ne 30, 201g, Roddick Company had a cash balance in its general ledger of $11,595. The company's bank statenment from Bank One showed a June 30 balance of $12,540. The following facts have come to your attention: a. Roddick's June 30 deposit of $2,500 was not included on the bank statement because it was dropped in the night depository after bank hours on June 30. b. The bank's general service charge for the month was $40. c. The bank collected a note receivable of $2,000 for Roddick Company along with an additional $58 for interest. The bank deducted a $10 fee for this service. Roddick Company had not accrued any interest on the note. d. Roddick's baokkeeper erroneousiy recorded a payment to Federer Company for $892 as $829. The check cleared the bank for the correct amount of $892. OR Ais MAiNt. e. Roddick's outstanding checks at June 30 totaled $1,500. Requirements 1. Prepare a bank reconciliation as of Jupe 30.

ne 30, 201g, Roddick Company had a cash balance in its general ledger of $11,595. The company's bank statenment from Bank One showed a June 30 balance of $12,540. The following facts have come to your attention: a. Roddick's June 30 deposit of $2,500 was not included on the bank statement because it was dropped in the night depository after bank hours on June 30. b. The bank's general service charge for the month was $40. c. The bank collected a note receivable of $2,000 for Roddick Company along with an additional $58 for interest. The bank deducted a $10 fee for this service. Roddick Company had not accrued any interest on the note. d. Roddick's baokkeeper erroneousiy recorded a payment to Federer Company for $892 as $829. The check cleared the bank for the correct amount of $892. OR Ais MAiNt. e. Roddick's outstanding checks at June 30 totaled $1,500. Requirements 1. Prepare a bank reconciliation as of Jupe 30.

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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The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company’s records at August 31, $42,920. Cash balance according to the bank statement at August 31, $56,300. Checks outstanding, $25,390. Deposit in transit not recorded by bank, $13,325. A check for $150 in payment of an account was erroneously recorded in the check register as $1,500. Bank debit memo for service charges, $35. Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash. If an amount box does not require an entry, leave it blank.
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The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $93,115. The bank statement indicated a balance of $125,800 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $30,080. b. A deposit of $19,240, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $24,075 on a $2,500 note, including interest of $1,575. d. A check for $1,800 returned with the statement had been incorrectly recorded by Pala Medical Co. as $180. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $390 had been erroneously charged by the bank as $930. f. Bank service charges for June amounted to $50. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for…
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