
Concept explainers
Concept Introduction:
Bank Reconciliation:
Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares
Requirement-1:
To Prepare:
The Bank reconciliation Statement.

Answer to Problem 31BE
The Bank reconciliation Statement is as follows:
Zing Corp. | |||||||||
Bank Reconciliation Statement | |||||||||
As of April 30, 2020 | |||||||||
Bank Side | Book Side | ||||||||
Balance as per Bank statement | $ 74,350 | Balance as per | $ 72,329 | ||||||
Add: | Add: | ||||||||
Deposit in transit | $ 2,100 | Collection of Note and interest | $ 3,090 | ||||||
Interest Earned | $140 | ||||||||
Check Error | $ 36 | $ 3,266 | |||||||
Less: | Less: | ||||||||
Outstanding Checks | $ 1,400 | NSF Check | $470 | ||||||
Bank Service Charges | $ 75 | $ 545 | |||||||
Reconciled Balance | $ 75,050 | Reconciled Balance | $ 75,050 |
Explanation of Solution
The Bank reconciliation Statement is explained as follows:
Zing Corp. | |||||||||
Bank Reconciliation Statement | |||||||||
As of April 30, 2020 | |||||||||
Bank Side | Book Side | ||||||||
Balance as per Bank statement | $ 74,350 | Balance as per Cash Book | $ 72,329 | ||||||
Add: | Add: | ||||||||
Deposit in transit | $ 2,100 | Collection of Note and interest | $ 3,090 | ||||||
Interest Earned | $140 | ||||||||
Check Error (773-737) | $ 36 | $ 3,266 | |||||||
Less: | Less: | ||||||||
Outstanding Checks | $ 1,400 | NSF Check | $470 | ||||||
Bank Service Charges | $ 75 | $ 545 | |||||||
Reconciled Balance | $ 75,050 | Reconciled Balance | $ 75,050 |
Concept Introduction:
Bank Reconciliation:
Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side
Requirement-2:
To Prepare:
The necessary

Answer to Problem 31BE
The necessary adjusting entries are as follows:
Zing Corp. | ||||
Bank Reconciliation | ||||
Date | Accounts titles and Explanation | Debit | Credit | |
Apr. 30 | Cash | $ 3,090 | ||
Interest Receivable | $ 90 | |||
Notes Receivable | $ 3,000 | |||
Apr. 30 | Cash | $140 | ||
Interest Income | $140 | |||
Apr. 30 | Cash | $ 36 | ||
Accounts Payable | $ 36 | |||
Apr. 30 | $470 | |||
Cash | $470 | |||
Apr. 30 | Bank Charges | $ 75 | ||
Cash | $ 75 |
Explanation of Solution
The necessary adjusting entries are explained as follows:
Zing Corp. | ||||
Bank Reconciliation | ||||
Journal Entries | ||||
Date | Accounts titles and Explanation | Debit | Credit | |
Apr. 30 | Cash | $ 3,090 | ||
Interest Receivable | $ 90 | |||
Notes Receivable | $ 3,000 | |||
(Being note collected by bank) | ||||
Apr. 30 | Cash | $140 | ||
Interest Income | $140 | |||
(Being interest earned on bank account) | ||||
Apr. 30 | Cash | $ 36 | ||
Accounts Payable | $ 36 | |||
(Being adjustment made for error in Check) | ||||
Apr. 30 | Accounts Receivable | $470 | ||
Cash | $470 | |||
(Being adjustment made for NSF check) | ||||
Apr. 30 | Bank Charges | $ 75 | ||
Cash | $ 75 | |||
(Being adjustment made for Bank Charges) |
Want to see more full solutions like this?
Chapter 4 Solutions
Cornerstones of Financial Accounting - With CengageNow
- ABF's metal spare parts manufacturing company uses the customised production method by attributing the GST to the products it produces with the help of predetermined attribution coefficients. The processing of metal parts is carried out in two production departments: the Cutting and Drilling department, and the Assembly department. The GIS attribution coefficients for the two departments are based on the operating hours of machines and the cost of direct work respectively. At the beginning of the year, the following budgets were implemented: Cutting and Drilling Department Assembly Department Direct Labor Costs (in euros) 1.320.000 2.000.000 G.B.E. (in euros) 4.800.000 2.400.000 Machinery Operating Hours 80.000 5.000 Direct Work Hours 27.000 12.000 Requested: To calculate the coefficient of attribution of the General Secretariat that will be used in each department. (4 units) To determine the production cost per unit for order 158 which…arrow_forwardPLEASE HELP. I HAVE PROVIDED THE DROPDOWN OPTIONSarrow_forwardThe difference between the balance in a company's cash account and its bank statement is documented in the __________ of the bank statement.arrow_forward
- Large corporations should report revenues on their income statements when the __________. Cash Is Received Revenues Are Earnedarrow_forwardPLEASE HELP WITH THIS PROBLEMarrow_forwardThe KLM Medical Clinic has two auxiliary departments: the Building Maintenance Department and the Energy Production Department as well as three main production departments: the Department of Paediatrics, the Department of Internal Medicine and the Department of Surgery. The CLM allocates the cost of the building maintenance department based on the area occupied by the departments in square meters and the cost of the energy department based on the days of hospitalization of patients. No distinction is made between variable and fixed cost elements. The budgeted operating figures for the previous year were as follows: Auxiliary sections Main production departments Building maintenance Energy production Pediatrics Department of Internal Medicine Surgical Estimated cost before allocation 18.000,00 8.000,00 80.000,00 50.000,00 90.000,00 Area (in sq.m) 1.000,00 4.000,00 6.000,00 18.000,00 12.000,00 Patient Hospitalization…arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
- Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College




