College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 7, Problem 8SPA
1.
To determine
Prepare bank reconciliation as of October 31.
2.
To determine
Prepare
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Bank Reconciliation and Related Journal Entries
The book balance in the checking account of Lyle's Salon as of November 30 is $3,337.11. The bank statement shows an ending balance of $2,136.00. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, and noting the service charges and other debit and credit memos shown on the bank statement, the following were found:
An ATM withdrawal of $153.00 on November 18 by Lyle for personal use was not recorded on the books.
A bank debit memo issued for an NSF check from a customer of $19.40.
A bank credit memo issued for interest of $19.00 earned during the month.
On November 30, a deposit of $1,201.00 was made, which is not shown on the bank statement.
A bank debit memo issued for $18.00 for bank service charges.
Checks No. 549, 561, and 562 for the amounts of $167.00, $23.00, and $9.60, respectively, were written during November but have not yet been received by the bank.…
Bank Reconciliation and Related Journal Entries
The book balance in the checking account of Lyle's Salon as of November 30 is $3,282.95. The bank statement shows an ending balance of $2,127. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, and noting the service charges and other debit and credit memos shown on the bank statement, the following were found:
An ATM withdrawal of $150 on November 18 by Lyle for personal use was not recorded on the books.
A bank debit memo issued for an NSF check from a customer of $19.50.
A bank credit memo issued for interest of $19 earned during the month.
On November 30, a deposit of $1,177 was made, which is not shown on the bank statement.
A bank debit memo issued for $17.50 for bank service charges.
Checks No. 549, 561, and 562 for the amounts of $185, $21, and $9.40, respectively, were written during November but have not yet been received by the bank.
The reconciliation…
BANK RECONCILIATION AND RELATED JOURNAL ENTRIES
The book balance in the checking account of Lyle's Salon as of Novemeber 30 is $3,282.95. The bank statement shows an ending balance of $2,127. By examining last month's bank in novemeber and noting the service charges and other debit and credit memos shown on the bank statement, the following were found:
a) An ATM withdrawl of $150 on November 18 by Lyle for personal use was not recorded in the books
b) A bank debit memo issued for an NSF check from a customer of $19.50
c) A bank credit memo issued for interest of $19 earned during the month
d) on November 30, A deposit of 1,177 was made which is not shown on the bank statement.
e) A bank debit memo issued for $17.50 for bank service charges.
f) checks No. 549,561 and 562 for the amounts of $185, $21 and $9.40, respectively, were written during november but have not yet been received by the bank.
g) The reconciliation from the previous month showed outstanding checks totaling $271.95…
Chapter 7 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 7 - Prob. 1TFCh. 7 - Prob. 2TFCh. 7 - Prob. 3TFCh. 7 - Prob. 4TFCh. 7 - Prob. 5TFCh. 7 - Prob. 1MCCh. 7 - Prob. 2MCCh. 7 - Prob. 3MCCh. 7 - Prob. 4MCCh. 7 - When the cash short and over account has a debit...
Ch. 7 - Match the following words with their definitions...Ch. 7 - Prob. 2CECh. 7 - Prob. 3CECh. 7 - Prob. 4CECh. 7 - Why must a signature card be filled out and signed...Ch. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - What are the most common reasons for differences...Ch. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Name five common uses of electronic funds...Ch. 7 - Prob. 9RQCh. 7 - What should be prepared every time a petty cash...Ch. 7 - At what two times should the petty cash fund be...Ch. 7 - Prob. 12RQCh. 7 - At what two times would an entry be made affecting...Ch. 7 - What does a debit balance in the cash short and...Ch. 7 - CHECKING ACCOUNT TERMS Match the following words...Ch. 7 - Prob. 2SEACh. 7 - Prob. 3SEACh. 7 - Prob. 4SEACh. 7 - Prob. 5SEACh. 7 - Prob. 6SEACh. 7 - CASH SHORT AND OVER ENTRIES Based on the following...Ch. 7 - Prob. 8SPACh. 7 - Prob. 9SPACh. 7 - Prob. 10SPACh. 7 - Prob. 11SPACh. 7 - CHECKING ACCOUNT TERMS Match the following words...Ch. 7 - Prob. 2SEBCh. 7 - Prob. 3SEBCh. 7 - Prob. 4SEBCh. 7 - Prob. 5SEBCh. 7 - Prob. 6SEBCh. 7 - CASH SHORT AND OVER ENTRIES Based on the following...Ch. 7 - Prob. 8SPBCh. 7 - Prob. 9SPBCh. 7 - Prob. 10SPBCh. 7 - CASH SHORT AND OVER ENTRIES Listed below are the...Ch. 7 - Prob. 1MYWCh. 7 - Prob. 1MPCh. 7 - Prob. 1CP
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- The bank reconciliation shows the following adjustments. Deposits in transit: $1,698 Notes receivable collected by bank: $2,500; interest: $145 Outstanding checks: $987 Error by bank: $436 Bank charges: $70 Prepare the correcting journal entry.arrow_forwardUsing the following information, prepare a bank reconciliation. Bank balance: $4,021 Book balance: $2,928 Deposits in transit: $1,111 Outstanding checks: $679 Bank charges: $35 Notes receivable: $1,325; interest: $235arrow_forwardUsing the following information, prepare a bank reconciliation. Bank balance: $4,587 Book balance: $5,577 Deposits in transit: $1,546 Outstanding checks: $956 Interest income: $56 NSF check: $456arrow_forward
- The bank reconciliation shows the following adjustments. Deposits in transit: $526 Outstanding checks: $328 Bank charges: $55 NSF checks: $69 Prepare the correcting journal entry.arrow_forwardThe bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding checks: $558 Bank service charges: $50 NSF checks: $250 Prepare the correcting journal entry.arrow_forwardGENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 3 I. 4 5 7 8 69arrow_forward
- 1 Bank statement balance, November 30 2 (Label) 3 (Label) 4. 6. 7 (Label) 8 (Label) 6. 10 11 12 Adjusted bank balance 13 14 Book balance, November 30 15 (Label) 16arrow_forwardThe 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…arrow_forwardNeed help with this Questionarrow_forward
- Based on the following data, prepare a bank reconciliation for December of the current year: a. Balance according to the bank statement at December 31, $283,000.b. Balance according to the ledger at December 31, $245,410.c. Checks outstanding at December 31, $68,540.d. Deposit in transit, not recorded by bank, $29,500.e. Bank debit memo for service charges, $750.f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. Kornett CompanyBank ReconciliationDecember 31, 20Y8 choices: Bank svc chg; Cash balance according to bank stmt; Cash balance according to company's stmt; Cash; Petty cash $ choices: Add error in recording check; Add deposit in transit-not recorded by bank; Deduct error in recording check; Deduct deposit in transit-not recv'd by bank; Deduct bank svc chg choices: Add error in recording check; Add outstanding checks; Add bank svc chg; Deduct bank svc chg; Deduct outstanding checks Adjusted balance $…arrow_forwardIn the process of reconciling Marks Enterprises' bank statement for September, Mr. Marks compiles the following information: Cash balance per company books on September 30 $ 6,270 Deposits in transit at month-end $ 1,310 Outstanding checks at month-end $ 630 Bank charge for printing new checks $ 50 Note receivable and interest collected by bank on Marks' behalf $ 760 A check given to Marks during the month by a customer is returned by the bank as NSF $490. The adjusted cash balance per the books on September 30 is: a. $6,980. b. $6,490. c. $4,550. d. $5,830. e. $8,150.arrow_forwardBank Reconciliation statement to be preparedarrow_forward
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