Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 8, Problem 5AP
1)
To determine
To prepare a statement with monthly bank reconciliation dated September 30.
2)
To determine
To prepare a
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In comparing the processed checks on the bank statement with the entries in the accounting records, it is found that check number 2889 for December's utilities was correctly written and drawn for $970 but was erroneously entered in the accounting records as $790.
The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?
a) $970 increase to Cash and a $790 decrease to Utility Expense.
b) $180 increase to Cash and a $180 increase to Utility Expense.
c) $180 decrease to Cash and a $180 increase to Utility Expense.
d) $180 decrease to Cash and a $180 decrease to Utility Expense.
e) $180 increase to Cash and a $120 decrease to Utility Expense.
Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,045 and Number 5893 for $490. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.
Date
Description
Withdrawals
Deposits
Balance
September 1
$ 17,500
September 3
Check #5888
$ 1,045
$ 16,455
September 4
Check #5902
$ 791
$ 15,664
September 5
Cash deposit
$ 1,130
$ 16,794
September 7
Check #5901
$ 1,840
$ 14,954
September 12
Cash deposit
$ 2,258
$ 17,212
September 17
NSF check
$ 610
$ 16,602
September 20
Check #5905
$ 983
$ 15,619
September 21
Cash deposit
$ 4,291
$ 19,910
September 22
Check #5903
$ 378
$ 19,532
September 22
Check #5904
$ 2,131
$ 17,401
September 25
Cash deposit
$ 2,328
$ 19,729
September 28
Check #5907
$ 212
$ 19,517
September 29
Check #5909
$ 1,851
$ 17,666…
Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,045 and Number 5893 for $490. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.
Date
Description
Withdrawals
Deposits
Balance
September 1
$ 17,500
September 3
Check #5888
$ 1,045
$ 16,455
September 4
Check #5902
$ 791
$ 15,664
September 5
Cash deposit
$ 1,130
$ 16,794
September 7
Check #5901
$ 1,840
$ 14,954
September 12
Cash deposit
$ 2,258
$ 17,212
September 17
NSF check
$ 610
$ 16,602
September 20
Check #5905
$ 983
$ 15,619
September 21
Cash deposit
$ 4,291
$ 19,910
September 22
Check #5903
$ 378
$ 19,532
September 22
Check #5904
$ 2,131
$ 17,401
September 25
Cash deposit
$ 2,328
$ 19,729
September 28
Check #5907
$ 212
$ 19,517
September 29
Check #5909
$ 1,851
$ 17,666…
Chapter 8 Solutions
Principles of Financial Accounting.
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQ
Ch. 8 - Which of the following assetsinventory, building,...Ch. 8 - What is a petty cash receipt? Who should sign it?Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 1QSCh. 8 - COSO internal control components C1 COSO lists...Ch. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Prob. 11QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 1APCh. 8 - Prob. 2APCh. 8 - Prob. 3APCh. 8 - Prob. 4APCh. 8 - Prob. 5APCh. 8 - Prob. 1BPCh. 8 - Prob. 2BPCh. 8 - Prob. 3BPCh. 8 - Prob. 4BPCh. 8 - Prob. 8SPCh. 8 - Prob. 1AACh. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Review the opening feature of this chapter that...Ch. 8 - Prob. 6BTN
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- The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?arrow_forwardThe cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $82,726. The bank statement indicated a balance of $128,040 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. A. Checks outstanding totaled $34,090. B. A deposit of $18,430, representing receipts of June 30, had been made too late to appear on the bank statement. C. The bank collected $31,779 on a $29,700 note, including interest of $2,079. D. A check for $1,900 returned with the statement had been incorrectly recorded by Pala Medical Co. as $190. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. E. A check…arrow_forwardThe following information applies to the questions displayed below.] Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,040 and Number 5893 for $493. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation. Date Description Withdrawals Deposits Balance September 1 $ 17,000 September 3 Check #5888 $ 1,040 $ 15,960 September 4 Check #5902 $ 742 $ 15,218 September 5 Cash deposit $ 1,112 $ 16,330 September 7 Check #5901 $ 1,849 $ 14,481 September 12 Cash deposit $ 2,250 $ 16,731 September 17 NSF check $ 627 $ 16,104 September 20 Check #5905 $ 993 $ 15,111 September 21 Cash deposit $ 4,067 $ 19,178 September 22 Check #5903 $ 399 $ 18,779 September 22 Check #5904 $ 2,093 $ 16,686 September 25 Cash deposit $ 2,398 $ 19,084 September 28 Check #5907 $…arrow_forward
- Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,040 and Number 5893 for $493. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation. Date Description Withdrawals Deposits Balance September 1 $ 17,000 September 3 Check #5888 $ 1,040 $ 15,960 September 4 Check #5902 $ 742 $ 15,218 September 5 Cash deposit $ 1,112 $ 16,330 September 7 Check #5901 $ 1,849 $ 14,481 September 12 Cash deposit $ 2,250 $ 16,731 September 17 NSF check $ 627 $ 16,104 September 20 Check #5905 $ 993 $ 15,111 September 21 Cash deposit $ 4,067 $ 19,178 September 22 Check #5903 $ 399 $ 18,779 September 22 Check #5904 $ 2,093 $ 16,686 September 25 Cash deposit $ 2,398 $ 19,084 September 28 Check #5907 $ 256 $ 18,828 September 29 Check #5909 $ 1,858 $ 16,970…arrow_forwardRequired information [The following information applies to the questions displayed below.] Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,030 and Number 5893 for $498. