Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 8, Problem 3PA
(a)
To determine
Bank reconciliation of Company AM as at April 30.
(b)
To determine
Prepare
(c)
To determine
Report amount of cash in the
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The cash account for American Medical Co. at April 30 indicated a balance of $84,457. The bank statement indicated a balance of $127,190 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
A.
Checks outstanding totaled $33,310.
B.
A deposit of $17,610, representing receipts of April 30, had been made too late to appear on the bank statement.
C.
The bank collected $28,248 on a $26,400 note, including interest of $1,848.
D.
A check for $1,100 returned with the statement had been incorrectly recorded by American Medical Co. as $110. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
E.
A check drawn for $680 had been erroneously charged by the bank as $860.
F.
Bank service charges for April amounted to $45.
Instructions
1.
Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording…
The cash account for American Medical Co. at April 30 indicated a balance of $84,457. The bank statement indicated a balance of $127,190 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
A.
Checks outstanding totaled $33,310.
B.
A deposit of $17,610, representing receipts of April 30, had been made too late to appear on the bank statement.
C.
The bank collected $28,248 on a $26,400 note, including interest of $1,848.
D.
A check for $1,100 returned with the statement had been incorrectly recorded by American Medical Co. as $110. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
E.
A check drawn for $680 had been erroneously charged by the bank as $860.
F.
Bank service charges for April amounted to $45.
Instructions
1.
Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording…
The cash account for American Medical Co. at April 30 indicated a balance of $93,115. The bank statement indicated a balance of $125,800 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
A.
Checks outstanding totaled $30,060.
B.
A deposit of $19,240, representing receipts of April 30, had been made too late to appear on the bank statement.
C.
The bank collected $24,075 on a $22,500 note, including interest of $1,575.
D.
A check for $1,800 returned with the statement had been incorrectly recorded by American Medical Co. as $180. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
E.
A check drawn for $390 had been erroneously charged by the bank as $930.
F.
Bank service charges for April amounted to $50.
Instructions
1.
Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording…
Chapter 8 Solutions
Financial Accounting
Ch. 8 - Prob. 1DQCh. 8 - Why should the employee who handles cash receipts...Ch. 8 - Prob. 3DQCh. 8 - Why should the responsibility for maintaining the...Ch. 8 - Assume that Brooke Miles, accounts payable clerk...Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 1PEACh. 8 - Prob. 1PEBCh. 8 - Prob. 2PEACh. 8 - Prob. 2PEBCh. 8 - Prob. 3PEACh. 8 - Prob. 3PEBCh. 8 - Prob. 4PEACh. 8 - Prob. 4PEBCh. 8 - Financial data for Otto Company follow: a....Ch. 8 - Prob. 5PEBCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Pacific Bank provides loans to businesses in the...Ch. 8 - Prob. 5ECh. 8 - An employee of JHT Holdings, Inc., a trucking...Ch. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - The actual cash received from cash sales was...Ch. 8 - The actual cash received from cash sales was...Ch. 8 - Abbe Co. is a small merchandising company with a...Ch. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Prob. 24ECh. 8 - Mattel, Inc., designs, manufactures, and markets...Ch. 8 - El Dorado Inc. has monthly cash expenses of...Ch. 8 - Prob. 27ECh. 8 - Amicus Therapeutics, Inc., is a biopharmaceutical...Ch. 8 - Prob. 1PACh. 8 - Prob. 2PACh. 8 - Prob. 3PACh. 8 - Prob. 4PACh. 8 - Prob. 5PACh. 8 - Prob. 1PBCh. 8 - Prob. 2PBCh. 8 - Prob. 3PBCh. 8 - Prob. 4PBCh. 8 - Prob. 5PBCh. 8 - Tehra Dactyl is an accountant for Skeds, Inc., a...Ch. 8 - During the preparation of the bank reconciliation...Ch. 8 - Prob. 5CPCh. 8 - Prob. 6CPCh. 8 - Prob. 7CPCh. 8 - Prob. 8CPCh. 8 - Prob. 9CP
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- The cash account for Norwegian Medical Co. at April 30 indicated a balance of $91,408. The bank statement indicated a balance of $126,590 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $33,700. b. A deposit of $18,900, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $22,042 on a $20,600 note, including interest of $1,442. d. A check for $1,600 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $160. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $680 had been erroneously charged by the bank as $860. f. Bank service charges for April amounted to $40. need bank reconciliation journal entry If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount…arrow_forwardThe cash account for Norwegian Medical Co. at April 30 indicated a balance of $89,775. The bank statement indicated a balance of $125,160 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $31,540. b. A deposit of $18,000, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $24,075 on a $22,500 note, including interest of $1,575. d. A check for $1,700 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $170. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $290 had been erroneously charged by the bank as $920. f. Bank service charges for April amounted to $70. Required: 1. Prepare a bank reconciliation. Be sure to complete the statement heading. 2. Journalize the…arrow_forwardThe cash account for Norwegian Medical Co. at April 30 indicated a balance of $89,775. The bank statement indicated a balance of $125,160 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $31,540. b. A deposit of $18,000, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $24,075 on a $22,500 note, including interest of $1,575. d. A check for $1,700 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $170. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $290 had been erroneously charged by the bank as $920. f. Bank service charges for April amounted to $70. Required: 1. Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and…arrow_forward
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