Gray Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque.After all the posting for the month of August 2020 was completed, the cash balance in the general ledger accountat the end of the month was $10,475. The bank statement for the month end received from the First National Bankshowed the balance to be $18,000. The following data are available for the purpose of reconciling these balances:a. Cash receipts collected on August 31 amounting to $3,000 have been placed in the night depository anddo not appear on the bank statement.b. Bank memos previously not available to the company are included with the bank statement. A memo foran NSF cheque, originally received as payment for an account receivable of $3,000, is included. A memofor bank charges of $75 for the NSF cheque is also included. Another memo advises the company that$2,000 Note Receivable has been collected by the bank, ($1,950 deposit and a bank charge of $50). Thisrepresents the net proceeds of a collection the bank had made on behalf of the company on a $2,000note receivable.c. Cheques written during the month but not included with the bank statement are no. 1200, $1,500; no.1223, $2,000; no. 1260, $950; no. 1294, $3,500.d. Cheque no. 1222 is returned with the bank statement. The cheque was made for $6,500, the correctamount owing for office expense. The cheque was recorded in the company records in the amount of$5,600.e. Cheques outstanding at the end of July included cheques no. 1114 for $1,600 and no. 1116 for $1,250.Cheque no. 1116 cleared the August bank statement; cheque no. 1114 did not.Required:1. Prepare a bank reconciliation at August 31.2. Prepare the necessary adjusting journal entries required to make the cash account in the general ledgeragree with the adjusted cash balance on the July bank reconciliation.

Bank Reconciliation Statement is an account prepared to match the balances as per firm's cash book…

Required: 1. Prepare a bank reconciliation at August 31. 2. Prepare the necessary adjusting journal entries required to make the cash account in the general ledger agree with the adjusted cash balance on the July bank reconciliation.

Required: 1. Prepare a bank reconciliation at August 31. 2. Prepare the necessary adjusting journal entries required to make the cash account in the general ledger agree with the adjusted cash balance on the July bank reconciliation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31, $17,410. 2. Cash balance according to the bank statement at July 31, $18,430. 3. Checks outstanding, $3,530. 4. Deposit in transit, not recorded by bank, $2,840. 5. A check for $590 in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $30. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge. a. July 31 Cash |X Accounts Payable b. July 31 Miscellaneous Expense Feedback Cash Check My Work Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, decrease Cash. If the company made an error that understates cash in the company section, the journal adjustment woul
In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information: Cash balance per company books on April 30 Deposits in transit at month-end Outstanding checks at month-end Bank charge Note collected by bank on Donahue's behalf A check paid to Donahue during the month by a customer is returned by the bank as NSF The adjusted cash balance per the books on April 30 is: $6,275 $1,300 $ 620 $ 45 $770 $ 480
Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2019 indicated the following: The correct amount of check #7853 is $797. It was recorded as a cash disbursement of $779 bymistake. The check was issued to pay for merchandise purchases. The check appeared on thebank statement correctly.Required:1. Prepare a bank reconciliation schedule at February 28, 2019, in proper form.2. What is the amount of cash that should be reported on the February 28, 2019 balance sheet?
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation.
AUDIT TASK Make sure that the cash balance per bank shown on the bank reconciliation is verified by the bank Analyze the gross profit percentage with respect to previous period(s) and industry data Verify that the client has deeds or other proof of ownership for land and other plant assets Compare checks written in the weeks following the end of the fiscal period to amounts in accounts payable at period-end Consider payroll cost and expenses (in total and as a percentage of sales) for this period compared to prior period(s) Test the sales journal to establish that sales transactions actually took place and are reported in the proper period Compare the number of days' sales in accounts receivable (average collection period) from this period to prior period(s) Obtain an aged schedule of accounts receivable from period-end and verify the aging of the balances RELEVANT ASSERTION(S) Existence / Occurrence Completeness Cutoff Valuation & Allocation Rights & Obligation AUDIT EVIDENCE Physical…
Required:1. Prepare a bank reconciliation as of February 28.2. Prepare adjusting entries for Valentine based on the information developed in the bank reconciliation.3. What is the amount of cash that should be reported on the February 28 balance sheet?
Use the following bank statement and T-account to prepare any journal entries needed as a result of the May 31 bank recor no entry Is requlred for a transactlon/event, select "No Journal Entry Requlred" In the first account fleld.) BANK STATEMENT
Part 1: 1. Identify and list the deposits in transit at the end of December. 2. Identify and list the outstanding checks at the end of December. Part 2: Prepare a bank reconciliation for December. Part 3: 1. Record the interest of $60 received from the bank. 2. Record the service charges of $130 deducted by the bank. 3. Record the return of the J. Left check of $280 due to insufficient funds 4. Record the checks outstanding at the end of the month. 5. Record the deposit in transit at the end of the month. Part 4: After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? If the company also has $280, of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet?
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. Note: Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable. ItemBank BalanceBook BalanceDebit or Credit to Cash AccountShown or Not Shown on Reconciliation1. The company made a month-end accrual for expired insurance coverage. 2. Checks written and mailed to payees on October 2. 3. Night deposit made on September 30 after the bank closed. 4. Checks outstanding on August 31 that cleared the bank in September. 5. Bank service charge for September is not yet recorded by the company. 6. NSF check from a customer is shown on the bank statement but not yet recorded by the company. 7. Bank fees for check printing are not yet recorded by the…
When journal entries for items in the Ledger Balance of Cash section of the bank reconciliation are made, the additions are: a.credited to the Capital account. b.debited to the Capital account. c.debited to the Cash account. d.credited to the Cash account.
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. (Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable.)
INS The following information relating to the bank checking account is available for Wild Bill's Texas Barbeque at May 31. EXERCISE 7-7 Another Short Bank Reconcil- latlon Balance per bank statement at May 31 Outstanding checks Deposit in transit.. Service charge by bank... Interest credited by the bank....... $9,740.15 3,352.70 1,106.30 Balance per depositor's accounting records at May 31 10.00 43.10 INSTRUCTIONS Prepare a bank reconciliation at May 31. 7,460.65