Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 4, Problem 18CE
Cornerstone Exercise 4-18
A customer of Mutare paid for merchandise originally purchased on account with a check that has been erroneously entered into Mutare’s cash account for $570 (it actually has been issued and paid for $750).
Required:
Record the appropriate
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Knowledge Check 01
The company's bank reconciliation at June 30 included interest earned in the amount of $150. Complete the necessary
journal entry by selecting the account names and dollar amounts from the drop-down menus.
View transaction list
Journal entry worksheet
<
1
The company's bank reconciliation at June 30 included interest earned in the
amount of $150. Complete the necessary journal entry by selecting the
account names and dollar amounts from the drop-down menus.
Note: Enter debits before credits.
Date
June 01
FRAN
FA
O
General Journal
< Prev
144
19
► 11
Debit
of 19
H
Credit
Next
+
prt sc
←
delete
backspac
Current Attempt in Progress
Identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank
reconciliation.
1.
2
3.
4.
5.
EFT transfer to a supplier.
Bank service charge.
Check printing charge.
Error recording check # 214 which was written for $260 but recorded for $620.
Collection of note and interest by the bank on the company's behalf.
6, 7,
A bank reconciliation for October 31 follows.
Bank statement balance
Add:
Deposit in transit
Deduct:
Outstanding checks
Adjusted bank balance
View transaction list
<
1
2
Note: Enter debits before credits.
Date
October 31
Bank Reconciliation
October 31
Journal entry worksheet
Cash
$ 6,482
3
291
6,773
79
$ 6,694
Prepare the necessary journal entries based on the bank reconciliation.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Book balance
Add:
4
Collection of a note
Interest earned
Deduct:
NSF check
Bank service charges
Adjusted book balance
Record the $400 collection of a note receivable by the bank on our behalf.
Saved
General Journal
$ 400
64
Debit
63
61
$ 6,354
Credit
464
6,818
124
$6,694
Chapter 4 Solutions
Cornerstones of Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - Prob. 22DQCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Which of the following is not one of the five...Ch. 4 - Prob. 4MCQCh. 4 - The internal audit function is part of what...Ch. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Which one of the following would not appear on a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 14MCQCh. 4 - Prob. 15MCQCh. 4 - Prob. 16CECh. 4 - Prob. 17CECh. 4 - Cornerstone Exercise 4-18 Adjusting Entry from...Ch. 4 - Prob. 19CECh. 4 - Prob. 20CECh. 4 - Cornerstone Exercise 4-21 Cash Over and Short On a...Ch. 4 - Cornerstone Exercise 4-22 Cash Over and Short...Ch. 4 - Prob. 23CECh. 4 - Prob. 24CECh. 4 - Prob. 25BECh. 4 - Prob. 26BECh. 4 - Prob. 27BECh. 4 - Prob. 28BECh. 4 - Prob. 29BECh. 4 - Prob. 30BECh. 4 - Prob. 31BECh. 4 - Prob. 32BECh. 4 - Prob. 33BECh. 4 - Prob. 34BECh. 4 - Prob. 35BECh. 4 - Prob. 36BECh. 4 - Prob. 37BECh. 4 - Prob. 38BECh. 4 - Prob. 39ECh. 4 - Prob. 40ECh. 4 - Prob. 41ECh. 4 - Prob. 42ECh. 4 - Miller Enterprises deposits the cash received...Ch. 4 - Prob. 44ECh. 4 - Prob. 45ECh. 4 - Prob. 46ECh. 4 - Prob. 47ECh. 4 - Hawk Enterprises identified the following items on...Ch. 4 - Prob. 49ECh. 4 - Prob. 50ECh. 4 - Prob. 51ECh. 4 - Prob. 52ECh. 4 - Prob. 53ECh. 4 - Exercise 4-54 Operating Cycle and Current...Ch. 4 - Prob. 55APSACh. 4 - Prob. 56APSACh. 4 - Prob. 57APSACh. 4 - Prob. 58APSACh. 4 - Prob. 59APSACh. 4 - Prob. 60APSACh. 4 - Prob. 61APSACh. 4 - Prob. 55BPSBCh. 4 - Prob. 56BPSBCh. 4 - Prob. 57BPSBCh. 4 - Prob. 58BPSBCh. 4 - Prob. 59BPSBCh. 4 - Prob. 60BPSBCh. 4 - Prob. 61BPSBCh. 4 - Prob. 62.1CCh. 4 - Prob. 62.2CCh. 4 - Prob. 62.3CCh. 4 - Prob. 62.4CCh. 4 - Prob. 63.1CCh. 4 - Prob. 63.2CCh. 4 - Prob. 64.1CCh. 4 - Prob. 64.2CCh. 4 - Prob. 65CCh. 4 - Prob. 66.1CCh. 4 - Prob. 66.2CCh. 4 - Prob. 67.1CCh. 4 - Prob. 67.2CCh. 4 - Prob. 68.1CCh. 4 - Prob. 68.2CCh. 4 - Prob. 68.3CCh. 4 - Prob. 68.4CCh. 4 - Prob. 69.1CCh. 4 - Prob. 69.2CCh. 4 - Prob. 69.3CCh. 4 - Prob. 69.4CCh. 4 - Case 4-70 CONTINUING PROBLEM: FRONT ROW...Ch. 4 - Prob. 70.2CCh. 4 - Prob. 70.3CCh. 4 - Prob. 70.4C
