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 after adjusted entries have been made

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 after adjusted entries have been made

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7: Accounting For Cash

Section: Chapter Questions

Problem 4CE

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Question

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 after adjusted entries have been made.

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