College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 7, Problem 9SPA
1.
To determine
Prepare bank reconciliation as of November 30.
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
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: $3,678 Book balance: $2,547 Deposits in transit: $321 Outstanding checks: $108 and $334 Bank charges: $25 Notes receivable: $1,000; interest: $35arrow_forwardAt November 30, One Day Cleaners has available the following data concerning its bank checking account: PROBLEM 7A-2 Preparing a Bank Reconcil- 1 At November 30, cash per the bank statement was $37,758; per the accounting records, $42,500. lation 2 The cash receipts of $6,244 on November 30 were deposited on December 1. 3 Included on the bank statement was a credit for $167 interest earned on this checking account during November. 4 Two checks were outstanding at November 30: no. 921 for $964 and no. 925 for $1,085. 5 Enclosed with the bank statement were two debit memoranda for the following items: service charge for November, $14; and a $700 check of customer Tanya Miller, marked "NSF." INSTRUCTIONS a Prepare a bank reconciliation at November 30. b Prepare adjusting entries (in general journal form) based on the bank reconcili- ation.arrow_forward
- GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 3 I. 4 5 7 8 69arrow_forward1 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_forwardNeed help with this Questionarrow_forward
- 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…arrow_forwardComplete a Bank Reconciliation for the following: On March 31st the checkbook balance of Dust Bunnies Cleaning Co. was $2,568. The bank statement was $3,254.50. Checks outstanding were $2,788. The statement revealed a deposit in transit of $2,125 as well as a bank service charge of $11.50. The company earned interest income of $35.00. Complete a bank reconciliation for Dust Bunnies Cleaning Co.arrow_forwardBefore reconciling its bank statement, Rollin Corporation's general ledger had a month-end balance in the cash account of $5.750. The bank reconciliation for the month contained the following items: Deposits in transit Outstanding checks Interest earned NSF check returned to bank Bank service charge Given the above information, what is the up-to-date ending cash balance Rollin should report at month-end? Multiple Choice $4,980. O $5,300. $ 770 495 20 120 20 $5,630.arrow_forward
- Please provide Solutions with Correct Answerarrow_forwardBased 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_forwardWhen a company's bookkeeper started to prepare the monthly bank reconciliation, the cash account showed a balance of P528,600. At the end of the month, the following information was available from the company records and the monthly bank statement: (1) Customer NSF checks listed on the bank statement - 40,800 (2) Bank service charges listed on the bank statement - 2,400 (3) Checks outstanding at the end of the month, determined by the bookkeeper - 178,000 (4) A deposit for P45,000 was recorded incorrectly on the bank statement as - 54,000 (5) The company wrote a check for P1,700 (the correct amount) but recorded it in the cash account as - 7,100 (6) Customer defaults on accounts receivable were determined by the bookkeeper to be - 12,600 The correct cash balance shown on the bank reconciliation should be:arrow_forward
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