Ex 7-12 Prepare bank reconciliation and adjusting entries The information below relates to the Cash account in the ledger of Minton Company. Balance September 1 - $17,150, Cash deposited - $64,000. Balance September 30 - $ 17,404; Checks written $63,746. The September bank statement shows a balance of $16,422 on September 30 and the following memoranda. Credits Debits Collection of $2,500 note plus interest $30 $2,530 NSF check: Richard Nance $ 425 Interest earned on checking account $45 Safety deposit box rent $65 At September 30, deposits in transit were $ 5,450 and outstanding checks totaled $2,383. Instructions: (a) Prepare the bank reconciliation at September 30 (b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) MINTON COMPANY Bank Reconciliation September 30 Cash balance per bank statement Value Add: Value ? Less: Value Adjusted cash balance per bank? Cash balance per books Value Add: Value Value ? ? Less: Value Value Value Adjusted cash balance per books ? (b) Sept 30 Account Value Account Value Account Value 30 Account Value Account Value 30 Account Value Account Value 30 Account Value Account Value After you have completed the requirements of E7-12, consider the additional question. Answers are on the other tab in this file. 1. Suppose deposits in transit changed to $5,000 and NSF check changed to $875. What would be the impact on adjusted cash balance per bank and books?
Ex 7-12 Prepare bank reconciliation and adjusting entries The information below relates to the Cash account in the ledger of Minton Company. Balance September 1 - $17,150, Cash deposited - $64,000. Balance September 30 - $ 17,404; Checks written $63,746. The September bank statement shows a balance of $16,422 on September 30 and the following memoranda. Credits Debits Collection of $2,500 note plus interest $30 $2,530 NSF check: Richard Nance $ 425 Interest earned on checking account $45 Safety deposit box rent $65 At September 30, deposits in transit were $ 5,450 and outstanding checks totaled $2,383. Instructions: (a) Prepare the bank reconciliation at September 30 (b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) MINTON COMPANY Bank Reconciliation September 30 Cash balance per bank statement Value Add: Value ? Less: Value Adjusted cash balance per bank? Cash balance per books Value Add: Value Value ? ? Less: Value Value Value Adjusted cash balance per books ? (b) Sept 30 Account Value Account Value Account Value 30 Account Value Account Value 30 Account Value Account Value 30 Account Value Account Value After you have completed the requirements of E7-12, consider the additional question. Answers are on the other tab in this file. 1. Suppose deposits in transit changed to $5,000 and NSF check changed to $875. What would be the impact on adjusted cash balance per bank and books?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Ex 7-12 Prepare bank reconciliation and adjusting entries The information below relates to the Cash account in the
ledger of Minton Company. Balance September 1 - $17, 150, Cash deposited $64,000. Balance September 30 - $
17,404; Checks written $63,746. The September bank statement shows a balance of $16,422 on September 30 and
the following memoranda. Credits Debits Collection of $2,500 note plus interest $30 $2, 530 NSF check: Richard Nance $
425 Interest earned on checking account $45 Safety deposit box rent $65 At September 30, deposits in transit were $
5,450 and outstanding checks totaled $2,383. Instructions: (a) Prepare the bank reconciliation at September 30 (b)
Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no
interest had been accrued on the note. NOTE: Enter a number in cells requesting a value; enter either a number or a
formula in cells with a "?". (a) MINTON COMPANY Bank Reconciliation September 30 Cash balance per bank
statement Value Add: Value ? Less: Value Adjusted cash balance per bank? Cash balance per books Value Add: Value
Value ? ? Less: Value Value Value Adjusted cash balance per books ? (b) Sept 30 Account Value Account Value Account
Value 30 Account Value Account Value 30 Account Value Account Value 30 Account Value Account Value After you have
completed the requirements of E7-12, consider the additional question. Answers are on the other tab in this file. 1.
Suppose deposits in transit changed to $5,000 and NSF check changed to $875. What would be the impact on adjusted
cash balance per bank and books?
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