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When Crane Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $13,760 as at October 31. Crane's general ledger showed a cash balance of $15,637 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. 2. 3. 4. 5. 6. Bank service charges and debit and credit card processing fees for the month were $53. A cheque in the amount of $472 from one of Crane's customers that had been deposited during the last week of October was returned with the bank statement as "NSF." Cheque #3421, which was a payment for utilities expenses, had been correctly written for $705 but had been incorrectly recorded in the general ledger as $558. Crane had written and mailed out cheques with a value of $2,173 that had not yet cleared the bank account. During the month, the bank collected a $1,640 note receivable plus the outstanding interest of $148 on behalf of Crane. The interest had already been accrued by Crane. The cash receipts for October 31 amounted to $5,166 and had been deposited in the night deposit chute at the bank on the evening of October 31. These were not reflected on the bank statement for October.

When Crane Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $13,760 as at October 31. Crane's general ledger showed a cash balance of $15,637 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. 2. 3. 4. 5. 6. Bank service charges and debit and credit card processing fees for the month were $53. A cheque in the amount of $472 from one of Crane's customers that had been deposited during the last week of October was returned with the bank statement as "NSF." Cheque #3421, which was a payment for utilities expenses, had been correctly written for $705 but had been incorrectly recorded in the general ledger as $558. Crane had written and mailed out cheques with a value of $2,173 that had not yet cleared the bank account. During the month, the bank collected a $1,640 note receivable plus the outstanding interest of $148 on behalf of Crane. The interest had already been accrued by Crane. The cash receipts for October 31 amounted to $5,166 and had been deposited in the night deposit chute at the bank on the evening of October 31. These were not reflected on the bank statement for October.

FINANCIAL ACCOUNTING
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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When Crane Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $13,760 as at October 31. Crane's general ledger showed a cash balance of $15,637 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. 2. 3. 4. 5. 6. Bank service charges and debit and credit card processing fees for the month were $53. A cheque in the amount of $472 from one of Crane's customers that had been deposited during the last week of October was returned with the bank statement as "NSF." Cheque # 3421, which was a payment for utilities expenses, had been correctly written for $705 but had been incorrectly recorded in the general ledger as $558. Crane had written and mailed out cheques with a value of $2,173 that had not yet cleared the bank account. During the month, the bank collected a $1,640 note receivable plus the outstanding interest of $148 on behalf of Crane. The interest had already been accrued by Crane. Show Transcribed Text The cash receipts for October 31 amounted to $5,166 and had been deposited in the night deposit chute at the bank on the evening of October 31. These were not reflected on the bank statement for October. Cash balance per bank statement Add v Less ✓ Add Reconciled cash balance per bank Less Deposits in transit Cash balance per books Outstanding cheques Note receivable collections Interest receivable collection on note Cheque # 3421 error NSF cheque Bank service charges Reconciled cash balance per books V V 3 OGLVDCTUA $ Ĉ $ 1640 148 147 i 53 i 472 13,760 5166 18,926 -2173 i 16753 15637 1788 17425 -672 16753
Transcribed Image Text:When Crane Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $13,760 as at October 31. Crane's general ledger showed a cash balance of $15,637 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. 2. 3. 4. 5. 6. Bank service charges and debit and credit card processing fees for the month were $53. A cheque in the amount of $472 from one of Crane's customers that had been deposited during the last week of October was returned with the bank statement as "NSF." Cheque # 3421, which was a payment for utilities expenses, had been correctly written for $705 but had been incorrectly recorded in the general ledger as $558. Crane had written and mailed out cheques with a value of $2,173 that had not yet cleared the bank account. During the month, the bank collected a $1,640 note receivable plus the outstanding interest of $148 on behalf of Crane. The interest had already been accrued by Crane. Show Transcribed Text The cash receipts for October 31 amounted to $5,166 and had been deposited in the night deposit chute at the bank on the evening of October 31. These were not reflected on the bank statement for October. Cash balance per bank statement Add v Less ✓ Add Reconciled cash balance per bank Less Deposits in transit Cash balance per books Outstanding cheques Note receivable collections Interest receivable collection on note Cheque # 3421 error NSF cheque Bank service charges Reconciled cash balance per books V V 3 OGLVDCTUA $ Ĉ $ 1640 148 147 i 53 i 472 13,760 5166 18,926 -2173 i 16753 15637 1788 17425 -672 16753
Prepare any journal entries required from the reconciliation. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Oct. 31 31 31 31 Bank Indebtedness Bad Debts Expense (To record NSF cheque) (To adjust cheque #3421) (To record bank service charge) Show Transcribed Text I need answer for the 3rd picture thank you so much Debit 000 00 53 Credit 00000 53
Transcribed Image Text:Prepare any journal entries required from the reconciliation. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Oct. 31 31 31 31 Bank Indebtedness Bad Debts Expense (To record NSF cheque) (To adjust cheque #3421) (To record bank service charge) Show Transcribed Text I need answer for the 3rd picture thank you so much Debit 000 00 53 Credit 00000 53
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