The following information is available for the Gucci Company for the month of December a. The December 31 cash balance according to the accounting records is $1,610 and the bank statement shows a balance of $1,900. b. Outstanding checks at December 31 include check #6273 in the amount of $400, check #6282 in the amount of $100 and check #6242 in the amount of $200. c. A credit memo included with the bank statement indicates that the bank collected $500 on a noninterest-bearing note receivable for Gucci. The bank deducted a $30 collection fee, and credited the remainder of $470 to Gucci’s account. d. The bank statement shows a $150 charge for a $140 NSF check plus a $10 NSF charge. The check had been received from a customer, J. Brown. This has not yet been recorded by the company. e. A deposit placed in the bank’s night depository on December 31 totaled $800, and did not appear on the bank statement. f. Examination of the checks on the bank statement with the entries in the accounting records reveals that check #6267 for the payment of office supplies was correctly written for $340, but was recorded in the accounting records as $430. g. Included with the bank statement was a debit memorandum in the amount of $20 for the banks monthly service charge. It has not been recorded on the company’s books. Directions: Based on the above information, prepare the December bank reconciliation for the Gucci Company. Prepare the journal entries to correct the cash balance in the general ledger. The form follows the bank reconciliation form. When finished with both parts, upload the documents to this problem.
The following information is available for the Gucci Company for the month of December
a. The December 31 cash balance according to the accounting records is $1,610 and the bank statement shows a balance of $1,900.
b. Outstanding checks at December 31 include check #6273 in the amount of $400, check #6282 in the amount of $100 and check #6242 in the amount of $200.
c. A credit memo included with the bank statement indicates that the bank collected $500 on a noninterest-bearing note receivable for Gucci. The bank deducted a $30 collection fee, and credited the remainder of $470 to Gucci’s account.
d. The bank statement shows a $150 charge for a $140 NSF check plus a $10 NSF charge. The check had been received from a customer, J. Brown. This has not yet been recorded by the company.
e. A deposit placed in the bank’s night depository on December 31 totaled $800, and did not appear on the bank statement.
f. Examination of the checks on the bank statement with the entries in the accounting records reveals that check #6267 for the payment of office supplies was correctly written for $340, but was recorded in the accounting records as $430.
g. Included with the bank statement was a debit memorandum in the amount of $20 for the banks monthly service charge. It has not been recorded on the company’s books.
Directions:
- Based on the above information, prepare the December bank reconciliation for the Gucci Company.
- Prepare the
journal entries to correct the cash balance in the general ledger. The form follows the bank reconciliation form. - When finished with both parts, upload the documents to this problem.
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