Exercise 194 a-b White Water Kayak Company's bank statement for the month of September showed a balance per bank of $6,900. The company's Cash account in the general ledger had a balan of $5,573 at September 30. Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were $5,850 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $25 for check printing charges. (3) Check No. 119 payable to Blacque Company was recorded in the cash payments journal and cleared the bank for $236. A review of the accounts payable subsidiary ledge shows a $27 credit balance in the account of Blacque Company and that the payment to them should have been for $263. (4) The total amount of checks still outstanding at September 30 amounted to $4,800. (5) Check No. 148 was correctly written and paid by the bank for $408. The cash payment journal reflects an entry for Check No. 148 as a debit to Accounts Payable and a credit to Cash in Bank for $480. The bank returned an NSF check from a customer for $340. The bank included a credit memorandum for $2,670 which represents collection of a customer's note by the bank for the company; principal amount of the note was (7) (6) $2,600 and interest was $70. Interest has not been accrued. Prepare a bank reconciliation for White Water Kayak Company at September 30. (List items that increase cash balance first.)
Exercise 194 a-b White Water Kayak Company's bank statement for the month of September showed a balance per bank of $6,900. The company's Cash account in the general ledger had a balan of $5,573 at September 30. Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were $5,850 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $25 for check printing charges. (3) Check No. 119 payable to Blacque Company was recorded in the cash payments journal and cleared the bank for $236. A review of the accounts payable subsidiary ledge shows a $27 credit balance in the account of Blacque Company and that the payment to them should have been for $263. (4) The total amount of checks still outstanding at September 30 amounted to $4,800. (5) Check No. 148 was correctly written and paid by the bank for $408. The cash payment journal reflects an entry for Check No. 148 as a debit to Accounts Payable and a credit to Cash in Bank for $480. The bank returned an NSF check from a customer for $340. The bank included a credit memorandum for $2,670 which represents collection of a customer's note by the bank for the company; principal amount of the note was (7) (6) $2,600 and interest was $70. Interest has not been accrued. Prepare a bank reconciliation for White Water Kayak Company at September 30. (List items that increase cash balance first.)
Century 21 Accounting Multicolumn Journal
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ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
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Weygandt, Accounting Principles, 13th Edition, Custom WileyPLUS Course for Bronx Community College
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Exercise 194 a-b
White Water Kayak Company's bank statement for the month of September showed a balance per bank of $6,900. The company's Cash account in the general ledger had a balan
of $5,573 at September 30. Other information is as follows:
(1)
Cash receipts for September 30 recorded on the company's books were $5,850 but this amount does not appear on the bank statement.
(2)
The bank statement shows a debit memorandum for $25 for check printing charges.
(3)
Check No. 119 payable to Blacque Company was recorded in the cash payments journal and cleared the bank for $236. A review of the accounts payable subsidiary ledger
shows a $27 credit balance in the account of Blacque Company and that the payment to them should have been for $263.
(4)
The total amount of checks still outstanding at September 30 amounted to $4,800.
Check No. 148 was correctly written and paid by the bank for $408. The cash payment journal reflects an entry for Check No. 148 as a debit to Accounts Payable and a
credit to Cash in Bank for $480.
(5)
(6)
The bank returned an NSF check from a customer for $340.
The bank included a credit memorandum for $2,670 which represents collection of a customer's note by the bank for the company; principal amount of the note was
$2,600 and interest was $70. Interest has not been accrued.
(7)
Prepare a bank reconciliation for White Water Kayak Company at September 30. (List items that increase cash balance first.)
WHITE WATER COMPANY
Bank Reconciliation
September 30
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