Roper Electronics received its bank statement for the month of August with an ending balance of $11,775. Roper determined that Check No. 613 for $155 and Check No. 601 for $420 were both outstanding. A $6,900 deposit for August 30 was in transit as of the end of the month. Northern Regional Bank also collected $5,250 on a note receivable, which included interest of $250. The bank statement reveals a bank service charge of $20. A customer check for $68 was returned with the bank statement marked “NSF.” The ending balance of the Roper cash account is $12,938.   Question Content Area a. Prepare a bank reconciliation as of August 31.   Cash balance according to bank statement   Add bank service chargeAdd collection feeAdd deposit in transitDeduct collection feeDeduct deposit in transit   Deduct outstanding checks:   No. 600No. 601No. 603No. 604No. 605   No. 611No. 612No. 613No. 614No. 615   Adjusted balance   Cash balance according to Roper Electronics   Add deposit in transitAdd note and interest collected by bankAdd outstanding checksDeduct note and interest collected by bankDeduct outstanding checks   Add deposit in transitAdd bank service chargeAdd check returned because of insufficient fundsDeduct check returned because of insufficient fundsDeduct deposit in transit   Add bank service chargeAdd deposit in transitAdd check returned because of insufficient fundsDeduct bank service chargeDeduct deposit in transit   Adjusted balance   Question Content Area b. Journalize any necessary entries based on the bank reconciliation. If an amount box does not require an entry, leave it blank.   Aug. 31 CashInterest RevenueNotes ReceivablePetty CashSales   Bank Service Charge ExpenseCashNotes PayableNotes ReceivablePetty Cash   Bank Service Charge ExpenseCashCash Short and OverInterest ExpenseInterest Revenue   Aug. 31 CashCash Short and OverMiscellaneous ExpensePetty CashSales   CashCash Short and OverAccounts PayableAccounts ReceivablePetty Cash   Accounts PayableAccounts ReceivableCashCash Short and OverMiscellaneous Expense

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Roper Electronics received its bank statement for the month of August with an ending balance of $11,775. Roper determined that Check No. 613 for $155 and Check No. 601 for $420 were both outstanding. A $6,900 deposit for August 30 was in transit as of the end of the month. Northern Regional Bank also collected $5,250 on a note receivable, which included interest of $250. The bank statement reveals a bank service charge of $20. A customer check for $68 was returned with the bank statement marked “NSF.” The ending balance of the Roper cash account is $12,938.

 

Question Content Area

a. Prepare a bank reconciliation as of August 31.

 

Cash balance according to bank statement  

Add bank service chargeAdd collection feeAdd deposit in transitDeduct collection feeDeduct deposit in transit  

Deduct outstanding checks:  

No. 600No. 601No. 603No. 604No. 605  

No. 611No. 612No. 613No. 614No. 615  

Adjusted balance  

Cash balance according to Roper Electronics  

Add deposit in transitAdd note and interest collected by bankAdd outstanding checksDeduct note and interest collected by bankDeduct outstanding checks  

Add deposit in transitAdd bank service chargeAdd check returned because of insufficient fundsDeduct check returned because of insufficient fundsDeduct deposit in transit  

Add bank service chargeAdd deposit in transitAdd check returned because of insufficient fundsDeduct bank service chargeDeduct deposit in transit  

Adjusted balance  

Question Content Area

b. Journalize any necessary entries based on the bank reconciliation. If an amount box does not require an entry, leave it blank.

 

Aug. 31 CashInterest RevenueNotes ReceivablePetty CashSales  

Bank Service Charge ExpenseCashNotes PayableNotes ReceivablePetty Cash  

Bank Service Charge ExpenseCashCash Short and OverInterest ExpenseInterest Revenue  

Aug. 31 CashCash Short and OverMiscellaneous ExpensePetty CashSales  

CashCash Short and OverAccounts PayableAccounts ReceivablePetty Cash  

Accounts PayableAccounts ReceivableCashCash Short and OverMiscellaneous Expense

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