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- Questions and Bank Reconciliation Problem Question 26 of 27 50 / 100 View Policies Show Attempt History Current Attempt in Progress The following information pertains to Concord Corporation. 1. Cash balance per bank, July 31, $7,763. 2. July bank service charge not recorded by the depositor $37. 3. Cash balance per books, July 31, $7,784. 4. Deposits in transit, July 31, $1,750. 5. The bank collected $1,166 in July for Concord through electronic funds transfer. The collection has not been recorded by Concord. 6. Outstanding checks, July 31, $600. (a) Your answer is correct. Drena o o rOcenciliotionat luly 21 (List itoms th ease coch halance fret Docencile ca halo IIarrow_forwardHills Company's June 30 bank statement and the June ledger account for cash are summarized here: Withdrawals Deposits Other Balance, June 1 Deposits during June Cheques cleared during June Bank service charges Balance, June 30 Balance $ 9,100 35,080 4,580 4,360 4,360 $25,980 $30,500 $ 220 Cash (A) June 1 Balance 8,700 28,500 June Deposits 30,580 Cheques written June June 30 Balance 6,620 Requlred: 1. Prepare a bank reconciliation. A comparison of the cheques written with the cheques that have cleared the bank shows outstanding cheques of $480. Some of the cheques that cleared in June were written prior to June. No deposits in transit were noted in May, but a deposit is in transit at the end of June. HILLS COMPANY Bank Reconciliation June 30 Bank statement Company's books Ending balance per bank statement 6,620 Ending balance per cash account Additions: Additions: 8,620 Deductions: Deductions: Up-to-date cash ba ance 8.620Up-to-date cash ba ance Prev 1 of 2 Next >arrow_forwardItems on company bank statement: 1. Bank correction of an error from posting another customers check(disbursement) to the company account 2. EFT deposit 3. Loan proceeds 4. NSF. Using the following format indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company account.arrow_forward
- The adjusting entries for a bank reconciliation Select the correct response: May include a debit to office expense for bank service charge. May include a credit to accounts receivable for an NSF customer check. Are taken from the "balance per bank" section only. May include a debit to accounts payable for an NSF customer check.arrow_forwardKnowledge Check 01 The company's bank reconciliation at June 30 included interest earned in the amount of $150. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus. View transaction list Journal entry worksheet > W +arrow_forwardWhich of the following items on a bank reconciliation would require an adjusting journal entry on the company's books? Multiple Choice An error by the bank. Outstanding cheques. A bank service charge. A deposit in transit. Prev 36 of 50 Next >arrow_forward
- CANDY'S CLEANING SERVICES Bank Reconciliation April 30, 2020 $33,452 Book balance Bank balance $28,934 Add: Deduct: Interest $47 NSF, customer Bonne 412 Error Chq #93 99 146 $29,080 Outstanding cheques: Deduct: #879 $2,600 Service Charge 40 #100 1,400 4,412 Adjusted bank balance $29,040 Adjusted book balance $29,040 In comparing the bank reconciliation to the Cash account In the general ledger, you notice a problem. You investigate further and come up with some additional Informatlon as follows: a. The Cash account in the general ledger showed the followling: Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 March 31 Balance 28,934 ৪4,934 21,051 April 30 CR16 56,000 30 CD21 63,883 b. The error in cheque #93, for Utilitles Expense, resulted from the bank Incorrectly debiting our account for $99; the correct amount entered in the accounting records Is $199. c. The bank statement showed interest expense of $47; there was no other Interest. d. The bank debited our account…arrow_forward3. Prepare journal entries for items (a-(f) from the bank reconciliation. (If no entry is requlred for a transaction/event, select "No Journal Entry Requlred" In the first account fleld.) View transaction list Journal entry worksheet 3 4 5 6 > 1 2 The bank deducted $250 for an NSF check from a customer deposited on December 22. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journalarrow_forward#18arrow_forward
- If a bookkeeper mistakenly recorded a $73 deposit as $37, the error would be shown onthe bank reconciliation as aa. $36 deduction from the book balance.b. $37 addition to the book balance.c. $36 addition to the book balance.d. $37 deduction from the book balancearrow_forwardQuestion 8 Which 3 statements are correct regarding reconciling a bank account in QuickBooks Online? To begin the reconcile process, you need to enter the statement ending date and ending balance from the relevant bank statement Reconciliations must only be run at period end to estimate tax owed The primary admin can undo reconciliations Transactions added or matched in the Banking center are automatically marked tentatively cleared To view the reconciliation report, select History by account Bank accounts can be reconciled only if they are connected through bank feedsarrow_forwardDo not give image formatarrow_forward
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