Outstanding cheques were # 421 for $157, #485 for $257, # 492 for $167, and #494 for $1,157.Cheque #421 was also outstanding on July 31 and was included on July's bank reconciliation. 1. 2. Included with the statement were EFT deposits totalling $1,727 during August in payment of accounts receivable. These deposits have not been recorded by the company. 3. Cheque #490 was correctly written and paid by the bank for $206. The cheque had been issued to pay accounts payable and the company had recorded it as $266. 4. The bank statement showed a cheque #4832 for $787, which did not appear on the company's books. Investigation revealed that the cheque was actually issued by Wally's Water Works and was charged to Sunland's Sweet Shop's account in error. 5. The bank returned an NSF cheque from a customer for $377. 6. The bank statement showed two debit memoranda for service charges: one for $17 related to the NSF cheque (see item [5] above) and one for $37 for cheque printing charges. The company's policy is to pass on all NSF processing fees to the customer. The company's records showed the August 15 deposit as $4,69O. On the bank statement, it was correctly recorded as $4,990. The deposit was for cash sales. 7. 8. The company has a pre-authorized EFT payment for its monthly utilities for $237 scheduled for the last day of each month. As August 31 was a Sunday this year, the bank posted it on September 1. The company recorded it in August. 9. The $1,347 July 31 bank deposit was recorded on August 1 on the bank statement. The August 31 bank deposit of $2,522 was not included on the August bank statement. Prepare a bank reconciliation. (List items that increase balance as per bank & books first.)
Outstanding cheques were # 421 for $157, #485 for $257, # 492 for $167, and #494 for $1,157.Cheque #421 was also outstanding on July 31 and was included on July's bank reconciliation. 1. 2. Included with the statement were EFT deposits totalling $1,727 during August in payment of accounts receivable. These deposits have not been recorded by the company. 3. Cheque #490 was correctly written and paid by the bank for $206. The cheque had been issued to pay accounts payable and the company had recorded it as $266. 4. The bank statement showed a cheque #4832 for $787, which did not appear on the company's books. Investigation revealed that the cheque was actually issued by Wally's Water Works and was charged to Sunland's Sweet Shop's account in error. 5. The bank returned an NSF cheque from a customer for $377. 6. The bank statement showed two debit memoranda for service charges: one for $17 related to the NSF cheque (see item [5] above) and one for $37 for cheque printing charges. The company's policy is to pass on all NSF processing fees to the customer. The company's records showed the August 15 deposit as $4,69O. On the bank statement, it was correctly recorded as $4,990. The deposit was for cash sales. 7. 8. The company has a pre-authorized EFT payment for its monthly utilities for $237 scheduled for the last day of each month. As August 31 was a Sunday this year, the bank posted it on September 1. The company recorded it in August. 9. The $1,347 July 31 bank deposit was recorded on August 1 on the bank statement. The August 31 bank deposit of $2,522 was not included on the August bank statement. Prepare a bank reconciliation. (List items that increase balance as per bank & books first.)
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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Question
Transcribed Image Text:Prepare any necessary adjusting journal entries. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter "O" for the amounts.)
Date Account Titles and Explanation
Debit
Credit
Aug. 31
(To correct error and record cash receipts)
Aug. 31
(To record NSF cheque & bank charge expense)
What amount should be reported as cash on the August 31 balance sheet?
Cash balance on the August 31, 2021
$
%24
>
![Sunland's Sweet Shop's August 31 bank balance was $11,127. The company's cash balance at August 31 was $10,805. Other
information follows:
Outstanding cheques were #421 for $157, #485 for $257, #492 for $167, and #494 for $1,157. Cheque #421 was also
outstanding on July 31 and was included on July's bank reconciliation.
1.
Included with the statement were EFT deposits totalling $1,727 during August in payment of accounts receivable. These
deposits have not been recorded by the company.
2.
Cheque #490 was correctly written and paid by the bank for $206. The cheque had been issued to pay accounts payable and
the company had recorded it as $266.
3.
4.
The bank statement showed a cheque #4832 for $787, which did not appear on the company's books. Investigation revealed
that the cheque was actually issued by Wally's Water Works and was charged to Sunland's Sweet Shop's account in error.
5.
The bank returned an NSF cheque from a customer for $377.
The bank statement showed two debit memoranda for service charges: one for $17 related to the NSF cheque (see item [5]
above) and one for $37 for cheque printing charges. The company's policy is to pass on all NSF processing fees to the
6.
customer.
7.
The company's records showed the August 15 deposit as $4,690. On the bank statement, it was correctly recorded as $4,990.
The deposit was for cash sales.
The company has a pre-authorized EFT payment for its monthly utilities for $237 scheduled for the last day of each month. As
August 31 was a Sunday this year, the bank posted it on September 1. The company recorded it in August.
8.
The $1,347 July 31 bank deposit was recorded on August 1 on the bank statement. The August 31 bank deposit of $2,522
was not included on the August bank statement.
9.
Prepars a bank reconciliation. (List items that increase balance as per bank & books first.)
SUNLAND'S SWEET SHOP
Bank Reconciliation
August 31
%24
>
>
>
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>
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F844593fc-9050-486c-b149-796c31a85772%2Ff89637c5-9998-462a-b19f-d173f8c6475b%2Fm7qqu8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sunland's Sweet Shop's August 31 bank balance was $11,127. The company's cash balance at August 31 was $10,805. Other
information follows:
Outstanding cheques were #421 for $157, #485 for $257, #492 for $167, and #494 for $1,157. Cheque #421 was also
outstanding on July 31 and was included on July's bank reconciliation.
1.
Included with the statement were EFT deposits totalling $1,727 during August in payment of accounts receivable. These
deposits have not been recorded by the company.
2.
Cheque #490 was correctly written and paid by the bank for $206. The cheque had been issued to pay accounts payable and
the company had recorded it as $266.
3.
4.
The bank statement showed a cheque #4832 for $787, which did not appear on the company's books. Investigation revealed
that the cheque was actually issued by Wally's Water Works and was charged to Sunland's Sweet Shop's account in error.
5.
The bank returned an NSF cheque from a customer for $377.
The bank statement showed two debit memoranda for service charges: one for $17 related to the NSF cheque (see item [5]
above) and one for $37 for cheque printing charges. The company's policy is to pass on all NSF processing fees to the
6.
customer.
7.
The company's records showed the August 15 deposit as $4,690. On the bank statement, it was correctly recorded as $4,990.
The deposit was for cash sales.
The company has a pre-authorized EFT payment for its monthly utilities for $237 scheduled for the last day of each month. As
August 31 was a Sunday this year, the bank posted it on September 1. The company recorded it in August.
8.
The $1,347 July 31 bank deposit was recorded on August 1 on the bank statement. The August 31 bank deposit of $2,522
was not included on the August bank statement.
9.
Prepars a bank reconciliation. (List items that increase balance as per bank & books first.)
SUNLAND'S SWEET SHOP
Bank Reconciliation
August 31
%24
>
>
>
<>
>
>
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