shown is the information needed to prepare a bank reconciliation for Warren Electric at December 31.At December 31, cash per the bank statement was $15,200; cash per the company’s records was $17,500Two debit memoranda accompanied the bank statement: service charges for December of $25, $775 check drawn by Jane Jones marked NSFCash receipts of $10,000 on December 31 were not deposited in January 4.The following checks had been issued in December but were not included among the paid checks returned by the bank: no 620 for $1,000, no 641 for $4,500a.Prepare a bank reconciliation at December 31.b.Prepare the necessary journal entry or entries to updates the account records.c.Assume that company normally is not required to pay a bank service charge if it maintains a minimum average daily balance of $1,000 throughout the month. If the company’s average daily balance for December had been $8,000, why did it have to pay a $25 service charge?

Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

Answered: shown is the information needed to…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

See similar textbooks

Related questions

Concept explainers

Question

shown is the information needed to prepare a bank reconciliation for Warren Electric at December 31.

At December 31, cash per the bank statement was $15,200; cash per the company’s records was $17,500
Two debit memoranda accompanied the bank statement: service charges for December of $25, $775 check drawn by Jane Jones marked NSF
Cash receipts of $10,000 on December 31 were not deposited in January 4.
The following checks had been issued in December but were not included among the paid checks returned by the bank: no 620 for $1,000, no 641 for $4,500

a.Prepare a bank reconciliation at December 31.

b.Prepare the necessary journal entry or entries to updates the account records.

c.Assume that company normally is not required to pay a bank service charge if it maintains a minimum average daily balance of $1,000 throughout the month. If the company’s average daily balance for December had been $8,000, why did it have to pay a $25 service charge?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions