The December cash records of Kirk’s Hardware follow: Cash Receipts Cash Payments Date Cash Debit Cheque # Cash Credit 4-Dec $ 4,170 1416 $ 860 9-Dec 510 1417 130 14-Dec 530 1418 650 17-Dec 2,180 1419 1,490 31-Dec 1,850 1420 1,440 1421 900 1422 630 Kirk’s Cash account shows a balance of $16,740 at December 31. On December 31, Kirk Hardware received the following bank statement: Bank Statement for December 2020 Beginning balance Deposits and other credits: $ 13,600 1-Dec EFT $ 300 5-Dec 4,170 10-Dec 510 15-Dec 530 18-Dec 2,180 22-Dec BC 1,400 9,090 Cheques and other debits: 8-Dec NFS $ 1,000 11-Dec 860 19-Dec EFT 700 22-Dec 130 29-Dec 650 31-Dec 1,940 31-Dec SC 60 (5,340) Ending balance $ 17,350 Additional data for the bank reconciliation follows: The EFT credit was a receipt of rent. The EFT debit was an insurance payment for December. The NSF check was received from a customer. The $1,400 bank collection was for a note receivable. The correct amount of check 1419 for rent expense is $1,940. Kirk’s controller mistakenly recorded the check for $1,490. Prepare the bank reconciliation statement for Kirk’s Hardware at December 31, 2020.
The December cash records of Kirk’s Hardware follow:
|
Cash Receipts |
Cash Payments |
|||
|
Date |
Cash Debit |
Cheque # |
Cash Credit |
|
|
4-Dec |
$ 4,170 |
1416 |
$ 860 |
|
|
9-Dec |
510 |
1417 |
130 |
|
|
14-Dec |
530 |
1418 |
650 |
|
|
17-Dec |
2,180 |
1419 |
1,490 |
|
|
31-Dec |
1,850 |
1420 |
1,440 |
|
|
1421 |
900 |
|||
|
1422 |
630 |
|||
Kirk’s Cash account shows a balance of $16,740 at December 31. On
December 31, Kirk Hardware received the following bank statement:
|
Bank Statement for December 2020 |
||||
|
Beginning balance |
Deposits and other credits: |
$ 13,600 |
||
|
1-Dec |
EFT |
$ 300 |
||
|
5-Dec |
4,170 |
|||
|
10-Dec |
510 |
|||
|
15-Dec |
530 |
|||
|
18-Dec |
2,180 |
|||
|
22-Dec |
BC |
1,400 |
||
|
9,090 |
||||
|
Cheques and other debits: |
||||
|
8-Dec |
NFS |
$ 1,000 |
||
|
11-Dec |
860 |
|||
|
19-Dec |
EFT |
700 |
||
|
22-Dec |
130 |
|||
|
29-Dec |
650 |
|||
|
31-Dec |
1,940 |
|||
|
31-Dec |
SC |
60 |
||
|
(5,340) |
||||
|
Ending balance |
$ 17,350 |
Additional data for the bank reconciliation follows:
- The EFT credit was a receipt of rent. The EFT debit was an insurance payment for December.
- The NSF check was received from a customer.
- The $1,400 bank collection was for a note receivable.
- The correct amount of check 1419 for rent expense is $1,940. Kirk’s controller mistakenly recorded the check for $1,490.
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