A. Prepare bank reconciliation of M Co.

Question

The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company’s records at July 31, $32,110. 2. Cash balance according to the bank statement at July 31, $31,350. 3. Checks outstanding, $2,870. 4. Deposit in transit, not recorded by bank, $4,150. 5. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 6. Bank debit memo for service charges, $20. Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Question

Chapter 8, Problem 18E

To determine

A.

Prepare bank reconciliation of M Co.

(b)

To determine

Determine the amount of cash to be reported on the balance sheet of M Co.

(c)

To determine

Explain whether bank reconciliation needs to always balance.

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The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company’s records at July 31, $32,110. 2. Cash balance according to the bank statement at July 31, $31,350. 3. Checks outstanding, $2,870. 4. Deposit in transit, not recorded by bank, $4,150. 5. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 6. Bank debit memo for service charges, $20. Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company’s records at July 31, $18,257. 2. Cash balance according to the bank statement at July 31, $27,261. 3. Checks outstanding, $14,624. 4. Deposit in transit, not recorded by bank, $6,131. 5. A check for $58 in payment of an account was erroneously recorded in the check register as $580. 6. Bank debit memo for service charges, $11. Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSMathers Co.General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194…

The following data were accumulated for use in reconciling the bank account for Mathers Co. For July: 1. Cash balance according to the company's record at July 31, $25,470. 2. Cash balance according to the bank statement at July 31, $26,890. 3. Checks outstanding, $5,170. 4. Deposit in transit, not record it by bank, $4,150. 5.a check for a $270 and payment of an account was erroneously recorded in the check register at $720. 6. Bank debit memo for service charges, $50. Journalize the entries that should be made up by the company, part (a )error and part ( b) service charge A. July 31 _______ _______ B. July 31 ______ _____