessary journal entries based on the bank reconciliation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Book balance Add: 4 Collection of a note Interest earned Deduct: NSF check Bank service charges Adjusted book balance Record the $400 collection of a note receivable by the bank on our behalf. Saved General Journal $ 400 64 Debit 63 61 $ 6,354 Credit 464 6,818 124 $6,694
Identifying timing differences related to a bank reconciliation For each timing difference listed, identify whether the difference would be reported on the book side of the reconciliation or the bank side of the reconciliation. In addition, identify whether the difference would be an addition or subtraction. Deposit in transit Bank collection Debit memorandum EFT cash receipt Outstanding checks $1,000 deposit erroneously recorded by the bank as $100 Service charges Interest revenue $2,500 cash payment for rent expense erroneously recorded by the business as $250 Credit memorandum
Identify whether each of the following items would on appear on the bank side or the book side of a bank reconciliation. Enter Bank or Book below. Bank service charges Outstanding checks Deposits in transit NSF check Interest on a checking account The company properly wrote a check for $95.80 that the bank incorrectly paid as $9.58. The bank printed checks for the depositor for a fee. Bank debit memorandum Bank credit memorandum The bank collected a $1,000 note for the depositor.
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $16,290. Cash balance according to the bank statement at August 31, $17,260. Checks outstanding, $3,310. Deposit in transit, not recorded by bank, $2,660. A check for $480 in payment of an account was erroneously recorded in the check register as $840. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co. Bank Reconciliation August 31, 20Y6 Cash balance according to bank statement $ Add: Deposit in transit on August 31 $ Deduct: Outstanding checks Adjusted balance $ Cash balance according to company's records $ Add: Error in recording check Deduct: Bank service charge Adjusted balance $ Feedback a. Set…
Entries for Bank Reconciliation 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, $23,900. Cash balance according to the bank statement at July 31, $25,170. Checks outstanding, $4,850. Deposit in transit, not recorded by bank, $3,900. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $40. Journalize the entries that should be made by the company, part (a) Error and part (b) Service Charge. If an amount box does not require an entry, leave it blank. a. July 31 - Select - - Select - - Select - - Select - b. July 31 - Select - - Select - - Select - - Select -
While performing its monthly bank reconciliation, XYZ Inc. discovered that it recorded a cash receipt from a customer for an incorrect amount. The company debited “Cash” and credited “Sales Revenue” for $920 instead of $290. On its bank reconciliation, how should the company adjust for this error? Add $630 to the company (book) side. Subtract $630 from the company (book) side. Add $630 to the bank side. Subtract $630 from the bank side.
Bank Reconciliation The following data were gathered to use in reconciling the bank account of Photo Op. Company: Balance per bank $27,770 Balance per company records 23,170 Bank service charges 130 Deposit in transit 4,090 NSF check 1,510 Outstanding checks 10,330 a. What is the adjusted balance on the bank reconciliation? Check My Work b. Journalize any necessary entries for Photo Op. Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank. Accounts Receivable Miscellaneous Expense ED Feedback Previous Next Check My Work

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