P9. The following information is available for Delta Company as of April 30, 2014 GENERAL LEDGER ADJUSTED BOOK BALANCE APRIL 30: $149,473.28 Cash on books as of April 30 amounted to $114,175.28. Cash on the Bank statement for the same date was $141,717.08. A deposit of $14,249, representing cash receipts of April 30, did not appear on the bank statement. Outstanding checks totaled $7,293.64. A check for $2,420.00 returned with the statement was recorded as $2,024.00. The check was for advertising. The bank service charge for April amounted to $26.00 The bank collected $36,400.00 for Delta Company on a note. The face value of the note was $36,000.00. An NSF check for $1,140.00 from a customer, Hasan Ali, was returned with the statement. The bank mistakenly deducted a check for $800.00 that was drawn by Alpha Corporation The bank reported a credit of $460.00 for interest on the average balance. REQUIRED Prepare a bank reconciliation for Delta as of April 30, 2014 Prepare the necessary entries from the reconciliation State the amount of cash that should appear on Delta’s balance sheet as of April 30. Accounting connection= why is a bank reconciliation a necessary for internal control?
P9. The following information is available for Delta Company as of April 30, 2014 GENERAL LEDGER ADJUSTED BOOK BALANCE APRIL 30: $149,473.28 Cash on books as of April 30 amounted to $114,175.28. Cash on the Bank statement for the same date was $141,717.08. A deposit of $14,249, representing cash receipts of April 30, did not appear on the bank statement. Outstanding checks totaled $7,293.64. A check for $2,420.00 returned with the statement was recorded as $2,024.00. The check was for advertising. The bank service charge for April amounted to $26.00 The bank collected $36,400.00 for Delta Company on a note. The face value of the note was $36,000.00. An NSF check for $1,140.00 from a customer, Hasan Ali, was returned with the statement. The bank mistakenly deducted a check for $800.00 that was drawn by Alpha Corporation The bank reported a credit of $460.00 for interest on the average balance. REQUIRED Prepare a bank reconciliation for Delta as of April 30, 2014 Prepare the necessary entries from the reconciliation State the amount of cash that should appear on Delta’s balance sheet as of April 30. Accounting connection= why is a bank reconciliation a necessary for internal control?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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P9. The following information is available for Delta Company as of April 30, 2014
GENERAL LEDGER ADJUSTED BOOK BALANCE APRIL 30: $149,473.28
Cash on books as of April 30 amounted to $114,175.28. Cash on the Bank statement for the same date was $141,717.08.- A deposit of $14,249, representing cash receipts of April 30, did not appear on the bank statement.
- Outstanding checks totaled $7,293.64.
- A check for $2,420.00 returned with the statement was recorded as $2,024.00. The check was for advertising.
- The bank service charge for April amounted to $26.00
- The bank collected $36,400.00 for Delta Company on a note. The face value of the note was $36,000.00.
- An NSF check for $1,140.00 from a customer, Hasan Ali, was returned with the statement.
- The bank mistakenly deducted a check for $800.00 that was drawn by Alpha Corporation
- The bank reported a credit of $460.00 for interest on the average balance.
REQUIRED
- Prepare a bank reconciliation for Delta as of April 30, 2014
- Prepare the necessary entries from the reconciliation
- State the amount of cash that should appear on Delta’s balance sheet as of April 30.
- Accounting connection= why is a bank reconciliation a necessary for internal control?
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