Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Chapter 5, Problem 1R
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Haverman Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.
Per Books
Per Bank
Balance, July 1
$17,600
$16,800
July receipts
81,400
July credits
82,470
July disbursements
77,150
July debits
74,756
Balance, July 31
$21,850
$24,514
Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $3,470 for the collection of a $3,400 note plus interest revenue of $70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printer additional company checks.
You also discover the following errors involving July checks: (1) A check for $230 to a creditor on an account that cleared the bank in July was journalized and posted as $320. (2) A salary check to an…
On October 1, Jessica Clay received her bank statement showing a balance of $374.52.Her checkbook records indicate a balance of $338.97. There was a service charge for themonth of $4.40 on the statement. The outstanding checks were for $47.10, $110.15, $19.80,and $64.10. The deposits in transit totaled $125.50. There was a $75.70 debit for automaticpayment of her telephone bill. Use the following form to reconcile Jessica's checking account.Debits Checks OutstandingAmount AmountSvc. Chg.Total TotalCHECKBOOK BALANCE STATEMENT BALANCEAdd: Interest & Other Credits Add: Deposits in TransitSUB TOTAL SUB TOTALDeduct: Service Charges & Other Debits Deduct: Outstanding ChecksADJUSTED CHECK BOOK BALANCE ADJUSTED STATEMENT BALANCE
The book balance in the checking account of Kyri Enterprises as of November 30 is $2,964. The bank statement shows an ending balance of $2,525. The following information is discovered by (1) comparing last month’s deposits in transit and outstanding checks with this month’s bank statement, (2) comparing deposits and checks written per books and per bank in the current month, and (3) noting service charges and other debit and credit memos shown on the bank statement.
Deposits in transit:
11/29
$125
11/30
200
Outstanding checks:
No. 322
17
No. 324
105
No. 327
54
Unrecorded ATM withdrawal:*
100
Bank service charge:
25
NSF check:
185
Error on Check No. 321
Checkbook shows it was for $64, but it was actually written for $44. Accounts Payable was debited.
*Funds were withdrawn by Susan Kyri for personal use.
Kyri Enterprises
Bank Reconciliation
November 30, 20--
1
Bank statement balance, November 30
2…
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Excel Applications for Accounting Principles
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- Dottie's Yarn Shop deposits all receipts in the bank and makes all payments by check. On July 31 the cash account had a balance of $5,537.43. The bank statement on July 31 reported a balance of $4,319.80. Upon comparing the bank statement to the books, the following items were found. a. A bank debit memo issued for $16.25 for bank service charges. b. A bank credit memo issued for interest of $8.50 earned during the month. During the evening of July 30, a deposit of $1,305.62 was made, which is not shown on the bank statement. A bank debit memo issued for an NSF check from a customer of $19.02. C. d. ITEM e. Checks for the amounts of $87.50, $11.00, and $16.26 were written during July but have not yet been received by the bank. Required: 1. Prepare a bank reconciliation as of July 31. Dottie's Yarn Shop Bank Reconciliation Statement July 31, 20xx GENERAL JOURNAL ENTRY REQUIRED? (Yes or No) yes yes no yes noarrow_forwardA review of the March 30 bank statement and other data of Sheridan Aviation revealed a $18,484 balance at March 31 on the bank statement and $18,158 as the balance in the cash account in the company’s ledger. In addition, the following information was determined: 1. NSF Check from J. Beiber in payment of account $196 2. Collection of a customer electronic payment by the bank $2,508. 3. Deposits in transit at March 31 $3,322. 4. Outstanding checks at March 31 $1,987. 5. A check written by Sheridan to Copytronics for a copy machine repair on March 13 was recorded at $1,320 but correctly cleared the bank at $1,230. 6. A check drawn on the account of Halen Electronics for $741 was mistakenly charged against Sheridan’s account by the bank. (a) As of March 31, prepare the bank reconciliation for the month of March (omit heading)arrow_forwardFor the month of July, Adam Company had the following information: bank service charge for July, P16,500, “NSF” check, P40,000. Upon review of its records, Adam determined the following: deposit in transit P143,000, outstanding checks P110,000 and an unrecorded customer check of P38,500. If the cash in bank balance per ledger is P920,000, how much is the adjusted balance?arrow_forward
- On November 3, Micah Asuncion received from the bank her bank statement for the month of October. She compared her checkbook to the bank statement and discovered the following: Prepare a bank reconciliation. CHECKBOOK Balance P333,203.50 Balance P369,725.56 Deposits: Deposits: 10/3 P59,600.00 10/3 P59,600.00 10/10 P53,740.00 10/10 P53,700.00 10/26 P27,610.00 10/16 P46,030.00 10/31 P30,260.00 10/26 P27,610.00 Check Issued and Recorded: Checks Cancelled: No.3 P14,435.00 No.5 P38,206.00 No.5 P38,026.00 No.16 P17,300.00 No.16…arrow_forwardAs on October 31, the city cleaners have available the following data concerning its bank checking account:1. On October 31, cash as per the bank statement was $37,758; but as per company’s record /cash book, the amount was $ 42,500.2. The cash receipt of $ 6,244 on October 31, were deposited on Nov.01.3. Included in the bank statement was a credit for $ 167 interest earned on the checking account during October.4. Two checks were outstanding at October 31: No.921 for $ 964 and No. 925 for $ 1,0855. Enclosed with the bank statement were two debit memoranda for the following item:i). service charges for October, $ 14; and ii). $700 check received from a customer Zahid , subsequently sent to Bank but it was marked as NSF.Required: Prepare bank reconciliation at October 31 and adjusting entries based on the bank reconciliation adjustments.arrow_forwardBeeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30, 20Y2, have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account. Refer to the June Bank Statement (2nd attached image) Required: 1. Prepare a bank reconciliation as of June 30, 20Y2. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. Round your answers to two decimal places. For those boxes in which you must enter subtracted or negative…arrow_forward
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