Peay Company needs help preparing their bank reconciliation. The cash t-account on October 31, 2018 shows a balance of 3,815. The bank statement on October 31, 2018 shows a balance of 18,450. Further analysis reveals the following: a. Checks outstanding total 9,845. b. A deposit of 4,165 on October 31st was made too late in the day to appear on the bank statement. c. The bank collected a total of 9,310 for Peay as Accounts Receivable (customers paying on account). d. The bank paid phone bills for Peay in the amount of 275. e. The bank statement showed a NSF check for 80. Customer plans to pay in cash later this week.
Peay Company needs help preparing their bank reconciliation. The cash t-account on October 31, 2018 shows a balance of 3,815. The bank statement on October 31, 2018 shows a balance of 18,450. Further analysis reveals the following: a. Checks outstanding total 9,845. b. A deposit of 4,165 on October 31st was made too late in the day to appear on the bank statement. c. The bank collected a total of 9,310 for Peay as Accounts Receivable (customers paying on account). d. The bank paid phone bills for Peay in the amount of 275. e. The bank statement showed a NSF check for 80. Customer plans to pay in cash later this week.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Problem 1: Bank Reconciliation for Peay Company**
Peay Company needs help preparing their bank reconciliation.
- The cash t-account on October 31, 2018, shows a balance of 3,815.
- The bank statement on October 31, 2018, shows a balance of 18,450.
Further analysis reveals the following:
a. Checks outstanding total 9,845.
b. A deposit of 4,165 on October 31st was made too late in the day to appear on the bank statement.
c. The bank collected a total of 9,310 for Peay as Accounts Receivable (customers paying on account).
d. The bank paid phone bills for Peay in the amount of 275.
e. The bank statement showed a NSF check for 80. Customer plans to pay in cash later this week.
**Label every number used.**
**Prepare the bank reconciliation needed on October 31.**
- **Bank Side:**
- **Company Side:**
**Write out journal entries needed on October 31:**
a.
b.
c.
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