On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157. Notes The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement. A service charge of $8 and a debit memorandum of $280 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.) The following checks were issued but have not yet been paid by the bank: Check 712, $ 102 Check 713, $ 117 Check 716, $ 230 Check 736, $ 569 Check 739, $ 70 Check 741, $ 112 A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records. Required: Prepare a bank reconciliation statement for the firm as of August 31. Prepare a bank reconciliation statement for the firm as of August 31. Prepare a bank reconciliation statement for the firm as of August 31. DRY CREEK BED AND BREAKFAST Bank Reconciliation Statement August 31, 20X1 Balance on bank statement Additions: Deductions for outstanding checks: Total deductions Adjusted bank balance Balance in books Additions: Deductions: Adjusted book balance
On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157. Notes The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement. A service charge of $8 and a debit memorandum of $280 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.) The following checks were issued but have not yet been paid by the bank: Check 712, $ 102 Check 713, $ 117 Check 716, $ 230 Check 736, $ 569 Check 739, $ 70 Check 741, $ 112 A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records. Required: Prepare a bank reconciliation statement for the firm as of August 31. Prepare a bank reconciliation statement for the firm as of August 31. Prepare a bank reconciliation statement for the firm as of August 31. DRY CREEK BED AND BREAKFAST Bank Reconciliation Statement August 31, 20X1 Balance on bank statement Additions: Deductions for outstanding checks: Total deductions Adjusted bank balance Balance in books Additions: Deductions: Adjusted book balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157.
Notes
- The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement.
- A service charge of $8 and a debit memorandum of $280 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)
- The following checks were issued but have not yet been paid by the bank:
Check 712, | $ | 102 | |
Check 713, | $ | 117 | |
Check 716, | $ | 230 | |
Check 736, | $ | 569 | |
Check 739, | $ | 70 | |
Check 741, | $ | 112 | |
- A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records.
Required:
- Prepare a
bank reconciliation statement for the firm as of August 31.
Prepare a bank reconciliation statement for the firm as of August 31.
|
Prepare a bank reconciliation statement for the firm as of August 31.
|
|
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