The May 31 balance per bank statement was $18,000. The cash balance per books was $22,250. Outstanding checks amounted to $2,700, and deposits in transit were $5,400. The bank statement contained an NSF check for $1,100, a service charge for $40, and a debit memo for direct payment of the telephone bill of $410. Required: a. Prepare a bank reconciliation to determine the true cash balance at May 31. b. Indicate how each of the required adjusting entries Impact the financial statements. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Indicate how each of the required adjusting entries impact the financial statements. Note: Leave cells blank if no input is needed. Enter any decreases to account balances and cash outflows with a minus sign. Outstanding checks Deposits in transit Item NSF check from a customer Bank service charge Debit memo for payment of telephone bill Cash Assets Balance Sheet Accounts Receivables Liabilities Stockholders' Equity < Required 1 Revenue Income Statement - Required 2 > Expenses = - Net Income Statement of Cash Flows

The May 31 balance per bank statement was $18,000. The cash balance per books was $22,250. Outstanding checks amounted to $2,700, and deposits in transit were $5,400. The bank statement contained an NSF check for $1,100, a service charge for $40, and a debit memo for direct payment of the telephone bill of $410. Required: a. Prepare a bank reconciliation to determine the true cash balance at May 31. b. Indicate how each of the required adjusting entries Impact the financial statements. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Indicate how each of the required adjusting entries impact the financial statements. Note: Leave cells blank if no input is needed. Enter any decreases to account balances and cash outflows with a minus sign. Outstanding checks Deposits in transit Item NSF check from a customer Bank service charge Debit memo for payment of telephone bill Cash Assets Balance Sheet Accounts Receivables Liabilities Stockholders' Equity < Required 1 Revenue Income Statement - Required 2 > Expenses = - Net Income Statement of Cash Flows

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using the following information, prepare the journal entries to reconcile the bank statement. Bank balance: $6,988 Book balance: $8,923 Deposits in transit: $1,875 Outstanding checks: $569 and $1,423 Bank service charges: $75 Bank incorrectly charged the account $75. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $123 but posted in the accounting records as $213. This check was expensed to Utilities Expense. If an amount box does not require an entry, leave it blank.
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Refer to the Information given below: a. The August 31 balance shown on the bank statement is $9,050. b. There is a deposit in transit of $1,300 at August 31. c. Outstanding checks at August 31 totaled $1,620. d. Interest credited to the account during August but not recorded on the company's books amounted to $68. e. A bank charge of $44 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $142 had been recorded as a disbursement of $412 g. The August 31 balance in the general ledger Cash account, before reconciliation, is $8,436. Required: Prepare a bank reconciliation as of August 31 from the above Information. Balance per bank Add: Deduct: Reconciled balance Bank Reconciliation August 31 Balance per books Add: Deduct: Reconciled balance
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Using the following information, prepare a bank reconciliation. Bank balance: $6,788 Book balance: $6,228 Deposits in transit: $1,712 Outstanding checks: $569 and $1,623 Bank charges: $50 Bank incorrectly charged the account $50. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $137 but posted in the accounting records as $317. This check was expensed to Utilities Expense. Bank Reconciliation Bank Statement Balance at (date) Add: Less: Adjusted Bank Balance Book Balance at (date) Add: Less: Adjusted Book Balance
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