Part I At 31 December 2021, the balance of the Cash account according to the records of Bowen Company ("BC") was $39,744. The bank statement showed a balance of $36,920 as at 31 December 2021. Prepare the bank reconciliation of BC at 31 December 2021, using the following information: There were no outstanding checks and deposit in transit at the end of 30 November 2021. (1) The deposit shown in the bank statement was $28,000 while the accounting records of BC showed the total deposit made in December was $35,900. (2) The following checks issued by BC were still outstanding: Check no. 601, $2003; no. 602, S1,000; no. 605, $641. (3) A note receivable for $4,550 (included an interest of $450) was directly credited to BC's account by the bank. (4) A bank service charge shown in the bank statement was $100. (5) A check for $650 drawn by a customer, Alex Chow, was deducted from BC's account by the bank and returned with the notation "NSF". (6) BC's check no. 599 issued in payment of $7,565 to purchase supplies but erroneously recorded in BC's accounting records as $7,000.

Part I At 31 December 2021, the balance of the Cash account according to the records of Bowen Company ("BC") was $39,744. The bank statement showed a balance of $36,920 as at 31 December 2021. Prepare the bank reconciliation of BC at 31 December 2021, using the following information: There were no outstanding checks and deposit in transit at the end of 30 November 2021. (1) The deposit shown in the bank statement was $28,000 while the accounting records of BC showed the total deposit made in December was $35,900. (2) The following checks issued by BC were still outstanding: Check no. 601, $2003; no. 602, S1,000; no. 605, $641. (3) A note receivable for $4,550 (included an interest of $450) was directly credited to BC's account by the bank. (4) A bank service charge shown in the bank statement was $100. (5) A check for $650 drawn by a customer, Alex Chow, was deducted from BC's account by the bank and returned with the notation "NSF". (6) BC's check no. 599 issued in payment of $7,565 to purchase supplies but erroneously recorded in BC's accounting records as $7,000.

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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