prepare a bank reconciliation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following includes transactions necessary to prepare a bank reconciliation.
The following additional information must also be considered:
- Check #5454 was written in June but did not clear the bank until July 2. There were no other outstanding checks, and no deposits in transit at the end of June.
- The EFT (electronic funds transfer) on July 11 relates to the monthly utility bill; the Tackle Shop has authorized the utility to draft its account directly each month.
- The Tackle Shop is optimistic that they will recover the full amount, including the service charge, on the NSF check that was given to them during the month.
- The bank collected a $5,000 note for The Tackle Shop, plus 9% interest ($5,450).
- The Tackle Shop's credit card clearing company remitted funds on July 25; the Tackle Shop received an email notification of this posting and simultaneously journalized this cash receipt in the accounting records.
- The Tackle Shop made the deposit of $3,565.93 late in the day on July 31, 20X3.
- The ending cash balance, per the company general ledger, was $47,535.30.
![**Bank Account Transactions**
This table details the various bank transactions over a specific period, providing a comprehensive overview of checks and deposits and their effects on the account balance.
### Table Columns
1. **Date**: The day when the transaction took place.
2. **Party**: The name or description associated with the transaction.
3. **Ref #**: The reference number for each transaction.
4. **Check**: The amount of money withdrawn via a check.
5. **Deposit**: The amount of money added to the account.
6. **Balance**: The account balance after the transaction.
### Detailed Breakdown
- **Opening Balance** on 07-01-X3: $42,087.80
- **Transactions from 07-01-X3 to 07-31-X3**:
- **Withdrawals via checks** include amounts such as $245.00, $11,998.20, and $2,779.59.
- **Deposits** include a notable amount on 07-09-X3 of $12,994.36 and another on 07-17-X3 of $8,855.10.
- There is a recurring deposit amount on 07-31-X3 of $3,565.93.
### Final Balances
- **Total Checks**: $23,877.54
- **Total Deposits**: $29,325.04
- **Final Balance** on 07-31-X3: $47,535.30
### Additional Insights
- The account experiences significant fluctuations due to large checks and deposits, typical in active accounts with business or extensive personal transactions.
- Patterns in transactions might reflect regular business activities or periodic payments and receipts.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf68fe84-9abd-4512-810d-f8430ebdaf65%2Fa879bc57-834e-4f3e-99f6-ec6c83e0f38e%2F0p6z23j_processed.png&w=3840&q=75)
Transcribed Image Text:**Bank Account Transactions**
This table details the various bank transactions over a specific period, providing a comprehensive overview of checks and deposits and their effects on the account balance.
### Table Columns
1. **Date**: The day when the transaction took place.
2. **Party**: The name or description associated with the transaction.
3. **Ref #**: The reference number for each transaction.
4. **Check**: The amount of money withdrawn via a check.
5. **Deposit**: The amount of money added to the account.
6. **Balance**: The account balance after the transaction.
### Detailed Breakdown
- **Opening Balance** on 07-01-X3: $42,087.80
- **Transactions from 07-01-X3 to 07-31-X3**:
- **Withdrawals via checks** include amounts such as $245.00, $11,998.20, and $2,779.59.
- **Deposits** include a notable amount on 07-09-X3 of $12,994.36 and another on 07-17-X3 of $8,855.10.
- There is a recurring deposit amount on 07-31-X3 of $3,565.93.
### Final Balances
- **Total Checks**: $23,877.54
- **Total Deposits**: $29,325.04
- **Final Balance** on 07-31-X3: $47,535.30
### Additional Insights
- The account experiences significant fluctuations due to large checks and deposits, typical in active accounts with business or extensive personal transactions.
- Patterns in transactions might reflect regular business activities or periodic payments and receipts.
![**Lake City National Bank Statement Overview**
**Institution Details:**
- **Name:** Lake City National Bank
- **Address:** 212 Golden Street, P.O. Box 6458, Lake City, XX 12345
**Statement Period:**
- **From:** July 1, 20X3
- **To:** July 31, 20X3
**Customer Details:**
- **Statement For:** The Tackle Shack
- **Address:** 445 Main Street, Lake City, XX 12345
- **Account #:** 76-7888-0987
**Checking Summary:**
- **Previous Statement Balance (06-30-X3):** $46,543.89
- **Total of 4 Deposits:** $31,209.11
- **Total of 16 Withdrawals:** -$27,077.77
- **Interest Earnings:** $119.34
- **Service Charges:** -$55.00
- **New Balance:** $50,739.57
---
**Checks and Other Debits:**
| Check | Date Paid | Amount | Check | Date Paid | Amount |
|---------|-----------|-----------|---------|-----------|-----------|
| 5454 | 2-Jul | 4,456.09 | *5465* | 16-Jul | 85.58 |
| *5457* | 3-Jul | 245.00 | 5466 | 19-Jul | 1,199.19 |
| 5458 | 3-Jul | 12.34 | 5467 | 23-Jul | 76.14 |
| 5459 | 10-Jul | 66.14 | 5468 | 23-Jul | 375.62 |
| 5460 | 5-Jul | 11,998.20 | 5469 | 30-Jul | 2,779.59 |
| 5461 | 9-Jul | 3,000.00 | 5470 | 27-Jul | 9.31 |
| *5463* | 16-Jul | 2,119.44 | *5472* | 31-Jul | 109.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf68fe84-9abd-4512-810d-f8430ebdaf65%2Fa879bc57-834e-4f3e-99f6-ec6c83e0f38e%2F7dlqwl8_processed.png&w=3840&q=75)
Transcribed Image Text:**Lake City National Bank Statement Overview**
**Institution Details:**
- **Name:** Lake City National Bank
- **Address:** 212 Golden Street, P.O. Box 6458, Lake City, XX 12345
**Statement Period:**
- **From:** July 1, 20X3
- **To:** July 31, 20X3
**Customer Details:**
- **Statement For:** The Tackle Shack
- **Address:** 445 Main Street, Lake City, XX 12345
- **Account #:** 76-7888-0987
**Checking Summary:**
- **Previous Statement Balance (06-30-X3):** $46,543.89
- **Total of 4 Deposits:** $31,209.11
- **Total of 16 Withdrawals:** -$27,077.77
- **Interest Earnings:** $119.34
- **Service Charges:** -$55.00
- **New Balance:** $50,739.57
---
**Checks and Other Debits:**
| Check | Date Paid | Amount | Check | Date Paid | Amount |
|---------|-----------|-----------|---------|-----------|-----------|
| 5454 | 2-Jul | 4,456.09 | *5465* | 16-Jul | 85.58 |
| *5457* | 3-Jul | 245.00 | 5466 | 19-Jul | 1,199.19 |
| 5458 | 3-Jul | 12.34 | 5467 | 23-Jul | 76.14 |
| 5459 | 10-Jul | 66.14 | 5468 | 23-Jul | 375.62 |
| 5460 | 5-Jul | 11,998.20 | 5469 | 30-Jul | 2,779.59 |
| 5461 | 9-Jul | 3,000.00 | 5470 | 27-Jul | 9.31 |
| *5463* | 16-Jul | 2,119.44 | *5472* | 31-Jul | 109.00
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