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation. Withdrawals Deposits $ 1,030 $736 Date September 1 September 3 September 4 September 5 September 7 September 12 September 17 September 20 September 21 September 22 September 22 September 25 September 28 September 29 September 30 Collected note September 30 Interest earned. From Chavez Company's Accounting Records Cash Receipts Deposited Date September 5 September 12 September 21 September 25 September 30 Check Numb Description Check # 5888 Check # 5902 Cash deposit Check # 5901 Cash deposit NSF check Check #5905 Cash deposit Check #5903 Check #5904 Cash deposit Check #5907 Check…arrow_forwardRequired Information [The following Information applies to the questions displayed below.] Chavez Company most recently reconciled Its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,028.05 and No. 5893 for $494.25. The following Information Is avallable for Its September 30 reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 16,8ee.45 9,620.es 18,453.25 11,272.85 CHECKS AND DEBITS DEPOSITS AND CREDITS Date Аmount Date No. Amount e9/03 5888 1,028.e5 719.90 09/05 1,103.75 2,226.90 4,e93.ee 09/04 5902 e9/12 09/07 5901 e9/21 1,824.25 09/17 6ee.25 NSF e9/25 2,351.70 e9/20 5905 937.80 e9/30 12.50 IN e9/22 5903 399.10 09/30 1,485.e0 CM 09/22 5984 2,e90.ee e9/28 5907 213.85 09/29 5909 1,807.65 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Debit Date Sep. 5 1,103.7 2,226.90 4,e93.ee 2,351.70 1,682.75 12 21 25 30 11,458.10…arrow_forward
- Want the Correct answer of this Questionarrow_forwardThe bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized): Balance, April 1, Current Year BANK STATEMENT Deposits during April Interest collected Checks cleared during April NSF check-A. B. Wright Bank service charges Balance, April 30, Current Year Checks Deposits Balance $32,500 $37,300 69,800 1,350 71,150 $44,500 300 70 26,650 26,350 26,280 26,280 Cash (A) Debit Credit April 1 Balance April Deposits 24,300 42,400 April Checks written 42,600 A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $6,300 (including $4,400 written before and $1,900 written during April). No deposits in transit were carried over from March,…arrow_forwardThe books of CovidCompany disclosed a cash balance of P691,720 on June 30. The bank statement as of June 30 showed a balance of P556,800. Additional information that might be useful in reconciling the two balances follows: 1.Check No. 128 for P13,000 was erroneously recorded in the check register as P30,000. 2.A customer’s note dated March 31 was discounted on April 12. The note was dishonored on June 29 (maturity date). The bank charged Covid’s account for P142,650, which includes a protest fee of P420. 3.The deposit of June 24 was recorded on the books as P28,950 but it was actually a deposit of P29,850. 4.Outstanding checks totaled P98,850 as of June 30. 5.There were bank service charges for June of P2,100 not yet recorded on the books. 6.Covid’s account had been charged on June 26 for a customer’s NSF check for P12,960. 7.Covid properly deposited P6,000 on June 30 that was not recorded by the bank. 8.Receipts of June 30 for P134,250 were recorded by the bank on July 2. 9.A bank…arrow_forward
- Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,056 and No. 5893 for $498. The following information is available for its September 30, 2017, reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 18,500 9,829 11,701 20,372 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 09/05 09/12 09/21 1,056 1,185 2,223 4,272 2,368 09/04 5902 708 09/07 09/17 5901 1,818 09/25 09/30 09/30 666NSF 09/20 5905 917 21IN 09/22 5903 437 1,632CM 09/22 5904 2,127 09/28 5907 221 09/29 5909 1,879 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 12 1,185 2,223 4,272 2,368 1,767 21 25 30 11,815 Cash Disbursements Cash Check No. Credit 1,818 708 5901 5902 5903 437 5904 2,088 5905 917 5906 1,048 5907 221 5908 441 5909 1,879arrow_forwardChavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,056 and No. 5893 for $498. The following information is available for its September 30, 2017, reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 18,500 9,829 11,701 20,372 CHECKS AND DEBITS Date DEPOSITS AND CREDITS No. Amount Date Amount 09/03 5888 1,056 09/05 09/12 09/21 09/25 09/30 09/30 1,185 2,223 4,272 2,368 09/04 5902 708 09/07 09/17 5901 1,818 666NSF 09/20 5905 917 21IN 09/22 5903 437 1,632CM 09/22 09/28 09/29 5904 2,127 5907 221 5909 1,879 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,185 12 2,223 21 4,272 25 2,368 30 1,767 11,815 Cash Disbursements Cash Credit Check No. 5901 1,818 5902 708 5903 437 5904 2,088 5905 917 5906 1,048 5907 221 5908 441 5909 1,879 %24arrow_forwardUse the following information for the next two (2) questions: The books of Coach Company disclosed a cash balance P691,720 on June 30. The bank statement as of June 30 showed a balance of P556,800. Additional information that might be useful in reconciling the two balances follows: (a) Check No. 128 for P13,000 was erroneously recorded in the check register as P30,000. (b) A customer's note dated March 31 was discounted on April 12. The note was dishonored on June 29 (maturity date). The bank charged Coach's account for P142,650, which includes a protest fee of P420. (c) The deposit of June 24 was recorded on the books as P28,950 but it was actually a deposit of P29,850. (d) Outstanding checks totaled P98,850 as of June 30. (e) There were bank service charges for June of P2,100 not yet recorded on the books. (f) Coach's account had been charged on June 26 for a customer's NSF check for P12,960. (g) Coach properly deposited P6,000 on June 30 that was not recorded by the bank. (h)…arrow_forward
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