PA11. LO 8.6Inner Resources Company received the following bank statement. Using the information from Exercise 8.5 and Exercise 8.6, prepare the bank reconciliation.8.5Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1.The owners invested $8,500 from their personal account to the business account.Paid rent $650 with check #101.Initiated a petty cash fund $550 check #102.Received $750 cash for services rendered.Purchased office supplies for $180 with check #103.Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days.Received $1,200 cash for services rendered.Paid wages $560, check #105.Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106.Increased Petty Cash by $100, check #107. ### Bank Statement Overview#### Starting Balance- **Beginning Balance:** $0#### Transactions**Deposits:**- A: $10,000- D: $1,000- **Total Deposits:** $11,000**Checks:**- Check 101: $500- Check 102: $500- Check 103: $158- Check 106: $489**Additional Charges:**- Bank Service Charges: $100#### Final Calculations- **Total Deductions (Checks + Service Charges):** $1,747- **Ending Balance:** $9,253This bank statement starts with a zero balance and reflects a series of deposits totaling $11,000. Various checks are drawn totaling $1,647, and bank service charges add an additional $100 to the deductions. After accounting for these transactions, the ending balance is $9,253. **Bank Statement****Beginning Balance**: $0**Deposits**:- A. $8,500- D. $1,200**Total Deposits**: $9,700**Checks**:- Check 101: $650- Check 102: $550- Check 103: $180- Check 106: $457**Bank Service Charges**: $100**Total Checks and Charges**: $1,937**Ending Balance**: $7,763

Prepare the journal entries in the journal for all the 10 Points Date Particulars Debit Credit 1 Bank A/c..Dr $ 8,500 To Capital A/c $ 8,500 ( Being capital invested in the Business ) 2 Rent Expense A/c..Dr $ 650 To Bank A/c $ 650 ( Being Rent paid with Check #101 ) 3 Petty Cash A/c.. Dr $ 550 To Bank A/c $ 550 ( Being Initiated a petty cash fund $550 check #102 ) 4 Cash A/c..Dr $ 750 To Services Rendered(Revenue)A/c $ 750 ( Being cash received for services rendered ) 5 Office Supplies A/c.. Dr $ 180 To Bank A/c $ 180 ( Being office supplie Purchased for $180 with check #103) 6 Computer Equipment A/c..Dr $ 8,500 To Bank A/c $ 1,600 To Account Payable A/c $ 6,900 ( Being computer equipment $8,500, paid $1,600 with check #104) 7 Cash A/c..Dr $ 1,200 To Services Rendered(Revenue)A/c $ 1,200 ( Being cash received for services rendered ) 8 Wages Expense A/c..Dr $ 560 To Bank A/c $ 560 ( Being Rent paid with Check #105 ) 9 Office Supplies A/c..Dr $ 200 Maintenance Expense A/c..Dr $ 140 Miscellaneous Expense A/c..Dr $ 65 Cash on hand A/c..Dr $ 93 To Petty Cash A/c $ 498 ( Being Petty Cash Reimbursment ) 10 Petty Cash A/c.. Dr $ 100 To Bank A/c $ 100 ( Being Initiated a petty cash fund $550 check #107 )

Answered: Inner Resources Company started its…

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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PA11. LO 8.6Inner Resources Company received the following bank statement. Using the information from Exercise 8.5 and Exercise 8.6, prepare the bank reconciliation.

8.5

Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1.

The owners invested $8,500 from their personal account to the business account.
Paid rent $650 with check #101.
Initiated a petty cash fund $550 check #102.
Received $750 cash for services rendered.
Purchased office supplies for $180 with check #103.
Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days.
Received $1,200 cash for services rendered.
Paid wages $560, check #105.
Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106.
Increased Petty Cash by $100, check #107.

### Bank Statement Overview

#### Starting Balance
- **Beginning Balance:** $0

#### Transactions

**Deposits:**
- A: $10,000
- D: $1,000
- **Total Deposits:** $11,000

**Checks:**
- Check 101: $500
- Check 102: $500
- Check 103: $158
- Check 106: $489

**Additional Charges:**
- Bank Service Charges: $100

#### Final Calculations
- **Total Deductions (Checks + Service Charges):** $1,747
- **Ending Balance:** $9,253

This bank statement starts with a zero balance and reflects a series of deposits totaling $11,000. Various checks are drawn totaling $1,647, and bank service charges add an additional $100 to the deductions. After accounting for these transactions, the ending balance is $9,253.

**Bank Statement**

**Beginning Balance**: $0

**Deposits**:
- A. $8,500
- D. $1,200

**Total Deposits**: $9,700

**Checks**:
- Check 101: $650
- Check 102: $550
- Check 103: $180
- Check 106: $457

**Bank Service Charges**: $100

**Total Checks and Charges**: $1,937

**Ending Balance**: $7,763

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