On May 31, XYZ Company received the bank account statement which showed a cash balance of $960. The company's accounting records showed a cash balance of $930. Additional information related to bank account activity is given below: • Outstanding Checks: • Deposits in Transit: . Bank Service charges: $10 - Interest earned on the bank balance: $600 $590 $30 Required: (a) Prepare a bank reconciliation for the month of May. NOTE: Use a negative number if the adjustment is a subtraction. Cash balance as per Bank Statement Cash balance as pe $ $ Adjusted Cash balance as per Bank Adjusted Cash bal: (b) Prepare the journal for the following adjustments. Bank Service Charges: DATE ACCOUNT TITLES DEBIT CREDIT Мау 31 Interest Earned:

On May 31, XYZ Company received the bank account statement which showed a cash balance of $960. The company's accounting records showed a cash balance of $930. Additional information related to bank account activity is given below: • Outstanding Checks: • Deposits in Transit: . Bank Service charges: $10 - Interest earned on the bank balance: $600 $590 $30 Required: (a) Prepare a bank reconciliation for the month of May. NOTE: Use a negative number if the adjustment is a subtraction. Cash balance as per Bank Statement Cash balance as pe $ $ Adjusted Cash balance as per Bank Adjusted Cash bal: (b) Prepare the journal for the following adjustments. Bank Service Charges: DATE ACCOUNT TITLES DEBIT CREDIT Мау 31 Interest Earned:

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

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Similar questions

The bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes receivable collected by bank: $1,000; interest: $20 Outstanding checks: $569 Error by bank: $300 Bank charges: $30 Prepare the correcting journal entry.
Using the following information, prepare a bank reconciliation. Bank balance: $12,565. Book balance: $13,744. Deposits in transit: $2,509. Outstanding checks: $1,777. Bank charges: $125. Bank incorrectly charged the account for $412. The bank will correct the error next month. Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.
Using the following information, prepare a bank reconciliation. Bank balance: $4,587 Book balance: $5,577 Deposits in transit: $1,546 Outstanding checks: $956 Interest income: $56 NSF check: $456
The bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding checks: $558 Bank service charges: $50 NSF checks: $250 Prepare the correcting journal entry.
The bank reconciliation shows the following adjustments. Deposits in transit: $526 Outstanding checks: $328 Bank charges: $55 NSF checks: $69 Prepare the correcting journal entry.
Using the following information, prepare a bank reconciliation. Bank balance: $3,678 Book balance: $2,547 Deposits in transit: $321 Outstanding checks: $108 and $334 Bank charges: $25 Notes receivable: $1,000; interest: $35
The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?
Happy Tails Inc. has a September 1, 20Y4, accounts payable balance of 620, which consists of 320 due Labradore Inc. and 300 due Meow Mart Inc. Transactions related to purchases and cash payments completed by Happy Tails Inc. during the month of September 20Y4 are as follows: a. Prepare a purchases journal and a cash payments journal to record these transactions. The forms of the journals are similar to those used in the text. Place a check mark () in the Post. Ref. column to indicate when the accounts payable subsidiary ledger should be posted. Happy Tails Inc. uses the following accounts: b. Prepare a listing of accounts payable creditor balances on September 30, 20Y4. Verify that the total of the accounts payable creditor balances equals the balance of the accounts payable controlling account on September 30, 20Y4. c. Why does Happy Tails Inc. use a subsidiary ledger for accounts payable?