(iii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in the amount to pay but erroneously recorded in Graser's accounting records. Other than this, all accounting records are correct. Required a) Prepare the bank reconciliation of Graser Company at December 31, 2019. b) Prepare the reconciling journal entries according to the reconciliation in part (a). ~ End of Section B
(iii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in the amount to pay but erroneously recorded in Graser's accounting records. Other than this, all accounting records are correct. Required a) Prepare the bank reconciliation of Graser Company at December 31, 2019. b) Prepare the reconciling journal entries according to the reconciliation in part (a). ~ End of Section B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer Question 4
Transcribed Image Text:(iii) Service charge of $150 was charged wrongly to Graser's account by the bank.
(iv) A note receivable for $15,000 left by Graser Company with bank for collection that had
been collected and credited to company's account. Along with the note collection, interest
of $150 was also collected. Interest was accrued and recorded in the month-end adjusting
entries by Graser Company previously.
(v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account
by the bank and returned with the notation "NSF."
(vi) Graser's account had a check issued in payment of Building, correctly written in the amount
to pay but erroneously recorded in Graser's accounting records. Other than this, all
accounting records are correct.
Required
a) Prepare the bank reconciliation of Graser Company at December 31, 2019.
b) Prepare the reconciling journal entries according to the reconciliation in part (a).
~ End of Section B
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education