Kingbird, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1 August deposits Checks cleared in August Bank credit memorandum: $18,770 Bank debit memorandum: 71,370 Safety deposit box fee $ 105 68,598 Service charge Balance, August 31 125 130 21,432 Interest earned A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,070; receipts $74,370; disbursements $73,49o; and balance, August 31, $19,950. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,880 and outstanding checks of $4,580. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. Determine deposits in transit. Deposits in transit SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLS Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) Outstanding checks 2$ Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) KINGBIRD, INC. Bank Reconciliation $ SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLS Journalize the adjusting entries to be made by Kingbird, Inc. at August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 31 (To record Interest earned) Aug. 31 (To correct error in recording check) Aug. 31 (To record service charge and safety deposit box fee)
Kingbird, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1 August deposits Checks cleared in August Bank credit memorandum: $18,770 Bank debit memorandum: 71,370 Safety deposit box fee $ 105 68,598 Service charge Balance, August 31 125 130 21,432 Interest earned A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,070; receipts $74,370; disbursements $73,49o; and balance, August 31, $19,950. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,880 and outstanding checks of $4,580. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. Determine deposits in transit. Deposits in transit SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLS Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) Outstanding checks 2$ Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) KINGBIRD, INC. Bank Reconciliation $ SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLS Journalize the adjusting entries to be made by Kingbird, Inc. at August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 31 (To record Interest earned) Aug. 31 (To correct error in recording check) Aug. 31 (To record service charge and safety deposit box fee)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Kingbird, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information.
Balance, August 1
August deposits
Checks cleared in August
Bank credit memorandum:
$18,770 Bank debit memorandum:
71,370 Safety deposit box fee
$ 105
68,598 Service charge
Balance, August 31
125
130
21,432
Interest earned
A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,070; receipts $74,370; disbursements $73,49o; and balance, August 31, $19,950. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in
transit for $4,880 and outstanding checks of $4,580. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40.
Determine deposits in transit.
Deposits in transit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
VIDEO: APPLIED SKILLS
Determine outstanding checks. (Hint: You need to correct disbursements for the check error.)
Outstanding checks
2$
Transcribed Image Text:Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.)
KINGBIRD, INC.
Bank Reconciliation
$
SHOW LIST OF ACCOUNTS
LINK TO TEXT
VIDEO: APPLIED SKILLS
Journalize the adjusting entries to be made by Kingbird, Inc. at August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Aug. 31
(To record Interest earned)
Aug. 31
(To correct error in recording check)
Aug. 31
(To record service charge and safety deposit box fee)
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