Provide Correct Answer with Option THE FOLLOWING INFORMATION IS NEEDED TO RECONCILE THE CASHBALANCE FOR BAKER'S DRY CLEANING, INC.A DEPOSIT OF $5,700 IS IN TRANSIT.OUTSTANDING CHECKS TOTAL $1,300.THE BOOK BALANCE IS $6,400 AT FEBRUARY 28, 2017.THE BOOKKEEPER RECORDED A $1,500 CHECK AS $17,300 IN PAYMENT OFTHE CURRENT MONTH'S RENT.THE BANK BALANCE AT FEBRUARY 28, 2017, WAS $16,930.A DEPOSIT OF $300 WAS CREDITED BY THE BANK FOR $3,000.A CUSTOMER'S CHECK FOR $3,500 WAS RETURNED FOR NON-SUFFICIENTFUNDS.THE BANK SERVICE CHARGE IS $70.WHAT WAS THE ADJUSTED BOOK BALANCE?A. $18,630B. $18,770C. $17,000D. $18,700

To find the adjusted book balance, we need to make the necessary adjustments to the book balance…

Answered: THE FOLLOWING INFORMATION IS NEEDED TO…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 18E

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(Bank Reconciliation and Adjusting Entries) The cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2017. The bank statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash records, the following facts were determined.1. There were bank service charges for June of $25.2. A bank memo stated that Bao Dai’s note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.50 on the collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the bank for collection.)3. Receipts for June 30 for $3,390 were not deposited until July 2.4. Checks outstanding on June 30 totaled $2,136.05.5. The bank had charged the Aguilar Co.’s account for a customer’s uncollectible check amounting to $253.20 on June 29.6. A customer’s check for $90 (as payment on the customer’s Accounts Receivable) had been entered as $60 in the cash receipts journal by Aguilar on June 15.7. Check…
The following information is needed to reconcile the cash balance for Discount Dry Cleaning, Inc. *A deposit of $5,700 is in transit. * Outstanding checks total $1,000. * The book balance is $6,400 at February 28, 2025. The bookkeeper recorded a $1,500 check as $17,100 in payment of the current month's rent. * The bank balance at February 28, 2025 was $18,410. * A deposit of $500 was credited by the bank for $5,000. * A customer's check for $3,300 was returned for nonsufficient funds. * The bank service charge is $90. What was the adjusted book balance? A. $18,500 B. $18,610 C. $18,700 D. $18,790
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The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: A. Checks outstanding totaled $6,440. B. A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement. C. The bank had collected for Brentwood Bike Co. $5,250 on a note left for collection. The face of the note was $5,000. D. A check for $390 returned with the statement had been incorrectly charged by the bank as $930. E. A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an obligation to Adkins Co. on account. F. Bank service charges for May amounted to $30. G. A check for $1,325…
The cash account for Kahn Inc. on November 30, 2018, indicated a balance of $5,699. The bank statement indicated a balance of $13,167 on November 30, 2018. The following reconciling items were discovered.Checks outstanding totaled $5,175. A deposit of $3,842, representing cash receipts of November 30, had been made too late to appear on the bank statement. The bank had collected for Kahn $4,800 on a note left for collection. The face of the note was $4,200. Kahn had recorded a check for $2,040 as a $2,400. The check was for the payment of a 3-year insurance policy. A check for $1,176 had been incorrectly charged by the bank as $176. Bank service charges for November amounted to $25. Required: Prepare the bank reconciliation and journalize the necessary entries.
The Cash account of ReeseCorporation had a balance of $3,540 at October 31, 2018. Included were outstanding checkstotaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement.The bank statement, which came from Turnstone State Bank, listed an October 31 balance of$5,570. Included in the bank balance was an October 30 collection of $600 on account froma customer who pays the bank directly. The bank statement also showed a $30 service charge,$10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50.Prepare a bank reconciliation to determine how much cash Reese actually had at October 31.
On May 31, 2017, Reber Company had a cash balance per books of $7,051.50. The bank statement from New York State Bank on that date showed a balance of $6,674.60. A comparison of the statement with the cash account revealed the following facts. 1. The statement included a debit memo of $50.00 for the printing of additional company checks. 2. Cash sales of $632.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $682.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $882.25. Deposits in transit were $2,686.15. 4. On May 18, the company issued check No. 1181 for $692 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $629. 5. A $3,270.00 note receivable was collected by the bank for Reber Company on May 31 plus $90.00 interest. The bank charged a collection fee of $30.00. No…
The following information is needed to reconcile the cash balance for Monique Company.• A deposit of $5,800 is in transit.• Outstanding checks total $1,500.• The book balance is $9,800 at February 28, 2018.• The bookkeeper recorded a $1,740 check as $17,400 in payment of the current month's rent.• The bank balance at February 28, 2018 was $21,000.• A deposit of $400 was credited by the bank for $4,000.• A customer's check for $3,700 was returned for nonsufficient funds.• The bank service charge is $60.Based on this information, prepare a bank reconciliation for Monique Company as of February 28, 2018.
Kingbird, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1 August deposits Checks cleared in August Bank credit memorandum: $18,770 Bank debit memorandum: 71,370 Safety deposit box fee $ 105 68,598 Service charge Balance, August 31 125 130 21,432 Interest earned A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,070; receipts $74,370; disbursements $73,49o; and balance, August 31, $19,950. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,880 and outstanding checks of $4,580. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. Determine deposits in transit. Deposits in transit SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: APPLIED SKILLS Determine outstanding…
The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5,794.62 is in transit.• Outstanding checks total $1,533.25.• The book balance is $5,695.62.• The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month'srent.• The bank balance at February 28, 2008, was $16,500.25.• A deposit of $300 was credited by the bank for $3,000.• A customer's check for $1,280 was returned for nonsufficient funds.• The bank service charge is $70. Required:Prepare company’s adjusted cash book and bank reconciliation for February 2013.
The Cash account of Reese Corporation had a balance of $3,540 at October 31, 2018. Included were outstanding checks totaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement. The bank statement, which came from Turnstone State Bank, listed an October 31 balance of $5,570. Included in the bank balance was an October 30 collection of $600 on account from a customer who pays the bank directly. The bank statement also showed a $30 service charge, $10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50. Read the requirement. Prepare a bank reconciliation to determine how much cash Reese actually had at October 31. (Indlude the balances at October 31 in each of the addition subtotal calculations.) Reese Corp. Bank Reconcillation October 31, 2018 Bank Books Balance, October 31 Balance, October 31 Add: Add: Subtotal Subtotal Less: Less: Adjusted bank balance Adjusted book balance Reese has cash of at October 31.
The Cash account of Reese Corporation had a balance of $3,540 at October 31, 2018. Included were outstanding checks totaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement. The bank statement, which came from Turnstone State Bank, listed an October 31 balance of $5,570. Included in the bank balance was an October 30 collection of $600 on account from a customer who pays the bank directly. The bank statement also showed a $30 service charge, $10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50. Reese Corporation's bank reconciliation follows. Reese Corp. Bank Reconciliation October 31, 2018 Bank Books Balance, October 31 $5,570 Balance, October 31 $3,540 Add: Add: Deposit in transit 300 Bank collection 600 5,870 Interest revenue 10…

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