Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 8, Problem 4PA
(1)
To determine
Prepare bank reconciliation of Company BB as at May 31.
(3)
To determine
Report amount of cash in the
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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks
written totaled $138,880. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the canceled checks, and the
accompanying memos with the records revealed the following reconciling items:
A. Checks outstanding totaled $6,440.
B. A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement.
C. The bank had collected for Brentwood Bike Co. $5,250 on a note left for collection. The face of the note was $5,000.
D. A check for $390 returned with the statement had been incorrectly charged by the bank as $930.
E. A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an
obligation to Adkins Co. on account.
F. Bank service charges for May amounted to $30.
G. A check for $1,325 from Jennings Co. was…
The cash account for Highlander Diamond Co. on April 1, 20Y5, indicated a balance of $35,400. During April, the total cash deposited was $120,255, and checks written totaled $109,200. The bank statement
30, 20Y5. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $21,450.
b. A deposit of $13,913, representing receipts of April 30, had been made too late to appear on the bank statement.
c. A check for $710 had been incorrectly charged by the bank as $170.
d. A check for $220 returned with the statement had been recorded by Highlander Diamond Co. as $2.200. The check was for the payment of an obligation to Dirt Dog Inc. on account.
e. The bank had collected for Highlander Diamond $6,480 on a note left for collection. The face of the note was $6,000.
f. Bank service charges for April amounted to $115.
g. A check for $1,950 from Fly Ball Co. was returned by the bank because…
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $32,527. During October, the total cash deposited was $139,121, and checks written totaled $135,890. The bank statement indicated a balance of $43,660 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
a.
Checks outstanding totaled $6,625.
b.
A deposit of $1,888 representing receipts of October 31, had been made too late to appear on the bank statement.
c.
The bank had collected for Coastal Bike Co. $5,250 on a note left for collection. The face of the note was $5,000.
d.
A check for $260 returned with the statement had been incorrectly charged by the bank as $620.
e.
A check for $410 returned with the statement had been recorded by Coastal Bike Co. as $140. The check was for the payment of an obligation to Rack Pro Co. on account.
f.
Bank service charges for October amounted to $37.…
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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- Using the following information, prepare a bank reconciliation. Bank balance: $12,565. Book balance: $13,744. Deposits in transit: $2,509. Outstanding checks: $1,777. Bank charges: $125. Bank incorrectly charged the account for $412. The bank will correct the error next month. Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.arrow_forwardThe cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $34,800. During October, the total cash deposited was $139,523, and checks written totaled $138,774. The bank statement indicated a balance of $43,875 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $6,340. b. A deposit of $1,643 representing receipts of October 31 had been made too late to appear on the bank statement. c. The bank had collected for Coastal Bike Co. $5,565 on a note left for collection. The face of the note was $5,300. d. A check for $260 returned with the statement had been incorrectly charged by the bank as $620. e. A check for $210 returned with the statement had been recorded by Coastal Bike Co. as $120. The check was for the payment of an obligation to Rack Pro Co. on account. f. Bank service charges for October amounted to $22. g.…arrow_forwardThe cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,360. During May, the total cash deposited was $67,250 and checks written totaled $62,440. The bank statement indicated a balance of $22,800 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $10,150. A deposit of $8,270, representing receipts of May 31, had been made too late to appear on the bank statement. The bank had collected for Brentwood Bike Co. $4,370 on a note left for collection. The face of the note was $4,040. A check for $580 returned with the statement had been incorrectly charged by the bank as $850. A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. The check was for the payment of an obligation to Adkins Co. on account. Bank service charges for May amounted to $70. A check for $1,010 from Jennings Co. was returned by the bank…arrow_forward
- The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: A. Checks outstanding totaled $5,560. B. A deposit of $1,050 representing receipts of October 31, had been made too late to appear on the bank statement. C. The bank had collected for Coastal Bike Co. $2,120 on a note left for collection. The face of the note was $2,000. D. A check for $370 returned with the statement had been incorrectly charged by the bank as $730. E. A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $25. G. A…arrow_forwardThe cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $5,560. b. A deposit of $1,050 representing receipts of October 31, had been made too late to appear on the bank statement. c. The bank had collected for Coastal Bike Co. $2,120 on a note left for collection. The face of the note was $2,000. d. A check for $370 returned with the statement had been incorrectly charged by the bank as $730. c. A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account. e. Bank service charges for October amounted to $25. f. A…arrow_forwardThe cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $5,560. b. A deposit of $1,050 representing receipts of October 31, had been made too late to appear on the bank statement. c. The bank had collected for Coastal Bike Co. $2,120 on a note left for collection. The face of the note was $2,000. d. A check for $370 returned with the statement had been incorrectly charged by the bank as $730. c. A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account. e. Bank service charges for October amounted to $25. f. A…arrow_forward
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