College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter 6, Problem 5E
To determine
Prepare bank reconciliation for Company H, as at August 31, to compute the adjusted ledger cash balance.
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A company’s bank statement balance is $4,500 and shows a service charge of $15,interest earned of $5, and an NSF check for $300. Deposits in transit total $1,200;outstanding checks are $575. The company’s bookkeeper erroneously recorded acheck received from a customer as a $152 check when it was actually a $125 check.This created a book error of $27.(1) What is the adjusted bank balance?(2) What was the book balance of cash before the reconciliation?
On March 31, Sigment Company had a $44,547.60 checkbook balance. The bank statement showed a balance on that date of $46,574.10, and the following information on the bank statement had not been entered in the checkbook:
$24.75 Service charge
$68.85 NSF charge
A review of the company’s bank statement and checkbook showed a deposit in transit of $3,919.44 and outstanding checks as follows:
Number 234 for $281.34
Number 236 for $445.12
Number 237 for $2,901.60
Number 238 for $2,411.48
Prepare a bank reconciliation in proper format. List and total the outstanding checks at the bottom of the bank reconciliation.
TSLA Co. found that the receipt of a check from a customer was properly recorded in th
accounting records for $7,426 but improperly credited by the bank in the amount of
$4,726. When preparing that month's bank reconciliation, the company should:
Add $2,700 to the bank statement balance of cash.
Add $2,700 to the book balance of cash.
educt $2,700 from the book balance of cash
O Deduct $2,700 from the bank statement balance of cash.
Chapter 6 Solutions
College Accounting (Book Only): A Career Approach
Ch. 6 - Prob. 1QYCh. 6 - Prob. 2QYCh. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QYCh. 6 - Prob. 6QYCh. 6 - Prob. 7QYCh. 6 - Prob. 8QYCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQ
Ch. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - a. Why would a business use a Petty Cash Fund? b....Ch. 6 - Prob. 8DQCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - a. Describe the entries that have been posted to...Ch. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 1PBCh. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - Prob. 5PBCh. 6 - Prob. 1ACh. 6 - Prob. 2ACh. 6 - You work as a cashier for a service business. Some...
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- The Cash account of ReeseCorporation had a balance of $3,540 at October 31, 2018. Included were outstanding checkstotaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement.The bank statement, which came from Turnstone State Bank, listed an October 31 balance of$5,570. Included in the bank balance was an October 30 collection of $600 on account froma customer who pays the bank directly. The bank statement also showed a $30 service charge,$10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50.Prepare a bank reconciliation to determine how much cash Reese actually had at October 31.arrow_forwardFlores Company received a bank statement showing a balance of $13,000 on November 30, 20X1. During the bank reconciliation process, Flores Company's accountant noted the following bank errors: 1. A check for $153 issued by Flora, Ic., was mistakenly charged to Flores Company's account. 2. Check 2782 was written for $100 but was paid by the bank as $1,100. 3. Check 2920 for $87 was paid by the bank twice. 4. A deposit for $570 on November 22 was credited by the bank for $750. Required: Assuming outstanding checks total $2170, prepare the adjusted bank balance section of the November 30, 20X1 bank reconciliation.arrow_forward9. The August 31 bank statement of Kelvin Inc. showed a balance of P113,000. Deducted in arriving at this amount was a customer's NSF check for P2,400 that had been returned. Kelvin had received no prior notice concerning this check. In addition to the bank statement, other records showed there were deposits in transit totaling P17,200 and that outstanding checks totaled P10,800. What is the cash balance per books at August 31 (prior to adjustments)? a. P121,800 c. P117,000 d. P115,400 b. P119,400 (Adapted)arrow_forward
- Question 1 Marvel Ltd. 's accountant is preparing the bank reconciliation at 31 December 2020. The December bank statement showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Date Amount 12-4 S1,640.70 1,300.00 2,130.00 3,080.00 685.00 $2,530.20 1,211.60 2,365.10 836.15 3475 12-1 12-8 3476 3477 12-4 12-10 12-8 12-15 3479 12-16 12-27 3480 12-21 2,954.00 2,567.30 2,836.00 1,025.00 12-30 3482 475.50 12-26 12-29 3483 1,140.00 12-29 12-31 5800* 600.00 12-30 3485 *See note 3 below 12-31 540.80 The cash records per books for August showed the followings. Cash Payments Journal Amount $1,640.70 1,300.00 2,130.00 3,080.00 658.00 Date 12-1 Number 3475 Date 12-20 Number 3482 Amount 475.50 12-2 3476 12-22 3483 1,140.00 540.80 12-2 3477 12-24 3485 12-8 3479 12-30 3486 256.25 12-10 3480 Cash Receipts Journal Amount $2,530.20 1,211.60 2,365.10 Date 12-1 12-3 12-7 12-15 886.15 12-20 2,954.00 2,567.30 2,836.00 1,025.00 1,916.15 12-25 12-28 12-30 12-31arrow_forwardIn comparing the canceled checks on the bank statement with the entries in the accounting records, Tanner Company found that check number 4239 for May's rent was correctly written and drawn for $6,750 but was erroneously entered in the accounting records as $6,570. When preparing the May bank reconciliation, the Tanner Company should: Select one: A. Add $180 to the book balance of cash B. Deduct $180 from the bank statement balance C. Add $180 to the bank statement balance D. Deduct $180 from the book balance of casharrow_forwardOn October 31, 2021, the bank statement for the checking account of Blockwood Video shows a balance of $12,751, while the company’s records show a balance of $12,381. Information that might be useful in preparing a bank reconciliation is as follows: a. Outstanding checks are $1,280. b. The October 31 cash receipts of $835 are not deposited in the bank until November 2. c. One check written in payment of utilities for $147 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $174.d. In accordance with prior authorization, the bank withdraws $560 directly from the checking account as payment on a note payable. The interest portion of that payment is $60 and the principal portion is $500. Blockwood has not recorded the direct withdrawal. e. Bank service fees of $34 are listed on the bank statement. f. A deposit of $577 is recorded by the bank on October 13, but it did not belong to Blockwood. The deposit should have been made to the checking account of…arrow_forward
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